Mercer International Inc. reported a challenging second quarter for 2025, with Operating EBITDA decreasing to negative $20.9 million, a significant drop from positive $30.4 million in Q2 2024 and $47.1 million in Q1 2025. The company recorded a net loss of $86.1 million, or $1.29 per share, compared to a net loss of $22.3 million in the previous quarter.
Total revenues for Q2 2025 decreased by approximately 9% to $453.5 million from $499.4 million in Q2 2024, primarily due to lower sales realizations and volumes from pulp and manufactured products. The Pulp Segment's Operating EBITDA turned negative at $10.3 million, impacted by lower pulp sales realizations, negative foreign exchange impacts, and an $11 million non-cash impairment on hardwood inventory at the Peace River mill.
The Solid Wood Segment's Operating EBITDA also decreased to negative $4.9 million, down from positive $3.1 million in Q2 2024, due to lower manufactured products sales realizations and higher per unit fiber costs. Manufactured products revenues, including mass timber, decreased by approximately 65% due to lower sales realizations and volumes, reflecting the impact of elevated interest rates on demand.
In response to the uncertain global trade environment and market challenges, Mercer's management announced the suspension of its quarterly dividend of $0.075 per share to preserve cash. The company's liquidity as of June 30, 2025, was $438.1 million, a reduction from the prior quarter.
Mercer continues to implement its 'One Goal One Hundred' program, targeting $100 million in profitability improvements by the end of 2026, having realized approximately $5 million in Q2 and anticipating $25 million by the end of 2025. For Q3 2025, the company anticipates a decrease in softwood pulp prices across key markets, while hardwood pulp prices are expected to remain relatively steady.
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