| Metric | Value ($ M) | Q1 FY25 |
|---|---|---|
| Revenue | 489.30 | 3.5% |
| Total Income | 489.30 | 3.5% |
| Expenditure | 522.20 | 4.4% |
| PBT | -60.17 | 178.4% |
| Net Profit | -52.00 | 132.8% |
| OPM | -6.72% | 8.05pp |
| NPM | -10.63% | 6.22pp |
| EPS | -0.78 | 136.4% |
Mercer International Inc. Reports Q1 2026 Results
08 May 2026 · 8 May, 2:10 am
Summary
Mercer International Inc. reported first quarter 2026 Operating EBITDA of $7.8 million, a decrease from $47.1 million in the same quarter of 2025. The net loss for the quarter was $52.0 million ($0.78 per share) compared to $22.3 million ($0.33 per share) in the same quarter of 2025. The company is pursuing its "One Goal One Hundred" program and remains confident that it will achieve its targeted $100 million in cost savings and operational efficiencies by year end, with $11 million in profitability actions realized this quarter. As a result of ongoing economic uncertainty, the company secured a waiver of the applicable covenant from the lenders under the German revolving credit facility.
Key Highlights
- 1
Mercer International Inc. reported first quarter Operating EBITDA of $7.8 million, compared to $47.1 million in the same quarter of 2025.
- 2
The company secured an extended waiver for the German revolving credit facility to address covenant compliance.
- 3
Mercer is on track for its $100 million "One Goal One Hundred" goal, attaining $11.0 million of cost savings in the first quarter, and a total of approximately $41.0 million since launch in April 2025.
- 4
The mass timber momentum continues to build, backed by an order book and commitments of $171 million that support a multi-year production plan.
- 5
Net loss was $52.0 million ($0.78 per share) in the first quarter of 2026, compared to $22.3 million ($0.33 per share) in the same quarter of 2025.
Management Comments
Juan Carlos Bueno
Our pulp sales realizations showed resilience this quarter as softwood pulp markets held steady, while hardwood pulp performance trended upward on favorable demand-supply dynamics. However, elevated fiber costs across our supply chain and a slower-than-anticipated recovery in prices continued to weigh on our results. As a result, we recognized a non-cash impairment of $22 million against pulp and fiber inventory. We are starting to see supply responses to prevailing market conditions and currently expect a more balanced market in the later half of 2026. In the first quarter of 2026, economic headwinds continued and were accompanied by geopolitical volatility. In these difficult conditions, the steps being taken to address liquidity, combined with our ongoing focus on production discipline and the "One Goal One Hundred" program, are intended to position us to capture market upside when conditions improve towards the second half of the year.
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