Metsä Group (METS) Q2 2025 earnings summary

Executive summary

• Comparable operating result for January–June 2025 weakened more than expected year-over-year, falling to EUR 44 million from EUR 57 million, with Q2 result clearly negative and sales rising to EUR 3,069 million from EUR 2,937 million.

• Profitability declined due to higher costs, especially wood raw material, and global trade uncertainty, notably US tariffs on EU products.

• A cost savings and profit improvement programme targeting EUR 300 million in annual reductions is being planned, with implementation from 2026 and planning to be completed by end of Q3.

• Jussi Vanhanen became President and CEO in July 2025, with a new Executive Management Team taking effect.

• Permanent closure of Tako board mill and transfer of production to Kyro.

Financial highlights

• Sales for January–June 2025 were EUR 3,069 million, up from EUR 2,937 million year-over-year.

• Comparable operating result was EUR 44 million (1.4% of sales), down from EUR 57 million (1.9%) year-over-year.

• Result before taxes: EUR -23.9 million (EUR 19.1 million year-over-year).

• Net cash flow from operations: EUR 9.6 million (EUR -251.6 million year-over-year); cash flow remained positive despite challenging market conditions.

• Equity ratio: 56.9%; net gearing: 24.8%.

Outlook and guidance

• Comparable operating result for July–September 2025 is expected to be weaker than April–June 2025.

• Demand for pulp, paperboard, and sawn timber remains weak due to global economic uncertainty and US tariffs.

• Cost savings programme planning to be completed by end of Q3 2025, with implementation from 2026.