Billerud Reports Sequential Profitability Improvement in Q2 2026 as North America Growth Supports Results

Billerud reported improved sequential profitability for the second quarter of 2026, supported by strong sales growth in North America, higher pricing, continued execution of its cost-saving program, and solid cash conversion, despite challenging market conditions in Europe.

Net sales for the quarter declined 4% year-on-year to SEK 9.834 billion, while adjusted EBITDA decreased to SEK 661 million from SEK 912 million a year earlier, corresponding to an adjusted EBITDA margin of 7%. Operating loss was SEK 58 million, compared with an operating profit of SEK 188 million in the second quarter of 2025. Cash conversion reached 97% during the quarter.

According to President and CEO Ivar Vatne, the company continued implementing pricing, cost and portfolio measures to mitigate cost inflation and supply chain uncertainty, resulting in improved profitability compared with the first quarter. Region North America recorded an 11% increase in currency-neutral net sales, with shipments reaching their highest level since the end of 2022, while profitability in Region Europe improved both sequentially and year over year despite subdued market conditions.

Billerud said its cost-saving program remains on schedule. The initiative, launched in September 2025 and targeting annualized savings of SEK 800 million from 2027, generated approximately SEK 150 million in savings during the second quarter after delivering around SEK 100 million in the first quarter. The company expects approximately SEK 300 million in savings during the second half of 2026, with a total positive impact of SEK 550 million for the year compared with 2025.

The company also reported progress on its Evolution program, its strategic investment initiative to expand packaging materials production in North America. The program, which includes investments of approximately SEK 1.4 billion between 2024 and 2027, continued during the quarter as commercialization of new containerboard and cartonboard products advanced. Sales of the containerboard and cartonboard product category increased to SEK 91 million, up from SEK 13 million a year earlier. More than 20 customer production trials are planned, while targeted machine upgrades at the Escanaba mill are scheduled during the September maintenance shutdown to further strengthen packaging materials production capabilities.

In addition, Billerud's multi-year global ERP and process harmonization project continued, with implementation during 2026 focused on the Gävle mill.

Among other developments during the quarter, the company's Tribute® white kraftliner product family continued gaining commercial traction in the U.S. market, while its QuickFill® Plus Xcel sack paper received the Silver Innovation Award at the Eurosac Congress. Billerud also received a license from the Swedish Financial Supervisory Authority to establish Billerud Försäkring AB, a captive reinsurance company for property risks.

Looking ahead to the third quarter, Billerud expects continued solid market conditions in North America and somewhat improved conditions in Europe. The company also expects positive pricing effects in both regions, while input costs are anticipated to remain broadly flat overall.