Mercer International Inc. Reports Fourth Quarter 2025 Results

• Fourth quarter Operating EBITDA* was negative $20.1 million (net loss of $308.7 million) compared to negative $28.1 million (net loss of $80.8 million) in the third quarter of 2025

• Full year 2025 Operating EBITDA was negative $22.0 million (net loss of $497.9 million) compared to positive $243.7 million (net loss of $85.1 million) in 2024

• Included in net loss for the fourth quarter are total non-cash impairments of $238.7 million, primarily on long-lived assets at our Peace River mill due to the continued down-cycle environment in hardwood pulp markets and on pulp inventory due to low prices and high fiber costs

• “One Goal One Hundred” program remains on track, with approximately $30.0 million in cost savings and operational efficiencies in 2025

• Despite the challenging environment, cash flow from operations increased by approximately $76.0 million from the prior quarter

• Mass timber order book has continued to grow, including through securing contracts relating to large-scale data center projects

NEW YORK, NY, February 12, 2026 ‑ Mercer International Inc. (Nasdaq: MERC) today reported fourth quarter 2025 Operating EBITDA of negative $20.1 million compared to positive $99.2 million in the same quarter of 2024 and negative $28.1 million in the third quarter of 2025.

In the fourth quarter of 2025, net loss was $308.7 million ($4.61 per share) compared to net income of $16.7 million ($0.25 per share) in the fourth quarter of 2024 and a net loss of $80.8 million ($1.21 per share) in the third quarter of 2025. The net loss in the fourth quarter of 2025 included total non-cash impairments of $238.7 million. This included non-cash impairments of $203.5 million recognized against long-lived assets at our Peace River mill due to the continued down-cycle environment of hardwood pulp markets, $12.2 million against certain obsolete equipment and $23.0 million against pulp inventory due to low prices and high fiber costs.

Mr. Juan Carlos Bueno, Chief Executive Officer, stated: “To address the challenging hardwood pulp environment that has weighed on our Peace River mill’s results, we have engaged with all stakeholders and several initiatives have been underway. These include shifting production mix at the mill further towards softwood and engaging government on accretive opportunities surrounding energy and carbon capture. We are considering all options in respect of this asset.

Despite the non-cash impairments and the challenging business climate, our underlying operational performance improved quarter-over-quarter, reflecting our focus on cost reduction and efficiency initiatives. These will remain a key focus in 2026.