Mercer International Inc (MERC)
NASDAQ:MERC
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Earnings Data
Report Date
Jul 30, 2026After Close (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
-0.57Last Year’s EPS
-1.29Same Quarter Last Year
Moderate Sell
Based on 3 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Neutral
The call presents a mixed picture: there are clear operational and strategic positives including a sizable quarter-over-quarter improvement in operating EBITDA, meaningful progress against the One Goal One Hundred cost initiative (realizing ~$41M), strong mass timber growth with a $171M backlog, and successful lender/bondholder engagement (waiver and >80% consent). Offsetting these positives are material near-term challenges: a consolidated net loss and $22M inventory impairment, a covenant breach with the German revolver now classified as noncurrent, a $201M reduction in aggregate liquidity, sustained fiber cost inflation (roughly +10% vs Q4) that pressures margins, a negative Solid Wood EBITDA, and ongoing market demand weakness that may require further supply rationalization. Management expects some stabilization in Q2 (fiber costs stabilizing, modest working capital reduction) but acknowledges ongoing macro and trade uncertainties. Overall the call balances significant operational progress and strategic actions against meaningful financial and market headwinds.Company Guidance
Quarterly Operating EBITDA Improvement
Operating EBITDA of approximately $8 million in Q1 2026, an improvement of $28 million versus Q4 2025, driven primarily by reduced planned maintenance downtime and implementation of the One Goal One Hundred program.
Pulp Segment Results and Price Movements
Pulp segment EBITDA of $7 million; pulp sales volumes roughly flat at ~471,000 tons and production about 466,000 tons. Softwood pulp sales realizations were modestly down to $696/ton from $702/ton, European NBSK list prices averaged $1,618/ton (up $120, ~8% quarter-on-quarter), NBSK net price in China rose $14 to $685/ton, hardwood sales realizations improved to $564/ton from $528/ton, and eucalyptus net price in China rose to $595/ton (up $55).
One Goal One Hundred Program Progress
Cumulative cost and reliability improvements of approximately $41 million realized toward the $100 million target (about 41% of the goal) and management remains on track to achieve $100 million of improvements by end of 2026.
Mass Timber Revenue and Backlog Growth
Mass timber revenues increased by over 60% quarter-on-quarter and production rose over 20% as operations begin ramping to a second shift; backlog of roughly $171 million with ~60% of backlog from hyperscaler/data center projects. Business benefits from advance customer payments and expected stronger cash generation in H2.
Lumber Production and Pricing Improvements
Lumber production increased ~7% to 116 million board feet and lumber sales volumes increased ~9% to 112 million board feet versus Q4; Random Lengths Western SPF #2+ averaged $463/MBF in Q1 (up $41 QoQ) and is currently ~ $483/MBF.
Higher Power Sales and Realized Prices
Electricity sales of 217 GWh in Q1 (about 16 GWh more than Q4) and realized power pricing rose to ~$127/MWh from $105/MWh (roughly a 21% increase), aided by higher spot prices in Germany.
Successful Creditor Engagement and Waiver
Secured a waiver from lenders for the German revolving credit facility leverage covenant covering Q1 and the subsequent two quarters; consent solicitation with bondholders received approval from over 80% of bondholders, broadening financing flexibility.
Capital Discipline and Strategic Focus
Planned capital expenditures for 2026 narrowed to $60–$80 million focused on maintenance, environmental and safety projects, with continued emphasis on working capital management and evaluating strategic/financing alternatives to bolster liquidity.
MERC Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
MERC Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
May 07, 2026 | $1.11 | $0.98 | -11.71% |
Feb 12, 2026 | $1.70 | $1.78 | +4.71% |
Nov 06, 2025 | $1.88 | $1.84 | -2.13% |
Jul 31, 2025 | $3.71 | $3.02 | -18.60% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Mercer International Inc (MERC) report earnings?
Mercer International Inc (MERC) is schdueled to report earning on Jul 30, 2026, After Close (Confirmed).
What is Mercer International Inc (MERC) earnings time?
Mercer International Inc (MERC) earnings time is at Jul 30, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is MERC EPS forecast?
MERC EPS forecast for the fiscal quarter 2026 (Q2) is -0.57.