Mercer International Inc. · NASDAQ:MERC
Mercer International — Q2 2026 Earnings Presentation
23 slides from Mercer International's earnings presentation, Aug 7, 2026
Slide 1: Mercer International Inc. Q2 2026 Earnings Call
Mercer International Inc. Transforming biomass into bioproducts for a more sustainable world Q2 2026 Earnings Call August 7th, 2026 Juan Carlos Bueno – President & CEO Richard Short – CFO, Executive VP & Secretary
Slide 2: Forward-looking Statements
Forward-looking Statements The Private Securities Litigation Reform Act of 1995 provides a For more information regarding these “safe harbor” for forward-looking statements risks and uncertainties, review Mercer’s filings with the United States Certain information included in this presentation conta
Slide 3: Updates
Updates Evaluating Strategic Going Concern Disclosure Alternatives • Working with advisors to enhance • Added to financial statements following the liquidity and strengthen the balance reclassification of revolving credit facilities to sheet amid ongoing market current liabilities: uncertainty • Can
Slide 4: Financial Results Overview
Financial Results Overview EBITDA Decreased Quarter-Over-Quarter Key Drivers • Due to higher fiber costs in Germany Change EBITDA (US$ millions) Q1 2026 Q2 2026 • Includes non-cash inventory impairment (+/-) of $29 million Pulp Segment(1) $7 ($13) ($20) Solid Wood Segment(1) ($6) ($8) ($2) Corporate
Slide 5: Pulp Prices
Pulp Segment Pulp Prices Pricing Overview Realized Prices in Q2 Realized Pulp Price (US$ / tonne) Region Q1 2026 Q2 2026 $1,100 NBSK List Price (US$ / tonne) NBHK increase driven by global supply constraints Domestic $1,563 $1,577 $1,000 NBSK markets continued to be impacted by ongoing global econom
Slide 6: Pulp Segment Key Performance Indicators
Pulp Segment Key Performance Indicators Sales Volume (000s tonnes) Production Volume (000s tonnes) Includes strategic reductions due to economical fiber supply limitations 471 450 466 466 456 456 Q1 2026 Q2 2026 Planned Maintenance Downtime (Days) Q1 2026 Q2 2026 • Q2 2026: none (1) • Q3 2026: 40 (4
Slide 7: Lumber Overview
Solid Wood Segment Lumber Overview Benchmark Lumber Price Lumber Operations (mmfbm) $1,500 Random Lengths WSPF 2&btr 124 $1,200 2x4 (US$ / mfbm) – average 116 112 Q2 / 26 price of $488 100 $900 $600 $300 - 2021 2022 2023 2024 2025 2026 Q1 2026 Q2 2026 Production Sales 7
Slide 8: Electricity, Fiber and Mass Timber
Electricity, Fiber and Mass Timber Electricity Fiber Costs Sales Volume (GWh) • Fiber costs rose across both pulp and solid wood segments, 217 206 driven by low harvesting levels and strong energy demand for residuals in Germany • German pulp costs will remain elevated, while sawmill and Canadian mi
Slide 9: Strategic Focus: One Goal, One Hundred
Strategic Focus: One Goal, One Hundred • Targeting $100 million in EBITDA improvements by the end of 2026 compared to 2024 $100 • To date, we have achieved ~$54 million in cost savings and reliability improvements compared to 2024 million • On track to meet goals by the end of 2026 through savings p
Slide 10: Financial Position
Financial Position Summary Key Points US$mm unless otherwise stated • Decrease to liquidity caused by weak operating results Measure Q1 2026 Q2 2026 Change (+/-) • Working capital decreased by $6 million (excluding non-cash Net Loss ($52) ($76) ($24) inventory impairments) Loss per Share ($0.78 / sh
Slide 11: Resilience Amidst Headwinds
Resilience Amidst Headwinds Continue to navigate significant macroeconomic headwinds driven by geopolitical instability and trade volatility Decisive Operational Measures Torgau restructuring plan, extending Rosenthal’s Q3 maintenance downtime by two weeks, and slowing daily production by ~10% at St
Slide 12: Macroeconomic Headwinds: Tariffs and Instability
Macroeconomic Headwinds: Tariffs and Instability Macroeconomic Challenges Strategic Position & Mitigation Direct 10% tariff on our European lumber Positions us relatively favorably against the imports into the U.S reduced ~35% combined tariff and duty rates facing Canadian lumber producers Torgau he
Slide 13: Pulp Markets
Pulp Markets • China net prices were down 4% and European list prices were up 2% Softwood • North America list prices remained stable • Today, the softwood-hardwood differential about $76 per tonne Hardwood • North America prices increased 12% • China prices were flat • Reduced NBSK supply should so
Slide 14: Pulp Production
Pulp Production German Pulp Mills: Navigating Economical Fiber Supply Shortages Driver Q2 Impact Q3 Impact Ongoing fiber supply Strategic reduction of Reduced operating rates constraints ~26k tonnes Pulp Mills: Maintenance Strategy Rosenthal will be down for 26 days or ~22,100 tonnes. This includes
Slide 15: Lumber Production
Lumber Production Quarterly Lumber Production (mmfbm) +7% Approximately 7% increase in lumber production compared to Q1 2026 Installation of new scanning technology at Torgau in Q2 allows us to upgrade sales profile 116 124 Q1 2026 Q2 2026 15
Slide 16: Solid Wood Segment
Solid Wood Segment Q2 Market Q2 Results Q3 Outlook Segment faces headwinds • A weak European economy, high • U.S.: lumber pricing will continue from weak European fiber costs, Conway unplanned to be volatile. Modest increase in economy, dampening downtime and transition to two summer building season
Slide 17: Pallets & Biofuels
Pallets & Biofuels Pallet Biofuels • Shipping pallet market remains weak due to overhang • Biofuel prices were down ~3% relative to Q1, due to of European economy (especially Germany) lower seasonal demand • Expecting generally stable pricing in the second half of • We expect biofuel prices to come
Slide 18: Mass Timber
Mass Timber Large share of • Mass timber revenues grew over 25% and production North American CLT volumes rose ~40% vs. Q1 capacity • Total project backlog reached ~$151 million, driven by steady ongoing project inquiries Broad range of product offerings 70% Related to Data Centers/Hyperscalers $151
Slide 19: Outlook
Outlook • Industry headwinds are proving more severe than anticipated, exacerbated by the conflict in the Middle East. Our short-term strategy and focus on controllable elements will allow us to navigate the downturn • Current market conditions validate our long-term strategic plan to transform pulp
Slide 20: Contact Information
Contact Mercer International Inc. Information P: +1 (604) 684 1099 info@mercerint.com Suite 1120, 700 West Pender St Vancouver, B.C. Canada www.mercerint.com V6C 1G8
Slide 21: Reconciling Net Loss to Operating EBITDA
Reconciling Net Loss to Operating EBITDA Note: For other reconciliations of Net Loss to Operating EBITDA in periods not shown, please refer to that period’s respective Form 10-Q or 10-K, which can be found on our website (www.mercerint.com) Operating EBITDA is defined as operating loss plus deprecia
Slide 22: Reconciling Net Loss to Operating EBITDA
Reconciling Net Loss to Operating EBITDA Consolidated (US$ millions) Q1 2026 Q2 2026 Net loss ($52) ($76) Income tax recovery ($8) ($13) Interest expense $29 $31 Other income ($2) ($1) Operating loss ($33) ($59) Add: Depreciation and amortization $41 $38 Operating EBITDA $8 ($21) 22 Note: See next s
Slide 23: Reconciling Non-GAAP Earnings Per Share
Reconciling Non-GAAP Earnings Per Share Non-GAAP impairment (US$ millions, except per share data) Amount Per Share Net loss ($76) ($1.13) Impairment of inventories $29 $0.43 Income tax effect of inventory impairment ($3) ($0.04) Adjusted Net Loss ($51) ($0.74) 23