Metsä Group (METS) Q1 2025 earnings summary

Executive summary

• Paperboard deliveries increased 1% sequentially to 367,000 tonnes, with sales at €481 million, nearly flat year-over-year and up from Q4 2024.

• Comparable operating result for the Paperboard Industry was €23 million (Q1 2024: €32 million), impacted by a €27 million write-down from the Tako mill closure.

• Major restructuring included the closure of the Tako board mill and efficiency improvements at Kyro, resulting in over 200 job reductions.

• Cash flow from operations was negative at -€28 million, impacted by low profitability and increased working capital.

• Achieved triple-A in CDP environmental ratings and maintained strong ESG credentials.

Financial highlights

• Group sales increased to EUR 1,642 million in Q1 2025, up 13% year-over-year; Paperboard Industry sales were €481 million (flat year-over-year).

• Group comparable operating result was EUR 81 million, while Paperboard Industry comparable operating result was €23 million.

• EBITDA for the group reached EUR 190 million; Paperboard Industry EBITDA was €51 million, down 12% year-over-year.

• Net debt for the group was EUR 1,311 million; Paperboard Industry net debt was €402 million at period end.

• ROCE for the group was 4.4%; Paperboard Industry ROCE was 3.9%.

Outlook and guidance

• Comparable operating result for Q2 2025 is expected to be weaker than Q1 2025.

• US tariffs on EU-produced paperboard and pulp create uncertainty, with potential increases from 10% to 20% after July 9, 2025.

• Paperboard delivery volumes expected to remain at Q1 level; variable costs (excluding pulp) stable.

• More planned maintenance shutdowns and curtailments in Q2; long repair shutdown at Kemi bioproduct mill to impact results by €10 million.

• Demand for wood and Kerto LVL remains stable, but construction and plywood markets are weak.