Mercer International Inc. · NASDAQ:MERC
Mercer International — Q1 2026 Earnings Presentation
24 slides from Mercer International's earnings presentation, May 8, 2026
Slide 1: Mercer International Inc. Q1 2026 Earnings Call
Mercer International Inc. Transforming biomass into bioproducts for a more sustainable world Q1 2026 Earnings Call May 8th, 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: Financial Results Overview
Financial Results Overview EBITDA Increased Quarter-Over-Quarter Key Drivers • Improved EBITDA due to scheduling of Change planned maintenance downtime and EBITDA (US$ millions) Q4 2025 Q1 2026 (+/-) benefits of One Goal One Hundred • EBITDA improved quarter-over-quarter but Pulp Segment(1) ($11) $7
Slide 4: Pulp Prices
Pulp Segment Pulp Prices Pricing Overview Realized Prices in Q1 Realized Pulp Price (US$ / tonne) Region Q4 2025 Q1 2026 $1,100 NBSK List Price (US$ / tonne) Modest recovery in NBHK prices driven by stronger demand. Domestic $1,568 $1,563 $1,000 NBSK markets remain stable, as European price increase
Slide 5: Pulp Segment Key Performance Indicators
Pulp Segment Key Performance Indicators Sales Volume (000s tonnes) Major Maintenance Downtime (Days) 472 471 • Q2 2026: No planned downtime Q4 2025 Q1 2026 21 Production Volume (000s tonnes) 502 460 466 466 - Q4 2025 Q1 2026 Q4 2025 Q1 2026 Production (Actual) Production (Adjusted) (1) Planned 1) Ad
Slide 6: Lumber Overview
Solid Wood Segment Lumber Overview Benchmark Lumber Price Lumber Operations (mmfbm) Random Lengths WSPF 2&btr 2x4 (US$ / mfbm) $1,500 $1,200 116 109 112 103 $900 $600 $300 - 2021 2022 2023 2024 2025 2026 Q4 2025 Q1 2026 Production Sales 6
Slide 7: Electricity and Mass Timber
Electricity and Mass Timber Electricity Mass Timber Revenue (US$mm) MMT backlog has grown to ~$171 million; will provide 202 217 stable production throughout 2026 and into 2027. $19 Q4 2025 Q1 2026 Sales Volume (GWh) $12 $127 $105 Q4 2025 Q1 2026 Q4 2025 Q1 2026 Price ($ / MWh) 7
Slide 8: 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 ~$41 million in cost savings and reliability improvements compared to 2024. million • On track to meet goals by the end of 2026 through savings
Slide 9: Financial Position
Financial Position Summary Key Points US$mm unless otherwise stated • Decrease to liquidity includes: o €70 million temporary reduction Measure Q4 2025 Q1 2026 Change (+/-) in German RCF availability as part of waiver terms; and Net Loss ($309) ($52) $257 o Higher working capital driven by Loss per
Slide 10: Resilience Amidst Headwinds
Resilience Amidst Headwinds Underlying operating performance continued to progress quarter over quarter despite macro-economic pressures: Operational Performance Mills ran well in Q1, boosted by reduced planned maintenance; however strategically reduced some production due to insufficient, or very c
Slide 11: Macroeconomic Headwinds: Global Conflict and Tariffs
Macroeconomic Headwinds: Global Conflict and Tariffs Macroeconomic Challenges Strategic Position & Mitigation Geopolitical conflict in the Middle East is driving Q1 impacts were minimal, Q2 exposure expected to inflationary pressures on freight and chemical costs be ~$5–$10 per tonne increase for fr
Slide 12: Pulp Markets
Pulp Markets NBSK prices improved modestly: Softwood • European prices increased 8% in the quarter, though this increase was offset by higher discounts • North America and China prices remained stable Hardwood NBHK prices improved: • Prices for hardwood in both China and North America increased in Q
Slide 13: Lumber Production
Lumber Production Quarterly Lumber Production (mmfbm) +7% Approximately 7% increase in lumber production compared to Q4 2025 Installation of new scanning technology at Torgau in Q2 will allow us to upgrade sales profile 109 116 Q4 2025 Q1 2026 13
Slide 14: Solid Wood Segment
Solid Wood Segment Segment Headwinds Persist Despite Seasonal Improvements A weak European economy, and high U.S. mortgage rates drove ~$6 million segment EBITDA loss, despite modest seasonal improvements in U.S. lumber pricing. Segment earnings were further impacted by unplanned downtime at the Spo
Slide 15: Lumber Markets
Lumber Markets • U.S. lumber pricing is expected to be volatile in the short term, but the summer building season should drive modest demand increases and slightly improved pricing across both North America and Europe • Meaningful long-term price improvement in both markets remains reliant on improv
Slide 16: Pallets & Biofuels
Pallets & Biofuels Pallet Biofuels • Shipping pallet market remains weak due to overhang • Heating pellet prices were up ~15% relative to Q4, due of European economy (especially Germany) to seasonal demand • Expecting generally stable pricing in the first half of 2026 • As the weather warms up we ex
Slide 17: Fiber Costs
Fiber Costs Fiber Costs Steady for Pulp and Lumber Per Unit Fiber Costs Overall pulp fiber costs increase ~10% from Q4. Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 Q4 '24 Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26 Pulp (US$ / ADMT) Lumber (US$ / m3) Looking ahead to Q2, we expect fiber costs to stabilize in t
Slide 18: Mass Timber
Mass Timber ~30% of North • Mass timber revenues grew over 60% and production American CLT volumes rose over 21% vs. Q4 as we ramp up a capacity second mill shift. • Q1 results were impacted by unplanned downtime at Spokane and temporary mill ramp-up costs, which are expected to yield future benefit
Slide 19: Capital Allocation
Capital Allocation 2026 Maintain strong liquidity Capex Spend • Continued cost reductions • 2026 capital expenditures targeted • Lower capital expenditures between $60 - $80 million • Commitment to rebalance portfolio • Budget focused on maintenance, of assets to improve balance sheet environmental
Slide 20: Outlook
Outlook • Industry headwinds are proving more severe than anticipated, exacerbated by the conflict in the Middle East. Our short-term strategy and focus on controllable elements will allow us to navigate the downturn • Current market conditions validate our long-term strategic plan to transform pulp
Slide 21: Contact Information
Contact Mercer International Inc. Information P: +1 (604) 684 1099 info@mercerint.com Suite 1120, 700 West Pender St Vancouver, B.C. Canada www.mercerint.com V6C 1G8
Slide 22: Reconciling Net Loss to Operating EBITDA
Reconciling Net Loss to Operating EBITDA Note: For other reconciliations of Net Loss to Operating EBITDA in periods not shown, please refer to that period’s respective Form 10-Q or 10-K, which can be found on our website (www.mercerint.com) Operating EBITDA is defined as operating loss plus deprecia
Slide 23: Reconciling Net Loss to Operating EBITDA
Reconciling Net Loss to Operating EBITDA Consolidated (US$ millions) Q4 2025 Q1 2026 Net loss ($309) ($52) Income tax provision (recovery) $3 ($8) Interest expense $30 $29 Other income ($2) ($2) Operating loss ($278) ($33) Add: Depreciation and amortization $43 $41 Add: Impairments of long-lived ass
Slide 24: Reconciling Non-GAAP Earnings Per Share
Reconciling Non-GAAP Earnings Per Share Non-GAAP impairment (US$ millions, except per share data) Amount Per Share Net loss ($52) ($0.78) Impairment of inventories $22 0.33 Income tax effect ($3) (0.04) Adjusted Net Loss ($33) ($0.49) 24