| Metric | Value ($ M) | Q2 FY25 | Q3 FY24 |
|---|---|---|---|
| Revenue | 458.07 | 1.0% | 8.8% |
| Total Income | 458.07 | 1.0% | 8.8% |
| Expenditure | 525.66 | 2.7% | 6.6% |
| PBT | -95.56 | 8.7% | 440.5% |
| Net Profit | -80.78 | 6.2% | 360.0% |
| OPM | -14.76% | 1.88pp | 16.52pp |
| NPM | -17.64% | 1.34pp | 14.14pp |
| EPS | -1.21 | 6.2% | 365.4% |
Mercer International Inc. Reports Q3 2025 Results
04 May 2026 · 4 May, 7:52 am
Summary
Mercer International Inc. reported negative Operating EBITDA of $28.1 million for the third quarter of 2025, a decrease from positive $50.5 million in the same quarter of 2024. The company's net loss was $80.8 million, compared to $17.6 million in the third quarter of 2024. The decrease in Operating EBITDA was primarily due to lower pulp and manufactured products sales realizations, higher per unit fiber costs, and a non-cash inventory impairment. The company is continuing to execute its "One Goal One Hundred" program, targeting $100 million in cost savings and operational efficiency actions by the end of 2026. Looking ahead to the fourth quarter of 2025, the company expects pulp prices to remain weak.
Key Highlights
- 1
Mercer International Inc. reported a third quarter Operating EBITDA of negative $28.1 million, compared to positive $50.5 million in the same quarter of 2024.
- 2
The company's net loss for the third quarter of 2025 was $80.8 million ($1.21 per share), compared to a net loss of $17.6 million ($0.26 per share) in the third quarter of 2024.
- 3
Sales realizations for both softwood and hardwood pulp decreased compared to the second quarter of 2025 due to lower prices across all markets.
- 4
The company is continuing to advance its "One Goal One Hundred" program, targeting $100 million in profitability improvement actions by the end of 2026.
- 5
Pulp segment revenues decreased by approximately 9% to $339.0 million in the third quarter of 2025 from $373.3 million in the same quarter of 2024.
- 6
Solid wood segment revenues decreased by approximately 6% to $117.2 million in the third quarter of 2025 from $125.1 million in the same quarter of 2024.
- 7
As of September 30, 2025, Mercer International Inc. had aggregate liquidity of about $376.1 million.
Management Comments
Juan Carlos Bueno
"In the third quarter of 2025, persistent global economic and trade uncertainties, fiber scarcity in Germany as well as the impact of pulp substitution accelerated the decline in pulp market demand and pricing, which negatively impacted our operating results and contributed to a $20.4 million non-cash inventory impairment charge in the quarter." "We are continuing to advance our \"One Goal One Hundred\" program, which we began in our second quarter and includes cost reduction initiatives and operational efficiency measures to achieve our target of $100 million in profitability improvement actions by the end of 2026, using 2024 as a baseline. We currently expect to realize approximately $30 million in cost savings and reliability improvements by the end of 2025 and remain confident that we will achieve our target by the end of 2026." "We recognize that the combined challenges faced by our industries in the third quarter are expected to persist into the fourth quarter. Against this backdrop, liquidity remains our top priority. While we have made good progress on our One Goal One Hundred program and remain committed to rebalancing our portfolio of assets, we will take additional decisive steps aimed at increasing our liquidity. These include further cost reductions, lowering capital expenditures for 2026 and other working capital measures that would improve our balance sheet and align with our long-term strategy. We believe in the value generating capability of our core assets as conditions improve."
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