Billerud: Continued strong performance in the US, while Europe remains challenging

Billerud recorded another strong quarter in North America, where favourable market dynamics and increasing customer interest following the US import tariffs supported growth. In contrast, the European operations continued to face difficult conditions due to muted packaging demand, cost inflation and structural overcapacity in board grades.

The Group reported third-quarter net sales of EUR 906 million, down 8% year-on-year, negatively affected by currency movements. On a currency-neutral basis, sales declined by 4%, reflecting lower volumes and prices in some categories. Adjusted EBITDA reached EUR 97 million, corresponding to a margin of 11% (14). Production was curtailed in both regions to balance supply with demand, and maintenance shutdowns at the Gävle, Karlsborg and Escanaba mills impacted costs by approximately EUR 33 million.

Regional performance

In North America, local production remains a key competitive strength, ensuring high-quality products with short and predictable lead times. Currency-neutral net sales increased by 4%, and the EBITDA margin reached 16%. Demand for graphic and label papers remained strong, and the company reported growing customer interest in its new packaging materials, Tribute® and Voyager™, which have seen accelerating deliveries from the Upper Michigan mills.

In Europe, market conditions remained weak across all product segments except market pulp. The board sector continued to suffer from overcapacity and declining demand. Maintenance stops and higher fixed costs further weighed on performance, leading to an EBITDA margin of 10% for the quarter.

Strategic focus and cost measures

To address the European downturn, Billerud has intensified its cost-saving efforts and efficiency initiatives. The cost reduction programme announced in September 2025 targets EUR 73 million in annual savings, with a visible positive impact expected from the first quarter of 2026 and full effect by the end of that year. The plan involves up to 650 job reductions across functions and sites in Europe and at Group level.

The company continues to focus on simplification, automation and innovation. During the quarter, Billerud launched two new cartonboard grades: CrownBoard Light, a lightweight board with inherent wet-strength ideal for chilled and moist environments, and CrownBoard Carry, designed for strong, tear-resistant packaging such as beverage multipacks.

Operational highlights

Progress continued in the Escanaba woodyard modernisation project, part of the company’s Evolution programme. The upgrade, completed in October 2025, introduces new debarking technology and improved conveyor systems, enhancing safety, chip quality, capacity and sustainability.

The company also established a new Global Innovation, Product & Application Development function, which will be led by Anna Jonhed, appointed Vice President Global Innovation effective March 2026. Leadership changes included Tor Lundqvist rejoining as SVP Operations Europe, while Sofia Hedevåg was appointed EVP Sustainability & Public Affairs, effective December 2025.

Outlook

For the fourth quarter, Billerud expects continued strong performance in North America, while Europe remains under pressure, particularly in board grades. Input costs are expected to remain stable overall, with falling pulpwood prices in the Nordics offset by seasonally higher energy costs. The company anticipates that declining wood costs will provide significant relief in 2026.

President and CEO Ivar Vatne stated that Billerud will remain firm on its strategy to strengthen its packaging materials business in the US while improving competitiveness in Europe. “By staying focused, agile and accelerating progress in areas we can control, Billerud will be more competitive and well positioned when the market recovers,” he commented.