Billerud (BILL) Q1 2025 earnings summary

Executive summary

• Net sales grew 7% year-over-year to SEK 11,101 million, with strong profitability and improved cash flow driven by North America and Europe, despite FX headwinds.

• EBITDA increased 19% and EBIT rose 42% year-over-year, with margin improvements in both regions.

• North America delivered 15% sales growth, record sales volumes, and a 21% EBITDA margin; Europe improved to a 15% EBITDA margin.

• Cash flow from operating activities rose to SEK 573 million, and net profit increased 33% year-over-year to SEK 415 million.

• First commercial sale of US-produced containerboard (Tribute® coated liner) achieved, with ongoing customer trials.

Financial highlights

• Adjusted EBITDA up 19% year-over-year to SEK 1,388 million, margin at 13% (up 2 ppt); EBIT up 42% to SEK 638 million, margin at 6%.

• EPS of SEK 1.67, up 33% year-over-year; operating cash flow before capex at SEK 573 million, up 194% year-over-year.

• Cash conversion improved to 41% (from 17%); net debt/adjusted EBITDA at 1.0x, down from 1.9x.

• Return on capital employed (ROCE) at 7% (up from 1%); adjusted ROCE at 7–8%.

• Revaluation of receivables/payables due to FX had a negative SEK 160 million one-off impact in Q1.

Outlook and guidance

• Q2 expected to see stable market conditions, solid order books, and more or less unchanged demand in North America; normal conditions in Europe except for continued weakness in coated liner and cartonboard.

• Price increases of up to 5% on coated free sheet reels in North America and $80/ton on pulp to impact Q2; input cost tailwinds expected mainly from lower energy prices in Europe.

• Q2 will have heavy maintenance in Europe, with a SEK 230–380 million cost impact; wage increases to raise employee benefit costs by SEK 60–80 million.

• Capex guidance unchanged at SEK 3.5 billion for 2025.

• Macroeconomic and trade tariff uncertainties may delay European market recovery.