Mercer International reported weaker first-quarter 2026 results as lower pulp sales realizations, higher fiber costs and a non-cash inventory impairment weighed on earnings. Operating EBITDA fell to $7.8 million from $47.1 million a year earlier, while net loss widened to $52.0 million.
Revenue declined 3% year over year to $489.3 million, as softer pulp pricing more than offset modest gains in other product lines. Mercer said the quarter included a $22 million inventory impairment tied to low pulp prices and elevated fiber costs.
Management said market conditions remained uneven across regions during the quarter. Softwood pulp pricing held relatively steady in Europe, but China and North America continued to face pressure from weak demand and excess inventory, while hardwood pricing improved on firmer demand and tightening supply conditions.
The company also secured an extended waiver for its German revolving credit facility after missing a leverage covenant at quarter-end. Mercer said the waiver provides flexibility to address liquidity needs and pursue measures aimed at strengthening its financial position while waiting for market conditions to improve.
Cost reduction remains another priority. Through its “One Goal One Hundred” initiative, Mercer said it generated $11 million in savings during the quarter and approximately $41 million since the program launched in April 2025.
Beyond pulp, Mercer said its mass timber business continued to build momentum, with its order book and commitments reaching approximately $171 million. The company said a growing share of that pipeline is tied to large-scale data center projects expected to begin contributing to results later in 2026 and into 2027.
Mercer International is a global forest products company with operations in Germany, the United States and Canada. The company produces pulp, lumber, mass timber products, pallets and biofuels.
