The global paper and packaging industry reported mixed Q1 2026 results, reflecting a sector still navigating macroeconomic uncertainty, pricing pressure, and cost inflation, alongside pockets of operational resilience.

Across major players, a few consistent themes emerged:

• Volume recovery in certain regions, especially North America

• Margin compression due to lower pricing and higher input costs

• Geopolitical disruptions impacting logistics, energy, and raw materials

• Increased focus on cost optimization, portfolio restructuring, and strategic transformation

While some companies demonstrated strong cash generation and operational discipline, others faced sharp profitability declines due to weak demand and pricing pressure, particularly in Europe.

The following section provides a detailed company-by-company analysis.

Company-wise Financial Performance & Strategic Updates

1. Billerud

Financial Performance

• Net Sales: SEK 9,825 million (-11% YoY)

• Adjusted EBITDA: SEK 525 million (-62% YoY)

• EBITDA Margin: 5% (down from 13%)

• Net Loss: SEK -219 million (vs profit last year)

Operational Insights

• Sequential volume growth of 9%, indicating improving demand momentum

• Strong performance in North America (16% EBITDA margin)

• Weak profitability in Europe (2% margin) due to:

  • Pricing pressure

  • Currency headwinds

  • Higher maintenance and energy costs

Strategic Updates

• Accelerated cost-saving program (SEK 100 million Q1 impact)

• Ongoing portfolio shift toward packaging materials

• Capacity upgrades planned in North America

Key Takeaway

Billerud highlights the regional divergence trend—strong North American performance offset by structural weakness in Europe, with overcapacity remaining a key issue.

2. Clearwater Paper

Financial Performance

• Net Sales: $360 million (-5% YoY)

• Adjusted EBITDA: $2 million (vs $30 million last year)

• Net Loss: $13 million (widened YoY)

Operational Highlights

• Volume increased by 5%, outperforming market demand

• Average selling price declined 7%

• Severe weather disruptions impacted operations

Strategic Updates

• Launch of Velora™ lightweight paperboard product

• Restructuring of Arkansas facility (20% workforce reduction)

• Expected annual cost savings of $8–12 million

Key Takeaway

Clearwater Paper demonstrates strong operational execution and volume growth, but profitability remains under pressure due to pricing declines and external disruptions.

3. Greif

Financial Performance

• Adjusted EBITDA: $156.8 million (+7.5% YoY)

• Net Income: $12.6 million (-32% YoY)

• Adjusted Net Income: $62.7 million (+57.5% YoY)

Cash Flow & Balance Sheet

• Adjusted Free Cash Flow: $179.3 million (strong increase)

• Leverage reduced to 1.1x from 3.3x

• Significant debt reduction following divestments

Strategic Updates

• Completed $1.8 billion divestment of containerboard business

• Achieved $75 million cost optimization run-rate

• Refinanced long-term debt at favorable rates

Key Takeaway

Greif stands out for balance sheet strengthening and cash flow generation, positioning itself as a more resilient and focused business despite weak demand conditions.

4. Holmen

Financial Performance

• Net Sales: SEK 5,473 million

• Operating Profit: SEK 827 million (15% margin)

• Profit After Tax: SEK 618 million

Operational Insights

• Profit decline driven by:

  • Weak wood products demand

  • Lower paperboard and paper profitability

• Strong contribution from Renewable Energy segment

Strategic Positioning

• Integrated model leveraging:

  • Forestry

  • Renewable energy

  • Industrial production

Key Takeaway

Holmen showcases stable profitability supported by diversification, particularly through energy assets, offsetting weakness in core paper segments.

5. Huhtamäki

Financial Performance

• Net Sales: €946.8 million (-5% YoY)

• Adjusted EBIT: €94.5 million (-4% YoY)

• EBIT Margin: 10.0% (slight improvement)

Operational Insights

• Comparable sales growth of 1%, driven by volume increases

• Strong performance in:

  • North America

  • Fiber packaging segment

• Weak demand in foodservice packaging

Strategic Updates

• Focus on margin improvement initiatives

• Managing polymer cost inflation

• Improved cash flow generation

Key Takeaway

Huhtamäki reflects resilient margins despite revenue decline, supported by operational efficiency and pricing discipline.

6. International Paper

Financial Performance

• Net Sales: $5.97 billion

• Adjusted EBITDA: $677 million

• Earnings: $76 million (positive turnaround)

Cash Flow

• Operating Cash Flow: $611 million

• Free Cash Flow: $94 million

Strategic Updates

• Completed sale of Global Cellulose Fibers business ($1.1B proceeds)

• Ongoing business separation plan (North America vs EMEA)

• Focus on:

  • Cost reduction

  • Operational efficiency

  • capital discipline

Key Takeaway

International Paper is undergoing major strategic transformation, prioritizing portfolio simplification and cost efficiency amid macro pressure.

7. Metsä Board

Financial Performance

• Sales: €393.7 million (-18% YoY approx.)

• Comparable EBITDA: €16.7 million (significant decline)

• Operating Result: €-14.5 million (loss)

Operational Challenges

• Weak demand in:

  • Market pulp (Europe & China)

  • Foodservice board (U.S.)

• Impact from:

  • U.S. import tariffs

  • Rising logistics and energy costs

Strategic Updates

• New 2026–2030 strategy (“Lead the Pack”)

• Transformation program delivering:

  • €100 million run-rate EBITDA improvement

• Acquisition of distribution center in Netherlands

Key Takeaway

Metsä Board is in a transitional phase, prioritizing profitability recovery and long-term strategic repositioning.

8. Smurfit Westrock

Financial Performance

• Net Sales: $7.7 billion

• Adjusted EBITDA: $1.076 billion (14% margin)

• Net Income: $63 million

Operational Highlights

• Volume improvement across segments

• Weather impact: $65 million EBITDA hit

• Strong performance in:

  • Latin America (~20% EBITDA margin)

  • EMEA & APAC growth

Strategic Updates

• Ongoing asset optimization and capacity rationalization

• Strong customer acquisition (600+ new customers)

• Focus on innovation and sustainable packaging

Key Takeaway

Smurfit Westrock remains one of the stronger performers, driven by scale, geographic diversification, and pricing power recovery.

9. Suzano

Financial Performance

• Net Revenue: R$10.97 billion (-5% YoY)

• Adjusted EBITDA: R$4.6 billion (-6% YoY)

• EBITDA Margin: ~42% (strong)

• Net Income: R$4.3 billion

Operational Insights

• Pulp volumes +7% YoY

• Decline in:

  • Paper volumes

  • Pricing (especially paper segment)

• Currency appreciation impacted earnings

Key Metrics

• Leverage: ~3.3x

• Strong cash generation despite margin pressure

Key Takeaway

Suzano continues to deliver industry-leading margins, though currency and pricing pressures are moderating growth.

10. UPM

Financial Performance

• Sales: €2.505 billion (-5% YoY)

• Comparable EBIT: €274 million (-5% YoY)

• EBIT Margin: 10.9%

Operational Highlights

• Strong performance in:

  • Energy segment (record results)

  • Biofuels and decarbonization solutions

• Stable performance in advanced materials

Strategic Updates

• Investment in:

  • Hydropower modernization

  • Adhesives distribution in India

• Ongoing portfolio transformation toward growth segments

Key Takeaway

UPM demonstrates balanced performance, with future growth anchored in energy transition and sustainable materials.

Sector Conclusion

The Q1 2026 earnings season underscores a sector in transition:

Key Themes

• Demand recovery remains uneven, especially weak in Europe

• Pricing pressure continues to impact margins

• Cost inflation (energy, logistics, raw materials) remains elevated

• Strategic transformation is accelerating across players

Winners

• Companies with:

  • Strong geographic diversification (Smurfit Westrock, Suzano)

  • Energy exposure (Holmen, UPM)

  • Strong balance sheets (Greif)

Under Pressure

• Europe-heavy players facing:

  • Overcapacity

  • Weak demand

  • Structural margin pressure

Outlook

The sector is expected to see:

• Gradual demand normalization

• Continued price recovery attempts

• Further industry consolidation and capacity rationalization