Mercer International Q1 revenue falls

Mercer International

07/05/2026 21:50

Overview

Forest products company's Q1 revenue fell 3% yr/yr

Net loss widened to $52 mln, impacted by $22 mln non-cash inventory impairment

Outlook

Company expects softwood pulp prices to increase modestly in Q2 2026 across all markets

Lumber prices seen stable in Europe and modestly higher in U.S. in Q2 2026

Company expects per unit fiber costs to stabilize in Q2 2026

Result Drivers

LOWER PULP REALIZATIONS - Co said lower pulp sales realizations, especially in North America and China, weighed on results

HIGHER FIBER COSTS - Higher per unit fiber costs across supply chain drove up expenses, especially in Germany and Canada

INVENTORY IMPAIRMENT - Co recorded $22 mln non-cash inventory impairment due to low pulp prices and high fiber costs

Company press release: ID:nGNX6l8g0f

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Slight Miss*
$489.3 mln
$493 mln (2 Analysts)
Q1 Net Income
-$52 mln
Q1 Operating EBITDA
$7.9 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the paper products peer group is "buy."

Wall Street's median 12-month price target for Mercer International Inc is $1.50, about 35.1% above its May 6 closing price of $1.11

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)