Billerud (BILL) Q4 2025 earnings summary

Executive summary

• North America achieved a 20% EBITDA margin in 2025, maintaining strong profitability, while Europe and Asia experienced significant declines in sales and EBITDA due to weak demand, oversupply, and pricing pressure.

• Group net sales declined 7% year-over-year to SEK 40,488 million, mainly due to FX headwinds and lower volumes in Europe, partially offset by pricing.

• Cost-saving measures and reduced investments were implemented, with a program targeting SEK 500 million in 2026 and SEK 800 million in annualized savings by end of 2026.

• The Board proposes a dividend of SEK 2.00 per share, totaling approximately SEK 497–500 million.

• Strong working capital discipline enabled excellent cash flow and improved cash conversion, despite lower profit.

Financial highlights

• Adjusted EBITDA fell 19% year-over-year to SEK 4,176 million, with a margin of 10% for the year.

• Adjusted operating profit (EBIT) dropped 43% to SEK 1,308 million, with a margin of 3%.

• Q4 adjusted EBITDA dropped 43% to SEK 818 million, with a margin of 9%; Q4 net sales fell 19% to SEK 9,238 million.

• Earnings per share for the year was SEK 2.86; Q4 EPS was SEK 1.22.

• Cash flow from operating activities increased 5% to SEK 3,167 million for the year, but Q4 cash flow was SEK 418 million, down from SEK 1,719 million last year.

Outlook and guidance

• North America expected to maintain strong performance in Q1 2026, while Europe and Asia continue to face weak demand and pricing pressure.

• Pulpwood cost declines in the Nordics are expected to accelerate, providing significant cost relief from Q2 2026 onward.

• Cost-saving program on track to deliver SEK 500 million in 2026, with SEK 40 million impact in Q1 and SEK 150 million in Q2; full annualized savings of SEK 800 million by end of 2026.

• CapEx guidance for 2026 reduced to SEK 2.6 billion, with maintenance CapEx at SEK 2 billion and strategic CapEx focused on North America.

• Higher planned maintenance costs and loss of free emission rights expected to impact results in 2026.