Metsä Group (METS) Q2 2026 earnings summary

Executive summary

• Profitability improved in Q2/2026 compared to the previous year, with comparable EBITDA rising to EUR 129 million from EUR 68 million, supported by cost savings and operational efficiencies despite ongoing geopolitical headwinds.

• Major cost savings initiatives are on track to exceed the EUR 300 million target, with significant progress already achieved.

• Strategic investments included the inauguration and expansion of the Mariestad tissue paper mill and commercial production at the Äänekoski Kerto LVL line, as well as upgrades at the Kemi bioproduct mill.

• Sales and operating results remain below prior-year levels due to lower pulp and paperboard prices, US tariffs, and negative currency effects.

Financial highlights

• H1/2026 sales were EUR 2,741 million, down from EUR 3,069 million in H1/2025.

• Comparable operating result was EUR -7 million (H1/2025: EUR 44 million); comparable EBITDA was EUR 257 million (H1/2025: EUR 265 million).

• Free cash flow improved year-over-year due to reduced investments and cost improvements, despite lower EBITDA and higher working capital.

• Net cash flow from operations was EUR -37 million (EUR 10 million), with liquidity at end-June at EUR 1,258 million.

• Owner-members received EUR 112 million in wood trade income in Q2/2026; H1/2026 wood trade income totaled EUR 283 million.

Outlook and guidance

• Ongoing cost savings are critical as geopolitical conflicts, US tariffs, and Middle East tensions continue to pressure logistics, chemical costs, and demand.

• Extended production shutdowns and weak pulp markets are expected to weigh on results, while improving paperboard prices and demand should support H2/2026.

• Construction sector weakness in Europe continues to constrain wood product demand; tissue paper demand remains stable with some long-term growth.