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Live Nasdaq Composite: Markets Take Breather After Impressive Q2 Showing on Easing Oil Outlook
Mercer International

Mercer International (MERC) Q2 2025 Earnings

Reported Jul 31, 2025 at 4:49 PM ET · SEC Source

Q2 25 EPS

$-1.29

MISS 34.85%

Est. $-0.96

Q2 25 Revenue

$453.5M

MISS 4.86%

Est. $476.7M

vs S&P Since Q2 25

-100.5%

TRAILING MARKET

MERC -80.8% vs S&P +19.7%

Market Reaction

Did MERC Beat Earnings? Q2 2025 Results

Mercer International delivered a deeply disappointing second quarter, posting a net loss of $86.07 million, or $-1.29 per share, missing the consensus estimate of $-0.96 by 34.85% as revenue fell 9.2% year-over-year to $453.52 million against expecta… Read more Mercer International delivered a deeply disappointing second quarter, posting a net loss of $86.07 million, or $-1.29 per share, missing the consensus estimate of $-0.96 by 34.85% as revenue fell 9.2% year-over-year to $453.52 million against expectations of $476.68 million. The most damaging force behind the results was a confluence of global trade uncertainty and a weaker U.S. Dollar that crushed pulp demand in China, with CEO Juan Carlos Bueno citing roughly $26 million in FX headwinds on Operating EBITDA relative to Q1 2025 alone; the metric swung to negative $20.88 million from positive $30.44 million a year ago. An additional $11 million non-cash impairment on hardwood inventory at the Peace River mill deepened the blow, while NBHK pulp realizations cratered 18% to $575 per ADMT. In response, Mercer suspended its quarterly dividend and launched its "One Goal One Hundred" cost-reduction initiative targeting $100 million in profitability improvements by end of 2026, with $25 million in savings anticipated by year-end. Management warned that softwood pulp prices are expected to decline further in Q3 due to seasonality and economic headwinds, though lumber prices should firm in the U.S. On Canadian import duties.

Key Takeaways

  • • Weaker U.S. dollar relative to euro and Canadian dollar negatively impacted Operating EBITDA by approximately $26 million vs Q1 2025
  • • $11 million non-cash impairment on hardwood inventory at Peace River mill due to lower hardwood prices in China
  • • Lower pulp sales realizations, particularly NBHK down 18% and NBSK down 7% year-over-year
  • • Higher lumber sales realizations up approximately 19% year-over-year driven by lower supply and improved demand
  • • Manufactured products revenues down 65% due to elevated U.S. interest rates impacting demand
  • • Fewer planned annual maintenance days (23 vs 37 in Q2 2024) partially offset negative impacts
  • • Per unit fiber costs increased approximately 11% year-over-year at German mills
24/7 Wall St

MERC YoY Financials

Q2 2025 vs Q2 2024, source: SEC Filings

24/7 Wall St

MERC Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“Our operating results for the second quarter of 2025 reflect the impacts of ongoing uncertainties in the global trade environment coupled with the resulting weaker dollar. This challenging backdrop contributed to weaker demand for pulp in China during the quarter. The related depreciation of the dollar relative to the euro and Canadian dollar had a negative impact of approximately $26 million on our Operating EBITDA for the second quarter of 2025 compared to the first quarter. The second quarter also included an $11 million non-cash impairment on hardwood inventory at our Peace River mill stemming from lower hardwood prices in China because of weaker demand.”

— Juan Carlos Bueno, Q2 2025 Earnings Press Release

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