TSX gains after CPI shows US inflation rose 3%
Investing.com -- Swedish paper and packaging company Billerud on Thursday reported third-quarter EBITDA of SEK1,058 million, exceeding consensus estimates by 27% and showing improvement from the SEK912 million in the first quarter of 2025.
The European segment delivered EBITDA of SEK652 million, surpassing analyst expectations of SEK481 million despite challenging market conditions, downtime, and oversupply issues. Third-quarter shipments totaled 624,000 tons, which represents a 9% decrease compared to the five-year average.
North American operations contributed SEK467 million to EBITDA, beating consensus of SEK434 million, supported by solid conditions in graphic and label paper markets. U.S. tariffs have provided additional support for domestic producers.
Looking ahead to the fourth quarter, Billerud expects continued solid conditions in the U.S. market. However, the company anticipates adverse market conditions in Europe, with price pressure across most product categories. Board products are expected to remain weak, while paper products are holding up better.
The company noted that pulpwood costs are more than 10% lower compared to second-quarter 2025 highs and continue to decrease due to good availability. This trend is expected to provide "sizeable cost relief for 2026," with every 10% reduction in European wood costs potentially adding SEK0.9 billion to EBITDA.
Fourth-quarter input costs are projected to remain unchanged as higher European energy costs offset lower wood prices.
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