Interim report
Page 1
Interim report Billerud Aktiebolag (publ) January –September 202 6 1 Interim report January–September 2026 Sales growth and continued profitability recovery Key highlights • Sales growth in both regions • Positive pricing impact across most categories • Continued EBITDA margin improvement in Region Europe • Successful upgrade of assets in North America • Strong cash conversion of 127% Quarterly data • Net sales increased by 3% to SEK 10,166 million (9,905) • Adjusted EBITDA* SEK 1,032 million (1,058) • Adjusted EBITDA margin* 10% (11) • Operating profit SEK 311 million (9) • Net profit/loss SEK 212 million (-63) • Earnings per share SEK 0.85 (-0.25) Outlook for Q4 • Stable market conditions in both regions • Positive pricing expected to offset input cost inflation • Reduced impact from maintenance shutdowns Key figures* * For key figures and a reconciliation of alternative performance measures including adjusted EBITDA, adjusted operating profit /loss, adjusted EBITDA margin, adjusted operating profit margin, adjusted ROCE and interest-bearing net debt/adjusted EBITDA, see pages 15–17. Q3 Q3 Jan-Sep Jan-Sep SEKm 2026 2025 Change 2026 2025 Change Net sales 10,166 9,905 3% 29,825 31,250 -5% Adjusted EBITDA 1,032 1,058 -2% 2,218 3,358 -34% Operating profit/loss 311 9 N/A 24 835 -97% Adjusted operating profit/loss 311 359 -13% 71 1,185 -94% Net profit/loss 212 -63 N/A -71 407 -117% Adjusted EBITDA margin, % 10 11 7 11 Adjusted operating profit margin, % 3 4 0 4 Adjusted ROCE, % 1 6 1 6 Cash flow from operating activities 1,306 983 33% 2,210 2,749 -20% Interest-bearing net debt/adjusted EBITDA 2.0 1.2 2.0 1.2 Earnings per share, SEK 0.85 -0.25 -0.28 1.64 Q3
Page 2
Interim report Billerud Aktiebolag (publ) January –September 202 6 2 Comments by the CEO The third quarter was another step in the right direction for Billerud and ended broadly in line with our expectations. We increased sequentially our shipments, improved profitability and delivered strong cash conversion. Strong commercial execution and efficiency actions were the main contributing factors behind the improvement. We successfully implemented price increases in both regions, more than offsetting the input cost inflation resulting from the situation in the Middle East. Encouragingly, we see progress across several fronts for Region Europe. Net sales grew by 2% versus last year and the region delivered the best profitability quarter (EBITDA margin 12%) since the first quarter of 2025. Solid sales volumes, pricing and mix actions together with successful execution of our cost-out initiatives were the main drivers. Market conditions improved during the quarter, supported by cost-driven price increases due to higher energy prices in Europe. Consumer sentiment strengthened slightly within some of our categories. For Region North America, market conditions continue to remain more favorable. The Q3 EBITDA margin of 15% was another solid performance, albeit somewhat below the levels we have historically achieved due to operational challenges during the Escanaba maintenance shutdown. While our successful ramp up of packaging materials is creating some short-term production inefficiencies, our utilization rates have improved, and we fully expect improved operating performance as our volumes continue to grow. Looking ahead to Q4, our order books remain solid, and we expect stable market conditions. Energy-price-related inflation continues to impact our cost base, but we expect positive pricing to keep offsetting higher input costs. After a heavy maintenance shutdown period, we will now have lower maintenance activity in the fourth quarter. Strong cash generation and prudent capital allocation are key priorities. Cash conversion above 100% for the first nine months is robust. During 2027, we will complete the final phase of our Evolution investment program in the US, with approximately SEK 500 million remaining. Beyond 2027, we currently foresee no major investment projects, and regional capital spending is expected to return to a base capex level totaling approximately SEK 2.2 billion. We remain committed to our strategic priorities and game plan. For Region Europe, improving profitability from our existing asset base remains our top priority. Our efficiency measures are working, we will continue to stay disciplined and pursue new cost and value-creation opportunities to reach long-term targets. For Region North America, we remain committed to our strong graphic and label paper positions while evolving towards packaging material for higher capacity utilization. We are step by step building a meaningful position in the attractive North American board market. In particular, the introduction of our coated liner proposition Tribute® has been a success. The technical upgrades at our US mills completed over the past quarters mark important milestones in our Evolution journey. The latest upgrades at Escanaba strengthen our manufacturing platform and position us for future growth in North America. We are also seeing tangible benefits from our targeted mill investments in Europe and our innovation-driven new product initiatives are beginning to deliver positive results. The upgraded headbox at PM6 in Gruvön has enabled the launch of our New Billerud Flute®, which is receiving great customer feedback, while the new Yankee cylinder at PM8 in Skärblacka has strengthened our position in the medical and hygiene MG paper markets. To further accelerate growth in the prioritized medical segment, we recently launched PharmaKraft™, which broadens our existing product offering for medical packaging. While there is still work to do, recent developments confirm that we are on the right path. I would like to thank our employees for their firm commitment and dedication to improve our performance. 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. Ivar Vatne President and CEO
Page 3
Interim report Billerud Aktiebolag (publ) January –September 202 6 3 Third quarter Sales and results Net sales for the third quarter grew by 3% to SEK 10,166 million (9,905), positively impacted by currency effects. The currency-neutral net sales grew by 2%, mainly as a result of increased sales volumes, while sales prices had an adverse impact. Total sales volumes in the quarter were 903 ktons (870). Adjusted EBITDA amounted to SEK 1,032 million (1,058), corresponding to a margin of 10% (11). Compared to the same period last year, EBITDA was negatively affected by the loss of free emission rights and positively impacted by lower pulpwood costs and fixed cost savings. The net result from emission rights in the third quarter 2025 was SEK 137 million. Annual maintenance shutdowns during the third quarter had a cost impact of SEK 403 million (361). No items classified as affecting comparability impacted the result in the third quarter of 2026 (-350). Items affecting comparability in the same period last year were attributed to a provision for the cost-saving program announced in September 2025. Market development and outlook In the third quarter of 2026, market fundamentals remained solid for Billerud in North America. For Region Europe, the market situation improved for containerboard as well as for brown sack and kraft paper, although the overall consumer demand in Europe remained muted. Market conditions were stable for liquid packaging board and for white kraft and sack paper. For cartonboard, market imbalance persisted, characterized by excess supply. For the fourth quarter of 2026, market conditions for Region North America are expected to remain solid. For Region Europe, stable market conditions are expected, with muted demand and selective pricing opportunities. We expect pricing to have a positive impact in both regions, while input costs will increase slightly, driven by higher energy and fuel prices. Nordic pulpwood prices are expected to remain stable. Adjusted EBITDA, SEKm and adjusted EBITDA margin, % Events in the quarter As part of Billerud’s Evolution program, which aims to gradually shift production in North America to packaging materials (see page 8), new equipment was installed at Escanaba during the annual maintenance shutdown. The upgrades include enhanced production capabilities and modernized winder and roll handling systems, thereby enhancing the mill’s ability to produce a broader product range featuring larger formats and higher basis weights. These investments provide greater flexibility to meet the growing demand for fiber-based packaging materials in North America. Another upgrade at Escanaba focused on heat recovery optimization, reducing steam and energy consumption. The Quinnesec mill was certified to ISO 9001, marking a milestone for both this mill and Billerud as a whole. With this achievement, all Billerud's mills hold ISO 9001 certification, completing the company's initiative to implement a globally aligned quality management system across all production facilities. Billerud clarified its sustainability prioritizations, focusing on creating customer value. The company’s sustainability agenda focuses on the priorities Renewable, Low carbon and Circular, in addition to the foundation of Responsible operations and business practices throughout the value chain. The agenda builds on Billerud’s existing commitments, including its SBTi-approved targets. Andreas Mattsson, EVP Legal & Strategic Projects, will leave Billerud no later than 31 December 2026. The process to recruit his successor is ongoing. Events after the quarter In October, Billerud launched a new generation of Billerud Flute®, an improved version of its fluting with even higher compression strength, enabling lighter, more resource- efficient corrugated packaging designs. With this product’s additional strength, packaging manufacturers can optimize board structures, reduce material use and lower the weight while maintaining the required packaging performance. 1,058 818 525 661 1,032 11 9 5 7 10 0 5 10 15 20 25 30 35 40 45 0 200 400 600 800 1,000 1,200 Q3 -25 Q4 -25 Q1 -26 Q2 -26 Q3 -26
Page 4
Interim report Billerud Aktiebolag (publ) January –September 202 6 4 Region Europe Key figures Sales and results Net sales for the third quarter increased to SEK 6,357 million (6,231), with almost no currency exchange impact. Net sales excluding currency effects grew by 2%, mainly because of higher sales volumes of both board and paper categories. Pricing had a negative effect compared to last year. EBITDA increased to SEK 734 million (652), corresponding to an EBITDA margin of 12% (10). The improved result was primarily due to reduced costs driven by the cost-saving program as well as lower pulpwood costs. The result was negatively affected by lower sales prices and the loss of free emission rights and increased carbon tax. The net result from emission rights had an impact of SEK 30 million (137) in the third quarter. Increased carbon tax had an impact of SEK -57 million, of which SEK -47 million was related to the first half of 2026. Annual maintenance shutdowns were carried out at Gävle, Karlsborg and Frövi with a cost impact of SEK 299 million. The maintenance shutdowns at Gävle and Karlsborg during the third quarter of 2025 had a cost impact of SEK 260 million. Market development During the third quarter of 2026, market conditions improved for Region Europe’s containerboard categories and brown packaging materials, while consumer sentiment in key geographical markets remained muted and overcapacity for cartonboard remained. Rising market prices for containerboard were mainly driven by elevated energy costs. Market conditions for liquid packaging board remained at normal levels. Billerud implemented price increases for fluting, liner, brown sack and kraft paper during the quarter, and announced further increases towards the end of the period. About Region Europe Region Europe includes the board and paper products made of virgin fibre that are manufactured at the mills Gruvön, Gävle, Frövi/Rockhammar, Skärblacka and Karlsborg in Sweden and Pietarsaari in Finland. In these mills, Billerud produces liquid packaging board, kraft paper, containerboard, cartonboard, sack paper and market pulp. These materials are sold in Europe and the rest of the world. Total production capacity is around 3.1 million tons per year. SEKm Q3 -26 Q3 -25 2026 2025 2025 Net sales 6,357 6,231 18,425 19,842 25,640 of which liquid packaging board 2,134 2,097 6,563 6,734 8,621 of which containerboard 1,356 1,251 3,583 3,823 4,982 of which kraft paper 922 882 2,707 2,797 3,633 of which sack paper 783 775 2,142 2,553 3,258 of which cartonboard 544 563 1,594 1,968 2,434 of which market pulp 564 615 1,620 1,767 2,436 Net operating expenses -5,623 -5,579 -17,105 -17,803 -23,242 EBITDA 734 652 1,320 2,039 2,398 EBITDA margin, % 12 10 7 10 9 Operating profit/loss 194 153 -286 552 416 Operating margin, % 3 2 -2 3 2 Sales volumes, ktonnes 653 624 1,923 1,920 2,515 Full yearJan-SepQuarter Share of Group’s net sales Q3 2026 EBITDA, SEKm and EBITDA margin, % 63% 652 359 121 465 734 10 6 2 8 12 0 5 10 15 20 25 30 35 0 100 200 300 400 500 600 700 800 Q3 -25 Q4 -25 Q1 -26 Q2 -26 Q3 -26
Page 5
Interim report Billerud Aktiebolag (publ) January –September 202 6 5 Region North America Key figures Sales and results Net sales for the third quarter increased to SEK 3,174 million (2,960), positively affected by currency changes. Net sales excluding currency effects increased by 5%, primarily due to improved prices but also as a result of increased sales volumes. EBITDA increased to SEK 472 million (467), corresponding to an EBITDA margin of 15% (16). Compared to the same period last year, the result was positively impacted by increased sales and positive currency effects, while higher input costs had a negative impact. Annual maintenance shutdown was carried out at the Escanaba mill in the third quarter, with a cost impact of SEK 104 million (100). In connection with the maintenance shutdown, upgrades were implemented at Escanaba to enhance capabilities for manufacturing packaging materials. Modernized winder and roll-handling systems will enable larger board formats and higher basis weights, expanding the mill’s packaging materials portfolio. Market development During the third quarter of 2026, market conditions remained solid for Region North America with demand at normal level across all product categories. Billerud continued to benefit from its strong position as a leading domestic supplier. Price increases for graphic and label paper were implemented, and market pulp prices improved slightly. About Region North America Region North America includes the products made of virgin fibre manufactured at the Escanaba and Quinnesec mills in Michigan, US and the operations at the sheeting facility Wisconsin Rapids in Wisconsin, US. Billerud produces graphic and label paper, market pulp, containerboard (white kraftliner) and cartonboard in this region and sells these materials primarily in the US market. Total annual production capacity is around 1.1 million tons of paper and around 0.2 million tons of pulp. SEKm Q3 -26 Q3 -25 2026 2025 2025 Net sales 3,174 2,960 9,025 9,041 11,783 of which graphic paper 2,135 2,136 6,247 6,318 8,268 of which label paper 595 507 1,671 1,634 2,130 of which market pulp 327 286 843 1,045 1,296 of which containerboard and cartonboard 117 31 264 44 89 Net operating expenses -2,702 -2,493 -7,701 -7,272 -9,476 EBITDA 472 467 1,324 1,769 2,307 EBITDA margin, % 15 16 15 20 20 Operating profit/loss 318 314 861 1,232 1,618 Operating margin, % 10 11 10 14 14 Sales volumes, ktonnes 250 246 744 725 956 Full yearQuarter Jan-Sep Share of Group’s net sales Q3 2026 EBITDA, SEKm and EBITDA margin, % 31% 467 538 453 399 472 16 20 16 13 15 -2 3 8 13 18 23 28 33 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 Q3 -25 Q4 -25 Q1 -26 Q2 -26 Q3 -26
Page 6
Interim report Billerud Aktiebolag (publ) January –September 202 6 6 Other Sales and results Net sales for the third quarter amounted to SEK 635 million (714). The decrease was due to decreased sales from the wood sourcing operation and lower net result from currency hedging and revaluation of accounts receivables. EBITDA in the third quarter amounted to SEK -174 million (-411). No items affecting comparability were recognized in the third quarter of 2026, whereas the third quarter result in 2025 was impacted by an item affecting comparability of SEK -350 million related to a provision for restructuring costs associated with the cost-saving program announced in September 2025. The lower EBITDA adjusted for items affecting comparability compared to last year was partly due to a negative change in the net result from currency hedging and revaluation of accounts receivables. Key figures (including currency hedging etc) January–September, consolidated Sales and results Net sales for the first nine months in 2026 amounted to SEK 29,825 million (31,250), negatively impacted by currency changes. Currency-neutral net sales decreased by 2% compared to the same period in 2025, mainly due to lower sales prices. The Group’s sales volumes increased slightly compared to the same period last year and amounted to 2,667 ktons (2,645). Adjusted EBITDA amounted to SEK 2,218 million (3,358), corresponding to an EBITDA margin of 7% (11). The decrease was mainly due to lower pricing, the loss of emission rights and higher cost impact from annual maintenance shutdowns. Lower pulpwood costs and fixed-cost savings contributed positively to the result. The net result from emission rights for the first nine months in 2025 had an impact of SEK 366 million. The cost impact of scheduled maintenance shutdowns amounted to SEK 1,029 million (782) during the first nine months of 2026. Items affecting comparability during January-September 2026 amounted to SEK -47 million (-350) and were related to the exit from the joint venture together with Viken Skog AS in the first quarter of 2026. Cash flow and financial position The operating cash flow after investments in tangible and non-current intangible assets amounted to SEK 712 million (270) in the third quarter of 2026. The improvement was primarily due to an improved cash flow from operating activities, positively affected by higher profit before tax and changes in working capital mainly because of increased operating liabilities. Investments were lower compared to the same period last year. Cash conversion was 127% (139) in the third quarter. SEKm Q3 -26 Q3 -25 2026 2025 2025 Net sales 635 714 2,375 2,367 3,065 Net operating expenses -809 -1,125 -2,848 -3,167 -3,672 EBITDA -174 -411 -473 -800 -607 Operating profit/loss -201 -458 -551 -949 -804 Full yearJan-Sep Quarter Share of Group’s net sales Q3 2026 6%
Page 7
Interim report Billerud Aktiebolag (publ) January –September 202 6 7 Condensed cash flow statement Financing On 30 September 2026, the interest-bearing debt amounted to SEK 6,843 million (6,691). Interest-bearing debt decreased by SEK 245 million during the third quarter of 2026. The Group repaid commercial papers of SEK 750 million including interest and issued new commercial papers of SEK 546 million during the third quarter. Debt portfolio and maturity profile on 30 September 2026 The interest-bearing net debt on 30 September 2026 amounted to SEK 5,923 million (5,597). The net interest-bearing debt in relation to EBITDA at the end of the period was 1.8 (1.2). The net interest-bearing debt in relation to adjusted EBITDA was 2.0 (1.2). Investments and capital employed Investments in tangible and non-current intangible assets during the first nine months of 2026 amounted to SEK 1,566 million (1,747). The investments in tangible and non-current intangible assets during 2026 are expected to amount to SEK 2.4 billion, whereof maintenance investments (so called “base capex”) of SEK 2.0 billion and strategic capital expenditures of SEK 0.4 billion. Strategic capital expenditures include, among others, investments for the Evolution program and the harmonization of processes, described on page 8 in this report. For 2027, the total investments in tangible and intangible assets are expected to amount to approximately SEK 2.6 billion, whereof SEK 2.1 billion is expected to be attributable to maintenance investments (so called “base-capex”) and SEK 0.5 billion to strategic capital expenditures. Capital employed on 30 September 2026 amounted to SEK 34,085 million (33,194). Return on capital employed (ROCE) for the last twelve months amounted to 1% (6). Adjusted ROCE for the same period was 1% (6). Return on equity was 1% (4) for the last twelve-months period. SEKm Q3 -26 Q3 -25 2026 2025 Profit/loss before tax 273 -48 -65 556 Adjustments for non-cash items 619 904 1,832 2,082 Tax paid 79 -20 53 -264 Cash flow from changes in working capital 335 147 390 375 Cash flow from operating activities 1,306 983 2,210 2,749 Investments in tangible and non-current intangible assets -594 -713 -1,566 -1,747 Operating cash flow after investments in tangible and non-current intangible assets 712 270 644 1,002 Quarter Jan-Sep Loan Limit, SEKm 0-1 1-2 2- Syndicated credit facilities 5,500 - Term loans 101 - 1,700 1,801 Bond loans within MTN program 7,000 - 1,250 1,250 2,500 Other bond loans - - 1,600 1,600 Commercial paper 4,000 942 942 Group total 1,043 1,250 4,550 6,843 Future interest payments 213 193 257 663 Maturity, years Total utilised Net debt/Adjusted EBITDA Adjusted return on capital employed, % 1.2 1.5 1.9 2.2 2.0 0.0 0.5 1.0 1.5 2.0 2.5 Q3 -25 Q4 -25 Q1 -26 Q2 -26 Q3 -26 6 4 1 1 1 0 1 2 3 4 5 6 7 Q3 -25 Q4 -25 Q1 -26 Q2 -26 Q3 -26
Page 8
Interim report Billerud Aktiebolag (publ) January –September 202 6 8 Other information Cost-saving program On 18 September 2025, Billerud initiated a cost-saving program targeting annualized savings of SEK 800 million from 2027. The program focuses on reducing fixed costs through strict cost prioritization, streamlined ways of working and personnel reductions across all functions in Region Europe and Group functions globally. The cost-saving program delivered savings of around SEK 100 million in the first quarter of 2026, SEK 150 million in the second quarter and SEK 150 million in the third quarter. In the fourth quarter of 2026, the cost-saving program is expected to deliver another SEK 150 million of savings, whereby the total positive impact of program for 2026 compared with 2025 is expected to be SEK 550 million. For 2027, additional savings of SEK 250 million are targeted. The Evolution program The Evolution program is Billerud’s strategic initiative to evolve towards the production of packaging materials in North America while remaining committed to graphic paper. The program entails investments at the US mills to enhance production capabilities of white kraftliners (containerboard) and solid bleached board (cartonboard). Evolution program investments are estimated to total SEK 1.3 billion during 2024-2027 (previous estimate of SEK 1.4 billion updated with current exchange rates), whereof SEK 1.1 billion refers to upgrades of the Escanaba mill and SEK 0.2 billion to upgrades of the Quinnesec mill. During 2024 and 2025, investments under the Evolution program amounted to SEK 510 million. Capital expenditures related to the program are expected to total SEK 330 million in 2026, with the remaining SEK 460 million expected to be incurred in 2027. Harmonization of processes A multi-year project in Billerud will harmonize processes and implement a new global ERP system. The platform is planned to be rolled out gradually in the entire operations. In 2026, the project focuses on implementations at the Gävle mill. Emission rights and carbon tax Billerud is not eligible for free allocation of emission allowances in 2026 and is therefore subject to carbon tax on fossil fuels. According to a proposed regulatory amendment from the Swedish Ministry of Climate and Enterprise, the company is expected to be brought back within the scope of EU ETS1 as of 1 January 2027, although without free allocation of emission allowances. This means that, from 2027 onwards, Billerud will be required to surrender emission allowances corresponding to its fossil CO₂ emissions, incurring a cost for Billerud, while the carbon tax will cease to apply to the fuels covered by the EU ETS1. Currency hedging Currency hedging had a net sales impact of SEK -51 million (69) in the third quarter and SEK -6 million (191) for the first nine months of 2026 compared to no currency hedging. The outstanding forward exchange contracts on 30 September 2026 had a market value of SEK -135 million, of which SEK -33 million is the portion of the contracts matched by trade receivables that affected earnings in the third quarter. Accordingly, other contracts had a market value of SEK -102 million. Hedged portion of forecast currency flows * Share of net currency flow. ** On 30 September 2026. Tax The tax expense for the first nine months of 2026 amounted to SEK 6 million (149), equal to approximately -9% (27) of the profit/loss before tax. Parent company The parent company Billerud AB (publ) includes head office and support functions. The operating profit/loss for the first nine months of 2026 was SEK -14 million (-446). The operating result includes the effects of hedging contracts and revaluations of trade receivables. The parent company hedges both its own and the Group’s net currency flows. The parent company’s result includes the results of these hedging measures. These effects were SEK -6 million (191) for the first nine months 2026. Cash and bank balances, and short-term investments amounted to SEK 641 million (693) on 30 September 2026. The average number of employees on 30 September 2026 was 83 (187). The reduced number of employees is mainly due to the transfer of employees from the parent company to Billerud Europe AB during the fourth quarter of 2025. Holding of treasury shares Billerud’s holding of treasury shares was unchanged during the first nine months of 2026. On 30 September 2026, the number of own shares was 906,501, corresponding to around 0.4% of the total amount of shares. The total number of shares was 249,611,422 and the number of shares on the market was 248,704,921. Q4-26 Q1-27 Q2-27 Q3-27 Q4-27 Total 15 months EUR Share* 80% 73% 50% 35% 0% 47% Rate 11.02 10.77 10.95 11.14 10.96 USD Share* 70% 69% 49% 34% 0% 44% Rate 9.36 9.38 9.45 9.50 9.41 GBP Share* 71% 70% 50% 37% 0% 46% Rate 12.22 12.47 12.51 12.80 12.46 -51 -47 -27 -10 - -135Market value of currency contracts** Currency
Page 9
Interim report Billerud Aktiebolag (publ) January –September 202 6 9 Nomination Committee In accordance with the resolution by the Annual General Meeting of Billerud, the Board Chairman has convened a Nomination Committee for the 2027 Annual General Meeting, appointed by the major shareholders in the company. The Nomination Committee for the 2027 Annual General Meeting consists of Anders Hansson, appointed by AMF Pension & Funds, Michael M.F Kaufmann, appointed by Frapag Beteilingungsholding AG, Jan Särlvik, appointed by Fourth Swedish National Pension Fund, and Martin Wallin, appointed by Lannebo Kapitalförvaltning. Annual General Meeting The 2027 Annual General Meeting will be held in Solna on May 11, 2027. Shareholders wishing to have matters considered at the Annual General Meeting should submit their proposals in writing to Billerud AB (publ), Att: General Counsel, Box 703, SE-169 27 Solna, Sweden, at least seven weeks before the Annual General Meeting, to ensure the matter can be included in the convening notice for the meeting. Notified matters can be included in the agenda only if they are suitable for decision by the Meeting and if notification is provided in due time. Further details on how and when to provide notification of participation will be published in advance of the meeting. Risks and uncertainties Billerud is exposed to risks that could impact the company’s ability to achieve its objectives. The strategic risks include risks related to political initiatives, laws, rules and/or regulations, reputational risks, business risks, risks relating to the economic outlook, market and sales, as well as risks such as geopolitics, cybercrime and security. Billerud is also exposed to execution risks that could impact the company’s ability to achieve established objectives in daily operations as well as compliance and regulatory risks, and information and communication risks. Demand for Billerud’s products is affected by factors such as GDP growth, market trends, customer preferences, competition, and the development of new products and production capacity. A severe economic downturn could have a negative impact on the demand for Billerud’s products. Competition and the development of production capacity and its impact on the balance between supply and demand also affect Billerud’s business. Heightened geopolitical uncertainty and changing trade policies affect the macroeconomy and business conditions. Billerud continuously monitors market and geopolitical developments and evaluates impacts and implements appropriate mitigation measures to address the identified risks. As a large international company, Billerud is exposed to financial risks related to currency, financing, liquidity, interest rates, energy price, financial credit- and customer credit risks. Billerud has significant net exposure in foreign currencies, primarily EUR, USD and GBP. To mitigate the consequences of currency exposure, the company can hedge forecasted net flows in foreign currencies. A detailed risk description including a sensitivity analysis with estimated profit impact of changed sales volumes, exchange rates, loan rates, and input prices is provided on pages 38–41 in the 2025 Annual Report. Detailed information about the Group’s financial risks and risk management is provided on pages 172-175 in the 2025 Annual Report. Related-party transactions No transactions took place during the period between Billerud and related parties that have significantly affected the Group’s position and earnings. Solna, October 22, 2026 Billerud AB (publ) Ivar Vatne President and CEO
Page 10
Interim report Billerud Aktiebolag (publ) January –September 202 6 10 Review report Translation of the Swedish original To the Board of Directors of Billerud AB (publ) Corp. id. 556025-5001 Introduction We have reviewed the condensed interim financial information (interim report) of Billerud AB (publ) as of 30 September 2026 and the nine-month period then ended. The Board of Directors and the Managing Director are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review. Scope of review We conducted our review in accordance with International Standard on Review Engagements ISRE 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and other generally accepted auditing practices and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, for the Group in accordance with IAS 34 and the Annual Accounts Act, and for the Parent Company in accordance with the Annual Accounts Act. Stockholm 22 October 2026 KPMG AB Hök Olov Forsberg Authorized Public Accountant
Page 11
Interim report Billerud Aktiebolag (publ) January –September 202 6 11 Group Condensed income statement Condensed statement of comprehensive income SEKm Q3 -26 Q3 -25 2026 2025 2025 Net sales 10,166 9,905 29,825 31,250 40,488 Other operating income 40 32 153 186 248 Change in inventories -69 -58 -150 257 -49 Raw materials and consumables -5,427 -5,011 -16,447 -16,609 -21,101 Other external costs -2,366 -2,380 -6,871 -7,072 -9,303 Employee benefits expense -1,319 -1,787 -4,315 -5,031 -6,509 Depreciation, amortization and impairment of non-current assets -721 -699 -2,147 -2,173 -2,868 Change in value of biological assets - - - - 14 Profit/Loss from participations in associated companies 7 7 -24 27 310 Operating profit/loss 311 9 24 835 1,230 Financial net -38 -57 -89 -279 -340 Profit/Loss before tax 273 -48 -65 556 890 Taxes -61 -15 -6 -149 -179 Profit/Loss from continuing operations 212 -63 -71 407 711 Profit/Loss attributable to: Owners of the parent company 212 -63 -71 407 711 Non-controlling interests - - - - - Net profit/loss for the period 212 -63 -71 407 711 Basic earnings per share, SEK 0.85 -0.25 -0.28 1.64 2.86 Diluted earnings per share, SEK 0.85 -0.25 -0.28 1.64 2.86 Quarter Jan-Sep Full year SEKm Q3 -26 Q3 -25 2026 2025 2025 Net profit/loss for the period 212 -63 -71 407 711 Other comprehensive income Items that will not be reclassified to profit or loss Revaluation of forest land - - - - -14 Actuarial gains or losses on defined benefit pension plans -12 8 -30 -56 20 Change in fair value of shareholding in Other holdings - - -2 2 3 Equity-accounted investees - share of Other comprehensive income - - - - 154 Tax attributable to items not to be reclassified to profit or loss 5 -2 12 14 -35 Total items that will not be reclassified to profit or loss -7 6 -20 -40 128 Items that have been or may be reclassified subsequently to profit or loss Differences arising from the translation of foreign operations' accounts 209 -79 648 -1,317 -1,501 Change in fair value of cash flow hedges 393 196 449 536 370 Tax attributable to items that have been or may be reclassified subsequently to profit or loss -80 -40 -91 -110 -76 Total items that have been or may be reclassified subsequently to profit or loss 522 77 1,006 -891 -1,207 Total comprehensive income for the period 727 20 915 -524 -368 Attributable to: Owners of the parent company 727 20 915 -524 -368 Non-controlling interests - - - - - Total comprehensive income for the period 727 20 915 -524 -368 Full yearQuarter Jan-Sep
Page 12
Interim report Billerud Aktiebolag (publ) January –September 202 6 12 Condensed balance sheet Condensed statement of changes in equity 30 Sep 30 Sep 31 Dec SEKm 2026 2025 2025 Intangible assets 2,456 2,348 2,383 Tangible assets, including Right of use assets 29,685 29,368 29,476 Other non-current assets 2,256 1,652 2,080 Total non-current assets 34,397 33,368 33,939 Intangible assets 266 634 311 Inventories 6,053 6,215 6,413 Accounts receivable 4,343 4,079 3,710 Other current assets 2,469 2,062 1,735 Cash and cash equivalents 1,392 1,662 1,281 Total current assets 14,523 14,652 13,450 Total assets 48,920 48,020 47,389 Equity attributable to owners of the parent company 28,162 27,597 27,743 Non-controlling interests - - - Total equity 28,162 27,597 27,743 Interest-bearing liabilities 5,800 4,648 4,646 Lease liabilities 374 332 330 Provisions for pensions 504 571 543 Other liabilities and provisions 321 254 254 Deferred tax liabilities 3,907 3,968 3,661 Total non-current liabilities 10,906 9,773 9,434 Interest-bearing liabilities 1,043 2,043 2,221 Lease liabilities 195 198 196 Accounts payables 5,270 4,958 4,626 Other liabilities and provisions 3,344 3,451 3,169 Total current liabilities 9,852 10,650 10,212 Total equity and liabilities 48,920 48,020 47,389 SEKm 2026 2025 2025 Opening balance 27,743 28,979 28,979 Comprehensive income for the period 915 -524 -368 Share-based payment to be settled in equity instruments 1 12 2 Dividend to owners of the parent company -497 -870 -870 Closing balance equity 28,162 27,597 27,743 Equity attributable to: Owners of the parent company 28,162 27,597 27,743 Non-controlling interests - - - Closing balance equity 28,162 27,597 27,743 Jan-Sep Full year
Page 13
Interim report Billerud Aktiebolag (publ) January –September 202 6 13 Condensed cash flow statement *Reconciliation of non-cash items SEKm Q3 -26 Q3 -25 2026 2025 2025 Operating activities Profit/loss before tax 273 -48 -65 556 890 Adjustments for non-cash items* 619 904 1,832 2,082 2,666 Tax paid 79 -20 53 -264 -257 Cash flow from changes in working capital 335 147 390 375 -132 Cash flow from operating activities 1,306 983 2,210 2,749 3,167 Investing activities Investments in tangible and non-current intangible assets -594 -713 -1,566 -1,747 -2,656 Disposal of property, plant and equipment 2 11 4 23 22 Acquisition of financial assets/contribution to associated companies/other holdings - -3 - -3 -4 Dividend from associated companies / other holdings 2 2 47 23 23 Cash flow from investing activities -590 -703 -1,515 -1,704 -2,615 Financing activities Change in interest-bearing liabilities -303 -292 -196 -873 -753 Dividend - - -497 -870 -870 Cash flow from financing activities -303 -292 -693 -1,743 -1,623 Total cash flow for the period 413 -12 2 -698 -1,071 Cash and cash equivalents at start of period 932 1,692 1,281 2,561 2,561 Translation differences in cash and cash equivalents 47 -18 109 -201 -209 Cash and cash equivalents at the end of the period 1,392 1,662 1,392 1,662 1,281 Quarter Jan-Sep Full year SEKm Q3 -26 Q3 -25 2026 2025 2025 Depreciation, amortization and impairment of non-current assets 721 699 2,147 2,173 2,868 Financial items -4 5 -97 -5 28 Disposal of non-current assets 2 -13 1 -24 -24 Pensions and other provisions -58 350 -242 325 293 Unrealized result from emission rights -30 -136 -2 -372 -177 Share of profit/loss in associates -7 -7 24 -27 -310 Share based payments -5 6 1 12 2 Revaluation of biological assets - - - - -14 Total non-cash items 619 904 1,832 2,082 2,666 Quarter Jan-Sep Full year
Page 14
Interim report Billerud Aktiebolag (publ) January –September 202 6 14 Notes Note 1: Accounting policies The interim report for the Group is prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. The accounting policies applied in this interim report are the same as those used in the annual report for 2025, see pages 152–154 and pages 208–209 for definitions of key figures. The interim report for the parent company is prepared in accordance with the Swedish Annual Accounts Act. IFRS 18 Presentation and Disclosures in Financial Statements replaces IAS 1. IFRS 18 becomes effective on January 1, 2027, and Billerud will apply the standard from that date. IFRS 18 is expected to affect the presentation of the income statement, including specified subtotals, as well as disclosure requirements related to management-defined performance measures. Billerud continues to assess the impact of the new standard, including the adjustments required to align with the new presentation and disclosure structure, and to determine the relevant performance measures and related reconciliations. Note 2: Financial assets and liabilities Note 3: Other disclosures Other disclosures in accordance with IAS 34.16A can be found on the pages prior to the income statement and the statement of comprehensive income. Information regarding significant events after the quarter can be found on page 3, operating segments on pages 4–6, financing on page 7 and seasonal effects on page 18. Fair value hedging instruments Fair value through other comprehensive income Amortized costs Total carrying amount Fair value Valuation classification Level 2 Level 3 Group 30 September 2026 Other shares and participations 14 14 14 Long-term receivables 233 162 395 395 Accounts receivable 4,343 4,343 4,343 Other receivables 583 693 1,276 1,276 Cash and cash equivalents 1,392 1,392 1,392 Total financial assets 816 14 6,590 7,420 7,420 Non-current interest-bearing liabilities 6,174 6,174 6,205 Current interest-bearing liabilities 1,238 1,238 1,238 Accounts payables 5,270 5,270 5,270 Other liabilities 323 329 652 652 Total financial liabilities 323 - 13,011 13,334 13,365 Fair value hedging instruments Fair value through other comprehensive income Amortized costs Total carrying amount Fair value Valuation classification Level 2 Level 3 - Group 31 December 2025 Other shares and participations 16 16 16 Long-term receivables 30 136 166 166 Accounts receivable 3,710 3,710 3,710 Other receivables 196 668 864 864 Cash and cash equivalents 1,281 1,281 1,281 Total financial assets 226 16 5,795 6,037 6,037 Non-current interest-bearing liabilities 4,976 4,976 5,026 Current interest-bearing liabilities 2,417 2,417 2,452 Accounts payables 4,626 4,626 4,626 Other liabilities 81 415 496 496 Total financial liabilities 81 - 12,434 12,515 12,600
Page 15
Interim report Billerud Aktiebolag (publ) January –September 202 6 15 Key figures Q3 -26 Q2 -26 Q3 -25 2026 2025 2025 EBITDA margin, % 10 7 7 7 10 10 Adjusted EBITDA margin, % 10 7 11 7 11 10 Operating margin, % 3 -1 0 0 3 3 Adjusted operating margin, % 3 -1 4 0 4 3 Cash conversion, % 127 97 139 102 91 77 Return (rolling 12 months) Return on capital employed, % (ROCE) 1 0 6 1 6 4 Adjusted Return on capital employed, % (adj ROCE) 1 1 6 1 6 4 Return on equity, % 1 0 4 1 4 3 Capital structure at end of period Capital employed, SEKm 34,085 34,028 33,194 34,085 33,194 33,825 Working capital, SEKm 4,346 4,380 4,429 4,346 4,429 4,524 Equity attributable to owners of the parent company, SEKm 28,162 27,440 27,597 28,162 27,597 27,743 Interest-bearing net debt, SEKm 5,923 6,588 5,597 5,923 5,597 6,082 Net debt/equity ratio 0.21 0.24 0.20 0.21 0.20 0.22 Interest-bearing net debt / EBITDA over 12 months 1.8 2.2 1.2 1.8 1.2 1.5 Interest-bearing net debt / Adjusted EBITDA over 12 months 2.0 2.2 1.2 2.0 1.2 1.5 Key figures per share Earnings per share, SEK 0.85 -0.26 -0.25 -0.28 1.64 2.86 Adjusted earnings per share, SEK 0.85 -0.26 0.87 -0.10 2.75 2.88 Dividend (for the financial year) per share, SEK - - - - - 2.00 Other key figures Working capital as percentage of net sales, % 11 11 11 11 11 11 Investments in tangible and non-current intangible assets, SEKm 594 584 713 1,566 1,747 2,656 Average number of employees - - - 5,306 5,758 5,652 Jan-SepQuarter Full year
Page 16
Interim report Billerud Aktiebolag (publ) January –September 202 6 16 Reconciliation of alternative performance measures Items affecting comparability*, SEKm Q3 -26 Q2 -26 Q3 -25 2026 2025 2025 Revaluation of biological assets in associated companies (Profit/Loss from participations in associated companies) - - - - - -272 Restructuring cost (Employee benefits expense) - - 350 - 350 350 Capital loss from the divestment of Billerud Viken AS (Profit/Loss from participations in associated companies) - - - 47 - - Total items affecting comparability - - 350 47 350 78 EBITDA, SEKm and EBITDA margin, % Operating profit/loss 311 -58 9 24 835 1,230 Depreciation, amortizations and impairment of non-current assets 721 719 699 2,147 2,173 2,868 EBITDA, SEKm 1,032 661 708 2,171 3,008 4,098 Net sales 10,166 9,834 9,905 29,825 31,250 40,488 EBITDA margin, % 10 7 7 7 10 10 Adjusted EBITDA, SEKm and adjusted EBITDA margin, % EBITDA 1,032 661 708 2,171 3,008 4,098 Items affecting comparability* - - 350 47 350 78 Adjusted EBITDA, SEKm 1,032 661 1,058 2,218 3,358 4,176 Net sales 10,166 9,834 9,905 29,825 31,250 40,488 Adjusted EBITDA margin, % 10 7 11 7 11 10 Operating margin, % Operating profit/loss 311 -58 9 24 835 1,230 Net sales 10,166 9,834 9,905 29,825 31,250 40,488 Operating margin, % 3 -1 0 0 3 3 Adjusted operating profit/loss, SEKm and adjusted operating margin, % Operating profit/loss 311 -58 9 24 835 1,230 Items affecting comparability* - - 350 47 350 78 Adjusted operating profit/loss, SEKm 311 -58 359 71 1,185 1,308 Net sales 10,166 9,834 9,905 29,825 31,250 40,488 Adjusted operating margin, % 3 -1 4 0 4 3 Cash conversion, % Cash flow from operating activities 1,306 643 983 2,210 2,749 3,167 EBITDA, SEKm 1,032 661 708 2,171 3,008 4,098 Cash conversion, % 127 97 139 102 91 77 Return on capital employed, % Operating profit/loss over 12 months*** 419 117 1,926 419 1,926 1,230 Average capital employed over 12 months** 33,833 33,699 33,839 33,833 33,839 33,778 Return on capital employed, % 1 0 6 1 6 4 Adjusted return on capital employed, % Adjusted operating profit/loss over 12 months*** 193 241 1,903 193 1,903 1,308 Average capital employed over 12 months** 33,833 33,699 33,839 33,833 33,839 33,778 Adjusted return on capital employed, % 1 1 6 1 6 4 Return on equity, % Net profit/loss attributed to owners of the parent company over 12 months *** 234 -41 1,213 234 1,213 711 Average shareholders´ equity attributed to owners of the parent company ** 27,747 27,629 28,015 27,747 28,015 28,124 Return on equity, % 1 0 4 1 4 3 Full yearQuarter Jan-Sep
Page 17
Interim report Billerud Aktiebolag (publ) January –September 202 6 17 Reconciliation of alternative performance measures (cont.) Net debt/equity ratio Q3 -26 Q2 -26 Q3 -25 2026 2025 2025 Interest-bearing net debt 5,923 6,588 5,597 5,923 5,597 6,082 Total equity 28,162 27,440 27,597 28,162 27,597 27,743 Net debt/equity ratio 0.21 0.24 0.20 0.21 0.20 0.22 Interest-bearing net debt / EBITDA, multiple Interest-bearing net debt 5,923 6,588 5,597 5,923 5,597 6,082 EBITDA over 12 months*** 3,261 2,937 4,824 3,261 4,824 4,098 Interest-bearing net debt / EBITDA, multiple 1.8 2.2 1.2 1.8 1.2 1.5 Interest-bearing net debt / Adjusted EBITDA, multiple Interest-bearing net debt 5,923 6,588 5,597 5,923 5,597 6,082 Adjusted EBITDA over 12 months*** 3,035 3,061 4,801 3,035 4,801 4,176 Interest-bearing net debt / Adjusted EBITDA, multiple 2.0 2.2 1.2 2.0 1.2 1.5 Adjusted earnings per share, SEK Profit/loss attributed to owners of the parent company, SEKm 212 -64 -63 -71 407 711 Items affecting comparability, attributed to owners of the parent company, SEKm * - - 278 47 278 6 Adjusted profit/loss attributed to owners of the parent company, SEKm 212 -64 215 -24 685 717 Weighted number of outstanding shares, thousands 248,705 248,705 248,705 248,705 248,705 248,705 Adjusted earnings per share, SEK 0.85 -0.26 0.87 -0.10 2.75 2.88 Working capital as percentage of net sales, % Average working capital for the period 4,363 4,468 4,379 4,451 4,510 4,513 Annualized net sales 40,664 39,334 39,620 39,766 41,667 40,488 Working capital as percentage of net sales, % 11 11 11 11 11 11 * Revenue = -, Cost = + ** Average for the five latest quarters. ***12 months is calculated by adding accumulated amounts for the current year plus full previous year, minus prior year's accumulated amounts for periods exceeding 12 months from the balance sheet date. Quarter Jan-Sep Full year 30 Sep 30 Sep 31 Dec Capital employed, SEKm 2026 2025 2025 Total assets 48,920 48,020 47,389 Accounts payables -5,270 -4,958 -4,626 Other liabilities and provisions -3,665 -3,705 -3,423 Deferred tax liabilities -3,907 -3,968 -3,661 Non-current receivables (interest-bearing) -601 -533 -573 Cash and Cash equivalents -1,392 -1,662 -1,281 Capital employed 34,085 33,194 33,825 30 Sep 30 Sep 31 Dec Working capital, SEKm 2026 2025 2025 Inventories 6,053 6,215 6,413 Accounts receivables 4,343 4,079 3,710 Other current receivables and current intangible assets 2,735 2,697 2,045 Accounts payables -5,270 -4,958 -4,626 Other current liabilities and provisions -3,344 -3,451 -3,169 -Reduction of current provisions 133 369 368 -Reduction of tax liabilities/receivables -304 -522 -217 Working capital 4,346 4,429 4,524 30 Sep 30 Sep 31 Dec Interest-bearing net debt, SEKm 2026 2025 2025 Provisions for pensions 504 571 543 Interest bearing non-current liabilities 5,800 4,648 4,646 Non-current lease liabilities 374 332 330 Interest bearing current liabilities 1,043 2,043 2,221 Current lease liabillities 195 198 196 Non-current receivables (interest-bearing) -601 -533 -573 Cash and Cash equivalents -1,392 -1,662 -1,281 Interest-bearing net debt 5,923 5,597 6,082
Page 18
Interim report Billerud Aktiebolag (publ) January –September 202 6 18 Seasonal effects Billerud’s business is to a relatively limited extent subject to seasonal fluctuations. Periodical maintenance shutdowns have the largest impact, as they involve each unit stopping production for around one week. The loss of production results in lower deliveries over an extended period before, during and after the shutdown. It should also be noted that the Group usually has a somewhat higher cost level in the fourth quarter than in previous quarters. Planned maintenance shutdowns In addition to ongoing maintenance during production, Billerud’s production units normally require more extensive maintenance at some time during the year. Maintenance requires the production of pulp, paper and board to stop. The main financial impact from a maintenance shutdown comprises of production volume losses arising from the shutdown and increased fixed costs, mainly maintenance and overtime costs, as well as a certain portion of variable costs including higher consumption of electricity and wood when production is restarted. The effects of shutdowns on earnings vary depending on volume losses, extent of measures carried out, their nature, and the actual length of the shutdown. The estimated earnings impact of a maintenance shutdown is an indicative impact of a normal shutdown performed in average market conditions, compared with a quarter during which no periodic maintenance shutdown takes place. The estimated cost impact of a maintenance shutdown is calculated as the sum of the fixed costs for the maintenance, increased variable costs associated with the shutdown, and lower fixed cost coverage from reduced capacity utilization during the stops. During the third quarter of 2026, the annual maintenance shutdowns at Gävle, Karlsborg, Frövi and Escanaba had a total cost impact of SEK 403 million. The annual maintenance shutdown at Frövi extends over the third and the fourth quarter 2026, and is expected to have a cost impact of SEK 80 million in the fourth quarter of 2026. Estimated cost impact from planned maintenance shutdowns Production units Estimated cost impact SEKm Region Europe Region North America 2026 2025 2024 Gävle ~ 170 100% 0% Q3 Q3 Q3 Gruvön ~ 240 100% 0% Q2 Q1-Q2 Q2 Frövi ~ 100 100% 0% Q3-Q4 Q4 Q4 Skärblacka ~ 160 100% 0% Q1 Q2 Q2 Karlsborg ~ 100 100% 0% Q3 Q3 Q3 Pietarsaari ~ 30 100% 0% Q2 - Q2 Rockhammar ~ 10 100% 0% Q2 Q2 - Escanaba ~ 90 0% 100% Q3 Q3 Q3-Q4 Quinnesec ~ 120 0% 100% Q2 - Q2 Planned dates of maintenance shutdown Breakdown of cost impact
Page 19
Interim report Billerud Aktiebolag (publ) January –September 202 6 19 Key Figures – Definitions and purpose Adjusted key figures Adjusted key figures on EBITDA, Operating profit/loss, Return on capital employed and Earnings per share provide a better understanding of the underlying business performance and enhance comparability from period to period, when the effect of items affecting comparability are adjusted for. Items affecting comparability can include additional project costs for major projects, major restructuring/write downs /revaluations, litigations, specific impact due to strategic decisions, and significant earnings effects from acquisition and disposals. EBITDA Operating profit/loss before depreciation, amortization and impairment on non-current intangible, tangible assets and right of use assets. EBITDA is a central measure of operating performance, to assess the performance over time. EBITDA margin, % EBITDA as a percentage of net sales. The measure is used in review as well as for benchmarking with peer companies. Adjusted EBITDA Operating profit/loss before depreciation, amortization and impairment on non-current intangible, tangible assets and right of use assets adjusted for items affecting comparability. Adjusted EBITDA is relevant for assessing performance excluding items affecting comparability. Adjusted EBITDA margin, % Adjusted EBITDA as a percentage of net sales. The measure is used for assessing profitability excluding items affecting comparability. Operating margin, % Operating profit/loss as a percentage of net sales. Operating margin shows the percentage of revenue remaining as operating profit/loss after deducting operating expenses. The measure is used for performance monitoring as well as for benchmarking with peer companies. Adjusted operating profit/loss Operating profit/loss adjusted for items affecting comparability. The measure is used for assessing performance excluding items affecting comparability. Adjusted operating margin, % Adjusted operating profit/loss as a percentage of net sales. The measure is used for assessing performance excluding items affecting comparability. Return on capital employed (ROCE), % Operating profit/loss calculated over 12 months as a percentage of average capital employed calculated per quarter for the last 5 quarters. 12 months is calculated by adding accumulated amounts for the current year plus full previous year, minus prior year´s accumulated amounts for periods exceeding 12 months from the balance sheet date. The return on capital employed is a measure that shows how effectively total net operating assets are used in order to generate return in the operating business. The measure takes capital invested in the operating activities into account and is used for business performance monitoring and benchmarking with peer companies. Adjusted Return on capital employed (adjusted ROCE), % Adjusted operating profit/loss calculated over 12 months as a percentage of average capital employed calculated per quarter for the last 5 quarters. 12 months is calculated by adding accumulated amounts for the current year plus full previous year, minus prior year´s accumulated amounts for periods exceeding 12 months from the balance sheet date. The measure is used for assessing the return on net operating assets excluding items affecting comparability. Return on equity, % Profit/loss calculated over 12 months, attributable to owners of the parent company, as a percentage of average shareholders’ equity calculated per quarter, attributable to owners of the parent company. 12 months is calculated by adding accumulated amounts for the current year plus full previous year, minus prior year´s accumulated amounts for periods exceeding 12 months from the balance sheet date. The measure represents total profitability compared to the equity invested by the parent company’s shareholders. Capital employed Total assets less accounts payables, other liabilities and provisions, deferred tax liabilities, non-current receivables (interest-bearing) and cash and cash equivalents. Capital employed is used to quantify the net total assets used in the operating business and is used as a component in measuring operating profitability. Working capital Inventories, accounts receivables, other current receivables and current intangible assets (emission rights) less accounts payables, other current liabilities and reduction of tax liabilities/receivables. The measure shows the amount of current net assets that is tied up in the business. Together with non-current assets, working capital constitutes the operating capital employed to generate operating returns. Interest-bearing net debt The sum of provisions for pensions, interest-bearing liabilities and leasing liabilities less interest-bearing non-current receivables and cash and cash equivalents. The measure is used to quantify the debt financing, taken the amount of financial assets into account. The measure is used as a component in measuring financial risk. Net debt/equity ratio Interest-bearing net debt divided by equity. The ratio shows the mix between interest-bearing net debt and equity financing. A higher ratio means higher financial leverage and may have positive effects on return on equity but imply a higher financial risk.
Page 20
Interim report Billerud Aktiebolag (publ) January –September 202 6 20 Interest-bearing net debt/EBITDA, multiple Interest bearing net debt at the end of the period divided by EBITDA for the last 12 months. 12 months is calculated by adding accumulated amounts for the current year plus full previous year, minus prior year´s accumulated amounts for periods exceeding 12 months from the balance sheet date. The measure shows the size of the interest-bearing net debt compared to the repayment capacity. A higher (lower) ratio indicates a higher (lower) risk. Interest-bearing net debt/adjusted EBITDA, multiple Interest bearing net debt at the end of the period divided by adjusted EBITDA for the last 12 months. 12 months is calculated by adding accumulated amounts for the current year plus full previous year, minus prior year´s accumulated amounts for periods exceeding 12 months from the balance sheet date. The measure is used for assessing the repayment capacity excluding items affecting comparability. (Basic) earnings per share Profit/loss attributable to owners of the parent, divided by the average number of outstanding ordinary shares in the market. Adjusted earnings per share Profit/loss attributable to owners of the parent adjusted for items affecting comparability after tax, divided by the average number of outstanding ordinary shares in the market. The measure is used for assessing earnings per share excluding items affecting comparability. Working capital as percentage of net sales, % Average working capital is calculated by using the average of all quarterly periods during the interim period from the beginning of the financial year, divided by annualized net sales. Annual net sales are calculated by dividing the net sales for the most recent interim period from the beginning of the financial year by the number of months in this interim period and multiplying by twelve. Working capital in relation to net sales shows how effectively the working capital is used. A lower percentage means less capital is tied up to generate a given amount of revenue, and an increased ability to internally finance growth and return to shareholders. Operating cash flow after investments in tangible and non-current intangible assets Cash flow from the operating activities, including investments in tangible and non-current intangible assets. The measure shows cash flow generated in the operating business, which provides the amount of cash flows available to repay debt, acquire and invest in other businesses and pay dividends to the shareholders. Cash conversion, % Cash flow from operating activities divided by EBITDA. This measure is used for assessing the generation of cash of the operating profit/loss before depreciation, amortization and impairment of non-current assets.
Page 21
Interim report Billerud Aktiebolag (publ) January –September 202 6 21 Parent company Condensed income statement * Including currency hedging etc. Condensed balance sheet Full year SEKm Q3 -26 Q3 -25 2026 2025 2025 Operating income* 220 111 467 209 531 Operating expenses -104 -194 -481 -655 -803 Operating profit/loss 116 -83 -14 -446 -272 Financial income and expenses 396 414 799 1,002 5,853 Profit/Loss after financial income and expenses 512 331 785 556 5,581 Appropriations - - - - 400 Profit/loss before tax 512 331 785 556 5,981 Taxes -14 29 31 151 -5 Net profit/loss for the period 498 360 816 707 5,976 Quarter Jan-Sep 30 Sep 30 Sep 31 Dec SEKm 2026 2025 2025 Non-current assets 21,511 16,324 21,662 Current assets 15,539 18,942 14,933 Total assets 37,050 35,266 36,595 Shareholders' equity 18,061 12,483 17,742 Untaxed reserves 1,405 1,405 1,405 Provisions 303 312 324 Liabilities 17,281 21,066 17,124 Total equity and liabilities 37,050 35,266 36,595
Page 22
Interim report Billerud Aktiebolag (publ) January –September 202 6 22 Quarterly data Billerud’s packaging material business is governed in two operating segments based on the region in which the products are manufactured: Region Europe and Region North America. Other includes Procurement & Wood Supply in Europe, ScandFibre Logistics AB, Consolidated Waterpower Company, rental operations, dormant companies, idle assets, income from sale of businesses, items affecting comparability and costs due to increased investments in the production structure. Other also includes Group-wide functions, Group eliminations and profit/loss from participation in associated companies. Currency hedging etc. includes results from hedging of the Group’s net currency flows and revaluation of accounts receivables as well as payments from customers. The two last mentioned are presented separately as currency hedging etc. The part of the currency exposure that relates to changes in exchange rates when invoicing and purchasing are included in the regions’ profit/loss. Quarterly net sales per region and for the Group Quarterly EBITDA per region and for the Group Quarterly EBITDA margin per region and for the Group Adjusted quarterly EBITDA, excluding planned maintenance shutdowns, per region and for the Group 2026 2025 SEKm Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Jan-Sep Jan-Sep Region Europe 6,357 5,877 6,191 5,798 6,231 6,481 7,130 7,431 18,425 19,842 Region North America 3,174 3,103 2,748 2,742 2,960 2,891 3,190 3,175 9,025 9,041 Other 631 837 779 661 681 802 949 826 2,247 2,432 Currency hedging, etc. 4 17 107 37 33 70 -168 36 128 -65 Total Group 10,166 9,834 9,825 9,238 9,905 10,244 11,101 11,468 29,825 31,250 20252026 2024 2026 2025 SEKm Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Jan-Sep Jan-Sep Region Europe 734 465 121 359 652 333 1,054 888 1,320 2,039 Region North America 472 399 453 538 467 622 680 606 1,324 1,769 Other -178 -218 -204 156 -443 -115 -178 286 -600 -736 Currency hedging, etc. 4 15 108 37 32 72 -168 36 127 -64 Total Group 1,032 661 478 1,090 708 912 1,388 1,816 2,171 3,008 2026 2025 2024 2026 2025 % Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Jan-Sep Jan-Sep Region Europe 12 8 2 6 10 5 15 12 7 10 Region North America 15 13 16 20 16 22 21 19 15 20 Group 10 7 5 12 7 9 13 16 7 10 2026 2025 2024 2026 2025 SEKm Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Jan-Sep Jan-Sep Region Europe 1,033 736 305 455 911 714 1,094 977 2,074 2,719 Region North America 576 570 453 538 569 622 680 626 1,599 1,871 Other -178 -218 -157 -116 -93 -115 -178 -87 -553 -386 Currency hedging, etc. 4 15 108 37 32 72 -168 36 127 -64 Total Group 1,435 1,103 709 914 1,419 1,293 1,428 1,552 3,247 4,140 Maintenance shutdowns -403 -442 -184 -96 -361 -381 -40 -109 -1,029 -782 Items affecting comparability - - -47 272 -350 - - 373 -47 -350 EBITDA 1,032 661 478 1,090 708 912 1,388 1,816 2,171 3,008 2026 2025 2024
Page 23
Interim report Billerud Aktiebolag (publ) January –September 202 6 23 Adjusted quarterly EBITDA margin, excluding planned maintenance shutdowns, per region and for the Group Quarterly operating profit/loss, per region and for the group Quarterly operating margin per region and for the group Quarterly sales volumes per region 2026 2025 % Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Jan-Sep Jan-Sep Region Europe 16 13 5 8 15 11 15 13 11 14 Region North America 18 18 16 20 19 22 21 20 18 21 Total Group 14 11 7 10 14 13 13 14 11 13 2026 2025 2024 2026 2025 SEKm Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Jan-Sep Jan-Sep Region Europe 194 -71 -409 -136 153 -164 563 408 -286 552 Region North America 318 241 302 386 314 439 479 406 861 1,232 Other -205 -243 -230 108 -490 -159 -236 241 -678 -885 Currency hedging, etc. 4 15 108 37 32 72 -168 36 127 -64 Total Group 311 -58 -229 395 9 188 638 1,091 24 835 2026 2025 2024 2026 2025 % Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Jan-Sep Jan-Sep Region Europe 3 -1 -7 -2 2 -3 8 5 -2 3 Region North America 10 8 11 14 11 15 15 13 10 14 Total Group 3 -1 -2 4 0 2 6 10 0 3 2026 2025 2024 2026 2025 ktonnes Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Jan-Sep Jan-Sep Region Europe 653 610 660 595 624 626 670 706 1,923 1,920 Region North America 250 255 239 231 246 237 242 234 744 725 Total Group 903 865 899 826 870 863 912 940 2,667 2,645 2026 2025 2024
Page 24
Financial calendar Q4 2026 report 2 February 2027 Q1 2027 report 27 April 2027 Annual General Meeting 11 May 2027 Q2 2027 report 16 July 2027 Presentation Billerud’s interim report for January–September 2026 will be presented on Thursday 22 October at 8:30 CEST in a webcasted conference, that can be followed on: Billerud Q3 Report 2026 To participate via telephone, and thereby be able to ask questions, please register here: Conference Registration For further information Andrei Krés, CFO, +46 8 553 335 72 Lena Schattauer, Director Investor Relations, +46 8 553 335 10 ir@billerud.com The English version is a translation of the Swedish original. This information constituted inside information prior to publication. This is information that Billerud AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 07.00 CEST on 22 October 2026. Billerud Aktiebolag (publ) • Postal address: Box 703, SE -169 27 Solna, Sweden • Visitors’ address: Evenemangsgatan 17 Company reg. no. 556025-5001 • Tel +46 8 553 335 00 www.billerud.com