Metsä Group’s cost savings are reflected in its third-quarter results: comparable EBITDA was EUR 357 million

January–September 2026 (1–9/2025)

• Sales were EUR 4,008 million (4,508).

• EBITDA was EUR 328 million (314). Comparable EBITDA was EUR 357 million (305).

• Operating result was EUR -75 million (-63). Comparable operating result was EUR -11 million (-27).

• Result before taxes was EUR -136 million (-108). Comparable result before taxes was EUR -67 million (-73).

• Comparable return on capital employed was -0.1% (-0.3).

• Net cash flow from operations was EUR 91 million (216).

July–September 2026 (7–9/2025)

• Sales were EUR 1,267 million (1,440).

• EBITDA was EUR 96 million (64). Comparable EBITDA was EUR 100 million (39).

• Operating result was EUR -41 million (-69). Comparable operating result was EUR -4 million (-72).

• Result before taxes was EUR -62 million (-84). Comparable result before taxes was EUR -25 million (-87).

• Comparable return on capital employed was -0.1% (-3.5).

• Net cash flow from operations was EUR 128 million (207).

Events during the third quarter of 2026

Demand for market pulp and price levels remained subdued. Average sales price of softwood pulp decreased by 1% in Europe and 3% in China compared with the previous quarter.

Delivery volumes of paperboard remained stable, and average prices rose slightly from the previous quarter.

Both the annual maintenance shutdowns and the market-driven shutdowns at the Husum and Joutseno mills reduced production volumes and weakened Metsä’s profitability.

As a result of the conflict in the Middle East, logistics costs remained high, but customs tariff refunds received from the United States improved the bottom line.

Metsä decided to invest approximately EUR 25 million in the production of Muoto fibre-based packaging in Äänekoski. Plans to invest in the Kuura textile fibre were abandoned.

A capture plant for wood-based carbon dioxide planned for Rauma was awarded an investment aid of EUR 21 million by the Ministry of Economic Affairs and Employment.

In July, Metsä opened a new packaging design studio in Milan. The studio is strengthening collaboration with clients in key European markets.

The new Metsä values were published during the review period. The employees actively participated in the preparation of our shared values, which can be summarised as follows: be open; be bold; and make an impact.

President and CEO Jussi Vanhanen:

Metsä’s result for the third quarter of 2026 improved clearly compared with the same period last year despite the unstable geopolitical situation that weakened demand and drove up costs. Comparable EBITDA rose to EUR 100 million from last year’s EUR 39 million. The comparable operating result remained slightly in the red at EUR -4 million, but improved significantly from the previous year’s EUR 72 million. In particular, the result of the paperboard business strengthened as demand improved. However, the profitability of all the Group’s business operations remained well below our targets. 

The EUR 300 million cost savings and profit improvement programme, which we launched in July 2025, has made excellent progress. We achieved a profit impact of EUR 200 million at the start of the fourth quarter, well ahead of schedule. A big thank you to all our employees who have identified and purposefully carried out hundreds of development projects. This work is reflected in our results, even though weak demand, exchange rates and rising costs have limited the impact of the savings we have achieved. In particular, the rise in oil and diesel prices caused by the conflict in the Middle East reduced our third-quarter result by approximately EUR 47 million.

In August, we announced an investment of EUR 25 million in the production of Muoto™ fibre-based packaging in Äänekoski. The new production line is scheduled to begin operations in 2028. Like many other innovations in the forest industry, Muoto can replace products made from fossil-based raw materials, often plastic. Consumers prefer fibre packaging to plastic packaging, but the price must still be close enough to that of plastic. We believe that Muoto will be able to do this. However, we decided to abandon our plans for the Kuura™ textile fibre mill. The product is excellent, but unfortunately, the conditions for establishing a commercially viable business around it do not exist at this stage.

However, the most significant event of the third quarter of 2026 was the launch of the new Metsä values. Thousands of our employees participated in the definition of our values through surveys and values workshops. We discussed how we want to work together; what values are important to our employees and help drive the company forward. We summed them up in these words: Let’s be open; bold; and make an impact. Openness builds trust; courage brings results. We want our actions to have an impact within the company as well as on our customers, suppliers and the wider society.

Near-term outlook

Geopolitical tensions and conflicts are fuelling global economic uncertainty and placing upward pressure on the cost of energy, logistics and chemicals in particular.

The outlook for demand for softwood market pulp remains subdued, but production cuts and capacity shutdowns will gradually improve the market balance in the coming months.

The annual maintenance shutdown at the Kemi bioproduct mill, scheduled for the fourth quarter, will be longer than usual due to the upgrade of the mill’s cooking process. 

Paperboard market balance has improved, supporting the pricing environment. Demand for tissue and greaseproof paper products is expected to grow steadily. 

Demand for sawn timber is expected to remain subdued in the fourth quarter. Customers’ high inventory levels, weak demand and abundant supply are keeping price pressures high in Europe. In the Middle East and Africa, geopolitical uncertainty continues to weigh on the market outlook.

In much of Europe, the outlook for construction remains weak, which reduces the demand for Kerto® LVL. Demand for birch plywood is expected to remain stable, but a seasonal slowdown is evident in the market. However, the outlook for birch plywood in the heavy-duty transport equipment has improved. In the UK, demand for the wood products upgrading business is expected to remain weak.  

The overall wood trade situation in Finland has picked up in the autumn, and we expect good wood trading for the rest of the year. There is strong demand for all types of felling sites. Metsä is especially interested in FSC-certified wood. Demand for forest management services is expected to pick up as wood sales volumes increase. 

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. 

Follow Metsä Group: LinkedIn Instagram