Billerud AB delivers strong North American performance and takes decisive actions to strengthen Europe

Solna, Sweden – 30 January 2026 – Billerud AB today published its Year-End Report for January–December 2025, highlighting continued strong profitability in North America alongside decisive cost and investment actions to address prolonged weak market conditions in Europe .

Financial highlights – Full year 2025

• Net sales: SEK 40.5 billion (SEK 43.5 billion), currency-neutral decline of 3%

• Adjusted EBITDA: SEK 4.2 billion (SEK 5.2 billion)

• Adjusted EBITDA margin: 10% (12%)

• Net profit: SEK 711 million (SEK 1.75 billion)

• Earnings per share: SEK 2.86 (SEK 7.02)

• Dividend proposal: SEK 2.00 per share (SEK 3.50), corresponding to ~70% of net profit

Regional performance

North America

• Continued excellent profitability, delivering ~20% EBITDA margin for the full year

• Contributed around half of Group EBITDA with roughly one-third of net sales

• Strong performance in graphic paper and progress in expanding packaging materials, supported by U.S. import tariffs favoring domestic producers

Europe

• Significantly weaker market conditions with muted demand, oversupply, and pricing pressure

• Lower board sales volumes in Europe and Asia

• Production curtailments implemented to adapt to market demand

Cost savings and restructuring

• Cost-saving program initiated in September 2025 targeting up to 650 positions, mainly in Europe and Group functions

• Restructuring costs: SEK 350 million booked in Q3 2025

• Expected savings:

  • SEK 500 million during 2026

  • SEK 800 million annually from 2027

Capital expenditure and investments

• Total investments 2025: SEK 2.7 billion

  • Europe: ~SEK 1.6 billion

  • North America: ~SEK 0.9 billion

• 2026 capex guidance: ~SEK 2.6 billion

  • Maintenance capex: ~SEK 2.0 billion

  • Strategic capex: ~SEK 0.6 billion

Evolution Program (North America)

• Strategic shift toward packaging materials while maintaining graphic paper

• Total planned investments 2024–2027: SEK 1.4 billion

• 2025 investments: SEK 420 million (Escanaba woodyard upgrade completed on time and within budget)

• Planned 2026 investments: ~SEK 400 million

Projects, shutdowns, and operational updates

• Planned maintenance shutdowns scheduled across European and North American mills during 2026, with estimated total cost impacts disclosed per site

• Installation of a new headbox at PM6, Gruvön mill, enabling next-generation Billerud Flute® products to be launched in H2 2026

Joint venture exit

• Decision to exit the joint venture with Viken Skog AS to build a BCTMP plant in Follum, Norway

• Reason: lengthy environmental permit process and changed market conditions

• Expected non-cash impact: ~SEK –50 million in Q1 2026

Outlook for 2026

• North America: Sustained solid performance, improved pulp pricing, continued portfolio evolution toward packaging

• Europe: Weak demand expected to persist, negative pricing impact, but benefits from declining Nordic pulpwood prices and cost-saving measures

• Lower pulpwood costs anticipated to accelerate from Q2 2026