This article first appeared on GuruFocus .
Release Date: January 30, 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 ) reported a strong performance in North America with a 5% growth in net sales on a currency-neutral basis and a 20% EBITDA margin.
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The company has successfully launched a cost reduction program in Europe, which is progressing as planned.
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Billerud AB ( BLRDF ) is benefiting from falling pulp prices in the Nordic region, which is expected to provide significant cost relief in 2026.
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The company is making progress on its evolution program in North America, aiming to shift its portfolio towards packaging materials with local US production.
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Billerud AB ( BLRDF ) has maintained a strong balance sheet with a healthy cash flow and a proposed dividend of $0.02 per share.
Negative Points
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The European market has been challenging for Billerud AB ( BLRDF ), with slow demand and oversupply affecting both net sales and profitability.
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The company experienced a 14% decline in net sales in Q4 compared to the previous year, primarily due to lower sales in Europe.
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Billerud AB ( BLRDF ) faced significant foreign exchange headwinds due to the strengthening of the Swedish krona.
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The company is dealing with pricing pressure in Europe, particularly in the liquid packaging board segment.
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Billerud AB ( BLRDF ) has exited a joint venture due to changed market conditions and lengthy political processes, resulting in a non-cash write-off.
Q & A Highlights
Q: Can you explain the volume performance in Europe, particularly the 16% decline in Q4 year-on-year? Is this due to market share changes? A: (CEO) The decline is partly due to losing market share to Asian competition, especially in exports to Asia. In Europe, we are holding up well, but the export portion has been reduced. We expect growth in this category moving forward.
Q: What is the current order intake in Europe, and how does it compare to previous quarters? A: (CFO) Entering Q4, we had weak order books, resulting in lower sales. However, as we enter Q1, the order books look better across most categories in our European business, though uncertainty in underlying demand remains.
Q: Can you provide insights into the North American market environment and pricing outlook for the start of the year? A: (CEO) North America continues to show confidence and growth. Despite the secular decline in graphic paper, we have a strong position. (CFO) We increased prices for coated free sheet at the end of 2025 and expect a slight uptick in pulp prices, leading to a 1% increase in regional pricing for Q1.
Q: Are there any plans for capital allocation, such as share buybacks, given the strong balance sheet? A: (CEO) While discussions occur regularly with the board, there are no current plans for share buybacks. The focus remains on strengthening performance and cash delivery.
Q: What are your expectations for European pricing in Q1? A: (CFO) We anticipate a sequential price decrease of 2-3% in Europe for Q1, primarily driven by liquid packaging board.
Q: How do you plan to manage the cost savings program and its impact on 2026? A: (CFO) We aim for 500 million in savings for 2026. In Q1, we expect 40 million in savings, increasing to 150 million in Q2, with a slight uptick for the rest of the year.
Q: Regarding the US market, what scale of sales shift from coated paper to packaging do you expect in 2026? A: (CEO) We aim to exceed 50,000 tons of packaging materials in 2026, with a longer-term target of 300,000 tons by 2030. We will focus on coated liner and low grammage carton board.
Q: What is the impact of free emission rights ending in 2026 on Billerud and the industry? A: (CFO) Billerud will lose all allowances for free emission rights due to our mill sites being over 95% fossil-free. Other facilities in the industry may continue to receive allowances if they are below this threshold.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
