Mercer International
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Mercer International (MERC) investor relations material

Mercer International Q4 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q4 2025 earnings summary13 Feb, 2026

Executive summary

  • Q4 2025 saw a consolidated net loss of $309 million, including significant non-cash impairments, but underlying operational performance improved sequentially due to cost reductions and efficiency gains.

  • Operating EBITDA improved to negative $20 million in Q4 2025 from negative $28 million in Q3 2025, driven by cost savings and stable production.

  • The "One Goal 100" program delivered $30 million in annual cost savings in 2025, with a target of $100 million by end of 2026.

  • Liquidity improved by $54 million to $430 million, supported by working capital management and cost controls.

  • Cash flow from operations increased by $76 million from the prior quarter despite the challenging environment.

Financial highlights

  • Q4 2025 net loss was $309 million ($4.61/share), compared to $81 million ($1.21/share) in Q3 2025, driven by $238.7–$260 million in non-cash impairments.

  • Operating EBITDA loss narrowed to negative $20 million from negative $28 million sequentially.

  • Capital expenditures reduced to $14 million in Q4 2025 from $30 million in Q3 2025.

  • Aggregate liquidity at quarter-end was $430 million, including $187 million in cash and $243 million in undrawn revolvers.

  • Cash flow from operating activities improved to $46 million in Q4 2025 from negative $30 million in Q3 2025.

Outlook and guidance

  • Market weakness is expected to persist through 2026, with a focus on maintaining strong liquidity and prudent financial management.

  • Planned CapEx for 2026 is $60–$80 million, focused on maintenance, environmental, and safety projects.

  • Mass timber revenue is expected to exceed $120 million in 2026, with backlog at $163 million.

  • Modest price improvements for NBSK and NBHK pulp are anticipated in Q1 2026 in Europe and China; North America expected to remain stable.

  • Per unit fiber costs projected to increase in Q1 2026 due to ongoing supply constraints.

Peace River mill asset rebalancing strategy
Mass timber 2026 revenue and profit outlook
US lumber tariffs' impact on Celgar fiber costs
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Frequently asked questions

Mercer International Inc produces market pulp and renewable energy from wood biomass. The company operates manufacturing facilities in North America and Europe, supplying paper, tissue, and packaging producers. It also generates green electricity and thermal energy as by-products. The company is headquartered in Vancouver, Canada, and its shares are listed on the NASDAQ.

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