Mercer International Inc. reported first quarter 2025 Operating EBITDA of $47.1 million, a decrease from $63.6 million in the same quarter of 2024 and $99.2 million in the fourth quarter of 2024. The company recorded a net loss of $22.3 million, or $0.33 per share, in Q1 2025, compared to a net income of $16.7 million in Q4 2024.
Total revenues for the first quarter of 2025 decreased by approximately 8% to $507.0 million from $553.4 million in Q1 2024, primarily due to lower pulp sales volumes. The Pulp Segment's Operating EBITDA decreased by approximately 27% to $49.9 million, largely impacted by 22 days of planned annual maintenance downtime at the Celgar mill.
The Solid Wood Segment's Operating EBITDA remained negative at $0.3 million, an improvement from negative $0.9 million in Q1 2024, driven by higher lumber sales realizations. However, per unit fiber costs for sawmills increased by approximately 12% year-over-year due to strong demand.
Mercer's liquidity as of March 31, 2025, stood at $470.7 million, comprising $181.5 million in cash and equivalents and $289.2 million available under revolving credit facilities. The company announced a quarterly dividend of $0.075 per share, payable on July 3, 2025.
Management highlighted continued strength in pulp markets and an improving lumber pricing environment, but noted negative impacts from maintenance downtime and a weaker dollar. Mercer is implementing its 'One Goal One Hundred' program, targeting $100 million in operational efficiency and cost savings by the end of 2026, and plans to reduce inventories by $20 million and capital expenditures by $20 million in 2025.
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