Mercer International Reports $2.04 Billion Revenue with Improved Net Loss in 2024

Mercer International Inc. reported a total revenue of $2.04 billion for the fiscal year ending December 31, 2024, marking a slight increase from $1.99 billion in 2023. The pulp segment generated $1.46 billion in revenues, up from $1.40 billion the previous year, primarily due to higher sales realizations despite a decrease in sales volumes. The solid wood segment also saw a modest increase in revenues to $486 million from $472 million, driven by a significant rise in manufactured products sales, particularly cross-laminated timber (CLT) and glulam. However, the company recorded a net loss of $85.1 million, an improvement from a loss of $242.1 million in 2023, largely attributed to higher pulp and lumber sales realizations and reduced production costs.

In terms of operational performance, Mercer International's pulp production decreased by approximately 6% to 1.84 million air-dried metric tonnes (ADMTs) in 2024, down from 1.97 million ADMTs in 2023. This decline was influenced by the dissolution of the Cariboo Pulp & Paper joint venture and unplanned downtime events. The company experienced 117 days of downtime in 2024, which included both planned maintenance and unplanned outages. The average sales price for northern bleached softwood kraft (NBSK) pulp increased to $784 per ADMT, up from $729 per ADMT in 2023, reflecting improved market conditions.

Strategically, Mercer International has focused on expanding its solid wood segment through acquisitions, including the purchase of the Structurlam Mass Timber Corporation in June 2023 for $82.1 million. This acquisition is expected to enhance the company's capacity in the growing mass timber market. Additionally, the company has invested approximately $396.6 million since 2021 to expand its solid wood activities and product mix, which includes the acquisition of several facilities in North America and Germany.

The company’s workforce as of December 31, 2024, comprised approximately 3,580 employees, with a significant portion engaged in its German operations. Mercer International continues to emphasize sustainability and innovation, particularly in its pulp and solid wood segments, as it seeks to capitalize on the increasing demand for environmentally friendly building materials and renewable energy sources. Looking ahead, the company anticipates modest increases in NBSK pulp prices and slight growth in U.S. lumber prices in the first half of 2025, driven by stable demand and supply constraints. However, ongoing geopolitical tensions and trade policies may impact future performance.