Metsä Board swung to a comparable operating loss of EUR 80.2 million in 2025, down from a EUR 69 million profit in 2024, as weak consumer demand and pulp market challenges eroded profitability across its paperboard operations.
Sales fell 8.4% to EUR 1,776 million, reflecting a 10% drop in folding boxboard deliveries, particularly in US food service markets hit by import tariffs. Comparable EBITDA turned slightly negative at EUR 29.6 million (1.7% of sales), while operating cash flow remained robust at EUR 240 million, boosted by aggressive working capital releases totalling nearly EUR 300 million in the second half.
Market pressures intensify
The Husum integrated mill in Sweden bore the brunt of the downturn, grappling with US tariffs, weak pulp demand, and production curtailments at associated company Metsä Fibre's Joutseno mill. CEO Esa Kaikkonen noted pulp market softness directly and indirectly impacted results, compounded by high raw material costs earlier in the year.
Q4 brought a comparable operating loss of EUR 34.7 million on sales of EUR 394 million, though EUR 14 million in insurance compensation from Metsä Fibre's prior Kemi incident provided some offset. Paperboard prices held steady in euro terms, but volumes declined seasonally.
Restructuring accelerates
Metsä Board advanced its EUR 200 million EBITDA transformation programme, achieving EUR 52 million in run-rate savings by year-end through 310 job cuts and operational streamlining. One-off costs included EUR 14 million from change negotiations and a EUR 35 million ERP project impairment.
Capital spending eased to EUR 140 million, capped by completion of the EUR 60 million Simpele mill renewal, which enhanced folding boxboard quality and near-fossil-free production. The company secured a EUR 250 million green-linked revolving credit facility and earned top CDP ratings across climate, forests, and water security.
Post-period, Metsä Board acquired the Winschoten sheeting hub in the Netherlands to bolster Husum capacity utilisation in Europe. The board proposes no 2025 dividend given the EUR -0.44 loss per share.
Cautious outlook with tailwinds
Kaikkonen emphasised a shift to cash flow discipline and cost control amid persistent overcapacity in Europe and subdued pulp demand. Declining pulpwood prices and programme savings should lift profitability from 2026, though Q1 currency headwinds may dent results by EUR 20 million.
Folding boxboard volumes are seen rising slightly in Q1, with white kraftliner stable, supported by fewer mill shutdowns and variable cost relief. Production adjustments at Husum will continue if North American demand stays soft.
Metsä Board is a Finnish producer of lightweight, high-quality folding boxboards, foodservice boards and white kraftliners. Part of Metsä Group, the company uses renewable wood fibres from Northern European forests and aims to phase out fossil energy in production by 2030. Its shares are listed on Nasdaq Helsinki. In 2025, Metsä Board reported sales of approximately EUR 1.8 billion and employed about 2,000 people.
Source: Metsä Board
