Overview

* Mercer InternationalQ2 rev declines 9% yr/yr, missing analyst expectations, per LSEG data

* Operating EBITDA for Q2 turns negative, impacted by weaker dollar and trade challenges

* Co pauses quarterly dividend amid market uncertainty, focusing on capital allocation

Outlook

* Company expects decrease in softwood pulp prices in Q3 2025

* Mercer anticipates steady hardwood pulp prices in Q3 2025

* Company sees U.S. lumber prices rising in Q3 due to import duties

* Mercer pauses quarterly dividend amid market uncertainty

Result Drivers

* WEAKER DOLLAR - Co attributes negative impact on Operating EBITDA to approximately $26 mln due to dollar depreciation against euro and Canadian dollar

* PULP DEMAND - Weaker demand for pulp in China driven by global trade policy uncertainty, impacting sales realizations

* COST SAVINGS - One Goal One Hundred program aims for $100 mln in cost savings by end of 2026, with $5 mln realized so far

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $453.52 $514 mln

Revenue mln (2

Analysts

)

Q2 EPS -$1.29

Q2 Net -$86.07

Income mln

Q2 -$20.88

EBITDA mln

Q2 -$58.40

Operatin mln

g Income

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the paper products peer group is "buy."

* Wall Street's median 12-month price target for Mercer International Inc ( MERC ) is $3.75, about 7.2% below its July 30 closing price of $4.02

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)