Mercer International Inc. reported a significant improvement in its financial performance for the fourth quarter and full year ended December 31, 2024. Fourth quarter Operating EBITDA increased to $99.2 million, up from $21.1 million in Q4 2023 and $50.5 million in Q3 2024. The company achieved a net income of $16.7 million, or $0.25 per share, in Q4 2024, a substantial turnaround from a net loss of $87.2 million in the prior year's quarter.
For the full year 2024, Operating EBITDA rose to $243.7 million, compared to $17.5 million in 2023, driven by stronger pulp markets, lower production costs, and cost reduction initiatives. Total revenues for Q4 2024 increased by approximately 4% to $488.4 million, primarily due to higher pulp sales realizations, despite lower pulp sales volumes.
The Pulp Segment's Operating EBITDA increased to $106.1 million in Q4 2024, benefiting from higher pulp sales realizations and no planned maintenance downtime. The Solid Wood Segment's Operating EBITDA remained negative at $4.7 million, though it improved from negative $5.6 million in Q4 2023, with lumber revenues increasing by 23% due to higher sales realizations and volumes.
Mercer ended 2024 with approximately $488.6 million in aggregate liquidity and successfully reduced its long-term debt by over $100 million in the fourth quarter. The company also announced a quarterly cash dividend of $0.075 per share, payable on April 2, 2025, to shareholders of record on March 26, 2025.
Looking ahead to Q1 2025, Mercer expects modestly higher softwood pulp sales realizations in Europe and North America, with hardwood pulp prices believed to be near floor levels and trending upwards. Lumber prices are anticipated to modestly increase, driven by stronger demand in certain European countries and limited North American supply. However, 21 days of planned maintenance downtime at the Celgar mill are scheduled for Q1 2025.
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