Mercer International Q1 EBITDA Slumps to $7.8M, Secures Waiver and Logs $11M Savings
Mercer International’s first-quarter operating EBITDA declined to $7.8 million from $47.1 million a year earlier, while net loss widened to $52.0 million following a $22.0 million inventory impairment. The company secured a waiver for its German credit facility and achieved $11 million in cost savings toward a $100 million target.
1. First Quarter 2026 Financial Results
Mercer International reported operating EBITDA of $7.8 million for Q1 2026, down sharply from $47.1 million in Q1 2025. The net loss widened to $52.0 million, or $0.78 per share, driven by a $22.0 million non-cash impairment on pulp and fiber inventory and elevated fiber costs across its supply chain.
2. Liquidity Enhancement and Credit Waiver
To address covenant compliance and bolster liquidity, Mercer secured an extended waiver on its German revolving credit facility. This waiver provides flexibility for the company to implement operational and financial initiatives designed to strengthen its balance sheet and position for a market recovery.
3. Cost Savings Program and Mass Timber Momentum
Under its “One Goal One Hundred” program, Mercer realized $11 million in cost savings during Q1, bringing cumulative savings to $41 million since April 2025 toward a $100 million target. The company’s mass timber segment now has an order book and commitments totaling $171 million, supporting a multi-year production plan and expected revenue contribution beginning in late 2026.