Metsä Board’s comparable operating result in 2025 January–September was EUR -45 million

January–September 2025 (compared to Q1–Q3/2024)

• Sales were EUR 1,382.2 million (1,492.6).
• The comparable operating result was EUR -45.5 million (72.6), or -3.3% of sales (4.9). Operating result was EUR -70.3 million (64.0).
• Comparable earnings per share were EUR -0.13 (0.11), and earnings per share were EUR -0.19 (0.09).
• Comparable return on capital employed was -2.3 % (4.3).
• Net cash flow from operations was EUR 83.9 million (-11.9).

July–September 2025 (compared to Q3/2024)

• Sales were EUR 441.2 million (499.0).
• The comparable operating result was EUR -45.6 million (41.9), or -10.3% (8.4) of sales. Operating result was EUR -44.8 million (41.7).
• Comparable earnings per share were EUR -0.11 (0.08), and earnings per share were EUR -0.11 (0.08).
• Comparable return on capital employed was -7.1% (7.3).
• Net cash flow from operations was EUR 122.0 million (4.6).

Events in July–September 2025

The operating environment in the paperboard market remained challenging due to weak consumer demand, the US tariffs and overcapacity.

Metsä Board initiated a cost savings and profitability improvement programme, targeting an annual EBITDA run-rate increase of EUR 200 million by the end of 2027. The programme progressed as planned in the third quarter.

The company aims to release EUR 150 million in working capital by the end of the year. In July–September, the working capital release totalled around EUR 120 million, and cash flow from operations was clearly positive: EUR 122 million (Q2/25: -10, Q3/24: 4.6).

Metsä Board’s paperboard deliveries in July–September totalled 332,000 tonnes (Q2/25: 360,000; Q3/24: 388,000). Average paperboard prices remained at the previous quarter’s level.

Paperboard, BCTMP and pulp production were curtailed on market basis and to release working capital. In addition, production volumes and profitability were significantly affected by the annual maintenance shutdown at the Husum integrated mill and the investment shutdown of the Simpele paperboard machine.  

Market pulp demand remained weak in both Europe and China, and the price level declined. Pulp production at associated company Metsä Fibre’s Joutseno mill has been paused since June. In July–September 2025, the overall impact of pulp on Metsä Board’s result was clearly negative.

Metsä Board achieved a Platinum rating in EcoVadis sustainability assessment. With a total score of 91/100, Metsä Board is among the top 1% of companies assessed in the paper, paperboard and packaging manufacturers category.

Near-term outlook

Metsä Board discontinues issuing result guidance for the time being, as the company does not consider it appropriate in the current volatile market environment. Metsä Board continues to describe the near-term outlook for its operating environment and its impacts, and highlights the most significant company-specific factors for the following quarter.

Operating environment outlook for the next 3–6 months

Caution among consumers, and the US tariffs, affect the demand for paperboard and the predictability of sales development.

In Europe, overcapacity adds to market pressure. In North America, folding boxboard demand is expected to remain weak.

The pulp market situation is not expected to improve. In Europe, production continues to be restricted by muted demand, high raw material costs and a weaker dollar.

The declining trend in pulpwood prices in Finland and Sweden will support Metsä Board’s profitability from 2026.

Exchange rate fluctuations, including the impact of hedges, are expected to have a slightly negative impact in the fourth quarter of 2025 and a clearly negative impact in the first quarter of 2026.

Company-specific outlook for October–December 2025 (July–September 2025)

The company continues to apply cash-flow-based operational steering. Production adjustments based on the market situation are expected to continue at nearly all the mills and will continue to have a negative impact on profitability. Adjustments are mainly focused on the Husum mill integrate, reflecting the continued weakness in the pulp market and soft paperboard demand in North America.

Cash flow from operations is expected to remain positive. By the end of September, approximately EUR 120 million in working capital had been released, with a target of EUR 150 million for the whole second half of 2025.

A slight seasonal decrease is expected in paperboard delivery volumes from the previous quarter (Q3/2025: 332,000 tonnes).

Fewer planned maintenance and investment shutdowns will occur at mills than in the third quarter. The ramp-up of the Simpele board machine may involve some early-stage production-related uncertainty.

Personnel costs are expected to increase seasonally compared to the previous quarter.

The result for October–December 2025 result may include insurance claims related to the gas explosion at Metsä Fibre's bioproduct mill in spring 2024 and the recovery boiler damage in autumn 2024. The timing and scope of the compensation depend on the progress of ongoing negotiations with the insurance consortium.

Metsä Board’s CEO Esa Kaikkonen:

“The business environment in the paperboard market remains challenging. In addition, the high pulpwood price level and weak dollar are burdening the competitiveness of European paperboard and pulp producers, including Metsä Board. As there are no quick solutions to these challenges, we are focusing on the things we can influence.

We have adopted development measures to further sharpen our operations and strengthen long-term sustainability. At the end of July, we launched a transformation programme aimed at improving annual EBITDA by 200 million euros (run-rate) by the end of 2027. This goal is ambitious but achievable. We must proceed with determination and explore every means to reach our goal. We have identified many of the required actions during the third quarter, and their implementation has been launched.

In the early stages of the programme, profit improvement will be achieved by cutting costs. Measures supporting sustainable and profitable growth, such as strengthening commercial excellence and streamlining our operations, will begin producing results in 2027. We have also set a target to release EUR 150 million in working capital by the end of this year. We have made excellent progress in this respect. In the third quarter, we released 120 million euros in working capital, and cash flow from operations strengthened to 122 million euros (Q2/25: -10).

While the July–September result was clearly negative, amounting to -46 million euros (Q2/25: -23; Q3/24: 42), the reasons were obvious: the low pulp price level; extensive mill maintenance and investment shutdowns; and market-related production curtailments in pulp and paperboard. As for paperboard, the situation was especially weakened by the tariffs imposed by the US. The Husum integrated mill suffered most from the situation. The comparable operating result in January–September was EUR -46 million (Q1–Q3/24: 73). The outlook for the rest of the year remains uncertain, and we are also preparing for production curtailments in the last quarter.

At the end of the period, the ratio of interest-bearing net debt to comparable EBITDA was 5.3, clearly exceeding our target maximum level of 2.5. Weak profitability had a significant impact on the key figure, as our interest-bearing net debt decreased by 100 million euros from the end of June. Our financial position remains stable, and our liquidity is strong. This was further strengthened by the larger than previous credit facility of 250 million euros, which was signed after the review period.

After the period, we announced the initiation of statutory negotiations concerning our entire personnel. These are unfortunate but necessary measures required to return our business to a level of sustainable profitability. We aim to conduct negotiations openly and constructively and are committed to offering our personnel the best possible support. We also decided to discontinue significant investment projects in the pre-engineering phase which do not offer adequate profitability in the current market situation.

We have a strong foundation for building the future: skilled personnel, long-term customer relationships, sustainable operations and competitive products. Now, we also have a clear direction and strong determination to carry out the required changes. We operate in a market with long-term growth potential – supported by the replacement of plastic and tighter regulation in particular. We are now building Metsä Board’s next stage based on these strengths.”

Key figures

 METSÄ BOARD CORPORATION