Overview

* Mercer Q3 revenue declines 9% yr/yr, missing analyst expectations

* Operating EBITDA turns negative, impacted by lower pulp sales and higher fiber costs

* Company advances cost-saving initiatives to improve liquidity and efficiency

Outlook

* Mercer expects weak pulp prices to persist in Q4 2025

* Company anticipates modest lumber price increase in Europe in Q4 2025

* Mercer plans further cost reductions and lower capital expenditures for 2026

Result Drivers

* GLOBAL ECONOMIC CHALLENGES - Persistent global economic and trade uncertainties, fiber scarcity, and pulp substitution negatively impacted demand and pricing, contributing to a $20.4 mln inventory impairment

* COST-SAVING INITIATIVES - Co continues One Goal One Hundred program targeting $100 mln in cost savings by end of 2026, with $30 mln expected by end of 2025

* CARBON CAPTURE PROJECT - Advancing carbon capture project at Peace River mill, in partnership with Svante Technologies, with pilot expected to operate in Q4 2025

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Miss $458.07 $497.50

Revenue mln mln (2

Analysts

)

Q3 Net -$80.78

Income mln

Q3 -$28.08

EBITDA mln

Q3 -$67.59

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 $3.00, about 36% above its November 5 closing price of $1.92

Press Release:

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(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.)