This article first appeared on GuruFocus .
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EBITDA Margin (North America):16%.
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Volume Growth:9% increase versus Q4.
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Currency-Neutral Sales:Down 5% year-over-year.
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Operating Rate (North America):Approximately 80%.
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Profit Decline (Region Europe):Driven by price pressure, currency headwind, and loss of emission rights.
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Cost-Saving Program:SEK100 million savings in Q1; plan for 2026 increased to SEK550 million.
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Cash Conversion:55% for the quarter.
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Net Debt:Approximately SEK6 billion.
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CapEx for 2026:SEK2 billion for base CapEx and SEK600 million for strategic CapEx.
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Sequential Cost Relief (Region Europe):Expected SEK150 million in Q2.
Release Date: April 28, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Billerud AB ( BLRDF ) recorded a strong quarter in North America with a 16% EBITDA margin, despite challenging weather conditions.
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The company achieved a 9% increase in shipment volume compared to Q4, with growth in both North America and Europe.
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Billerud AB ( BLRDF ) is ahead of its cost-saving program, achieving SEK100 million in savings in Q1 and raising its 2026 target to SEK550 million.
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The company managed a cash conversion of 55% for the quarter, with a focus on achieving 80%-plus cash conversion for the year.
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Billerud AB ( BLRDF ) announced price increases in both North America and Europe to mitigate cost inflation, with expected positive impacts in Q2 and Q3.
Negative Points
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Region Europe faced incremental price pressure, currency headwinds, and loss of emission rights, leading to lower-than-expected profitability.
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The profit for the group declined significantly compared to last year, primarily driven by challenges in Europe.
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Billerud AB ( BLRDF ) experienced higher input costs due to extreme weather conditions in North America, impacting energy and logistics costs.
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The company faces ongoing challenges with cost inflation in chemicals and logistics due to the Middle East conflict.
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There is persistent overcapacity in the European market, leading to squeezed margins and the need for potential industry consolidation.
Q & A Highlights
Q: How does the order book look for Europe and North America going into Q2, considering the uncertainties related to the Middle East crisis? A: Andrei Kres, CFO : In North America, we have solid order books and expect stable or slightly up volumes for Q2. In Europe, the situation is more uncertain, and we anticipate slightly lower volumes due to factors like pre-ordering ahead of price increases.
Q: Can you provide insights on the expected earnings impact from price increases in Q2 and possibly Q3? A: Andrei Kres, CFO : For Q2, we expect prices to increase by around 1% to 2% in both regions, driven by announced price increases and improved mix. For Q3, the impact of price announcements will continue, but there is uncertainty, so we need to see how these announcements gain traction.
Q: Regarding the persistent overcapacity in your segments, is Billerud involved in potential consolidation or closures? A: Ivar Vatne, CEO : The European sector has unsustainable margins, and regionalization is becoming more prominent. We expect some capacity to be reduced to restore a healthy supply-demand balance. While we are considering our options, there is nothing advanced enough to share at this moment.
Q: What is the outlook for pulpwood costs and inventory revaluation in Q2 and beyond? A: Andrei Kres, CFO : We expect a negative SEK50 million inventory revaluation impact in Q2, similar to Q1. Pulpwood costs in Europe are expected to reduce by approximately SEK110 million in Q2. For Q3 and Q4, we anticipate marginal effects as most declines should be behind us after Q2.
Q: How do you view the impact of increasing hardwood pulp usage in paper segments on your business? A: Ivar Vatne, CEO : Softwood remains dominant in our portfolio due to its characteristics. While there is some increase in hardwood content, particularly in cartonboard in Asia, it is a gradual trend and not expected to cause dramatic changes for us in 2026.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
