Mercer International Inc. Reports Third Quarter 2025 Results
Mercer International (Nasdaq: MERC) reported Q3 2025 Operating EBITDA of negative $28.1M and a net loss of $80.8M ($1.21/share) on revenues of $458.1M, versus Operating EBITDA of $50.5M and revenues of $502.1M in Q3 2024. Results included a $20.4M non-cash inventory impairment and higher costs that raised total costs ~7% year-over-year.
Management reiterated the One Goal One Hundred program targeting $100M of cost and efficiency actions by end-2026 and expects ~$30M of savings by end-2025. Company noted industry headwinds: weak pulp pricing, pulp grade substitution, higher fiber costs (+~14% per unit), trade uncertainty and new U.S. Section 232 lumber tariffs.
Mercer International (Nasdaq: MERC) ha riportato nel trimestre Q3 2025 un EBITDA operativo negativo di 28,1 milioni di dollari e una perdita netta di 80,8 milioni di dollari (1,21 dollari/azione) su ricavi di 458,1 milioni di dollari, rispetto a un EBITDA operativo di 50,5 milioni e ricavi di 502,1 milioni nel Q3 2024. I risultati hanno incluso un impairment non‑cash di inventario di 20,4 milioni di dollari e costi più elevati che hanno aumentato i costi totali di circa il 7% su base annua.
La direzione ha ribadito il programma One Goal One Hundred mirato a 100 milioni di dollari di azioni di contenimento costi ed efficienza entro la fine del 2026 e si aspetta circa 30 milioni di dollari di risparmi entro la fine del 2025. L’azienda ha segnalato ostacoli del settore: prezzi deboli della polpa, sostituzione dei gradi di polpa, costi della fibre più elevati (+ circa 14% per unità), incertezza commerciale e nuove tariffe statunitensi sulla legname ai sensi della Sezione 232.
Mercer International (Nasdaq: MERC) reportó en el tercer trimestre de 2025 un EBITDA operativo de −28,1 M$ y una pérdida neta de −80,8 M$ (−1,21$/acción) sobre ingresos de 458,1 M$, frente a un EBITDA operativo de 50,5 M$ y ingresos de 502,1 M$ en el Q3 2024. Los resultados incluyeron una baja de inventario no monetaria de 20,4 M$ y costos más altos que elevaron los costos totales en aproximadamente 7% año tras año.
La dirección reiteró el programa One Goal One Hundred que apunta a acciones de reducción de costos y eficiencia por 100 millones de dólares para fines de 2026 y espera unos 30 M$ de ahorros para fines de 2025. La empresa señaló vientos en contra de la industria: precios débiles de la pulpa, sustitución de grado de pulpa, costos de fibra más altos (+ aproximadamente 14% por unidad), incertidumbre comercial y nuevas tarifas de aranceles de la madera en la Sección 232 de EE. UU.
Mercer International (나스닥: MERC)은 2025년 3분기에 영업 EBITDA −2,810만 달러와 순손실 −8,080만 달러(주당 1.21달러), 매출 4,5810만 달러를 보고했습니다. 이는 2024년 3분기의 EBITDA 5,050만 달러 및 매출 5,0210만 달러에 비해 감소한 수치입니다. 결과에는 2,040만 달러의 비현금 재고 손실과 연간 약 7%의 총비용 증가가 포함되었습니다.
경영진은 2026년 말까지 비용 및 효율성 조치 1억 달러를 목표로 하는 One Goal One Hundred 프로그램을 재확인했고 2025년 말까지 약 3000만 달러의 절감을 예상합니다. 업황에 대한 도전 요인으로는 약한 펄프 가격, 펄프 등급 대체, 더 높은 섬유 비용(단위당 약 14% 증가), 무역 불확실성, 그리고 미국의 섹션 232에 따른 목재 관세 신설 등이 지목되었습니다.
Mercer International (Nasdaq: MERC) a enregistré au troisième trimestre 2025 un EBITDA opérationnel négatif de 28,1 M$ et une perte nette de −80,8 M$ (−1,21 $/action) sur un chiffre d’affaires de 458,1 M$, comparé à un EBITDA opérationnel de 50,5 M$ et un chiffre d’affaires de 502,1 M$ au T3 2024. Les résultats incluent une impairment non monétaire d’inventaire de 20,4 M$ et des coûts plus élevés qui ont porté les coûts totaux d’environ 7% sur un an.
La direction a réitéré le programme One Goal One Hundred visant des actions de réduction des coûts et d’efficacité pour 100 M$ d’ici la fin 2026 et prévoit environ 30 M$ d’économies d’ici fin 2025. L’entreprise a souligné des vents contraires à l’industrie: des prix de la pâte faibles, la substitution des grades de pâte, des coûts de fibre plus élevés (+ environ 14% par unité), une incertitude commerciale et de nouvelles taxes américaines Section 232 sur le bois.
Mercer International (Nasdaq: MERC) meldete im Q3 2025 ein operatives EBITDA von −28,1 Mio. USD und einen Nettogewinn von −80,8 Mio. USD (−1,21 USD/Aktie) bei Einnahmen von 458,1 Mio. USD, verglichen mit einem operativen EBITDA von 50,5 Mio. USD und Einnahmen von 502,1 Mio. USD im Q3 2024. Die Ergebnisse beinhalteten eine Non‑Cash-Impairment des Inventars von 20,4 Mio. USD und höhere Kosten, die die GesamtKosten um ca. 7% im Jahresvergleich erhöhten.
Das Management bekräftigte das Programm One Goal One Hundred, das bis Ende 2026 100 Mio. USD an Kosten- und Effizienzmaßnahmen vorsieht, und erwartet bis Ende 2025 Einsparungen von ca. 30 Mio. USD. Das Unternehmen wies auf Branchenhindernisse hin: schwache Zellstoffpreise, Ersatz von Zellstoffqualitäten, höhere Faser costs (+ ca. 14% pro Einheit), Handelsunsicherheit und neue US‑Zolltarife nach Section 232 für Holz.
Mercer International (ناسداك: MERC) أبلغت عن EBITDA تشغيلي سلبي للربع الثالث من 2025 مقداره −28.1 مليون دولار وخسارة صافية قدرها −80.8 مليون دولار (−1.21 دولار/سهم) على إيرادات قدرها 458.1 مليون دولار، مقارنةً بـ EBITDA تشغيلي قدره 50.5 مليون دولار وإيرادات 502.1 مليون دولار في الربع الثالث من 2024. شملت النتائج انخفاضاً في قيمة المخزون غير نقدي بمقدار 20.4 مليون دولار وتكاليف أعلى رفعت إجمالي التكاليف بنحو 7% سنوياً.
أَكدت الإدارة مرة أخرى برنامج One Goal One Hundred الذي يستهدف إجراءات تقليل التكاليف والكفاءة بقيمة 100 مليون دولار بنهاية 2026 وتتوقع توفير نحو 30 مليون دولار بنهاية 2025. أشارت الشركة إلى تحديات الصناعة: أسعار اللب ضعيفة، استبدال درجات اللب، ارتفاع تكاليف الألياف (+ نحو 14% لكل وحدة)، عدم اليقين التجاري وتطبيق تعرفة جديدة على الخشب الأمريكي بموجب القسم 232.
- One Goal One Hundred program targeting $100M in savings by end-2026
- Expect ~$30M in cost savings and reliability improvements by end-2025
- Pulp production +10% YoY to 458,708 ADMTs in Q3 2025
- Lumber revenues +24% YoY to $61.0M in Q3 2025
- Mass timber order book described as healthy, supporting 2026 outlook
- Operating EBITDA fell to negative $28.1M in Q3 2025 from $50.5M in Q3 2024
- Net loss of $80.8M ($1.21/share) in Q3 2025
- Revenues down ~9% YoY to $458.1M in Q3 2025
- Non-cash inventory impairment of $20.4M in Q3 2025
- Average per unit fiber costs increased ~14% YoY
- Average NBSK and NBHK realizations down ~11% and 16% respectively
Insights
Q3 results show a sharp earnings deterioration and large net loss, pressuring liquidity near term.
Operating EBITDA fell to
The business depends on pulp pricing, fiber supply and FX; management cites trade uncertainty, substitution of softwood for hardwood and higher fiber costs as explicit drivers. They target
Watch quarterly Operating EBITDA trajectory, realized pulp prices per ADMT (NBSK
Operational shocks and fiber supply constraints materially reduced segment margins in Q3.
Production rose ~10% to 458,708 ADMTs, yet pulp segment Operating EBITDA swung to
Key operational risks include planned maintenance (Stendal ~18 days in Q4) and unplanned downtime (Celgar 12 days in Q3) that affect near term volumes. Trade actions (Section 232 lumber tariff at 10% plus existing duties) may alter North American supply and fiber flows; management flags potential sawmill curtailments if tariffs persist.
Concrete monitors: actual days of Q4 downtime at Stendal, the pilot carbon capture start in Q4, realized per‑unit fiber cost moves in Q4, and whether announced cost actions deliver the ~
Selected Highlights
- Third quarter Operating EBITDA* of negative
$28.1 million (net loss of$80.8 million ), including a non-cash inventory impairment of$20.4 million , compared to positive$50.5 million (net loss of$17.6 million ) in the same quarter of 2024 - Combined industry wide challenges stemming from the global economic and trade environment, higher fiber costs and pulp grade substitution intensified in the third quarter of 2025
- Continued execution of our "One Goal One Hundred" program, targeting
$100 million in cost savings and operational efficiency actions by the end of 2026 and taking additional steps aimed at improving liquidity through further cost reductions, lowering capital expenditures in 2026 and other working capital measures
NEW YORK, Nov. 06, 2025 (GLOBE NEWSWIRE) -- Mercer International Inc. (Nasdaq: MERC) today reported third quarter 2025 Operating EBITDA of negative
In the third quarter of 2025, net loss was
Mr. Juan Carlos Bueno, Chief Executive Officer, stated: "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
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
We are currently advancing a carbon capture and sequestration project at the Peace River mill, which is in the conceptual engineering and scope development stage (FEL-2). The project is being jointly developed together with Svante Technologies Inc., a carbon capture and removal solutions provider. To validate the core technology, we are currently commissioning and starting-up a pilot for this project, which is expected to be operating in the fourth quarter. The next step will be front-end engineering design (FEED) that we expect to trigger in the second quarter of 2026. We view this project as a compelling opportunity to enhance value and the long-term economic viability and sustainability of the mill.
In the third quarter of 2025, sales realizations for both softwood and hardwood pulp decreased compared to the second quarter due to lower prices across all markets, driven by the continued weak demand stemming from the current economic climate and continuing global trade policy uncertainty, together with increased substitution of softwood for hardwood given the approximately
Our lumber sales realizations in both the U.S. and Europe were relatively stable in the third quarter of 2025 compared to the second quarter. We currently expect lumber prices to modestly increase in Europe in the fourth quarter of 2025 due to higher fiber costs. In the U.S., we currently expect slightly higher prices in the latter part of the fourth quarter of 2025 driven by the combined impact of duties and tariffs imposed on producers reducing supply and supporting higher prices.
In October 2025, the United States implemented Section 232 tariffs, citing national security as the rationale to impose a
Per unit fiber costs for our pulp and solid wood segments were relatively steady in the third quarter of 2025 compared to the second quarter. In the fourth quarter of 2025, we currently expect per unit fiber costs to increase for all our mills due to supply constraints and, in Germany, strong competing demand for pellets.
In the third quarter of 2025, our pulp mills had 32 days of downtime (approximately 35,700 ADMTs), which included 20 days of planned annual maintenance and 12 days of unplanned downtime at the Celgar mill due to a mechanical failure. We currently expect a total of 18 days of planned annual maintenance downtime at the Stendal mill in the fourth quarter of 2025.
Our solid wood segment results continued to be weighed down by weak demand due to elevated interest rates and broader economic challenges in Europe. However, we continue to expect significantly improved segment performance when the interest rate environment improves. In our solid wood segment, our mass timber business has developed a healthy order book despite the ongoing elevated interest rate environment in the U.S. and anticipates a positive outlook for 2026."
Mr. Bueno concluded: "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."
_________________
*Operating EBITDA is not a measure of financial performance under accounting principles generally accepted in the United States ("GAAP") and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. See page 6 of the financial tables included in this press release for a reconciliation of net loss to Operating EBITDA.
Consolidated Financial Results
| Q3 | Q2 | Q3 | YTD | YTD | ||||||||||||||||
| 2025 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||
| (in thousands, except per share amounts) | ||||||||||||||||||||
| Revenues | $ | 458,068 | $ | 453,524 | $ | 502,141 | $ | 1,418,566 | $ | 1,554,955 | ||||||||||
| Operating income (loss) | $ | (67,589 | ) | $ | (58,404 | ) | $ | 8,841 | $ | (119,260 | ) | $ | (35,386 | ) | ||||||
| Operating EBITDA | $ | (28,077 | ) | $ | (20,881 | ) | $ | 50,455 | $ | (1,870 | ) | $ | 144,495 | |||||||
| Net loss | $ | (80,779 | ) | $ | (86,071 | ) | $ | (17,559 | ) | $ | (189,189 | ) | $ | (101,848 | ) | |||||
| Net loss per common share | ||||||||||||||||||||
| Basic | $ | (1.21 | ) | $ | (1.29 | ) | $ | (0.26 | ) | $ | (2.83 | ) | $ | (1.53 | ) | |||||
| Diluted | $ | (1.21 | ) | $ | (1.29 | ) | $ | (0.26 | ) | $ | (2.83 | ) | $ | (1.53 | ) | |||||
Consolidated – Three Months Ended September 30, 2025 Compared to Three Months Ended September 30, 2024
Total revenues for the third quarter of 2025 decreased by approximately
Costs and expenses in the third quarter of 2025 increased by approximately
In the third quarter of 2025, Operating EBITDA decreased to negative
Segment Results
Pulp
| Three Months Ended September 30, | ||||||||
| 2025 | 2024 | |||||||
| (in thousands) | ||||||||
| Pulp revenues | $ | 318,622 | $ | 354,176 | ||||
| Energy and chemical revenues | $ | 20,416 | $ | 19,092 | ||||
| Segment Operating EBITDA(1) | $ | (12,686 | ) | $ | 54,645 | |||
______________
(1) Segment Operating EBITDA is a measure of segment profit or loss presented in our financial statements under GAAP. Refer to the segment information note in our consolidated financial statements for more information.
In the third quarter of 2025, Segment Operating EBITDA for our pulp segment decreased to negative
Pulp segment revenues, comprised of pulp, energy and chemical revenues, in the third quarter of 2025 decreased by approximately
Pulp revenues in the third quarter of 2025 decreased by approximately
In the third quarter of 2025, the third-party industry quoted average list price for NBSK pulp in Europe and the third-party industry quoted average net price for NBSK pulp in China decreased from the same quarter of 2024. These decreases stemmed from weaker demand driven by the current economic climate, global trade policy uncertainty, and increased substitution of softwood pulp for lower-cost hardwood pulp. Oversupply in the paper market also contributed to the pricing decrease in China. In the third quarter of 2025, the third-party industry quoted average list price for NBSK pulp in North America decreased from the same quarter of 2024 driven by downward price pressure from other markets. Our average NBSK pulp sales realizations in the third quarter of 2025 decreased by approximately
In the third quarter of 2025, the third-party industry quoted average list price for NBHK pulp in North America decreased from the same quarter of 2024 due to downward price pressure from other markets. The third-party industry quoted average net price for NBHK pulp in China decreased in the third quarter of 2025 from the same quarter of 2024 due to an oversupplied paper market and weak demand driven by the current economic climate and global trade policy uncertainty. In the third quarter of 2025, average NBHK pulp sales realizations decreased by approximately
Total pulp sales volumes in the third quarter of 2025 were relatively flat at 452,840 ADMTs compared to 448,856 ADMTs in the same quarter of 2024.
Energy and chemical revenues in the third quarter of 2025 were relatively steady at
Costs and expenses in the third quarter of 2025 increased by approximately
Total pulp production in the third quarter of 2025 increased by approximately
Overall average per unit fiber costs in the third quarter of 2025 increased by approximately
Solid Wood
| Three Months Ended September 30, | ||||||||
| 2025 | 2024 | |||||||
| (in thousands) | ||||||||
| Lumber revenues | $ | 60,971 | $ | 49,093 | ||||
| Energy revenues | $ | 4,894 | $ | 2,593 | ||||
| Manufactured products revenues(1) | $ | 12,171 | $ | 35,798 | ||||
| Pallet revenues | $ | 26,650 | $ | 26,525 | ||||
| Biofuels revenues(2) | $ | 10,183 | $ | 9,262 | ||||
| Wood residuals revenues | $ | 2,365 | $ | 1,822 | ||||
| Segment Operating EBITDA(3) | $ | (9,268 | ) | $ | (1,933 | ) | ||
______________
(1) Manufactured products primarily include cross-laminated timber ("CLT") and glue-laminated timber ("glulam").
(2) Biofuels include pellets and briquettes.
(3) Segment Operating EBITDA is a measure of segment profit or loss presented in our financial statements under GAAP. Refer to the segment information note in our consolidated financial statements for more information.
In the third quarter of 2025, Segment Operating EBITDA for the solid wood segment decreased to negative
Solid wood segment revenues in the third quarter of 2025 decreased by approximately
In the third quarter of 2025, lumber revenues increased by approximately
Lumber sales volumes in the third quarter of 2025 were flat at 110.2 MMfbm compared to 108.8 MMfbm in the same quarter of 2024.
In the third quarter of 2025, manufactured products revenues decreased by approximately
Lumber production in the third quarter of 2025 decreased by approximately
Fiber costs were approximately
Consolidated – Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024
Total revenues for the nine months ended September 30, 2025 decreased by approximately
Costs and expenses in the nine months ended September 30, 2025 modestly decreased to
In the nine months ended September 30, 2025, Operating EBITDA decreased to negative
Liquidity
As of September 30, 2025, we had cash and cash equivalents of
The following table is a summary of selected financial information as of the dates indicated:
| September 30, | December 31, | |||||||
| 2025 | 2024 | |||||||
| (in thousands) | ||||||||
| Cash and cash equivalents | $ | 98,102 | $ | 184,925 | ||||
| Working capital | $ | 579,668 | $ | 653,466 | ||||
| Total assets | $ | 2,290,563 | $ | 2,262,932 | ||||
| Long-term liabilities | $ | 1,642,880 | $ | 1,576,619 | ||||
| Total shareholders' equity | $ | 359,532 | $ | 429,775 | ||||
Earnings Release Call
In conjunction with this release, Mercer International Inc. will host a conference call, which will be simultaneously broadcast live over the Internet. Management will host the call, which is scheduled for November 7, 2025 at 10:00 AM ET. Listeners can access the conference call live and archived for 30 days over the Internet at https://edge.media-server.com/mmc/p/sxenn96s or through a link on the company's home page at https://www.mercerint.com. Please allow 15 minutes prior to the call to visit the website and download and install any necessary audio software.
Mercer International Inc. is a global forest products company with operations in Germany, USA and Canada with consolidated annual production capacity of 2.1 million tonnes of pulp, 960 million board feet of lumber, 210 thousand cubic meters of CLT, 45 thousand cubic meters of glulam, 17 million pallets and 230 thousand tonnes of biofuels. To obtain further information on the company, please visit its website at https://www.mercerint.com.
The preceding includes forward-looking statements which involve known and unknown risks and uncertainties which may cause our actual results in future periods to differ materially from forecasted results. Words such as "expects", "anticipates", "are optimistic that", "projects", "intends", "designed", "will", "believes", "estimates", "may", "could" and variations of such words and similar expressions are intended to identify such forward-looking statements. Among those factors which could cause actual results to differ materially are the following: the highly cyclical nature of our business, raw material costs, our level of indebtedness, competition, foreign exchange and interest rate fluctuations, our use of derivatives, expenditures for capital projects, environmental regulation and compliance, disruptions to our production, market conditions and other risk factors listed from time to time in our SEC reports.
APPROVED BY:
William D. McCartney
Chairman
(604) 684-1099
Juan Carlos Bueno
Chief Executive Officer
(604) 684-1099
-FINANCIAL TABLES FOLLOW-
Summary Financial Highlights
| Q3 | Q2 | Q3 | YTD | YTD | ||||||||||||||||
| 2025 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||
| (in thousands, except per share amounts) | ||||||||||||||||||||
| Revenues from external customers | ||||||||||||||||||||
| Pulp segment | $ | 339,038 | $ | 332,308 | $ | 373,268 | $ | 1,052,426 | $ | 1,173,043 | ||||||||||
| Solid wood segment | 117,234 | 117,268 | 125,093 | 357,222 | 374,354 | |||||||||||||||
| Corporate and other | 1,796 | 3,948 | 3,780 | 8,918 | 7,558 | |||||||||||||||
| Total revenues | $ | 458,068 | $ | 453,524 | $ | 502,141 | $ | 1,418,566 | $ | 1,554,955 | ||||||||||
| Pulp Segment Operating EBITDA(1) | $ | (12,686 | ) | $ | (10,262 | ) | $ | 54,645 | $ | 26,924 | $ | 154,784 | ||||||||
| Solid wood Segment Operating EBITDA(1) | (9,268 | ) | (4,861 | ) | (1,933 | ) | (14,421 | ) | 296 | |||||||||||
| Corporate and other | (6,123 | ) | (5,758 | ) | (2,257 | ) | (14,373 | ) | (10,585 | ) | ||||||||||
| Operating EBITDA(2) | $ | (28,077 | ) | $ | (20,881 | ) | $ | 50,455 | $ | (1,870 | ) | $ | 144,495 | |||||||
| Net loss | $ | (80,779 | ) | $ | (86,071 | ) | $ | (17,559 | ) | $ | (189,189 | ) | $ | (101,848 | ) | |||||
| Net loss per common share | ||||||||||||||||||||
| Basic | $ | (1.21 | ) | $ | (1.29 | ) | $ | (0.26 | ) | $ | (2.83 | ) | $ | (1.53 | ) | |||||
| Diluted | $ | (1.21 | ) | $ | (1.29 | ) | $ | (0.26 | ) | $ | (2.83 | ) | $ | (1.53 | ) | |||||
| Common shares outstanding at period end | 66,983 | 66,983 | 66,871 | 66,983 | 66,871 | |||||||||||||||
______________
(1) Segment Operating EBITDA is a measure of segment profit or loss presented in our financial statements under GAAP. Refer to the segment information note in our consolidated financial statements for more information.
(2) Operating EBITDA is not a measure of financial performance under GAAP and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. See page 6 of the financial tables included in this press release for a reconciliation of net loss to Operating EBITDA.
Summary Operating Highlights
| Q3 | Q2 | Q3 | YTD | YTD | ||||||||||||||||
| 2025 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||
| Pulp Segment | ||||||||||||||||||||
| Pulp production ('000 ADMTs) | ||||||||||||||||||||
| NBSK | 366.7 | 403.2 | 374.4 | 1,140.3 | 1,185.4 | |||||||||||||||
| NBHK | 92.0 | 53.9 | 41.4 | 234.4 | 191.0 | |||||||||||||||
| Annual maintenance downtime ('000 ADMTs) | 21.3 | 33.2 | 22.1 | 84.2 | 86.9 | |||||||||||||||
| Annual maintenance downtime (days) | 20 | 23 | 20 | 65 | 57 | |||||||||||||||
| Pulp sales ('000 ADMTs) | ||||||||||||||||||||
| NBSK | 385.9 | 361.4 | 376.2 | 1,135.4 | 1,242.0 | |||||||||||||||
| NBHK | 67.0 | 65.3 | 72.6 | 222.1 | 205.8 | |||||||||||||||
| Average NBSK pulp prices ($/ADMT)(1) | ||||||||||||||||||||
| Europe | 1,497 | 1,553 | 1,573 | 1,533 | 1,525 | |||||||||||||||
| China | 690 | 734 | 771 | 739 | 776 | |||||||||||||||
| North America | 1,700 | 1,820 | 1,762 | 1,758 | 1,633 | |||||||||||||||
| Average NBHK pulp prices ($/ADMT)(1) | ||||||||||||||||||||
| China | 503 | 533 | 635 | 538 | 677 | |||||||||||||||
| North America | 1,203 | 1,310 | 1,467 | 1,261 | 1,376 | |||||||||||||||
| Average pulp sales realizations ($/ADMT)(2) | ||||||||||||||||||||
| NBSK | 728 | 758 | 814 | 756 | 781 | |||||||||||||||
| NBHK | 528 | 575 | 632 | 559 | 650 | |||||||||||||||
| Energy production ('000 MWh)(3) | 490.5 | 511.1 | 509.8 | 1,528.7 | 1,580.2 | |||||||||||||||
| Energy sales ('000 MWh)(3) | 171.1 | 183.1 | 187.0 | 552.9 | 592.6 | |||||||||||||||
| Average energy sales realizations ($/MWh)(3) | 98 | 83 | 86 | 97 | 86 | |||||||||||||||
| Solid Wood Segment | ||||||||||||||||||||
| Lumber | ||||||||||||||||||||
| Production (MMfbm) | 115.4 | 120.2 | 122.5 | 363.6 | 360.9 | |||||||||||||||
| Sales (MMfbm) | 110.2 | 120.6 | 108.8 | 361.8 | 346.8 | |||||||||||||||
| Average sales realizations ($/Mfbm) | 553 | 550 | 451 | 533 | 458 | |||||||||||||||
| Energy | ||||||||||||||||||||
| Production and sales ('000 MWh) | 32.7 | 32.7 | 17.9 | 101.5 | 90.2 | |||||||||||||||
| Average sales realizations ($/MWh) | 150 | 130 | 145 | 138 | 130 | |||||||||||||||
| Manufactured products(4) | ||||||||||||||||||||
| Production ('000 cubic meters) | 9.2 | 7.8 | 9.8 | 24.1 | 28.1 | |||||||||||||||
| Sales ('000 cubic meters) | 6.8 | 8.1 | 9.9 | 20.8 | 25.0 | |||||||||||||||
| Average sales realizations ($/cubic meter) | 1,615 | 1,318 | 3,463 | 1,843 | 3,260 | |||||||||||||||
| Pallets | ||||||||||||||||||||
| Production ('000 units) | 2,265.2 | 2,132.9 | 2,525.5 | 6,494.5 | 8,129.7 | |||||||||||||||
| Sales ('000 units) | 2,144.5 | 2,248.0 | 2,446.7 | 6,521.3 | 7,933.4 | |||||||||||||||
| Average sales realizations ($/unit) | 12 | 12 | 11 | 12 | 10 | |||||||||||||||
| Biofuels(5) | ||||||||||||||||||||
| Production ('000 tonnes) | 33.3 | 25.2 | 40.6 | 103.1 | 119.6 | |||||||||||||||
| Sales ('000 tonnes) | 39.8 | 19.6 | 43.5 | 99.6 | 132.1 | |||||||||||||||
| Average sales realizations ($/tonne) | 256 | 260 | 213 | 246 | 217 | |||||||||||||||
| Average Spot Currency Exchange Rates | ||||||||||||||||||||
| $ / €(6) | 1.1685 | 1.1342 | 1.0987 | 1.1196 | 1.0870 | |||||||||||||||
| $ / C$(6) | 0.7261 | 0.7225 | 0.7331 | 0.7154 | 0.7352 | |||||||||||||||
______________
(1) Source: RISI pricing report. Europe and North America are list prices. China are net prices which include discounts, allowances and rebates.
(2) Sales realizations after customer discounts, rebates and other selling concessions.
(3) Does not include our
(4) Manufactured products primarily include CLT and glulam.
(5) Biofuels include pellets and briquettes.
(6) Average Federal Reserve Bank of New York Noon Buying Rates over the reporting period.
MERCER INTERNATIONAL INC.
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Revenues | $ | 458,068 | $ | 502,141 | $ | 1,418,566 | $ | 1,554,955 | ||||||||
| Costs and expenses | ||||||||||||||||
| Cost of sales, excluding depreciation and amortization | 457,397 | 422,598 | 1,331,691 | 1,320,000 | ||||||||||||
| Cost of sales depreciation and amortization | 39,439 | 41,546 | 117,180 | 121,773 | ||||||||||||
| Selling, general and administrative expenses | 28,821 | 29,156 | 88,955 | 90,646 | ||||||||||||
| Loss on disposal of investment in joint venture | — | — | — | 23,645 | ||||||||||||
| Goodwill impairment | — | — | — | 34,277 | ||||||||||||
| Operating income (loss) | (67,589 | ) | 8,841 | (119,260 | ) | (35,386 | ) | |||||||||
| Other income (expenses) | ||||||||||||||||
| Interest expense | (28,506 | ) | (26,429 | ) | (85,072 | ) | (80,831 | ) | ||||||||
| Other income (expenses) | 539 | (91 | ) | (766 | ) | 9,147 | ||||||||||
| Total other expenses, net | (27,967 | ) | (26,520 | ) | (85,838 | ) | (71,684 | ) | ||||||||
| Loss before income taxes | (95,556 | ) | (17,679 | ) | (205,098 | ) | (107,070 | ) | ||||||||
| Income tax recovery | 14,777 | 120 | 15,909 | 5,222 | ||||||||||||
| Net loss | $ | (80,779 | ) | $ | (17,559 | ) | $ | (189,189 | ) | $ | (101,848 | ) | ||||
| Net loss per common share | ||||||||||||||||
| Basic | $ | (1.21 | ) | $ | (0.26 | ) | $ | (2.83 | ) | $ | (1.53 | ) | ||||
| Diluted | $ | (1.21 | ) | $ | (0.26 | ) | $ | (2.83 | ) | $ | (1.53 | ) | ||||
| Dividends declared per common share | $ | — | $ | 0.075 | $ | 0.150 | $ | 0.225 | ||||||||
MERCER INTERNATIONAL INC.
INTERIM CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except share and per share data)
| September 30, 2025 | December 31, 2024 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 98,102 | $ | 184,925 | ||||
| Accounts receivable, net | 328,432 | 327,345 | ||||||
| Inventories | 384,657 | 361,682 | ||||||
| Prepaid expenses and other | 53,177 | 17,601 | ||||||
| Assets classified as held for sale | 3,451 | 18,451 | ||||||
| Total current assets | 867,819 | 910,004 | ||||||
| Property, plant and equipment, net | 1,323,133 | 1,254,715 | ||||||
| Amortizable intangible assets, net | 53,407 | 49,829 | ||||||
| Operating lease right-of-use assets | 10,621 | 7,598 | ||||||
| Pension asset | 7,638 | 9,378 | ||||||
| Deferred income tax assets | 21,493 | 17,778 | ||||||
| Other long-term assets | 6,452 | 13,630 | ||||||
| Total assets | $ | 2,290,563 | $ | 2,262,932 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable and other | $ | 287,395 | $ | 248,661 | ||||
| Pension and other post-retirement benefit obligations | 756 | 732 | ||||||
| Liabilities associated with assets held for sale | — | 7,145 | ||||||
| Total current liabilities | 288,151 | 256,538 | ||||||
| Long-term debt | 1,546,993 | 1,473,986 | ||||||
| Pension and other post-retirement benefit obligations | 12,833 | 11,134 | ||||||
| Operating lease liabilities | 6,841 | 4,793 | ||||||
| Deferred income tax liabilities | 63,162 | 74,772 | ||||||
| Other long-term liabilities | 13,051 | 11,934 | ||||||
| Total liabilities | 1,931,031 | 1,833,157 | ||||||
| Shareholders’ equity | ||||||||
| Common shares | 66,871 | 66,850 | ||||||
| Additional paid-in capital | 366,146 | 362,782 | ||||||
| Retained earnings | 31,684 | 230,912 | ||||||
| Accumulated other comprehensive loss | (105,169 | ) | (230,769 | ) | ||||
| Total shareholders’ equity | 359,532 | 429,775 | ||||||
| Total liabilities and shareholders’ equity | $ | 2,290,563 | $ | 2,262,932 | ||||
MERCER INTERNATIONAL INC.
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Cash flows from (used in) operating activities | ||||||||||||||||
| Net loss | $ | (80,779 | ) | $ | (17,559 | ) | $ | (189,189 | ) | $ | (101,848 | ) | ||||
| Adjustments to reconcile net loss to cash flows from operating activities | ||||||||||||||||
| Depreciation and amortization | 39,512 | 41,614 | 117,390 | 121,959 | ||||||||||||
| Deferred income tax recovery | (10,989 | ) | (14,403 | ) | (22,127 | ) | (20,507 | ) | ||||||||
| Inventory impairment | 20,400 | 4,000 | 31,400 | 4,000 | ||||||||||||
| Loss on disposal of investment in joint venture | — | — | — | 23,645 | ||||||||||||
| Goodwill impairment | — | — | — | 34,277 | ||||||||||||
| Defined benefit pension plans and other post-retirement benefit plan expense | 174 | 317 | 518 | 958 | ||||||||||||
| Stock compensation expense | 1,310 | 1,420 | 3,352 | 4,852 | ||||||||||||
| Foreign exchange transaction losses (gains) | (3,480 | ) | 6,095 | 14,299 | (736 | ) | ||||||||||
| Other | 2,016 | 874 | 6,656 | 2,990 | ||||||||||||
| Defined benefit pension plans and other post-retirement benefit plan contributions | — | (341 | ) | — | (958 | ) | ||||||||||
| Changes in working capital | ||||||||||||||||
| Accounts receivable | 10,245 | 860 | 25,035 | (40,940 | ) | |||||||||||
| Inventories | 20,025 | 20,639 | (4,041 | ) | 25,234 | |||||||||||
| Accounts payable and accrued expenses | (3,159 | ) | (43,527 | ) | 13,227 | (25,419 | ) | |||||||||
| Prepaid expenses and other | (25,329 | ) | (13,934 | ) | (34,089 | ) | (8,461 | ) | ||||||||
| Net cash from (used in) operating activities | (30,054 | ) | (13,945 | ) | (37,569 | ) | 19,046 | |||||||||
| Cash flows from (used in) investing activities | ||||||||||||||||
| Purchase of property, plant and equipment | (30,017 | ) | (27,264 | ) | (74,430 | ) | (63,608 | ) | ||||||||
| Proceeds from sale of property, plant and equipment | 684 | 3,665 | 1,484 | 5,210 | ||||||||||||
| Proceeds from government grants | 1,858 | — | 4,973 | 787 | ||||||||||||
| Other | (138 | ) | 696 | (2,273 | ) | (2,930 | ) | |||||||||
| Net cash used in investing activities | (27,613 | ) | (22,903 | ) | (70,246 | ) | (60,541 | ) | ||||||||
| Cash flows from (used in) financing activities | ||||||||||||||||
| Proceeds from (repayment of) revolving credit facilities, net | 21,275 | 20,330 | 46,636 | (15,510 | ) | |||||||||||
| Dividend payments | (5,024 | ) | (5,015 | ) | (10,039 | ) | (10,029 | ) | ||||||||
| Payment of finance lease obligations | (4,872 | ) | (2,564 | ) | (9,785 | ) | (7,440 | ) | ||||||||
| Other | (425 | ) | (23 | ) | 120 | (752 | ) | |||||||||
| Net cash from (used in) financing activities | 10,954 | 12,728 | 26,932 | (33,731 | ) | |||||||||||
| Effect of exchange rate changes on cash and cash equivalents | (1,684 | ) | (58 | ) | (5,940 | ) | 229 | |||||||||
| Net decrease in cash and cash equivalents | (48,397 | ) | (24,178 | ) | (86,823 | ) | (74,997 | ) | ||||||||
| Cash and cash equivalents, beginning of period | 146,499 | 263,173 | 184,925 | 313,992 | ||||||||||||
| Cash and cash equivalents, end of period | $ | 98,102 | $ | 238,995 | $ | 98,102 | $ | 238,995 | ||||||||
MERCER INTERNATIONAL INC.
COMPUTATION OF OPERATING EBITDA
(Unaudited)
(In thousands)
Operating EBITDA is defined as operating income (loss) plus depreciation and amortization and long-lived asset impairment charges. Management uses Operating EBITDA as a benchmark measurement of its own operating results, and as a benchmark relative to its competitors. Management considers it to be a meaningful supplement to operating income (loss) as a performance measure primarily because depreciation expense and long-lived asset impairment charges are not actual cash costs, and depreciation expense varies widely from company to company in a manner that management considers largely independent of the underlying cost efficiency of our operating facilities. In addition, management believes Operating EBITDA is commonly used by securities analysts, investors and other interested parties to evaluate our financial performance.
Operating EBITDA does not reflect the impact of a number of items that affect our net loss, including financing costs, income taxes and the effect of derivative instruments. Operating EBITDA is not a measure of financial performance under GAAP and should not be considered as an alternative to net loss or operating income (loss) as a measure of performance, nor as an alternative to net cash from (used in) operating activities as a measure of liquidity. Operating EBITDA is an internal measure and therefore may not be comparable to other companies.
Operating EBITDA is a non-GAAP financial measure at the consolidated level and is considered different from Operating EBITDA at the segment level, referred to as "Segment Operating EBITDA", which is our single measure of segment profit or loss presented in our financial statements under GAAP. For more information on Segment Operating EBITDA, refer to the segment information note within our consolidated financial statements.
The following table sets forth a reconciliation of net loss to Operating EBITDA for the periods indicated:
| Q3 | Q2 | Q3 | YTD | YTD | ||||||||||||||||
| 2025 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||
| Net loss | $ | (80,779 | ) | $ | (86,071 | ) | $ | (17,559 | ) | $ | (189,189 | ) | $ | (101,848 | ) | |||||
| Income tax recovery | (14,777 | ) | (1,864 | ) | (120 | ) | (15,909 | ) | (5,222 | ) | ||||||||||
| Interest expense | 28,506 | 28,411 | 26,429 | 85,072 | 80,831 | |||||||||||||||
| Other expenses (income) | (539 | ) | 1,120 | 91 | 766 | (9,147 | ) | |||||||||||||
| Operating income (loss) | (67,589 | ) | (58,404 | ) | 8,841 | (119,260 | ) | (35,386 | ) | |||||||||||
| Add: Depreciation and amortization | 39,512 | 37,523 | 41,614 | 117,390 | 121,959 | |||||||||||||||
| Add: Loss on disposal of investment in joint venture | — | — | — | — | 23,645 | |||||||||||||||
| Add: Goodwill impairment | — | — | — | — | 34,277 | |||||||||||||||
| Operating EBITDA | $ | (28,077 | ) | $ | (20,881 | ) | $ | 50,455 | $ | (1,870 | ) | $ | 144,495 | |||||||
FAQ
What were Mercer International (MERC) Q3 2025 results for Operating EBITDA and net loss?
How did MERC revenues and costs change in Q3 2025 versus Q3 2024?
What cost savings target did Mercer announce and what is the near-term expectation?
How large was the inventory impairment in MERC's Q3 2025 results?
What pulp pricing and cost trends did MERC report for Q3 2025 and Q4 outlook?
Will U.S. Section 232 lumber tariffs affect Mercer’s European lumber sales?
