Metsä Group reported a comparable operating loss of EUR 4 million for the first quarter of 2026, while sales fell to EUR 1.36 billion from EUR 1.64 billion a year earlier, reflecting weaker pulp demand and lower selling prices.
The group posted an operating result of EUR -18 million, compared with a profit of EUR 51 million in the same period of 2025. EBITDA declined to EUR 115 million from EUR 189 million, as market conditions weakened across key segments.
Cash generation also deteriorated, with net cash flow from operations at EUR -79 million, compared with EUR -10 million a year earlier.
Cost cuts partly offset market pressure
According to CEO Jussi Vanhanen, the quarterly result improved compared with the second half of 2025, supported by a broad cost-cutting programme launched last year.
The initiative, targeting EUR 300 million in profit improvement, reduced fixed and variable costs, including raw materials and wood procurement. However, these gains were offset by lower average selling prices and a weaker U.S. dollar, which together had a negative impact of more than EUR 60 million compared with the previous quarter.
Profitability under pressure
The group’s comparable return on capital employed fell to -0.1%, down from 4.4% a year earlier, highlighting continued pressure on profitability.
Across business segments, performance was mixed. Tissue and greaseproof papers remained profitable, while pulp, paperboard and wood products reported negative operating results.
Outlook: rising costs and soft demand
Metsä Group said geopolitical tensions and supply disruptions are increasing cost pressure, particularly for logistics and energy. Rising oil and gas prices linked to Middle East tensions are expected to further impact production costs in the near term.
At the same time, a structural decline in printing and writing paper demand, combined with weaker softwood pulp consumption, continues to weigh on market conditions.
Metsä Group is a Finnish forest industry company owned by approximately 90,000 forest owners through its parent company, Metsäliitto Cooperative. The group focuses on pulp, paperboard, tissue and greaseproof papers, wood products, and wood supply and forest services. In 2025, it reported sales of EUR 5.8 billion and employed around 8,800 people.
