Metsä Group (METS) Q3 2025 earnings summary

Executive summary

• Operating result for Q1–Q3 2025 was negative at EUR -27 million, down from EUR 170 million year-over-year, mainly due to low demand, weak pulp prices, and US tariffs, despite sales rising to EUR 4,508 million from EUR 4,273 million.

• Positive cash flow from operations was achieved, with EUR 216 million for the period, reflecting successful working capital reduction.

• A EUR 300 million annual cost savings and profit improvement programme was launched, with potential reduction of 800 jobs, mostly in Finland.

• Significant one-off items included EUR 30 million insurance compensation and EUR 22 million impairment related to the Kemi bioproduct mill gas explosion.

• Major investment projects and restructuring are ongoing, with a new President and CEO appointed in July 2025.

Financial highlights

• Sales for January–September 2025 were EUR 4,508 million, nearly flat year-over-year.

• Comparable operating result for 1–9/2025: EUR -27 million (vs. EUR 170 million in 2024); Q3: EUR -72 million (vs. EUR 113 million in 2024).

• Result before taxes for 1–9/2025: EUR -108 million (vs. EUR 119 million in 2024).

• EBITDA for 1–9/2025: EUR 314 million (vs. EUR 492 million in 2024).

• Equity ratio at period end: 57.6%–60.6%; net interest-bearing liabilities: EUR 1,236–1,442 million.

Outlook and guidance

• No separate result guidance provided due to market volatility and weak predictability, especially for paperboard and pulp markets.

• Pulp market not expected to improve; excess board capacity in Europe and weak North American demand persist.

• Cost savings programme to gradually impact results from 2026, with full effect in 2027.

• Declining fibrewood prices expected to support profitability from early 2026.

• Paperboard delivery volumes expected to decrease slightly in Q4; tissue paper demand stable; construction outlook in Europe remains muted.