Metsä Board has announced a sweeping profitability and cost-saving program targeting an annual EBITDA increase of €200 million.
The move comes in response to continued pressure from softening paperboard demand, high input costs, and a challenging global trade environment.
The newly launched program includes €100 million in direct cost savings and €100 million in broader profitability improvements, with implementation starting immediately. The company expects €100 million in EBITDA gains by the end of 2026, with the remainder realized by the end of 2027.
“Metsä Board must act decisively to regain competitiveness and improve financial performance,” said CEO Esa Kaikkonen. “This program reflects a deep analysis of our position and a clear strategy to move forward.”
The program’s early impacts will be supported by previously announced structural changes, including the closure of the Tako mill and efficiency improvements at the Kyro mill, contributing an additional €30 million in annual EBITDA improvements starting Q4 2025.
Beyond cost reductions, the company aims to sharpen its commercial strategy by refining key customer segments and aligning sales with higher-growth, higher-margin packaging sectors such as foodservice, healthcare, and premium consumer brands.
In parallel, Metsä Board plans to release at least €150 million in working capital by year-end and will reassess investment plans and ERP development projects, with an update expected in its Q3 2025 report.
The company also intends to update its financial targets—currently a return on capital employed (ROCE) above 12% and net debt to EBITDA below 2.5—by Q1 2026.
This strategic shift comes as the company contends with declining U.S. demand, trade tariffs, and intensified competition in Europe. Metsä Board remains committed to growing its presence in key markets while adapting to the EU’s tightening packaging regulations (PPWR).
Metsä Board is a leading European producer of premium fresh fibre paperboards for packaging and graphic applications. Part of Metsä Group, the company focuses on lightweight, recyclable packaging solutions made from renewable northern wood. Metsä Board is listed on Nasdaq Helsinki and employs approximately 2,300 people. In 2024, its sales totaled €1.9 billion.
