Billerud has reported its full-year 2025 results, highlighting a strong and resilient performance in North America amid continued market weakness in Europe and Asia.
The group also announced decisive cost-saving measures and a proposed dividend of SEK 2.00 per share.
North America offsets European weakness
Currency-neutral sales declined by 14% year-on-year, mainly due to lower board volumes in Europe and Asia. Despite this, Billerud delivered another year of strong profitability in North America, which accounted for roughly half of the Group’s EBITDA while representing about one-third of net sales.
For the full year, Europe faced persistent headwinds from muted demand, oversupply and intensified competition, particularly in liquid packaging board. Earnings in the region weakened after a solid first quarter, prompting production curtailments and tighter cost control.
Fourth-quarter results under pressure
In the fourth quarter, net sales fell 19% to SEK 9.2 billion, while adjusted EBITDA declined to SEK 818 million, corresponding to a margin of 9%. Lower volumes, weaker pricing and adverse currency effects weighed on results, partly offset by positive contributions from emission rights.
Production was reduced in both regions to align output with demand, reflecting the challenging market environment, especially in Europe.
Cost actions and cash discipline
Billerud launched a sizable cost-saving program during the year, combined with stricter working capital discipline. These measures significantly improved cash flow conversion and supported the Board’s proposal to distribute 70% of net profit as dividends.
The company also reduced investments and continues to benefit from falling Nordic pulpwood prices, which are expected to decline further in 2026 following storm-related increases in wood availability.
Outlook for early 2026
For the first quarter of 2026, Billerud expects continued solid performance in North America, supported by stable market conditions and improved pricing for market pulp. In Europe, weak demand and pricing pressure are expected to persist, although slightly higher volumes are anticipated.
The group also confirmed its decision to exit the planned BCTMP joint venture in Norway due to lengthy permitting processes and changing market conditions.
Strategic focus remains unchanged
Despite ongoing geopolitical and trade uncertainties, Billerud believes its strong financial position, local production footprint in Europe and North America, and flexible asset base position the company well for future development. In 2026, priorities will center on strengthening European performance from the existing asset base and accelerating the shift toward packaging materials in North America.
Billerud supplies renewable packaging materials and paper solutions to brand owners, converters and industrial customers. The group operates production facilities in Europe and North America and employs approximately 6,000 people worldwide.
Source: Billerud
