Key highlights

·    Currency-neutral sales decline of 14%, mainly driven by lower board sales in Europe and Asia

·    Another excellent profitability delivery in North America

·    Lower earnings in Europe due to continued weak demand and oversupply

·    Cost saving measures and reduced investments  

·    Acceleration of Nordic pulpwood price decreases

·    The Board of Directors proposes a dividend of SEK 2.00 per share (3.50)

Quarterly data

·    Net sales decreased by 19% to SEK 9,238 million (11,468)

·    Adjusted EBITDA* SEK 818 million (1,443)

·    Adjusted EBITDA margin* 9% (13)

·    Operating profit SEK 395 million (1,091) including items impacting comparability of SEK 272 million (373)

·    Net profit SEK 304 million (806)

·    Earnings per share SEK 1.22 (3.24)

Outlook for Q1

·    Sustained solid performance in North America

·    Continued weak market conditions in Europe and Asia with negative pricing impact

·    Lower pulpwood costs

·    Loss of free emission rights and sequentially higher planned maintenance costs

Comments by the CEO

As expected, our Q4 result was challenging, and we still met different market realities in our two regions. The volume development was a disappointment, mainly driven by continued weak market conditions for board in Europe and Asia. Meanwhile, market conditions remained more favorable in the US. Our North American region delivered yet another strong quarter with a 20% EBITDA margin.

For full year 2025, our Region North America continued its excellent performance and recorded strong financials. The North American financial results have been consistently excellent since the acquisition in Q2 2022 and contributed about half of the Group's EBITDA for 2025 with one third of total net sales. For Region Europe, after a strong start in Q1 2025, it became clear towards the summer that demand remained muted, and oversupply intensified during the year. During the second half of 2025, we lost liquid packaging board volumes, mainly due to intensified competition in Asia. However, our liquid packaging business remains healthy and will continue to be one of our flagship categories.

In line with our focus on items within our control, we took swift action to strengthen our competitiveness and launched a sizable cost saving program. Our relentless focus on working capital discipline paid off and enabled a significantly improved cash flow conversion in line with our target. The Board of Directors proposes a dividend of SEK 2.00 per share, corresponding to 70% of the net profit. Also, our key sustainability targets were reached, with a reduced lost time injury frequency rate and lower carbon dioxide emissions in line with our targets.

In North America, we remain well positioned as the local partner, delivering strong value to our customers through high-quality products, reliability and predictability. Our value proposition has strengthened post the introduction of US tariffs. The US economy has remained more positive and provided opportunities to grow. We continue to excel in our biggest category, graphic paper, while getting more traction on our key priority to evolve our portfolio towards packaging materials. During 2025, we have built a solid foundation by advancing qualifications of coated kraftliner and cartonboard with both new and existing customers. We have also executed on the first stage of our investment program by completing the upgrade of the Escanaba woodyard successfully on time and within budget. Our success in North America over the past years has increased our confidence and our ambition to further grow in the region.

In Europe, the entire packaging industry is facing unparallelled headwinds with muted consumer demand, ample supply and elevated input cost levels. We would expect capacity rationalization to intensify, restoring a healthier market balance. We stay firm in our strategic direction to strengthen competitiveness through operational excellence, be the preferred customer choice, offer outstanding products and improve our cost position.

In terms of market conditions for the first quarter of 2026, we don't see any significant changes. We anticipate continued solid performance in North America. In Europe, the weak market conditions are expected to remain as the supply and demand situation continues to be imbalanced. We expect negative sequential pricing impact but with a slight positive volume impact. For liquid packaging board, we have secured volumes for 2026 in line with 2025.

Nordic pulpwood prices have so far fallen by around 20% from their peak levels in the second quarter of 2025. We expect this favorable trend to accelerate further during 2026 in the wake of the storms that hit Sweden around the year-end which further improved wood availability in the vicinity of our production facilities.

From Q2 we expect acceleration of lower pulpwood costs in the Nordics and sequentially increased fixed cost savings from our cost saving program.

Based on changed market conditions and a lengthy environmental permit process, we have decided to exit our joint venture with Viken Skog AS to build a bleached chemi-thermomechanical pulp (BCTMP) site in Follum, Norway. Our collaboration with Viken has been good and we will continue to build on our strong relationship. 

With today's geopolitical and trade uncertainties, Billerud is well placed with strong positions and local production in both Europe and North America. Our strong financial position, broad product portfolio and asset flexibility give us options for further development of our global position. Our key priorities for 2026 are to strengthen performance in Europe from our existing asset base and to advance our evolution towards packaging materials in North America.

By staying focused, acting with agility, and accelerating progress in areas within our control, we are strengthening Billerud's competitiveness. I am confident that we will navigate this challenging period and come out stronger.

Ivar Vatne
President and CEO

Fourth quarter

Sales and results

Net sales for the fourth quarter decreased by 19% to SEK 9,238 million (11,468), negatively impacted by currency changes. The currency-neutral net sales declined by 14% compared with the fourth quarter last year, mainly due to lower sales volumes but also due to unfavorable price and mix changes. The Group's sales volumes were 826 ktons (940) and the volume decline was primarily related to board materials. Production was curtailed in both regions to adjust to current demand situation.

Adjusted EBITDA amounted to SEK 818 million (1,443), corresponding to a margin of 9% (13). The lower result was mainly due to lower sales volumes, negative currency effects and lower sales prices. The cost impact of maintenance stops during the period was SEK 96 million (109). 

The net result from emission rights had a positive impact of SEK 141 million in the fourth quarter of 2025 (135). Billerud will not receive any emission rights from 2026 and onwards.

Items classified as affecting comparability in the fourth quarter, reported under Other, amounted to SEK 272 million (373) and were related to a positive result of the revaluation of biological assets in the associated company BSÖ Holding AB Group. Items classified as affecting comparability in the fourth quarter of 2024 were costs for the US transformation program of SEK 89 million, positive result effects from two transfers of pension obligations and related assets in the US of SEK 389 million, released provisions for restructuring costs related to personnel reductions of SEK 58 million, and a positive result of revaluation of biological assets in the associated company BSÖ Holding AB Group of SEK 15 million.
 

Market development and outlook

In the fourth quarter of 2025, market conditions were weak and prices decreased for most products in Region Europe. There was oversupply of board materials in Europe and the high competition for liquid packaging board in Asia remained. The demand for sack and kraft paper was muted. In North America, market conditions for graphic and label papers were at normal levels. Billerud implemented price increases on graphic paper, while the market price for pulp declined.

For the first quarter of 2026, Billerud expects continued weak market conditions for Region Europe, with muted demand and high competition. Sales prices are expected to decrease for most product categories and sales volumes are expected to increase slightly. For Region North America, Billerud anticipates a sustained solid performance under normal market conditions and improved pricing for market pulp. Input costs are expected to decrease, mainly driven by lower Nordic pulpwood prices.
 

Events in the quarter

On 14 November, Billerud announced that its long-term target of achieving net zero greenhouse gas emissions by 2050 had been approved by the Science Based Targets initiative. This ambition complements Billerud's previously approved Science Based Targets for 2030 and entails a 90% reduction in greenhouse gas emissions from the company's operations and value chain.

In November, a milestone was reached in Billerud's project to harmonize processes and implement a new global digital platform (ERP system) at the Gävle mill.

Billerud announced a planned installation of a new headbox at PM6 at the Gruvön mill, which will elevate Billerud's fluting to new levels of strength, quality consistency and performance. The next generation of Billerud Flute® will be launched during the second half of 2026.

On 1 December, Sofia Hedevåg assumed the position as EVP Sustainability & Public Affairs and member of the Group management team.

Billerud applied to the Swedish Financial Supervisory Authority to establish a reinsurance captive company, to enable increased flexibility in insurance of property related risks.
 

Events after the quarter

On 29 January, Billerud decided to withdraw from the joint venture formed in 2022 together with Viken Skog AS to establish bleached chemi-thermomechanical pulp (BCTMP) production at Viken Skog's facility in Follum, Norway. The reason for the decision is the lengthy environmental permit process and changed market conditions. The exit from the joint venture is estimated to have a non-cash result impact of around SEK -50 million in the first quarter of 2026, which will be reported as an item affecting comparability.

* For key figures and a reconciliation of alternative performance measures including adjusted EBITDA, adjusted operating profit, adjusted EBITDA margin, adjusted operating profit margin, adjusted ROCE and interest-bearing net debt/adjusted EBITDA, see pages 14-16.
 

For further information:

Andrei Krés, CFO, +46 8 553 335 72
Lena Schattauer, Director Investor Relations, +46 8 553 335 10
ir@billerud.com

This information constituted inside information prior to publication. This is information that Billerud AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 07.00 CET on 30 January 2026.