Billerud on Tuesday released first-quarter trading figures that showed a notable decline in top-line revenue and a sharp margin contraction despite stronger shipment volumes. Reported net sales for the period fell 11% compared with the year-ago quarter, amounting to SEK 9.83 billion, while volumes expanded by 9%.
Profitability deteriorated markedly. Adjusted EBITDA for the quarter was SEK 525 million, translating into an adjusted EBITDA margin of 5%, down from 13% in the prior-year quarter. The company highlighted that the margin squeeze was driven largely by price weakness and overcapacity in its European markets.
In a statement accompanying the results, Billerud pointed to several factors that weighed on earnings: lower sales prices, increased maintenance expenditures, the loss of emission rights and broader cost inflation. The company said these pressures were concentrated in its European operations. By contrast, Billerud said its North American business delivered strong profitability despite facing weather-related disruption during the quarter.
Management reported progress on its cost-efficiency agenda. An accelerated cost-saving program produced a SEK 100 million positive impact in the first quarter. Billerud said it expects fixed-cost savings of SEK 150 million in the second quarter and aims for SEK 550 million in fixed-cost reductions for 2026.
Looking ahead, the company signalled that market conditions are likely to remain difficult, forecasting subdued demand in Europe for the second quarter of 2026. To help offset ongoing cost inflation, Billerud plans to implement broad-based price increases across both its European and North American regions.
The results underscore a disconnect between underlying volume growth and revenue performance where lower selling prices and rising operating costs have eroded margins. The company is relying on a combination of cost cuts and regional price actions to stabilise profitability as it navigates what it describes as a challenging market backdrop.