Metsä Board Reports FY 2025 Results; Transformation Programme Advances, No Dividend Proposed

Espoo, Finland – 5 February 2026 – Metsä Board Corporation today published its Financial Statements Bulletin for the period 1 January–31 December 2025, reporting a challenging financial year impacted by weak consumer demand, import tariffs, overcapacity in Europe and subdued pulp markets.

Sales for 2025 totalled EUR 1,775.7 million (2024: EUR 1,938.6 million). The comparable operating result declined to EUR -80.2 million (2024: EUR 69.0 million), reflecting lower delivery volumes, weaker pulp prices and production curtailments. Operating result was EUR -169.5 million.

Despite the weak earnings environment, cash flow strengthened significantly, with net cash flow from operations reaching EUR 239.6 million (2024: EUR 37.8), driven by strong working capital release.

During the year, Metsä Board launched a transformation programme targeting an annual EBITDA improvement of EUR 200 million by the end of 2027. Measures implemented by the end of 2025 already generate an estimated EUR 52 million run-rate impact, with earnings effects expected to materialise gradually from 2026.

The company completed the EUR 60 million renewal of the folding boxboard machine at the Simpele mill, improving product quality and increasing fossil-free energy use at the mill to 98%. Overall investment levels declined, reflecting a shift from major growth investments toward efficiency and profitability improvement.

As part of structural adjustments, approximately 310 positions were reduced following group-wide change negotiations. Personnel reductions were recognised as one-off costs during the fourth quarter.

Given the loss incurred in 2025, the Board of Directors proposes that no dividend be paid for the financial year.

Looking ahead, Metsä Board expects lower variable costs in 2026, supported by declining pulpwood prices and transformation measures. The company’s revised strategy and updated financial targets will be announced in Q1 2026.

📌 Key Extracted Updates & Disclosures (for Investors / IR section)

🔧 Transformation & Cost Programme

• Transformation programme launched 31 July 2025

• Target: EUR 200 million EBITDA improvement (run-rate) by end-2027

• Achieved by end-2025: EUR 52 million run-rate

• Focus areas:

  • Cost savings

  • Commercial capability strengthening

  • Simplification and operational streamlining

• Majority of measures implemented in Q4 2025

• Financial impact visible mainly from 2026 onward

🏭 Capital Expenditure & Projects

• Total investments 2025: EUR 139.5 million (2024: EUR 175.4 million)

• Simpele mill project completed

  • EUR 60 million folding boxboard machine renewal

  • +10,000 tonnes capacity

  • 98% fossil-free energy use

• Several projects postponed or suspended due to market conditions:

  • Husum pulp mill drying machine renewal (pre-feasibility suspended)

  • Kyro barrier board development

  • Husum BM2 production direction change (with Metsä Tissue)

• ERP system renewal project suspended

  • EUR 35 million impairment recognised

🛠 Maintenance & Shutdown Plan (2026)

• Q1 2026: No planned shutdowns

• Q2 2026: Several mills in Finland

• Q3 2026: Husum integrated mill

• Q4 2026: Kemi integrated mill

• Financial impact expected to be lower than 2025

👥 Layoffs & Workforce Actions

• 310 positions reduced following 2025 change negotiations

• Included:

  • Closure of Tako board mill

  • Streamlining of Kyro board mill

• Recognised EUR 14 million in one-off restructuring costs

• Temporary lay-offs implemented during 2025 due to weak demand

💰 Dividend

• No dividend proposed for FY 2025

• FY 2025 EPS: EUR -0.44

• AGM scheduled for 19 March 2026

🤝 M&A / Acquisitions

• January 2026: Agreement to acquire Winschoten Sheeting and Distribution Hub (Netherlands)

• Seller: Konvertia Group

• Completion expected: February 2026

• Purchase price not disclosed