Mercer expects per unit fiber costs at German mills to remain elevated in Q3 2026
Company expects softwood and hardwood pulp prices to modestly decrease in Q3 2026
Mercer expects mass timber contracts to begin contributing to results in late 2026 and 2027
Result drivers
Higher fiber costs - Co said rising European fiber costs, driven by supply shortages and competition from energy producers, weighed on Q2 results
Inventory impairment - Q2 included a $29 mln non-cash inventory impairment, primarily against pulp and fiber inventory, due to low pulp prices and high fiber costs
Cost savings initiatives - Co realized $13 mln in cost savings in Q2 as part of its One Goal One Hundred program, partially offsetting higher costs
Analyst coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the paper products peer group is "buy."
Wall Street's median 12-month price target for Mercer International Inc is $1.00, about 47.7% above its August 5 closing price of $0.68
MERC•
