Billerud (BILL) Q2 2026 earnings summary

Executive summary

• Q2 2026 saw sequential profitability improvement, driven by pricing actions, cost savings, and portfolio adjustments, with strong North American sales and improved European profitability despite challenging conditions.

• Decisive actions on pricing, cost reductions, and a more profitable mix yielded a 97% cash conversion in Q2.

• SEK 150 million in cost savings delivered in Q2 as part of a program targeting SEK 550 million in 2026 and SEK 800 million annualized by 2027.

• Leaner organization and simplified processes implemented in Q2.

• Strategic focus on expanding packaging materials in North America, with selective CapEx investments planned for Q3.

Financial highlights

• Q2 2026 net sales were SEK 9,834 million, down 4% year-over-year, mainly due to pricing pressure and negative FX; group sales volume was flat, with North America up 7% and Europe down 3%.

• Adjusted EBITDA was SEK 661 million (margin 7%), up 26% sequentially but down 28% year-over-year.

• Adjusted operating profit (EBIT) was SEK -58 million, a 68% sequential improvement but 131% lower year-over-year.

• Cash flow from operating activities reached SEK 643 million, up 146% sequentially but down 46% year-over-year.

• EPS was SEK -0.26, a 70% sequential improvement.

Outlook and guidance

• Q3 2026 expected to see continued solid market conditions in North America and slightly improved, though still uncertain, conditions in Europe.

• Positive pricing impact anticipated in both regions, with additional pricing impact of 1%-2% in Europe and 2%-3% in North America expected in Q3.

• Input costs in Europe expected to decline by SEK 40 million in Q3, while North America may see a small increase of SEK 20 million; overall input costs broadly flat.

• Cost-saving program on track, targeting SEK 550 million in 2026 and SEK 800 million annualized by 2027.

• Maintenance shutdowns at Escanaba planned for September to enhance production capabilities.