Metsä Group Reports Improved Q2 Profitability as Cost-Saving Programme Gains Momentum

Metsä Group reported improved second-quarter profitability despite continued market challenges, with comparable EBITDA nearly doubling year-on-year as the company's cost-saving programme delivered results. However, profitability for the first half of 2026 remained under pressure from weak pulp and paperboard markets, lower selling prices, exchange rate impacts and geopolitical uncertainty.

For the January–June 2026 period, sales declined to EUR 2.74 billion from EUR 3.07 billion a year earlier. Comparable EBITDA reached EUR 256.7 million, compared with EUR 265.1 million in the corresponding period of 2025, while the comparable operating result fell to EUR -7.0 million from EUR 44.3 million. The company posted a net loss of EUR 62.3 million, compared with a loss of EUR 21.4 million a year earlier.

In the second quarter, sales totalled EUR 1.38 billion, while comparable EBITDA increased to EUR 129 million, up from EUR 68.2 million in the same period last year. Comparable operating loss narrowed significantly to EUR -3.2 million, reflecting the impact of efficiency measures and lower raw material costs.

The company said its EUR 300 million cost-saving and profit improvement programme, launched in July 2025, has progressed ahead of schedule. Metsä Group now expects the programme's EBITDA run-rate target to be achieved at the beginning of the third quarter of 2026, with at least two-thirds of the targeted earnings impact expected during 2026 and the full benefit realized in 2027. However, higher oil and gas prices linked to the Middle East conflict reduced second-quarter savings by around EUR 12 million.

During the quarter, Metsä Group inaugurated the EUR 370 million expansion of its tissue paper mill in Mariestad, Sweden, aimed at improving production capacity and environmental efficiency. The company also announced an artificial intelligence programme to accelerate AI adoption across its value chain, with Finnish technology company QuTwo among its partners.

Other developments included the continued market-driven shutdown of the Joutseno pulp mill, restructuring measures in the wood products business that will reduce around 200 jobs across the UK, Finland and Estonia, and the closure of production at the Suolahti softwood plywood mill.

Metsä Group also highlighted progress on several strategic investments. The first production line at the Äänekoski Kerto® LVL mill entered commercial operation, while upgrades continued at the Kemi bioproduct mill, the Kreuzau tissue mill, and the Mänttä tissue mill. The company also advanced innovation projects including the Muoto wood-based packaging solution, the Kuura textile fibre project, and a lignin demonstration plant in Äänekoski.

Looking ahead, Metsä Group expects geopolitical tensions, weak consumer confidence and US tariffs to continue affecting demand. Scheduled maintenance shutdowns at the Äänekoski bioproduct mill, Rauma pulp mill, and Husum mills during the third quarter are expected to significantly reduce quarterly earnings, although improving paperboard pricing and stable tissue demand are expected to provide some support in the second half of the year.