Mercer International Inc. reported a net loss of $86.1 million, or $1.29 per share, for the second quarter of 2025, compared to a net loss of $67.6 million, or $1.01 per share, in the same period of 2024. Total revenues for the quarter decreased by approximately 9% to $453.5 million from $499.4 million year-over-year, primarily driven by lower sales realizations and volumes in the pulp and manufactured products segments, although higher lumber sales realizations partially offset this decline. For the first half of 2025, the company recorded a net loss of $108.4 million, down from a loss of $84.3 million in the prior year, with total revenues also decreasing to $960.5 million from $1.052 billion.
The company's pulp segment revenues fell by about 10% to $332.3 million in the second quarter, with pulp revenues specifically declining due to lower sales realizations and volumes. The solid wood segment saw revenues decrease to $117.3 million, primarily due to a significant drop in manufactured products revenues, which fell by approximately 65% to $12.4 million. The overall operating loss for the second quarter was $58.4 million, compared to a loss of $43.8 million in the same quarter of 2024, largely attributed to lower sales realizations and higher per unit fiber costs.
Operationally, Mercer International experienced a decrease in pulp production, with total production for the second quarter reaching 457,117 air-dried metric tonnes (ADMTs), up from 421,692 ADMTs in the same quarter of 2024. The company also reported an inventory impairment of $11 million against hardwood inventory at its Peace River mill due to low hardwood pulp prices. The company’s cash and cash equivalents stood at $146.5 million as of June 30, 2025, down from $184.9 million at the end of 2024.
Strategically, Mercer announced the suspension of its quarterly dividend on August 1, 2025, as a prudent measure in light of ongoing market uncertainties. The company continues to focus on capital expenditures, with $44.4 million spent in the first half of 2025 on various projects, including upgrades at its facilities. Looking ahead, Mercer anticipates challenges in the pulp market due to seasonal demand fluctuations and economic uncertainties, particularly in China, which may impact pricing and sales in the upcoming quarters.
About MERCER INTERNATIONAL INC.
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