Mercer International Inc. · NASDAQ:MERC
Mercer International — Q4 2025 Earnings Presentation
25 slides from Mercer International's earnings presentation, Feb 13, 2026
Slide 1: Mercer International Inc. Q4 2025 Earnings Call
Mercer International Inc. Transforming biomass into bioproducts for a more sustainable world Q4 2025 Earnings Call February 13th, 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 stable Change production across all our mills and the EBITDA (US$ millions) Q3 2025 Q4 2025 (+/-) benefits of One Goal One Hundred • EBITDA improved quarter-over-quarter but Pulp Segment(1) ($13) ($
Slide 4: Pulp Prices
Pulp Segment Pulp Prices Pricing Overview Realized Prices Decreased in Q4 Realized Pulp Price (US$ / tonne) Region Q3 2025 Q4 2025 NBSK List Price (US$ / tonne) $1,000 Domestic $1,700 $1,568 $800 China (net) $690 $671 Europe $1,497 $1,498 $600 NBHK List Price (US$ / tonne) $400 Domestic $1,203 $1,19
Slide 5: Key Performance Indicators
Pulp Segment Key Performance Indicators Sales Volume (000s tonnes) Major Maintenance Downtime (Days) 453 472 • H1 2026: No days • Q3 2026: Rosenthal – 14 days, Peace River – 10 days • Q4 2026: Celgar – 20 days Q3 2025 Q4 2025 Production Volume (000s tonnes) 480 502 457 460 20 21 Q3 2025 Q4 2025 Q3 2
Slide 6: Lumber Overview
Solid Wood Segment Lumber Overview Benchmark Lumber Price Lumber Operations (mmfbm) Random Lengths WSPF 2&btr 2x4 (US$ / mfbm) $1,500 $1,200 115 110 109 103 $900 $600 $300 - 2021 2022 2023 2024 2025 Q3 2025 Q4 2025 Production Sales 6
Slide 7: Electricity and Mass Timber
Electricity and Mass Timber Electricity Mass Timber Revenue (US$mm) Despite headwinds our mass timber business has a 204 202 healthy order book; we expect 2026 mass timber revenue to be above $120 million $12 $11 Q3 2025 Q4 2025 Sales Volume (GWh) $106 $105 Q3 2025 Q4 2025 Q3 2025 Q4 2025 Price ($ /
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 • Achieved ~$30 million of cost savings and reliability improvements in 2025 compared to 2024 million • On track to meet goals in 2025 and 2026 through savings programs and
Slide 9: Financial Position
Financial Position Summary Key Points • Net Loss includes aggregate US$mm unless otherwise stated long-lived asset and inventory Measure Q3 2025 Q4 2025 Change (+/-) impairments of $239 million dollars; ($3.57)/share(1) Net Loss ($81) ($309) ($228) • Liquidity improvement driven by working capital L
Slide 10: Operational Wins Amid Market Pressures
Operational Wins Amid Market Pressures Despite having to recognize non-cash asset impairments, underlying operating performance improved quarter over quarter Operational Performance Cost reductions, efficiency improvements and working capital reductions delivered tangible positive results, and we re
Slide 11: Peace River
Peace River The non-cash impairment, doesn’t consider the projects that will be transformative for the mill: Carbon Capture & Bio-Energy Our Svante carbon capture pilot at the Peace River mill is now operational with encouraging early results, providing the technical data needed to advance our long-
Slide 12: Macroeconomic Headwinds: Tariffs & Fiber Supply
Macroeconomic Headwinds: Tariffs & Fiber Supply Increased Visibility on Tariff Impacts Strategic Position & Mitigation • Celgar strategically positioned to mitigate fiber cost The trade war has created an unprecedented pressure due to existing access to the U.S. fiber market level of market uncertai
Slide 13: Pulp Markets
Pulp Markets NBSK markets weakened: • North America most impacted by tariff-driven trade shifts Softwood • China under pressure due to increased substitution made possible by slower operating rates • Europe stable Hardwood improved or stable: Hardwood • China pricing increased, driven by improving d
Slide 14: Lumber Production
Lumber Production Quarterly Lumber Production (mmfbm) (~6%) 6% decrease in lumber production compared to Q3 due to reduced production due to the holidays and availability of sawlogs 115 109 Q3 2025 Q4 2025 14
Slide 15: Fiber Costs
Fiber Costs Fiber Costs Steady for Pulp and Lumber Per Unit Fiber Costs Overall pulp fiber costs relatively flat compared to Q3. In Germany, increased demand for pulp logs, sawlogs and sawmill residuals pushed up fiber prices Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 Q4 '24 Q1 '25 Q2 '25 Q3 '25 Q4 '
Slide 16: Solid Wood Segment
Solid Wood Segment Segment Headwinds Remained Consistent with Q3 Segment continues to be held back by weak European economy and high mortgage rates Seasonal Q4 construction slowdown led to modestly weaker U.S. lumber pricing Market driven headwinds led to the $11M EBITDA loss in our solid wood segme
Slide 17: Lumber Markets
Lumber Markets • U.S. lumber pricing may be volatile in the short term, demand is expected to remain weak in Q1 • European lumber prices are expected to have a modest upward pressure, driven by increasing sawlog prices • Long-term price improvement in both markets reliant on economic recovery and in
Slide 18: Pallets & Biofuels
Pallets & Biofuels Pallet Biofuels • Shipping pallet market remains weak due to overhang • Heating pellet prices were up ~10% relative to Q3, due of European economy (especially Germany) to seasonal demand • Expecting generally stable pricing in the first half of 2026 18
Slide 19: Mass Timber
Mass Timber • Mass timber revenues grew ~6% over Q3, supported by a steady volume of new project inquiries • 2026 revenues are projected to exceed $120 million, more than doubling 2025 performance • Production is ramping up with a second shift at Conway in early Q2, and expect to do the same at Spok
Slide 20: Capital Allocation
Capital Allocation 2026 Maintain strong liquidity Capex Spend • Continued cost reductions • 2026 capital expenditures targeted • Lower capital expenditures between $60 - $80 million • Commitment to rebalance portfolio • Budget focused on maintenance, of assets to improve balance sheet environmental
Slide 21: Outlook
Outlook • Strong asset portfolio and experienced management team are well-positioned to navigate the downturn • Long-term strategic plan to transform pulp mills into biorefineries will introduce additional revenue streams, balance the product mix, and build greater resilience during future pulp mark
Slide 22: Contact Information
Contact Mercer International Inc. Information P: +1 (604) 684 1099 info@mercerint.com Suite 1120, 700 West Pender St Vancouver, B.C. Canada www.mercerint.com V6C 1G8
Slide 23: Reconciling Net Loss to Operating EBITDA
Reconciling Net Loss to Operating EBITDA Note: For other reconciliations of Net Loss to Operating EBITDA in periods not shown, please refer to that period’s respective Form 10-Q or 10-K, which can be found on our website (www.mercerint.com) Operating EBITDA is defined as operating loss plus deprecia
Slide 24: Reconciling Net Loss to Operating EBITDA
Reconciling Net Loss to Operating EBITDA Consolidated (US$ millions) Q3 2025 Q4 2025 Net loss ($81) ($309) Income tax provision (recovery) ($15) $3 Interest expense $29 $30 Other income ($1) ($2) Operating loss ($68) ($278) Add: Depreciation and amortization $40 $43 Add: Impairments of long-lived as
Slide 25: Reconciling Non-GAAP Earnings Per Share
Reconciling Non-GAAP Earnings Per Share Non-GAAP impairment (US$ millions, except per share data) Amount Per Share Net loss ($309) ($4.61) Impairment of long-lived assets $216 $3.22 Impairment of inventories $23 $0.35 Total Impairment $239 $3.57 Income tax effect ($3) ($0) Adjusted Net Loss ($73) ($