Metsä Board Corporation Stock exchange release Interim report 23 October 2025 at
12:00 noon EEST
January-September 2025 (compared to Q1-Q3/2024)
· Sales were EUR 1,382.2 million (1,492.6).
· The comparable operating result was EUR -45.5 million (72.6), or -3.3% of
sales (4.9). Operating result was EUR -70.3 million (64.0).
· Comparable earnings per share were EUR -0.13 (0.11), and earnings per share
were EUR -0.19 (0.09).
· Comparable return on capital employed was -2.3 % (4.3).
· Net cash flow from operations was EUR 83.9 million (-11.9).
July-September 2025 (compared to Q3/2024)
· Sales were EUR 441.2 million (499.0).
· The comparable operating result was EUR -45.6 million (41.9), or -10.3%
(8.4) of sales. Operating result was EUR -44.8 million (41.7).
· Comparable earnings per share were EUR -0.11 (0.08), and earnings per share
were EUR -0.11 (0.08).
· Comparable return on capital employed was -7.1% (7.3).
· Net cash flow from operations was EUR 122.0 million (4.6).
Events in July-September 2025
The operating environment in the paperboard market remained challenging due to
weak consumer demand, the US tariffs and overcapacity.
Metsä Board initiated a cost savings and profitability improvement programme,
targeting an annual EBITDA run-rate increase of EUR 200 million by the end of
2027. The programme progressed as planned in the third quarter.
The company aims to release EUR 150 million in working capital by the end of the
year. In July-September, the working capital release totalled around EUR 120
million, and cash flow from operations was clearly positive: EUR 122 million
(Q2/25: -10, Q3/24: 4.6).
Metsä Board's paperboard deliveries in July-September totalled 332,000 tonnes
(Q2/25: 360,000; Q3/24: 388,000). Average paperboard prices remained at the
previous quarter's level.
Paperboard, BCTMP and pulp production were curtailed on market basis and to
release working capital. In addition, production volumes and profitability were
significantly affected by the annual maintenance shutdown at the Husum
integrated mill and the investment shutdown of the Simpele paperboard machine.
Market pulp demand remained weak in both Europe and China, and the price level
declined. Pulp production at associated company Metsä Fibre's Joutseno mill has
been paused since June. In July-September 2025, the overall impact of pulp on
Metsä Board's result was clearly negative.
Metsä Board achieved a Platinum rating in EcoVadis sustainability assessment.
With a total score of 91/100, Metsä Board is among the top 1% of companies
assessed in the paper, paperboard and packaging manufacturers category.
Near-term outlook
Metsä Board discontinues issuing result guidance for the time being, as the
company does not consider it appropriate in the current volatile market
environment. Metsä Board continues to describe the near-term outlook for its
operating environment and its impacts, and highlights the most significant
company-specific factors for the following quarter.
Operating environment outlook for the next 3-6 months
Caution among consumers, and the US tariffs, affect the demand for paperboard
and the predictability of sales development.
In Europe, overcapacity adds to market pressure. In North America, folding
boxboard demand is expected to remain weak.
The pulp market situation is not expected to improve. In Europe, production
continues to be restricted by muted demand, high raw material costs and a weaker
dollar.
The declining trend in pulpwood prices in Finland and Sweden will support Metsä
Board's profitability from 2026.
Exchange rate fluctuations, including the impact of hedges, are expected to have
a slightly negative impact in the fourth quarter of 2025 and a clearly negative
impact in the first quarter of 2026.
Company-specific outlook for October-December 2025 (July-September 2025)
The company continues to apply cash-flow-based operational steering. Production
adjustments based on the market situation are expected to continue at nearly all
the mills and will continue to have a negative impact on profitability.
Adjustments are mainly focused on the Husum mill integrate, reflecting the
continued weakness in the pulp market and soft paperboard demand in North
America.
Cash flow from operations is expected to remain positive. By the end of
September, approximately EUR 120 million in working capital had been released,
with a target of EUR 150 million for the whole second half of 2025.
A slight seasonal decrease is expected in paperboard delivery volumes from the
previous quarter (Q3/2025: 332,000 tonnes).
Fewer planned maintenance and investment shutdowns will occur at mills than in
the third quarter. The ramp-up of the Simpele board machine may involve some
early-stage production-related uncertainty.
Personnel costs are expected to increase seasonally compared to the previous
quarter.
The result for October-December 2025 result may include insurance claims related
to the gas explosion at Metsä Fibre's bioproduct mill in spring 2024 and the
recovery boiler damage in autumn 2024. The timing and scope of the compensation
depend on the progress of ongoing negotiations with the insurance consortium.
Metsä Board's CEO Esa Kaikkonen:
“The business environment in the paperboard market remains challenging. In
addition, the high pulpwood price level and weak dollar are burdening the
competitiveness of European paperboard and pulp producers, including Metsä
Board. As there are no quick solutions to these challenges, we are focusing on
the things we can influence.
We have adopted development measures to further sharpen our operations and
strengthen long-term sustainability. At the end of July, we launched a
transformation programme aimed at improving annual EBITDA by 200 million euros
(run-rate) by the end of 2027. This goal is ambitious but achievable. We must
proceed with determination and explore every means to reach our goal. We have
identified many of the required actions during the third quarter, and their
implementation has been launched.
In the early stages of the programme, profit improvement will be achieved by
cutting costs. Measures supporting sustainable and profitable growth, such as
strengthening commercial excellence and streamlining our operations, will begin
producing results in 2027. We have also set a target to release EUR 150 million
in working capital by the end of this year. We have made excellent progress in
this respect. In the third quarter, we released 120 million euros in working
capital, and cash flow from operations strengthened to 122 million euros (Q2/25:
-10).
While the July-September result was clearly negative, amounting to -46 million
euros (Q2/25: -23; Q3/24: 42), the reasons were obvious: the low pulp price
level; extensive mill maintenance and investment shutdowns; and market-related
production curtailments in pulp and paperboard. As for paperboard, the situation
was especially weakened by the tariffs imposed by the US. The Husum integrated
mill suffered most from the situation. The comparable operating result in
January-September was EUR -46 million (Q1-Q3/24: 73). The outlook for the rest
of the year remains uncertain, and we are also preparing for production
curtailments in the last quarter.
At the end of the period, the ratio of interest-bearing net debt to comparable
EBITDA was 5.3, clearly exceeding our target maximum level of 2.5. Weak
profitability had a significant impact on the key figure, as our interest
-bearing net debt decreased by 100 million euros from the end of June. Our
financial position remains stable, and our liquidity is strong. This was further
strengthened by the larger than previous credit facility of 250 million euros,
which was signed after the review period.
After the period, we announced the initiation of statutory negotiations
concerning our entire personnel. These are unfortunate but necessary measures
required to return our business to a level of sustainable profitability. We aim
to conduct negotiations openly and constructively and are committed to offering
our personnel the best possible support. We also decided to discontinue
significant investment projects in the pre-engineering phase which do not offer
adequate profitability in the current market situation.
We have a strong foundation for building the future: skilled personnel, long
-term customer relationships, sustainable operations and competitive products.
Now, we also have a clear direction and strong determination to carry out the
required changes. We operate in a market with long-term growth potential -
supported by the replacement of plastic and tighter regulation in particular. We
are now building Metsä Board's next stage based on these strengths.”
Key figures
2025 2024 2025 2024 2024
Q3 Q3 Q1-Q3 Q1-Q3 Q1-Q4
Sales, EUR million 441.2 499.0 1,382.2 1,492.6 1,938.6
EBITDA, EUR million -17.4 66.0 33.4 149.4 175.9
comparable, EUR million -18.2 66.3 39.0 150.4 175.0
EBITDA, % of sales -4.0 13.2 2.4 10.0 9.1
comparable, % of sales -4.1 13.3 2.8 10.1 9.0
Operating result, EUR million -44.8 41.7 -70.3 64.0 62.3
comparable, EUR million -45.6 41.9 -45.5 72.6 69.0
Operating result, % of sales -10.2 8.3 -5.1 4.3 3.2
comparable, % of sales -10.3 8.4 -3.3 4.9 3.6
Result before taxes, EUR million -48.3 39.5 -81.9 57.1 51.4
comparable, EUR million -49.1 39.8 -57.0 65.7 58.2
Result for the period, EUR million -42.5 32.2 -69.8 41.9 39.4
comparable, EUR million -43.5 32.5 -50.2 49.0 44.6
Earnings per share, EUR -0.11 0.08 -0.19 0.09 0.07
comparable, EUR -0.11 0.08 -0.13 0.11 0.09
Return on equity, % -9.0 6.7 -4.9 2.8 2.0
comparable, % -9.2 6.7 -3.6 3.3 2.3
Return on capital employed, % -7.0 7.3 -3.7 3.9 2.9
comparable, % -7.1 7.3 -2.3 4.3 3.2
Equity ratio, % 65 65 65 65 64
Net gearing, % 18 18 18 18 18
Interest-bearing net 5.3 2.0 5.3 2.0 2.0
liabilities/comparable EBITDA, 12
months rolling
Shareholders' equity per share, 4.77 5.04 4.77 5.04 4.91
EUR
Interest-bearing net liabilities, 338.0 347.7 338.0 347.7 344.9
EUR million
Total investment, EUR million 28.7 67.1 63.7 120.5 175.4
Net cash flow from operations, EUR 122.0 4.6 83.9 -11.9 37.8
million
Personnel 2,150 2,353 2,150 2,353 2,290
METSÄ BOARD CORPORATION
Further information:
Henri Sederholm, CFO, tel. +358 10 465 4913
Katri Sundström, VP, Investor Relations, tel. +358 10 462 0101
The webcast and the conference call for analysts and investors will be held on
23 October 2025 at 3:00 pm EEST. CEO Esa Kaikkonen and CFO Henri Sederholm will
present the results. The webcast and conference call can be followed online on
the company's website at https://metsaboard.events.inderes.com/q3-2025.
Participation in the conference call requires registration through the following
link: https://events.inderes.com/metsaboard/q3-2025/dial-in. After the
registration, the participant will be provided with a phone number, a User ID
and a Conference ID to access the conference. By participating in the conference
call, the participant agrees that personal information such as name and company
name can be collected.
The webcast presentation and conference call will be recorded and archived on
the company's website, where it can be viewed afterwards at:
https://www.metsagroup.com/metsaboard/investors/reports-and
-presentations/webcasts-and-conference-calls/.
Metsä Board
metsagroup.com/metsaboard (http://www.metsagroup.com/metsaboard/)
Metsä Board is a producer of lightweight and high-quality folding boxboards,
food service boards and white kraftliners. The fresh wood fibres we use in our
products are a renewable and recyclable resource, that can be traced back to
Northern European forests. We aim to have completely fossil-free mills and raw
materials by 2030. We promote a culture of diversity, equality and inclusion.
Metsä Board is listed on the Nasdaq Helsinki. In 2024 our sales totalled EUR 1.9
billion, and we have around 2,300 employees. Metsä Board is part of Metsä Group,
whose parent company Metsäliitto Cooperative is owned by over 90,000 Finnish
forest owners.
Follow Metsä Board:
LinkedIn (https://www.linkedin.com/company/metsa
-board/) Instagram (https://www.instagram.com/metsaboard/?hl=en)
YouTube (https://www.youtube.com/playlist?list=PLF6CD152EF0DA1E61)