Billerud's third-quarter net sales rose 3% to SEK 10.2 billion, positively affected by currency effects and higher volumes, the company said. Adjusted EBITDA was SEK 1.03 billion, compared with SEK 1.06 billion a year earlier, with the loss of free emission rights weighing on the result while lower pulpwood costs and fixed-cost savings had a positive impact. Operating profit rose to SEK 311 million from SEK 9 million.
Third-quarter sales volumes rose to 903,000 metric tons from 870,000 metric tons. Currency-neutral sales increased 2%, mainly because of higher volumes, while sales prices had an adverse impact. Price increases in both regions more than offset input-cost inflation, the company said. Maintenance shutdowns cost SEK 403 million, compared with SEK 361 million a year earlier.
Region Europe delivered a 12% EBITDA margin, its best profitability quarter since the first quarter of 2025. Markets for containerboard, brown sack and kraft paper improved, while consumer demand remained muted. Liquid packaging board and white kraft and sack paper markets were stable. Cartonboard continued to face excess supply.
North American market fundamentals were solid, with a 15% EBITDA margin. The Escanaba maintenance shutdown caused operational challenges, while the ramp-up of packaging materials caused short-term production inefficiencies, although utilization rates improved.
“Region Europe is beginning to deliver on its potential, and I am encouraged by the steady progress to strengthen cost competitiveness. With stable production across our mills and higher capacity utilization, we expect stronger operating leverage to support continued profitability recovery,” said Ivar Vatne, president and chief executive, in a statement.
For the fourth quarter, Billerud expects North American market conditions to remain solid, while European conditions are expected to stay stable, with muted demand and selective pricing opportunities. Pricing is expected to have a positive impact in both regions and offset higher input costs. Input costs are expected to increase slightly driven by higher energy and fuel prices, while Nordic pulpwood prices are expected to remain stable. Order books remain solid, and maintenance activity is expected to be lower after the heavy shutdown period.
Billerud plans to complete the final phase of its Evolution investment program in the United States during 2027, with approximately SEK 500 million remaining. Beyond 2027, the company foresees no major investment projects and expects regional capital spending to return to a base capex level of approximately SEK 2.2 billion. Investments in tangible and non-current intangible assets during 2026 are expected to amount to SEK 2.4 billion, including SEK 2.0 billion in maintenance investments and SEK 0.4 billion in strategic capital expenditures. Cash conversion was above 100% for the first nine months.
New equipment installed at the Escanaba mill expanded production capabilities and modernized its winder and roll-handling systems. The upgrades enable larger formats and higher basis weights, while heat-recovery improvements reduce steam and energy consumption. The Quinnesec mill received ISO 9001 certification, completing Billerud's initiative to implement a globally aligned quality management system across all production facilities.
An upgraded headbox at PM6 in Gruvön enabled the launch of New Billerud Flute, while a new Yankee cylinder at PM8 in Skärblacka strengthened Billerud's position in medical and hygiene MG paper markets. Billerud also launched PharmaKraft for medical packaging and launched a new generation of Billerud Flute in October with higher compression strength, enabling lighter, more resource-efficient corrugated packaging designs. The coated liner proposition Tribute has also been a success in North America.