Metsä Board Reports Q1 2026 Results: Transformation Progressing Amid Challenging Market Conditions

Metsä Board Corporation has published its interim report for January–March 2026, highlighting continued progress in its transformation programme despite a challenging operating environment.

Financial Performance Overview
Metsä Board reported sales of EUR 393.7 million, down from EUR 480.8 million in the same period last year. Comparable EBITDA reached EUR 16.7 million (4.2% of sales), compared to EUR 55.1 million (10.6%) in Q1 2025. The company recorded a comparable operating loss of EUR -10.8 million, reflecting weaker demand and pricing pressures.

Earnings per share stood at EUR -0.04, while net cash flow from operations declined to EUR -70.5 million, primarily due to increased working capital.

Strategic Progress and Transformation Programme
During the quarter, Metsä Board introduced its new “Lead the Pack” strategy for 2026–2030, focused on improving profitability in the near term and driving sustainable growth through innovative consumer packaging solutions.

The company’s transformation programme, launched in 2025, has already delivered approximately EUR 100 million in annual run-rate EBITDA improvements, with around EUR 30 million realized in reported EBITDA.

Operational Highlights

• Delivery and production volumes declined year-on-year, mainly due to U.S. import tariffs and weak pulp demand.

• Metsä Board acquired a sheeting and distribution center in the Netherlands, enhancing supply chain flexibility.

• A new packaging design studio in Milan was announced to strengthen innovation and customer collaboration.

• Demand for market pulp remained weak, leading to a production shutdown at the Joutseno pulp mill.

Market Environment and Challenges
The operating environment remained difficult due to:

• Weak demand in Europe and China

• Rising logistics and raw material costs linked to geopolitical tensions

• Currency fluctuations and declining paperboard prices

• Continued pressure from U.S. trade tariffs

Despite these challenges, Metsä Board’s high energy self-sufficiency (~90%) supports cost competitiveness.

Sustainability and Innovation
Metsä Board continues to focus on renewable, recyclable fibre-based packaging solutions, aligned with tightening EU regulations. The company’s products already meet many upcoming sustainability requirements, positioning it well for long-term growth.

Outlook for 2026
Looking ahead, Metsä Board expects:

• Improved cash flow in Q2 driven by working capital management

• Increased delivery volumes of paperboard

• Continued cost savings from the transformation programme

• Ongoing pressure from energy prices and exchange rate fluctuations

CEO Commentary
CEO Esa Kaikkonen commented:
“The year has started with strong strategic momentum. While market conditions remain challenging, our transformation programme is delivering results and strengthening our profitability. Our new strategy positions us to capture long-term growth opportunities in sustainable packaging.”