Metsä Group’s comparable operating result in January–December 2025 was EUR -85 million

January–December 2025 (1–12/2024)

• Sales were EUR 5,833 million (5,747).

• Operating result was EUR -271 million (186). The comparable operating result was EUR -85 million (203).

• Result before taxes was EUR -335 million (131). The comparable result before taxes was EUR -147 million (148).

• The comparable return on capital employed was -0.9% (2.9).

• Net cash flow from operations was EUR 537 million (11).

October–December 2025 (10–12/2024)

• Sales were EUR 1,325 million (1,474).

• Operating result was EUR -208 million (29). The comparable operating result was EUR -57 million (33).

• Result before taxes was EUR -227 million (13). The comparable result before taxes was EUR -74 million (16).

• The comparable return on capital employed was -2.9% (2.0).

• Net cash flow from operations was EUR 320 million (176).

Events during the fourth quarter of 2025

• Demand for market pulp remained muted in both Europe and China. Production at the Joutseno pulp mill was halted during June–December.

• Average sales prices of Metsä Group’s softwood market pulp decreased by 1% in Europe and 3% in China, compared with the previous quarter.

• Metsä Group’s paperboard delivery volume decreased from the previous quarter. The average paperboard price decreased slightly. Production was curtailed due to the market situation and to release working capital.

• The comparable operating result for October–December included insurance compensations totalling EUR 40 million for the Kemi bioproduct mill damages.

• As part of the cost savings and profit improvement programme, Metsä Group conducted change negotiations concerning all employees, resulting in the termination of nearly 800 permanent positions. Related to the negotiations, the Group recognised a total of EUR 44 million in one-time expenses as an item affecting the comparability of the operating result for October–December 2025.

• Metsä Group completed the 60-million-euro renewal project of a paperboard mill in Simpele in Finland.

• Metsä Group began production in the expanded and renewed Mariestad tissue paper mill in Sweden. 

• The renewal project for Metsä Group’s enterprise resource planning (ERP) system has been suspended for the time being. Related to the project, the Group recognised a total of EUR 96 million in one-time expenses as an item affecting the comparability of the operating result for October–December 2025.

• Metsä Board signed an agreement regarding a revolving credit facility of EUR 250 million, with a margin tied to the long-term climate and energy efficiency targets. The facility replaced the undrawn EUR 200 million revolving credit facility due to expire in January 2027.

Events after the review period

On 26 January 2026, Metsä Board made an agreement regarding the purchase of the Winschoten Sheeting and Distribution Hub in the Netherlands, owned by Konvertia Group. It is planned that the sale will be closed in February 2026. The parties have agreed not to publish the sale price.

In January, Jussi Noponen was appointed EVP, Metsä Wood and a member of the Metsä Group Executive Management Team from 1 March 2026 onwards.

Metsäliitto Cooperative and Itochu Corporation completed a transaction on 4 February 2026, in which Metsäliitto acquired a 5.1% stake in Metsä Fibre Oy. As a result of the transaction, Metsäliitto’s ownership in Metsä Fibre is 55.2%, and Itochu holds 19.9% of the share capital. The share of Metsä Board Corporation remained at 24.9%.

Proposal of the Board of Directors on the use of the surplus on the balance sheet

Metsäliitto Cooperative’s Board of Directors has decided to propose that for 2025, interest of 5.0% (5.5 for 2024) be paid on the participation share capital invested by members, and that interest of 4.5% (5.0) be paid on Metsä1 additional shares, 1.0% (2.0) on additional capital A, and 0.75% (1.0) on additional capital B. The Board of Directors also proposes that a surplus reimbursement of EUR 0.30 per cubic metre of industrial roundwood received from a member over the last four concluded financial periods be distributed. The reimbursement of surplus will be primarily paid as Metsä1 additional shares, but in money for the part corresponding to the tax withheld for each member. If the right to the shares has been transferred to another person in accordance with the rules of the cooperative, the interest will be paid to the person who is registered as the owner on the record date, 31 March 2026. The proposed payment date is 11 May 2026. If a member entitled to a surplus reimbursement terminates their membership of the cooperative before the date of payment, this share of the surplus reimbursement will not be distributed. In total, the proposed profit distribution would be approximately EUR 88 million (93), of which the surplus reimbursement based on wood trade would be approximately 17%.

President and CEO Jussi Vanhanen:

Metsä Group’s sales for 2025 increased by 1.5% compared to the previous year due to higher pulp and sawn timber volumes. The lower delivery volumes for paperboard and the poor performance of the wood product distribution business had a negative impact on sales. 

The Group’s comparable operating result was a loss of EUR 85 million, largely due to the lower sales prices and higher fixed costs. Ensuring cost competitiveness therefore became a key focus for the second half of the year. In July, we announced we were seeking annual savings of EUR 300 million in stages from 2026 onwards. As part of the cost savings and profit improvement programme, we initiated change negotiations, resulting in the termination of around 790 permanent positions.

However, most of the cost savings will come from variable costs. Hundreds of our employees are working with these projects every day. We are making good progress in reaching the target. Based on the current outlook, two thirds of the planned savings will be realised in our result for 2026. Our result for 2026 will also be supported by lower wood prices, as they began to decrease in the summer of 2025. The prices will also be realised in the result in stages as the felling sites purchased before the summer of 2025 are harvested.

The highlight of 2025 was a very strong operational cash flow of over half a billion euros. This is a result of matters such as the systematic storage and working capital optimisations in the second half of the year. The Group’s investments similarly amounted to slightly more than half a billion euros, so our financing position remained stable. In 2026, our investments will decrease significantly, as the only notable new investment of the Äänekoski Kerto® LVL mill will start up.

Another important milestone I wish to highlight is the development of our occupational safety. Our years of systematic work are bearing fruit, as in 2025, we reached an all-time low accident frequency of 4.0 accidents per million hours worked. I wish to thank all our employees for always keeping occupational safety as a core pillar of our work. Of course, this work will also continue this year.

What will 2026 bring? The year began with yet another escalation of the geopolitical situation, as well as new tariff threats. We need to be prepared for more dramatic news in the future. This will inevitably be reflected in the consumers’ outlook of the future. It is vitally important that we always adjust our cost levels to match the price levels that the global markets allow.

At the strategic level, we are ready to focus more than ever on business operations with profitable growth opportunities in the future.

Near-term outlook

Geopolitical tension and uncertainty about global economic development have reduced consumer confidence, leading to weaker demand for pulp end products. Demand for softwood pulp has also been affected by the increased share of hardwood pulp in end products. These factors weaken the demand for softwood market pulp.

The cautious purchasing behaviour of consumers 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 remain stable, and the long-term growth remains moderate. The market situation of greaseproof papers involves uncertainty due to increased Chinese competition, especially in the European market.

In much of Europe, the outlook for construction remains muted, and this continues to be reflected in muted demand for spruce plywood in particular. However, the demand for sawn timber is expected to increase due to seasonal demand in the second quarter of the year. The demand for Kerto LVL products is expected to develop moderately favourably in all main markets in the early year. In the US, this development is mainly due to new customers.

Demand for birch plywood is expected to remain stable.

In the UK, demand for sawn timber upgrading is expected to be muted over the next few months in the DIY and merchant customer segments. 

Demand for wood will particularly concern felling sites planned for summer harvesting and crown wood in terms of energy wood. Demand for forest management services is expected to remain strong. Due to the decreased market prices of wood, mill prices are expected to be significantly lower in 2026 than in the previous year.

METSÄ GROUP