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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.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.
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