EL7.AI
StocksMedium•22 October 2026•
3 min read

Billerud sales rise 3% to SEK 10,166 million as EBITDA margin slips to 10%

Key Facts

1Third-quarter sales rose 3% to SEK 10,166 million from SEK 9,905 million.
2Adjusted EBITDA was SEK 1,032 million, and its margin fell to 10% from 11%.
3Operating profit rose to SEK 311 million, and the company posted net profit of SEK 212 million.
4Europe’s EBITDA margin reached 12%, its strongest quarterly level since the first quarter of 2025.
5Cash conversion was 127% in the third quarter.

Billerud increased sales in the third quarter of 2026 by 3% year on year to SEK 10,166 million, from SEK 9,905 million, while growth excluding currency effects was 2%, according to the company’s report for January to September. But adjusted earnings before interest, tax, depreciation and amortization fell to SEK 1,032 million from SEK 1,058 million a year earlier, and its margin declined to 10% from 11%. The company said profitability improved from the second quarter, when adjusted EBITDA was SEK 661 million and the margin was 7%. The figures put sales growth and a quarterly recovery alongside an annual decline in the margin. Operating profit also rose to SEK 311 million from SEK 9 million, and the company swung to net profit of SEK 212 million after a net loss of SEK 63 million in the third quarter of 2025.

Total sales volume rose to 903 thousand tonnes, compared with 870 thousand tonnes in the corresponding period. The company attributed currency-neutral sales growth mainly to higher volumes, while the effect of selling prices was negative. The CEO said implementation of price increases in both regions more than offset input-cost inflation linked to conditions in the Middle East. The company added that the loss of free emissions allowances weighed on adjusted earnings year on year, while lower wood costs and fixed-cost savings provided support. The net impact of emissions allowances in the third quarter of 2025 was about SEK 137 million, according to the report. The cost of annual maintenance shutdowns also rose to SEK 403 million from SEK 361 million a year earlier.

Performance diverged between the two regions: sales in Europe grew 2% year on year and its EBITDA margin was 12%. Billerud said this was the region’s strongest quarterly profitability since the first quarter of 2025. It attributed the improvement to strong volumes, pricing and product mix, as well as the implementation of cost-cutting initiatives, with market conditions improving during the quarter. However, European consumer demand remained subdued overall. In North America, the margin was 15%, but the company said it remained below historical levels because of operational challenges during the maintenance shutdown in Escanaba. The report also said the start-up of new packaging materials caused some short-term inefficiencies.

The company reported cash conversion of 127%, while order books remained strong. For the fourth quarter of 2026, Billerud expects market conditions to remain strong in North America and stable in Europe, amid subdued demand and selective pricing opportunities. It said positive pricing is expected to offset input-cost inflation, while the impact of maintenance shutdowns is set to decline. It also forecast a slight increase in input costs and stable northern European pulpwood prices. The company said the final phase of its Evolution investment program in the United States will be completed during 2027, with about SEK 500 million in investment remaining. In October, it launched a new generation of Billerud Flute, which it said improves compression strength and enables lighter, more resource-efficient corrugated packaging designs.