Mercer International Q2 revenue flat, net loss narrows

Mercer International

06/08/2026 21:41

Overview
Forest products maker's Q2 revenue was flat yr/yr
Company posted Q2 net loss and negative operating EBITDA, weighed by $29 mln inventory impairment
Mercer is restructuring Torgau facility and pursuing cost savings, with $54 mln achieved to date

Outlook
Mercer expects per unit fiber costs at German mills to remain elevated in Q3 2026
Company expects softwood and hardwood pulp prices to modestly decrease in Q3 2026
Mercer expects mass timber contracts to begin contributing to results in late 2026 and 2027

Result Drivers
HIGHER FIBER COSTS - Co said rising European fiber costs, driven by supply shortages and competition from energy producers, weighed on Q2 results
INVENTORY IMPAIRMENT - Q2 included a $29 mln non-cash inventory impairment, primarily against pulp and fiber inventory, due to low pulp prices and high fiber costs
COST SAVINGS INITIATIVES - Co realized $13 mln in cost savings in Q2 as part of its One Goal One Hundred program, partially offsetting higher costs

Company press release: ID:nGNX2KsZcX

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
 
$460.28 mln
$505 mln (2 Analysts)
Q2 Net Loss
 
$75.98 mln
 
Q2 EBITDA
 
-$20.99 mln
 
Q2 Operating Income
 
-$58.97 mln
 

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 $1.00, about 47.7% above its August 5 closing price of $0.68

Reuters Recommended Reads
Aug 6 - Sweden's Rottneros Q2 EBITDA turns positive on lower costs, net loss narrows
Aug 5 - Stronger real dents pulpmaker Klabin's earnings despite resilient demand
Aug 4 - Rayonier Advanced Materials Q2 sales beat estimates on cellulose pricing gains

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(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.)