Mercer International Reports Lower First-Quarter EBITDA Amid Weak Pulp Markets and Higher Fiber Costs

Mercer International Inc. reported first-quarter 2026 operating EBITDA of $7.8 million, down from $47.1 million in the same period a year earlier, as weak pulp pricing, higher fiber costs and a $22 million non-cash inventory impairment weighed on results.

The forest products producer posted a net loss of $52 million, or $0.78 per share, compared with a net loss of $22.3 million, or $0.33 per share, in the first quarter of 2025. Revenue declined about 3% year over year to $489.3 million.

Chief Executive Officer Juan Carlos Bueno said softwood pulp markets remained steady while hardwood pulp demand improved, but elevated fiber costs and slower-than-expected price recovery continued to pressure profitability. The company said it reduced production at its German mills by approximately 20,000 tonnes during the quarter due to fiber supply constraints.

Mercer also announced it secured an extended waiver under its German revolving credit facility after failing to meet a leverage ratio covenant at the end of the quarter. The company said the waiver provides additional flexibility to pursue liquidity measures and refinancing options as it works toward compliance by the fourth quarter of 2026.

The company continued to advance its “One Goal One Hundred” cost-reduction initiative, achieving $11 million in savings during the quarter and approximately $41 million since the program launched in April 2025.

In Mercer’s solid wood segment, operating EBITDA fell to a loss of $5.6 million from a loss of $0.3 million a year earlier, primarily due to higher fiber costs. However, the company said demand for mass timber products continued to strengthen, with its order book and commitments reaching approximately $171 million. Around 60% of the project pipeline is linked to data center infrastructure projects expected to contribute to results beginning in late 2026 and into 2027.

As of March 31, 2026, Mercer had cash and cash equivalents of $84.5 million and aggregate liquidity of approximately $229 million.