Metsä Group (METS) Q1 2025 earnings summary

Executive summary

• Sales reached EUR 1,642 million in Q1 2025, up 13% from Q1 2024, with a comparable operating result of EUR 81 million, despite continued low demand and a weak financial result year-over-year.

• Operating result (IFRS) was EUR 51 million, down from EUR 58 million, mainly due to one-time impairments.

• Development investments and a strong equity ratio (57%) are expected to support competitiveness.

• Major restructuring included the closure of the Tako board mill and efficiency improvements at Kyro, resulting in 208 job reductions.

• Jussi Vanhanen appointed as new CEO effective July 1, 2025.

Financial highlights

• Comparable operating result increased to EUR 81 million from EUR 70 million year-over-year.

• EBITDA reached EUR 190 million (Q1 2024: EUR 185 million), with comparable EBITDA at EUR 197 million.

• Return on capital employed (ROCE) rose to 4.4% from 4.0% in Q1 2024.

• Equity ratio stood at 57.1% at the end of Q1 2025; net gearing ratio at 22.9%.

• Interest-bearing net liabilities were EUR 1,311 million.

Outlook and guidance

• Comparable operating result for April–June 2025 is expected to be weaker than in Q1 2025.

• US import duties and tariffs are creating uncertainty, especially for pulp and paperboard, with potential increases from 10% to 20% after July 9, 2025.

• Demand for tissue and greaseproof papers is expected to remain stable; construction and plywood markets remain weak.

• Sawn timber prices increased, but demand remains low in key markets.

• Demand for wood and Kerto LVL remains stable.