Mercer International Faces Challenges Amid Global Trade Uncertainty

Mercer International ( (MERC) ) has released its Q2 earnings. Here is a breakdown of the information Mercer International presented to its investors.

Mercer International Inc. is a global forest products company with operations in Germany, the USA, and Canada, specializing in pulp production, lumber, and biofuels. The company has a consolidated annual production capacity of 2.1 million tonnes of pulp and 960 million board feet of lumber.

In its latest earnings report, Mercer International announced a challenging second quarter of 2025, with a negative operating EBITDA of $20.9 million and a net loss of $86.1 million. The company attributed these results to a weaker dollar and global trade challenges affecting pulp demand, particularly in China.

Key financial metrics revealed a 9% decrease in total revenues to $453.5 million, driven by lower sales realizations and volumes in pulp and manufactured products, partially offset by higher lumber sales. The company is actively pursuing its “One Goal One Hundred” program, aiming for $100 million in cost savings and operational efficiencies by the end of 2026.

Looking ahead, Mercer International anticipates further challenges due to ongoing market uncertainties and has paused its quarterly dividend to prudently allocate capital. The company remains focused on its liquidity and debt reduction strategy while continuing to implement cost reduction initiatives to navigate the current economic environment.