Mercer Q3 revenue misses analyst estimates as trade uncertainties hurt demand

Mercer International

06/11/2025 21:40

Overview

Mercer Q3 revenue declines 9% yr/yr, missing analyst expectations

Operating EBITDA turns negative, impacted by lower pulp sales and higher fiber costs

Company advances cost-saving initiatives to improve liquidity and efficiency

Outlook

Mercer expects weak pulp prices to persist in Q4 2025

Company anticipates modest lumber price increase in Europe in Q4 2025

Mercer plans further cost reductions and lower capital expenditures for 2026

Result Drivers

GLOBAL ECONOMIC CHALLENGES - Persistent global economic and trade uncertainties, fiber scarcity, and pulp substitution negatively impacted demand and pricing, contributing to a $20.4 mln inventory impairment

COST-SAVING INITIATIVES - Co continues One Goal One Hundred program targeting $100 mln in cost savings by end of 2026, with $30 mln expected by end of 2025

CARBON CAPTURE PROJECT - Advancing carbon capture project at Peace River mill, in partnership with Svante Technologies, with pilot expected to operate in Q4 2025

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$458.07 mln
$497.50 mln (2 Analysts)
Q3 Net Income
-$80.78 mln
Q3 EBITDA
-$28.08 mln
Q3 Operating Income
-$67.59 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 $3.00, about 36% above its November 5 closing price of $1.92

Press Release: ID:nGNX54sHVS

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