Metsä Group’s comparable operating result forJanuary–March 2026 was EUR -4 million

 January–March 2026 (1–3/2025)

•         Sales were EUR 1,358 million (1,642).

•         EBITDA was EUR 115 million (189). The comparable EBITDA was EUR 128
million (197).

•         Operating result was EUR -18 million (51). The com-parable operating result was EUR -4 million (81).

•         Result before taxes was EUR -34 million (37). The comparable result before taxes was EUR -21 million (67).

•         The comparable return on capital employed was -0.1% (4.4).

•         Net cash flow from operations was EUR -79 million (-10).

Events during the first quarter of 2026

•         Demand for market pulp was muted in both Europe and China. At the end of the period, a market-driven shutdown began at the Joutseno pulp mill, which will continue for the time being.

•         Average invoicing prices for softwood market pulp decreased by 4% in Europe and increased by 2% in China compared with the previous quarter.

•         Metsäliitto Cooperative acquired a 5.1% stake in Metsä Fibre Oy from Itochu. Following the transaction, Metsäliitto Cooperative’s ownership holding is 55.2%. After the transaction, Metsäliitto Cooperative’s owner-ship stake in Metsä Fibre, including the indirect ownership via Metsä Board, amounts to 68.1%.

•         The delivery volumes of paperboard declined from the previous quarter, mainly due to US import tariffs.

•         The rise in oil and natural gas prices caused by the conflict in the Middle East is putting upward pressure on logistics and raw material costs.

•         The tissue paper business was reorganised. Change negotiations were concluded in March, resulting in a reduction of 50 jobs.

•         The wood products industry’s result was weighed down by the commissioning of the Äänekoski Kerto® LVL mill, the winding down of the Suolahti plywood mill, and the restructuring of operations in the United Kingdom.

•         In February, Metsä Board made an acquisition in the Netherlands: The Winschoten Sheeting and Distribution Hub improves the service capabilities of the paperboard business in Europe.

•         Metsä Group began the pre-engineering of a carbon capture facility for wood-based carbon dioxide in Rauma. An application for investment aid has been submitted to the Ministry of Economic Affairs and Employment of Finland.

President and CEO Jussi Vanhanen:

Metsä Group’s first-quarter result improved significantly compared with the second half of 2025, but the comparable operating result showed a loss of EUR 3.8 million (Q4 2025: EUR -57 million). The improvement resulted from a broad-based cost-cutting initiative.

Costs fell across the board: fixed costs, raw materials, wood costs, and other variable costs alike. The EUR 300 million profit improvement and cost savings programme we launched in the autumn of 2025 is proceeding on schedule. I am grateful to our entire personnel for their determined efforts to improve our performance.

The impact and importance of cost discipline are further underscored by the fact that our first-quarter result was weighed down by both lower average selling prices and the weaker exchange rate for the dollar. Their combined effect compared with the previous quarter was negative by more than EUR 60 million.

In the short term, our positive result development is threatened by rising logistics and raw material costs resulting from the closure of the Strait of Hormuz. We have begun to pass on the increased costs to our selling prices, but there is typically a certain delay before the impact is felt. This further underscores the need to continue curbing other cost factors.

In March, Metsäliitto Cooperative’s Board of Directors updated our company strategy. The purpose of our work can be summed up in one sentence: Better every-day life through Nordic wood. It takes into account the needs of our customers, owners, employees and the surrounding society. We provide our customers with renewable and recyclable products for many areas of everyday life, help our owner‑members grow the value of their forests, and are proud of the way we create jobs and wellbeing in the society around us.

What matters most is that we believe there will continue to be demand for Nordic wood. We'll make sure of it. When it comes to logs, climate change is affecting Central European forests more severely than Nordic forests, which is boosting demand for Nordic wood. It is important that we develop forest management methods that keep Finnish forests healthy and vibrant for decades to come. Metsäliitto plays an important role in training and supporting our owner-members.

The Finnish pulp and packaging industry operates in a global market. In addition to European companies, we are increasingly competing with South American and Asian ones, both overseas and in Europe. Trade barriers have increased in recent years, presenting an additional challenge to our business. Cost competitiveness is of paramount importance. Demand for Finnish pulp-wood is determined by our global competitiveness.

Near-term outlook

Geopolitical tensions and conflicts are increasing uncertainty in the global economy and driving up energy, chemical and logistics costs. Rising costs increase production costs, which puts pressure on profitability.

Low consumer confidence, the partial replacement of softwood pulp with hardwood pulp, and a structural decline in demand for printing and writing paper are weakening the demand for market softwood pulp. At the same time, the supply of softwood market pulp is being reduced by the capacity shutdowns that continued in North America early this year and by production curtailments in the industry.

A market-driven shutdown began at the Joutseno pulp mill at the start of the second quarter, and it will continue for the time being.

Consumers’ cautious purchasing behaviour also has a general impact on demand for packaging and weakens the predictability of paperboard sales. In Europe, over-capacity is adding to market pressure. In North America, the demand for folding boxboard is impacted by tariffs. The outlook for coated white kraftliner is better due to the limited possibilities for its replacement.

Demand for tissue paper products is expected to re-main stable, and the long-term growth to remain moderate. The uncertainty of the market situation of greaseproof papers in Europe continues due to increased Chinese competition.

In much of Europe, the outlook for the construction sector remains weak, which is reflected in muted demand especially for sawn timber, spruce plywood and Kerto LVL products. However, a slight seasonal increase in demand for sawn timber and Kerto LVL products is expected in the second quarter. Demand for Kerto LVL is being driven by new customers acquired early in the year. Demand for birch plywood is expected to remain stable.

Demand for forest management services is expected to pick up as wood sales volumes increase.

Demand for wood will focus on felling sites suitable for summer harvesting, especially spruce logs and FSC-certified wood. In energy wood, the demand will focus mainly on crown wood.

METSÄ GROUP

For further information:

Vesa-Pekka Takala, EVP, CFO, Metsä Group, tel. +358 10 465 4260

Maria Mroué, VP, Group Communications and Brand, Metsä Group, tel. +358 50 393 4974

Metsä Group
www.metsagroup.com

Metsä Group has its roots in the Finnish forest: our parent company Metsäliitto Cooperative is owned by approximately 90,000 forest owners. We make wood products that people around the world need every day. We focus on pulp, paperboards, tissue and greaseproof papers, wood products, and wood supply and forest services. We are committed to regenerative forestry that measurably strengthens the forest ecosystem. We promote a culture of diversity, equality and inclusion.

In 2025, our sales totalled EUR 5.8 billion, and we employ about 8,800 people.

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