Mercer International Inc. (MERC) Earnings Call Transcripts
Mercer International Inc.'s Latest Earnings Call - Q1 FY2026
In the first quarter of 2026, Mercer International Inc. reported an operating EBITDA of approximately $8 million, a significant increase of $28 million from the previous quarter, primarily due to reduced planned maintenance downtime. However, the company faced challenges with rising fiber costs and weak demand for pulp and lumber, resulting in a net loss of $52 million or $0.78 per share. Management signaled a cautious outlook, expecting to regain compliance with leverage ratio covenants by Q4 2026, while emphasizing ongoing cost reduction initiatives through their One Goal 100 program, which aims for $100 million in improvements by year-end 2026.
Reported metrics
| Metric | Value |
|---|---|
| Operating EBITDA | $8 million (positive) |
| Net Loss | $52 million (positive) |
| EPS | $0.78 (negative) |
| Pulp Production | 466,000 tons (inline) |
| Average Softwood Pulp Price | $696 per ton (negative) |
| Average Hardwood Price in China | $595 per ton (positive) |
Guidance from management
Management expects to regain compliance with the leverage ratio covenant by Q4 2026 and anticipates stable fiber costs in Q2, driven by improved availability and increased chip volumes from U.S. sources.
What management said
Okay. Thank you, Carmen, and thank you all for joining our call. Rich and I are available to talk more at any time. So don't hesitate to call one of us. Otherwise, we look forward to speaking to you again on our next earnings call in July. Bye for now.
What analysts pressed on
Analysts expressed concerns regarding the ongoing fiber supply constraints in Germany and the potential need for further production curtailments. There were also questions about the impact of rising energy and chemical costs on profitability moving forward.
Main topics on the call
- EBITDA Improvement — Mercer reported an operating EBITDA of approximately $8 million, up from a loss in the previous quarter. Management noted, "This improvement was primarily driven by the scheduling of our planned maintenance downtime and ...
- Rising Fiber Costs — The company highlighted increasing fiber costs in both Germany and Canada, which negatively impacted overall results. Management stated, "We did not meet the leverage ratio covenant under our German revolving credit faci...
- Noncash Inventory Impairment — Mercer recorded a noncash inventory impairment charge of $22 million in Q1, attributed to low pulp prices and higher fiber costs. This impairment significantly influenced the net loss reported for the quarter.
- Market Conditions and Pricing — Management noted that softwood pulp sales realizations were stable, averaging $696 per ton, while hardwood prices improved due to stronger demand. They stated, "NBSK pulp markets improved modestly in the first quarter."
Read the full Mercer International Inc. transcript (Q1 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.
About Mercer International Inc.
Mercer International Inc. (MERC) is a publicly listed company in the Paper and Forest Products industry, within the Materials sector. It trades on NasdaqGS and is based in US. EarningsCalls.dev maintains a free, full-text archive of its earnings call transcripts — 44 calls on record spanning February 14, 2020 to May 8, 2026. Every transcript is split into speaker-by-speaker segments with headline metrics, free to read or available through our REST API.
Earnings Call History
EarningsCalls.dev has 44 Mercer International Inc. earnings call transcripts on record, spanning February 14, 2020 to May 8, 2026. Based on this history, Mercer International Inc. reports quarterly. The most recent call on file is dated May 8, 2026. The full list is below — each row opens the complete, free-to-read transcript.
- Ticker
- MERC
- Exchange
- NasdaqGS
- Country
- US
- Sector
- Materials
- Industry
- Paper and Forest Products
- Calls on record
- 44
- First call
- February 14, 2020
- Most recent
- May 8, 2026
- Reporting cadence
- quarterly