Mercer vs International Paper: Pulp and Packaging Giants Go Head-to-Head

Mercer International reported Q4 EPS of -$4.61, driven by a $238.7 million impairment on its Peace River hardwood pulp mill, leaving shareholders' equity at $68 million. International Paper posted adjusted EBITDA of $859 million, up 28% sequentially, and is divesting its Global Cellulose Fibers business to focus on a pure-play global packaging company. Mercer faces existential pressure from a commodity pulp cycle downturn, while IP is strategically exiting low-margin pulp assets to build a higher-margin packaging business.