Mercer International Inc
NASDAQ:MERC
Mercer International Inc
Mercer International, Inc. engages in the manufacture and sale of pulp. The company is headquartered in Vancouver, British Columbia and currently employs 2,415 full-time employees. The firm operates through two segments: Pulp and Wood Products. Its Pulp segment consists of the manufacture, sale and distribution of pulp, electricity and other byproducts at its pulp mills. Its pulp mills include Rosenthal mill, Stendal mill, Celgar mill, and Peace River mill. The company is a producer of northern bleached softwood kraft (NBSK) pulp, which is the pulp that is sold on the open market. The firm operates two NBSK mills in Eastern Germany and one NBSK mill and a swing kraft mill in Western Canada, which produces both NBSK and northern bleached hardwood kraft (NBHK). The company also produces and sells tall oil, a byproduct of its production process, which is used as both a chemical additive and as a green energy source. Its Wood Products segment consists of the manufacture, sale and distribution of lumber, electricity and other wood residuals at the Friesau mill, Germany.
Mercer International, Inc. engages in the manufacture and sale of pulp. The company is headquartered in Vancouver, British Columbia and currently employs 2,415 full-time employees. The firm operates through two segments: Pulp and Wood Products. Its Pulp segment consists of the manufacture, sale and distribution of pulp, electricity and other byproducts at its pulp mills. Its pulp mills include Rosenthal mill, Stendal mill, Celgar mill, and Peace River mill. The company is a producer of northern bleached softwood kraft (NBSK) pulp, which is the pulp that is sold on the open market. The firm operates two NBSK mills in Eastern Germany and one NBSK mill and a swing kraft mill in Western Canada, which produces both NBSK and northern bleached hardwood kraft (NBHK). The company also produces and sells tall oil, a byproduct of its production process, which is used as both a chemical additive and as a green energy source. Its Wood Products segment consists of the manufacture, sale and distribution of lumber, electricity and other wood residuals at the Friesau mill, Germany.
Challenging Quarter: Mercer reported a negative operating EBITDA of $20 million for Q4, though this was an $8 million improvement over Q3 due to stable production and cost-saving initiatives.
Significant Impairments: The company recognized $216 million in noncash asset impairments, mainly at the Peace River mill, due to weak hardwood pulp markets, impacting net results.
Liquidity Boost: Aggregate liquidity improved by over $54 million to $430 million, driven by cost reductions and strong working capital management.
Market Weakness: Pulp and lumber markets remained challenging with soft pricing, high fiber costs, and continued macroeconomic headwinds, although some segments showed signs of stabilization.
Mass Timber Growth: Mass timber operations saw a 6% revenue increase over Q3, with a strong $163 million order book and 2026 revenue expected above $120 million.
Cost and CapEx Focus: Cost savings initiatives delivered $30 million in 2025, and 2026 CapEx is planned at $60–80 million, focusing on maintenance and safety.
Outlook: Management expects market weakness to persist through 2026 but remains focused on liquidity, operational improvements, and transforming pulp mills for future growth.
