Mercer International Q2 revenue misses estimates

Mercer International

31/07/2025 21:55

Overview

Mercer International  Q2 rev declines 9% yr/yr, missing analyst expectations, per LSEG data

Operating EBITDA for Q2 turns negative, impacted by weaker dollar and trade challenges

Co pauses quarterly dividend amid market uncertainty, focusing on capital allocation

Outlook

Company expects decrease in softwood pulp prices in Q3 2025

Mercer anticipates steady hardwood pulp prices in Q3 2025

Company sees U.S. lumber prices rising in Q3 due to import duties

Mercer pauses quarterly dividend amid market uncertainty

Result Drivers

WEAKER DOLLAR - Co attributes negative impact on Operating EBITDA to approximately $26 mln due to dollar depreciation against euro and Canadian dollar

PULP DEMAND - Weaker demand for pulp in China driven by global trade policy uncertainty, impacting sales realizations

COST SAVINGS - One Goal One Hundred program aims for $100 mln in cost savings by end of 2026, with $5 mln realized so far

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$453.52 mln
$514 mln (2 Analysts)
Q2 EPS
-$1.29
Q2 Net Income
-$86.07 mln
Q2 EBITDA
-$20.88 mln
Q2 Operating Income
-$58.40 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 4 "hold" and no "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 $3.75, about 7.2% below its July 30 closing price of $4.02

Press Release: ID:nGNX857jzy

(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.)