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- **Q3 Financial Strain**: Negative EBITDA of $28M driven by $20M inventory impairment and $200/tonne NBSK-NBHK price gap.
- **Cost Savings Initiative**: $30M savings target by year-end 2025 under One Goal One Hundred program.
- **Mass Timber Momentum**: $80M backlog and 100+ projects poised for growth with AI/data center demand.
- **Trade Challenges**: Tariffs on Canadian and European lumber exacerbate supply constraints and cost pressures.

**【CFO Financial Summary】**
- Q3 2025 reported a negative EBITDA of $28 million, including a $20 million non-cash inventory impairment charge due to lower pulp prices.
- Pulp segment EBITDA was negative $13 million, driven by a $200/tonne price gap between NBSK and NBHK in China, leading to substitution and reduced demand.
- Solid wood segment EBITDA was negative $9 million, with lumber production down 4% due to maintenance and weak demand in Europe.
- Fiber costs remained high in Germany, while Canada faced supply constraints and increased logistics costs.

**【CEO Strategic Initiatives】**
- Launched the One Goal One Hundred program, targeting $100 million in cost savings by 2026, with $30 million expected by year-end 2025.
- Mass timber business shows promise with a $80 million backlog and 100+ projects in development, driven by AI and data center demand.
- Celgar mill benefits from U.S. fiber access, mitigating BC chip supply risks, while Peace River mill focuses on hardwood stability.

**【Q&A Highlights】**
- **Liquidity & Asset Sales**: No immediate asset sales planned due to unfavorable market conditions; focusing on working capital reductions and CapEx cuts.
- **CapEx Reductions**: 2026 CapEx expected to be $75 million, down from previous guidance, with shutdowns stretched to reduce operational pressure.
- **Mass Timber Growth**: North American mass timber demand set to surge with hyperscalers' $2.6 trillion data center investments, positioning Mercer for market leadership.
- **Trade Impact**: Tariffs on Canadian lumber (50% total duty) and European lumber (10% tariff) are causing supply curtailments and fiber cost inflation.


Mercer International Inc. (MERC) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

MERC

MERC fundamentals

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