Sweden's Billerud Q1 sales, margins drop on lower prices, higher costs

Billerud AB (publ)

28/04/2026 06:19

Overview

Sweden paper and packaging producer's Q1 sales fell 11% yr/yr despite 9% volume growth

Adjusted EBITDA margin dropped to 5% from 13% due to weak profitability in Europe

Company delivered SEK 100 mln in Q1 cost savings from accelerated program

Outlook

Company expects challenging market conditions with subdued demand in Europe for Q2 2026

Billerud targets fixed cost savings of SEK 150 mln in Q2 and SEK 550 mln for 2026

Company plans broad-based price increases in both regions to mitigate cost inflation

Result Drivers

PRICE PRESSURE AND COST INFLATION - Co said lower sales prices, higher maintenance costs, loss of emission rights, and cost inflation weighed on profitability, especially in Europe

REGIONAL CONTRASTS - Co said North America delivered strong profitability despite weather disruptions, while Europe was weak due to price pressure and overcapacity

COST SAVINGS - Accelerated cost-saving program delivered SEK 100 mln positive impact in Q1, with further savings targeted

Company press release: ID:nWkr52xfMQ

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
SEK 9.83 bln
Q1 Adjusted EBITDA
SEK 525 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the paper packaging peer group is "hold."

Wall Street's median 12-month price target for Billerud AB (publ) is SEK92.50, about 29.3% above its April 27 closing price of SEK71.55

The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 16 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)