Billerud (BILL) investor relations material

Executive summary

• Strong North American performance with 4% currency-neutral net sales growth and 16% EBITDA margin offset weak European markets, which faced overcapacity, weak demand, and cost inflation, resulting in an 8% group net sales decline and 10% EBITDA margin in Q3 2025.

• A SEK 800 million cost-saving program was launched, targeting up to 650 position reductions and SEK 350 million in Q3 restructuring costs.

• Cash conversion reached 139% in Q3, supporting a strong balance sheet and progress toward full-year targets.

Financial highlights

• Q3 2025 net sales were SEK 9,905 million, down 8% year-over-year; adjusted EBITDA was SEK 1,058 million (margin 11%), down 32% year-over-year but up sequentially.

• Adjusted operating profit (EBIT) was SEK 359 million, up 91% sequentially but down 58% year-over-year; net profit was SEK -63 million.

• Cash flow from operating activities reached SEK 983 million, with cash conversion at 139%.

• North America achieved a 16% EBITDA margin and 4% volume growth; Europe saw an 11% net sales decline and 10% EBITDA margin.

• Q3 included SEK 350 million in non-recurring costs related to the cost-saving program.

Outlook and guidance

• Q4 expected to see continued strong North American performance, with price increases on graphic paper, while European markets remain weak, especially in board products.

• Lower pulpwood costs in Europe anticipated to provide cost relief from Q4 onward, with most benefits in 2026.

• Cost-saving program expected to deliver SEK 500 million in savings during 2026, with full effect by end of 2026.

• 2025 CapEx reduced to SEK 2.9 billion, with similar levels expected for 2026.