MERCER INTERNATIONAL INC.
For the period ended Jun 30, 2025. Filed Jul 31, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Jul 31, 2025
MERC$0.26+4.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-01.
0000950170-25-061956
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-07-31.
0000950170-25-100958
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 179 previous paragraphs and 226 current paragraphs.
113 unchanged; 45 reworded; 61 added; 20 removed; 1 previous and 7 current paragraphs rearranged.
Tables are not compared: 8 previous and 10 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (61)
Current report
In the second quarter of 2025, our NBSK pulp sales realizations remained strong in both North America and Europe compared to the first quarter of 2025 driven by steady demand and supply constraints. In China, both our NBSK and NBHK pulp sales realizations decreased in the second quarter of 2025 compared to the first quarter of 2025 as a result of weak demand driven by global trade policy uncertainty. In North America, NBHK pulp sales realizations modestly increased in the second quarter of 2025 compared to the first quarter of 2025 due to stable demand.
Current report
We currently expect NBSK pulp prices to decrease in all our key markets in the third quarter of 2025 driven by slower demand as a result of seasonality and a weakened economic environment caused by global trade policy uncertainty. For NBHK pulp prices, we currently expect relatively steady prices in the third quarter of 2025.
Current report
Costs and expenses in the second quarter of 2025 decreased by approximately 6% to $511.9 million from $543.2 million in the same quarter of 2024 driven by fewer days of planned annual maintenance downtime in the second quarter of 2025 at our pulp mills. This decrease was partially offset by foreign exchange losses, higher per unit fiber costs and an $11.0 million non-cash impairment recognized against hardwood inventory at our Peace River mill. The foreign exchange losses resulted from the impact of a weaker dollar on the revaluation of dollar denominated accounts receivables held at our operations, and on our euro denominated costs and expenses compared to the same quarter of 2024. In the second quarter of 2024, costs and expenses included a non-cash goodwill impairment of $34.3 million related to the Torgau facility, which was recognized as a result of ongoing weakness in lumber, pallet and biofuels markets in Europe stemming from high interest rates and other economic conditions.
Current report
Selling, general and administrative expenses were relatively steady at $30.4 million in the second quarter of 2025 compared to $29.8 million in the same quarter of 2024.
Current report
In the second quarter of 2025, we had a negative foreign exchange impact of approximately $21.1 million on operating loss compared to the same quarter of 2024. This negative impact was primarily due to foreign exchange losses on the revaluation of dollar denominated accounts receivables held at our operations, as the dollar weakened relative to the euro and Canadian dollar at the end of the second quarter of 2025, and the negative effect of a weaker dollar on our euro denominated costs and expenses compared to the same quarter of 2024.
Current report
In the second quarter of 2025, our operating loss was $58.4 million compared to $43.8 million in the same quarter of 2024 primarily due to lower pulp and manufactured products sales realizations, negative foreign exchange impacts from a weaker dollar, higher per unit fiber costs and the non-cash impairment recognized against hardwood inventory. These adverse impacts were partially offset by fewer days of planned annual maintenance downtime in the second quarter of 2025 at our pulp mills and higher lumber sales realizations. In the second quarter of 2024, our operating loss included a non-cash goodwill impairment of $34.3 million related to the Torgau facility.
Current report
Interest expense was relatively flat at $28.4 million in the second quarter of 2025 compared to $26.8 million in the same quarter of 2024.
Current report
In the second quarter of 2025, our net loss was $86.1 million, or $1.29 per share, compared to $67.6 million, or $1.01 per share, in the same quarter of 2024. The net loss in the second quarter of 2024 included the non-cash goodwill impairment of $34.3 million, or $0.51 per share.
Current report
In the second quarter of 2025, Operating EBITDA decreased to negative $20.9 million from positive $30.4 million in the same quarter of 2024 primarily as a result of lower pulp and manufactured products sales realizations, negative
Current report
QUARTERLY REPORT - PAGE 30 foreign exchange impacts from a weaker dollar, higher per unit fiber costs and the non-cash impairment recognized on hardwood inventory. These decreases were partially offset by fewer days of planned annual maintenance downtime at our pulp mills and higher lumber sales realizations.
Current report
Pulp revenues in the second quarter of 2025 decreased by approximately 10% to $313.7 million from $346.8 million in the same quarter of 2024 as a result of lower sales realizations and volumes.
Current report
Energy and chemical revenues in the second quarter of 2025 decreased by approximately 10% to $18.6 million from $20.6 million in the same quarter of 2024 primarily due to lower chemical sales realizations.
Current report
Total pulp production in the second quarter of 2025 increased by approximately 8% to 457,117 ADMTs compared with 421,692 ADMTs in the same quarter of 2024 primarily as a result of fewer days of planned annual maintenance downtime in the second quarter of 2025. In the second quarter of 2025, our pulp mills had 29 days of downtime (approximately 40,900 ADMTs) which included 23 days of planned annual maintenance and six additional days due to slower than expected start-up. In the same quarter of 2024, our pulp mills had 44 days of downtime (approximately 77,600 ADMTs) which included 37 days of planned annual maintenance and seven additional days due to slower than expected start-up.
Current report
Total pulp sales volumes in the second quarter of 2025 were relatively flat at 426,731 ADMTs compared to 433,320 ADMTs in the same quarter of 2024.
Current report
In the second quarter of 2025, the third-party industry quoted average list price for NBSK pulp in Europe was relatively flat compared to the same quarter of 2024. In the second quarter of 2025, the third-party industry quoted average list price for NBSK pulp in North America increased from the same quarter of 2024 due to stronger demand and supply constraints. In the second quarter of 2025, the third-party industry quoted average net price for NBSK pulp in China decreased from the same quarter of 2024 as a result of weaker demand driven by the current economic climate and global trade policy uncertainty. Third-party industry quoted average list prices for NBSK pulp in Europe and North America were approximately $1,553 per ADMT and $1,820 per ADMT, respectively, in the second quarter of 2025 compared to approximately $1,602 per ADMT and $1,697 per ADMT, respectively, in the same quarter of 2024. Third-party industry quoted average net prices for NBSK pulp in China were approximately $734 per ADMT in the second quarter of 2025 compared to approximately $811 per ADMT in the same quarter of 2024. Prices quoted for
Current report
In the second quarter of 2025, the third-party industry quoted average list price for NBHK pulp in North America decreased from the same quarter of 2024 due to weaker demand. In the second quarter of 2025, the third-party industry quoted average net price for NBHK pulp in China decreased from the same quarter of 2024 driven by weak demand due to the current economic climate and global trade policy uncertainty. Third-party industry quoted average list prices for NBHK pulp in North America were approximately $1,310 per ADMT in the second quarter of 2025 compared to approximately $1,437 per ADMT in the same quarter of 2024. Third-party industry quoted average net prices for NBHK pulp in China were approximately $533 per ADMT in the second quarter of 2025 compared to approximately $735 per ADMT in the same quarter of 2024.
Current report
In the second quarter of 2025, we had a negative foreign exchange impact of approximately $17.7 million on Segment Operating EBITDA compared to the same quarter of 2024. This negative impact was primarily due to foreign exchange losses on the revaluation of dollar denominated accounts receivables held at our operations, as the dollar weakened relative to the euro and Canadian dollar at the end of June 2025, and the negative impact of a weaker dollar on our euro denominated costs and expenses compared to the same quarter of 2024.
Current report
In the second quarter of 2025, we recorded a non-cash impairment of $11.0 million against hardwood inventory at our Peace River mill as a result of low hardwood pulp prices.
Current report
Costs and expenses in the second quarter of 2025 were relatively flat at $368.7 million compared to $364.0 million in the same quarter of 2024 as the negative foreign exchange impacts from a weaker dollar, the non-cash impairment recognized on hardwood inventory and higher per unit fiber costs were mostly offset by lower maintenance costs due to fewer days of planned annual maintenance downtime in the second quarter of 2025.
Current report
Transportation costs for our pulp segment in the second quarter of 2025 were relatively flat at $32.9 million compared to $33.7 million in the same quarter of 2024.
Current report
In the second quarter of 2025, Segment Operating EBITDA for our pulp segment decreased to negative $10.3 million from positive $31.7 million in the same quarter of 2024 as a result of lower pulp sales realizations, negative foreign exchange impacts from a weaker dollar, the non-cash impairment recognized on hardwood inventory and higher per unit fiber costs. These decreases were partially offset by lower maintenance costs due to fewer days of planned annual maintenance downtime in the second quarter of 2025.
Current report
Solid wood segment revenues in the second quarter of 2025 decreased by approximately 10% to $117.3 million from $130.2 million in the same quarter of 2024 primarily due to lower manufactured products revenues partially offset by higher lumber revenues.
Current report
In the second quarter of 2025, lumber revenues increased by approximately 23% to $66.3 million from $53.9 million in the same quarter of 2024 primarily as a result of higher sales realizations.
Current report
In the second quarter of 2025, manufactured products revenues decreased by approximately 65% to $12.4 million from $35.4 million in the same quarter of 2024 driven by lower sales realizations and volumes as the ongoing elevated interest rate environment in the U.S. negatively impacted demand.
Current report
Pallet revenues in the second quarter of 2025 were flat at $26.6 million compared to $26.7 million in the same quarter of 2024 due to continued weak economic conditions in Europe.
Current report
Lumber production in the second quarter of 2025 increased by approximately 8% to 120.2 MMfbm from 111.4 MMfbm in the same quarter of 2024 driven by the timing of planned maintenance downtime and higher production at our Torgau facility.
Current report
Lumber sales volumes in the second quarter of 2025 modestly increased by approximately 3% to 120.6 MMfbm from 116.6 MMfbm in the same quarter of 2024 as a result of higher production.
Current report
QUARTERLY REPORT - PAGE 33 quarter of 2024 due to strong demand. For the third quarter of 2025, we currently expect modestly higher per unit fiber costs due to a temporary reduction in regional logging in Germany and continued strong demand.
Current report
In the second quarter of 2025, Segment Operating EBITDA for the solid wood segment decreased to negative $4.9 million from positive $3.1 million in the same quarter of 2024 primarily due to lower manufactured products sales realizations and higher per unit fiber costs partially offset by higher lumber sales realizations.
Current report
Consolidated – Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024
Current report
Total revenues for the first half of 2025 decreased by approximately 9% to $960.5 million from $1,052.8 million in the same period of 2024 driven by lower sales volumes and realizations from our pulp and manufactured products partially offset by higher lumber sales realizations.
Current report
Costs and expenses in the first half of 2025 decreased by approximately 8% to $1,012.2 million from $1,097.0 million in the same period of 2024 primarily as a result of lower pulp sales volumes. This decrease was partially offset by higher per unit fiber costs, foreign exchange losses and the non-cash impairment recognized against hardwood inventory at our Peace River mill in 2025. The foreign exchange losses resulted from the impact of a weaker dollar on the revaluation of dollar denominated accounts receivables held at our operations. In the first half of 2024, costs and expenses included a non-cash goodwill impairment of $34.3 million related to the Torgau facility, which was recognized as a result of ongoing weakness in lumber, pallet and biofuels markets in Europe stemming from high interest rates and other economic conditions, and a non-cash loss of $23.6 million in connection with the dissolution of the CPP joint venture.
Current report
In the first half of 2025, cost of sales depreciation and amortization was relatively steady at $77.7 million compared to $80.2 million in the same period of 2024.
Current report
Selling, general and administrative expenses were flat at $60.1 million in the first half of 2025 compared to $61.5 million in the same period of 2024.
Current report
In the first half of 2025, we had a negative foreign exchange impact of approximately $12.0 million on operating loss compared to the same period of 2024 primarily due to foreign exchange losses on the revaluation of dollar denominated accounts receivables held at our operations as the dollar weakened relative to the euro and Canadian dollar at the end of June 2025.
Current report
In the first half of 2025, our operating loss was $51.7 million compared to $44.2 million in the same period of 2024 as a result of higher per unit fiber costs, lower pulp and manufactured products sales realizations, negative foreign exchange impacts from a weaker dollar and the non-cash impairment recognized against hardwood inventory partially offset by higher lumber sales realizations. In the first half of 2024, our operating loss included a non-cash goodwill impairment of $34.3 million related to the Torgau facility and a non-cash loss of $23.6 million recognized in connection with the dissolution of the CPP joint venture.
Current report
During the first half of 2025, we had an income tax recovery of $1.1 million, or an effective tax rate of 1%, and in the same period of 2024, we had an income tax recovery of $5.1 million, or an effective tax rate of 6%. Our effective tax rates were different from the statutory rates of the jurisdictions in which we operate as we do not recognize tax
Current report
QUARTERLY REPORT - PAGE 34 recoveries for certain entities which we do not expect to realize a tax benefit. In the first half of 2024, the effective tax rate was also impacted by the non-deductibility of the non-cash goodwill impairment.
Current report
In the first half of 2025, Operating EBITDA decreased to $26.2 million from $94.0 million in the same period of 2024 primarily due to higher per unit fiber costs, lower pulp and manufactured products sales realizations, negative foreign exchange impacts from a weaker dollar and the non-cash impairment recognized on hardwood inventory partially offset by higher lumber sales realizations.
Current report
Pulp Segment– Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024
Showing the first 40 of 61 passages. Open the source sections for the rest.
Removed paragraphs (20)
Previous report
We currently expect pulp prices in Europe and North America to modestly increase in the second quarter of 2025 due to continued stable demand and ongoing supply constraints. In China, we currently expect lower pulp prices, particularly for NBHK pulp, in the second quarter of 2025 as a result of the weakened economic environment.
Previous report
In the second quarter of 2025, we currently expect lumber prices to modestly decrease in the U.S. as a result of the impact of the current economic environment on customer demand. In Europe, we currently expect lumber prices to
Previous report
Manufactured products primarily includes CLT and glulam.
Previous report
Costs and expenses in the first quarter of 2025 decreased by approximately 10% to $500.2 million from $553.9 million in the same quarter of 2024 primarily as a result of lower pulp sales volumes and the positive impact of a stronger dollar on our Canadian dollar and euro denominated costs and expenses partially offset by higher planned maintenance downtime at our Celgar mill and higher per unit fiber costs. In the first quarter of 2024, costs and expenses included a non-cash loss of $23.6 million recognized in connection with the dissolution of the CPP joint venture.
Previous report
Selling, general and administrative expenses decreased by approximately 6% to $29.7 million in the first quarter of 2025 from $31.7 million in the same quarter of 2024 primarily as a result of decreased selling costs due to lower pulp sales volumes.
Previous report
In the first quarter of 2025, we had a positive foreign exchange impact of approximately $9.7 million on operating income compared to the same quarter of 2024 primarily as a result of the effect of a stronger dollar on our Canadian dollar and euro denominated costs and expenses.
Previous report
In the first quarter of 2025, our operating income was $6.7 million compared to an operating loss of $0.4 million in the same quarter of 2024. The increase was primarily due to higher pulp and lumber sales realizations and the positive impact of a stronger dollar on our Canadian dollar and euro denominated costs and expenses partially offset by higher planned maintenance downtime and higher per unit fiber costs. In the first quarter of 2024, costs and expenses included a non-cash loss of $23.6 million recognized in connection with the dissolution of the CPP joint venture.
Previous report
In the first quarter of 2025, Operating EBITDA decreased by approximately 26% to $47.1 million from $63.6 million in the same quarter of 2024 primarily as a result of higher planned maintenance downtime and higher per unit fiber costs partially offset by higher pulp and lumber sales realizations and the positive impact of a stronger dollar on our Canadian dollar and euro denominated costs and expenses.
Previous report
Selected Financial Information
Previous report
Pulp revenues in the first quarter of 2025 decreased by approximately 13% to $357.0 million from $408.3 million in the same quarter of 2024 as a result of lower sales volumes partially offset by higher sales realizations.
Previous report
Energy and chemical revenues in the first quarter of 2025 and 2024 were flat at $24.1 million.
Previous report
Total pulp production in the first quarter of 2025 decreased by approximately 15% to 458,909 ADMTs from 538,907 ADMTs in the same quarter of 2024 primarily as a result of the dissolution of the CPP joint venture in the first quarter of 2024 and the 22 days of planned annual maintenance downtime (approximately 29,700 ADMTs) at our Celgar mill in the first quarter of 2025. In the first quarter of 2024, we had no planned annual maintenance downtime.
Previous report
In the first quarter of 2025, third-party industry quoted average list prices for NBHK pulp increased in North America from the same quarter of 2024 due to stronger demand. Third-party industry quoted average net prices for NBHK pulp decreased in China in the first quarter of 2025 from the same quarter of 2024 as the market absorbed increased hardwood capacity. Third-party industry quoted average list prices for NBHK pulp in North America were approximately $1,268 per ADMT in the first quarter of 2025 compared to approximately $1,223 per ADMT in the same quarter of 2024. Third-party industry quoted average net prices for NBHK pulp in China were approximately $578 per ADMT in the first quarter of 2025 compared to approximately $662 per ADMT in the same quarter of 2024.
Previous report
Costs and expenses in the first quarter of 2025 decreased by approximately 13% to $360.9 million from $416.5 million in the same quarter of 2024 primarily as a result of lower pulp sales volumes and the positive impact of a stronger dollar on our Canadian dollar and euro denominated costs and expenses partially offset by higher planned maintenance downtime. In the first quarter of 2024, costs and expenses included a non-cash loss of $23.6 million recognized in connection with the dissolution of the CPP joint venture.
Previous report
In the first quarter of 2025, Segment Operating EBITDA for the pulp segment decreased by approximately 27% to $49.9 million from $68.5 million in the same quarter of 2024 primarily as a result of higher planned maintenance downtime partially offset by higher pulp sales realizations and the positive impact of a stronger dollar on our Canadian dollar and euro denominated costs and expenses.
Previous report
Selected Financial Information
Previous report
Manufactured products primarily includes CLT and glulam.
Previous report
In the first quarter of 2025, manufactured products revenues increased by approximately 13% to $18.8 million from $16.7 million in the same quarter of 2024 primarily due to timing of mass timber projects in progress.
Previous report
Lumber production in the first quarter of 2025 was relatively flat at 128.0 MMfbm compared to 127.0 MMfbm in the same quarter of 2024.
Previous report
Lumber sales volumes in the first quarter of 2025 increased by approximately 8% to 130.9 MMfbm from 121.4 MMfbm in the same quarter of 2024 primarily due to timing of sales.
Reworded paragraphs (45)
Previous wording
The following discussion and analysis of our results of operations and financial condition for the three months ended March 31, 2025 should be read in conjunction with our Interim Consolidated Financial Statements and related notes included in this quarterly report, as well as our most recent annual report on Form 10-K for the fiscal year ended December 31, 2024 filed with the Securities and Exchange Commission, referred to as the “SEC”.
Current wording
The following discussion and analysis of our results of operations and financial condition for the three and six months ended June 30, 2025 should be read in conjunction with our Interim Consolidated Financial Statements and related notes included in this quarterly report, as well as our most recent annual report on Form 10-K for the fiscal year ended December 31, 2024 filed with the Securities and Exchange Commission, referred to as the “SEC”.
Previous wording
In the first quarter of 2025, our NBSK pulp sales realizations remained strong in all of our key markets, driven by continued stable demand and ongoing supply constraints, compared to the fourth quarter of 2024. In the first quarter of 2025, our lumber sales realizations increased in both the U.S. and European markets compared to the fourth quarter of 2024 as a result of reduced supply and steady demand.
Current wording
In the second quarter of 2025, our lumber sales realizations increased in both the U.S. and Europe compared to the first quarter of 2025 due to stable demand and reduced supply.
Previous wording
As of March 31, 2025, the third-party industry quoted NBSK pulp list price in Europe and North America were approximately $1,595 per ADMT and $1,805 per ADMT, respectively, and the third-party industry quoted NBSK pulp net price in China was approximately $798 per ADMT. Prices for China are net of discounts, allowances and rebates.
Current wording
As of June 30, 2025, the third-party industry quoted NBSK pulp list prices in Europe and North America were approximately $1,510 per ADMT and $1,790 per ADMT, respectively, and the third-party industry quoted NBSK pulp net price in China was approximately $690 per ADMT. Prices for China are net of discounts, allowances and rebates.
Previous wording
QUARTERLY REPORT - PAGE 21 slightly increase in the second quarter of 2025 due to higher per unit fiber costs. In the second quarter of 2025, we currently expect pallet prices to remain flat due to continued weak economic conditions in Europe and mass timber prices to remain relatively stable.
Current wording
In the third quarter of 2025, we currently expect lumber prices to modestly increase in Europe primarily driven by strong demand and higher fiber costs. In the U.S., we currently expect higher prices in the third quarter of 2025 as a result of lower supply and the impact from duties imposed on Canadian producers. In the third quarter of 2025, we currently expect pallet prices to remain flat due to continued weak economic conditions in Europe and mass timber prices to remain relatively steady.
Previous wording
Per unit fiber costs for the pulp segment were relatively steady in the first quarter of 2025 compared to the fourth quarter of 2024. For the second quarter of 2025, we currently expect per unit fiber costs for our German pulp mills to be higher due to strong demand and reduced supply and for our Canadian pulp mills to be relatively stable.
Current wording
Per unit fiber costs for the pulp segment increased in the second quarter of 2025 compared to the first quarter of 2025 primarily as a result of strong demand and steady supply. For the third quarter of 2025, we currently expect per unit fiber costs to be lower for our German pulp mills due to reduced demand and relatively stable for our Canadian pulp mills.
Previous wording
Per unit fiber costs for the solid wood segment increased in the first quarter of 2025 compared to the fourth quarter of 2024 due to strong demand in Germany. For the second quarter of 2025, we currently expect higher per unit fiber costs for our solid wood segment due to continued strong demand.
Current wording
Per unit fiber costs for the solid wood segment increased in the second quarter of 2025 compared to the first quarter of 2025 as a result of strong demand in Germany. For the third quarter of 2025, we currently expect modestly higher per unit fiber costs for our solid wood segment due to a temporary reduction in regional logging in Germany and continued strong demand.
Previous wording
Demand and pricing for our products may be further impacted by ongoing developments in international trade policies, including tariffs proposed or imposed by the United States on goods originating from Canada, the European Union and other countries, and related countermeasures. During the first quarter of 2025, there was no material impact from tariffs on our costs and revenues. See Item 1A. Risk Factors in our annual report on Form 10-K for the fiscal year ended December 31, 2024 for further information.
Current wording
Demand and pricing for our products may be further impacted by ongoing developments in international trade policies, including tariffs proposed or imposed by the United States on goods originating from Canada, the European Union and other countries, and related countermeasures. As these developments are ongoing and subject to change, it is difficult to predict such impact at this time. However, in the second quarter of 2025, uncertainties surrounding these developments have impacted demand for pulp in China. See Item 1A. Risk Factors in our annual report on Form 10-K for the fiscal year ended December 31, 2024 for further information.
Previous wording
Operating EBITDA is a non-GAAP measure. See “Non-GAAP Financial Measures” for its description, limitation and why we consider it to be a useful measure. The following table provides a reconciliation of net loss to operating income (loss) and Operating EBITDA for the periods indicated:
Current wording
Operating EBITDA is a non-GAAP measure. See “Non-GAAP Financial Measures” for its description, limitation and why we consider it to be a useful measure. The following table provides a reconciliation of net loss to operating loss and Operating EBITDA for the periods indicated:
Previous wording
Total revenues for the first quarter of 2025 decreased by approximately 8% to $507.0 million from $553.4 million in the same quarter of 2024 primarily due to lower pulp sales volumes partially offset by higher pulp and lumber sales realizations.
Current wording
Total revenues for the second quarter of 2025 decreased by approximately 9% to $453.5 million from $499.4 million in the same quarter of 2024 primarily due to lower sales realizations and volumes from our pulp and manufactured products partially offset by higher lumber sales realizations.
Previous wording
In the first quarter of 2025, cost of sales depreciation and amortization was relatively flat at $40.3 million compared to $40.4 million in the same quarter of 2024.
Current wording
In the second quarter of 2025, cost of sales depreciation and amortization was relatively flat at $37.5 million compared to $39.9 million in the same quarter of 2024.
Previous wording
During the first quarter of 2025, we had an income tax provision of $0.7 million on a loss before income tax of $21.6 million as we do not recognize a tax recovery for certain entities which we do not expect to realize a tax benefit. In the same quarter of 2024, we had an income tax recovery of $6.4 million, or an effective tax rate of 28%.
Current wording
In the second quarter of 2025, we had an income tax recovery of $1.9 million, or an effective tax rate of 2%. In the same quarter of 2024, we had an income tax provision of $1.3 million on a loss before income taxes. Our effective tax rates were different from the statutory rates of the jurisdictions in which we operate as we do not recognize tax recoveries for certain entities which we do not expect to realize a tax benefit. In the second quarter of 2024, the effective tax rate was also impacted by the non-deductibility of the non-cash goodwill impairment.
Previous wording
Pulp segment revenues, comprised of pulp, energy and chemical revenues, in the first quarter of 2025 decreased by approximately 12% to $381.1 million from $432.4 million in the same quarter of 2024 primarily due to lower pulp revenues.
Current wording
Pulp segment revenues, comprised of pulp, energy and chemical revenues, in the second quarter of 2025 decreased by approximately 10% to $332.3 million from $367.4 million in the same quarter of 2024 driven by lower pulp revenues.
Previous wording
We estimate that annual maintenance downtime in the first quarter of 2025 adversely impacted our Segment Operating EBITDA by approximately $29.5 million, comprised of approximately $21.5 million in direct out-of-pocket expenses and the balance in reduced production.
Current wording
We estimate that planned annual maintenance downtime in the second quarter of 2025 adversely impacted our Segment Operating EBITDA by approximately $26.4 million, comprised of approximately $19.4 million in direct out-of-pocket expenses and the balance in reduced production. Many of our competitors that report their financial results using International Financial Reporting Standards, referred to as “IFRS”, capitalize their direct costs of maintenance downtime.
Previous wording
In the second quarter of 2025, we currently expect a total of 21 days of annual maintenance downtime (approximately 30,100 ADMTs) at our pulp mills.
Current wording
In the third quarter of 2025, we currently expect a total of 18 days of planned annual maintenance downtime (approximately 19,600 ADMTs) at our pulp mills.
Previous wording
Our average NBSK pulp sales realizations in the first quarter of 2025 increased by approximately 7% to $783 per ADMT from $732 per ADMT in the same quarter of 2024 due to higher list prices in all of our key markets. In the first quarter of 2025, average NBHK pulp sales realizations decreased by approximately 10% to $570 per ADMT from $631 per ADMT in the same quarter of 2024 due to lower net prices in China.
Current wording
Our average NBSK pulp sales realizations in the second quarter of 2025 decreased by approximately 7% to $758 per ADMT from $811 per ADMT in the same quarter of 2024 primarily due to lower net prices in China partially offset by higher prices in North America. In the second quarter of 2025, average NBHK pulp sales realizations decreased by approximately 18% to $575 per ADMT from $701 per ADMT in the same quarter of 2024 as a result of lower prices in China and North America.
Previous wording
Overall average per unit fiber costs in the first quarter of 2025 were relatively steady compared to the same quarter of 2024. We completed a wood room upgrade at our Celgar mill during the first quarter of 2025. The project was designed to reduce our dependence on sawmill residuals and lower our per unit fiber costs. For the second quarter of 2025, we currently expect per unit fiber costs for our German pulp mills to be higher due to strong demand and reduced supply and for our Canadian pulp mills to be relatively stable.
Current wording
Overall average per unit fiber costs in the second quarter of 2025 increased by approximately 11% compared to the same quarter of 2024 primarily as a result of higher per unit fiber costs at our German mills due to reduced supply. Per unit fiber costs at our Canadian mills were relatively flat in the second quarter of 2025 compared to the same quarter of 2024. For the third quarter of 2025, we currently expect per unit fiber costs to be lower for our German pulp mills due to reduced demand and relatively stable for our Canadian pulp mills.
Previous wording
Total pulp sales volumes in the first quarter of 2025 decreased by approximately 16% to 477,879 ADMTs from 565,664 ADMTs in the same quarter of 2024 primarily due to lower production.
Current wording
Energy, biofuels and wood residuals revenues in the second quarter of 2025 decreased by approximately 16% to $11.9 million from $14.2 million in the same quarter of 2024 primarily due to lower biofuels sales volumes.
Previous wording
Average lumber sales realizations in the first quarter of 2025 increased by approximately 8% to $499 per Mfbm from $460 per Mfbm in the same quarter of 2024 driven by lower supply and stronger demand in both the U.S. and European markets. The U.S. market accounted for approximately 47% of our lumber revenues and approximately 39% of our lumber sales volumes in the first quarter of 2025. The majority of the balance of our lumber sales were to Europe.
Current wording
Average lumber sales realizations in the second quarter of 2025 increased by approximately 19% to $550 per Mfbm from $463 per Mfbm in the same quarter of 2024 due to lower supply and improved demand in both the U.S. and European markets. The U.S. market accounted for approximately 45% of our lumber revenues and approximately 40% of our lumber sales volumes in the second quarter of 2025. The majority of the balance of our lumber sales were to Europe.
Previous wording
Manufactured products sales realizations decreased by approximately 22% to $2,832 per m 3 in the first quarter of 2025 from $3,644 per m 3 in the same quarter of 2024 as the high-interest rate environment negatively impacted demand.
Current wording
Manufactured products sales realizations decreased to $1,318 per m 3 in the second quarter of 2025 from $2,942 per m 3 in the same quarter of 2024 as the ongoing elevated interest rate environment in the U.S. negatively impacted demand.
Previous wording
Transportation costs for our solid wood segment in the first quarter of 2025 were flat at $13.3 million compared to $13.4 million in the same quarter of 2024.
Current wording
Transportation costs for our solid wood segment in the second quarter of 2025 decreased by approximately 8% to $13.4 million from $14.5 million in the same quarter of 2024 primarily as a result of lower freight rates.
Previous wording
Interest expense in the first quarter of 2025 was relatively flat at $28.2 million compared to $27.6 million in the same quarter of 2024.
Current wording
Interest expense in the first half of 2025 was relatively flat at $56.6 million compared to $54.4 million in the same period of 2024.
Previous wording
In the first quarter of 2025, other expenses was $0.2 million compared to other income of $4.9 million in the same quarter of 2024. Other expenses in the first quarter of 2025 primarily consisted of foreign exchange losses on dollar denominated cash held at our operations as the dollar weakened against the euro at the end of the period mostly offset by interest earned on cash in the quarter. In the same quarter of 2024, other income primarily consisted of interest earned on cash and foreign exchange gains on dollar denominated cash held at our operations.
Current wording
In the first half of 2025, other expenses were $1.3 million compared to other income of $9.2 million in the same period of 2024. Other expenses in the first half of 2025 primarily consisted of foreign exchange losses on the revaluation of dollar denominated cash held at our operations as the dollar weakened against the euro at the end of June 2025 mostly offset by interest earned on cash. In the first half of 2024, other income primarily consisted of interest earned on cash and foreign exchange gains on the revaluation of dollar denominated cash held at our operations as the dollar strengthened at the end of June 2024.
Previous wording
In the first quarter of 2025, our net loss was $22.3 million, or $0.33 per share, compared to $16.7 million, or $0.25 per share in the same quarter of 2024. The net loss in the first quarter of 2024 included the non-cash loss of $23.6 million, or $0.35 per share, recognized in connection with the dissolution of the CPP joint venture.
Current wording
In the first half of 2025, our net loss was $108.4 million, or $1.62 per share, compared to $84.3 million, or $1.26 per share in the same period of 2024. The net loss in the first half of 2024 included the non-cash goodwill impairment of $34.3 million, or $0.51 per share, and the non-cash loss of $23.6 million, or $0.35 per share, recognized in connection with the dissolution of the CPP joint venture.
Previous wording
In the first quarter of 2025, third-party industry quoted average list prices for NBSK pulp in Europe and North America and third-party industry quoted average net prices for NBSK pulp in China increased from the same quarter of 2024 primarily due to stable demand and supply constraints. Average list prices for NBSK pulp in Europe and North America were approximately $1,550 per ADMT and $1,753 per ADMT, respectively, in the first quarter of 2025 compared to approximately $1,400 per ADMT and $1,440 per ADMT, respectively, in the same quarter of 2024. Average NBSK net prices in China were approximately $793 per ADMT in the first quarter of 2025 compared to approximately $745 per ADMT in the same quarter of 2024. Prices quoted for China are net of discounts, allowances and rebates whereas quoted prices for Europe and North America are before applicable discounts, allowances and rebates.
Current wording
QUARTERLY REPORT - PAGE 35 approximately $1,552 per ADMT and $1,787 per ADMT, respectively, in the first half of 2025 compared to approximately $1,501 per ADMT and $1,568 per ADMT, respectively, in the same period of 2024. Third-party industry quoted average net prices for NBSK pulp in China were approximately $764 per ADMT in the first half of 2025 compared to approximately $778 per ADMT in the same period of 2024. Prices quoted for China are net of discounts, allowances and rebates whereas quoted prices for Europe and North America are before applicable discounts, allowances and rebates.
Previous wording
In the first quarter of 2025, we had a positive foreign exchange impact of approximately $7.3 million on Segment Operating EBITDA compared to the same quarter of 2024 primarily as a result of the effect of a stronger dollar on our Canadian dollar and euro denominated costs and expenses compared to the same quarter of 2024.
Current wording
In the first half of 2025, we had a negative foreign exchange impact of approximately $10.9 million on Segment Operating EBITDA compared to the same period of 2024 as a result of foreign exchange losses on the revaluation of dollar denominated accounts receivables held at our operations as the dollar weakened relative to the euro and Canadian dollar at the end of June 2025.
Previous wording
Transportation costs for our pulp segment in the first quarter of 2025 decreased by approximately 19% to $35.4 million from $43.7 million in the same quarter of 2024 driven by lower pulp sales volumes partially offset by higher freight rates.
Current wording
Transportation costs for our pulp segment in the first half of 2025 decreased by approximately 12% to $68.3 million from $77.4 million in the same period of 2024 driven by lower pulp sales volumes partially offset by higher freight rates.
Previous wording
Solid wood segment revenues in the first quarter of 2025 modestly increased to $122.7 million from $119.0 million in the same quarter of 2024 as a result of higher lumber and manufactured products revenues partially offset by lower revenues from our other products.
Current wording
Solid wood segment revenues in the first half of 2025 modestly decreased to $240.0 million from $249.3 million in the same period of 2024 as higher lumber revenues were more than offset by lower revenues from our other products.
Previous wording
Lumber revenues in the first quarter of 2025 increased by approximately 17% to $65.4 million from $55.9 million in the same quarter of 2024 primarily due to higher sales realizations and sales volumes.
Current wording
Lumber revenues in the first half of 2025 increased by approximately 20% to $131.7 million from $109.8 million in the same period of 2024 primarily due to higher sales realizations and volumes.
Previous wording
Energy, biofuels and wood residuals revenues in the first quarter of 2025 decreased by approximately 17% to $15.3 million from $18.4 million in the same quarter of 2024 primarily as a result of lower sales volumes.
Current wording
Energy, biofuels and wood residuals revenues in the first half of 2025 decreased by approximately 16% to $27.3 million from $32.6 million in the same period of 2024 primarily as a result of lower biofuels sales volumes.
Previous wording
Pallet revenues in the first quarter of 2025 decreased by approximately 17% to $23.2 million from $28.0 million in the same quarter of 2024 primarily due to lower sales volumes as weak economic conditions in Europe continue to negatively impact demand.
Current wording
Pallet revenues in the first half of 2025 decreased by approximately 9% to $49.8 million from $54.8 million in the same period of 2024 as a result of lower sales volumes as weak economic conditions in Europe continue to negatively impact demand.
Previous wording
Fiber costs were approximately 80% of our lumber cash production costs in the first quarter of 2025. In the first quarter of 2025, per unit fiber costs for lumber production increased by approximately 12% compared to the same quarter of 2024 driven by strong demand. For the second quarter of 2025, we currently expect higher per unit fiber costs due to continued strong demand.
Current wording
Fiber costs were approximately 80% of our lumber cash production costs in the first half of 2025. In the first half of 2025, per unit fiber costs for lumber production increased by approximately 18% compared to the same period of 2024 due to strong demand.
Previous wording
In the first quarter of 2025, Segment Operating EBITDA for the solid wood segment was negative $0.3 million compared to negative $0.9 million in the same quarter of 2024 primarily due to higher lumber sales realizations partially offset by higher per unit fiber costs.
Current wording
In the first half of 2025, Segment Operating EBITDA for the solid wood segment decreased to negative $5.2 million from positive $2.2 million in the same period of 2024 as a result of higher per unit fiber costs and lower manufactured products sales realizations partially offset by higher lumber sales realizations.
Previous wording
Cash Flows from (used in) Operating Activities. In the three months ended March 31, 2025, cash used in operating activities was $3.0 million compared to $29.2 million in the same quarter of 2024. An increase in accounts receivable used cash of $16.8 million in the three months ended March 31, 2025 and $63.7 million in the same quarter of 2024. An increase in inventories used cash of $6.9 million in the three months ended March 31, 2025 and a decrease in inventories provided cash of $0.1 million in the same quarter of 2024. An increase in accounts payable and accrued expenses provided cash of $28.4 million in the three months ended March 31, 2025 and $2.4 million in the same quarter of 2024. An increase in prepaid expenses and other used cash of $27.5 million in the three months ended March 31, 2025, primarily related to prepaid interest payments on our senior notes due 2028, and $1.1 million in the same quarter of 2024.
Current wording
Cash Flows from (used in) Operating Activities. In the six months ended June 30, 2025, cash used in operating activities was $7.5 million compared to cash provided from operating activities of $33.0 million in the same period of 2024. A decrease in accounts receivable provided cash of $14.8 million in the six months ended June 30, 2025 and an increase in accounts receivable used cash of $41.8 million in the same period of 2024. Adjusting for inventory impairments of $11.0 million, an increase in inventories used cash of $24.1 million in the six months ended June 30, 2025 and a decrease in inventories provided cash of $4.6 million in the same period of 2024. An increase in accounts payable and accrued expenses provided cash of $16.4 million in the six months ended June 30, 2025 and $18.1 million in the same period of 2024. An increase in prepaid expenses and other used cash of $8.8 million in the six months ended June 30, 2025 and a decrease in prepaid expenses and other provided cash of $5.5 million in the same period of 2024.
Previous wording
Cash Flows from (used in) Investing Activities. In the three months ended March 31, 2025, investing activities used cash of $19.9 million. In the three months ended March 31, 2025, we incurred $20.1 million of capital expenditures primarily related to completion of the wood room project at our Celgar mill, log yard upgrades and other strategic projects at our Torgau facility and maintenance projects across all mills and facilities.
Current wording
Cash Flows from (used in) Investing Activities. In the six months ended June 30, 2025, investing activities used cash of $42.6 million. In the six months ended June 30, 2025, we incurred $44.4 million of capital expenditures primarily related to completion of the wood room project at our Celgar mill, log yard upgrades at our Torgau facility and Friesau mill, sorting line upgrades and other strategic projects at our mass timber facilities, and maintenance projects across our operating segments. In the six months ended June 30, 2025, we received $3.1 million in government grants for capital projects at our mass timber facilities.
Previous wording
In the three months ended March 31, 2024, investing activities used cash of $17.5 million. In the three months ended March 31, 2024 we incurred $18.5 million of capital expenditures primarily related to optimization projects at our Mercer Spokane facility and maintenance projects across all mills and facilities.
Current wording
In the six months ended June 30, 2024, investing activities used cash of $37.6 million. In the six months ended June 30, 2024, we incurred $36.3 million of capital expenditures primarily related to log yard upgrades and other strategic projects at our Torgau facility, optimization projects at our Mercer Spokane facility, and maintenance projects across our operating segments.
Previous wording
Cash Flows from (used in) Financing Activities. In the three months ended March 31, 2025, financing activities provided cash of $19.2 million. In the three months ended March 31, 2025, we borrowed approximately $21.8 million under our revolving credit facilities.
Current wording
Cash Flows from (used in) Financing Activities. In the six months ended June 30, 2025, financing activities provided
Previous wording
In the three months ended March 31, 2024, financing activities provided cash of $6.8 million. In the three months ended March 31, 2025 we borrowed approximately $9.1 million under our revolving credit facilities.
Current wording
In the six months ended June 30, 2024, financing activities used cash of $46.5 million. In the six months ended June 30, 2024, we repaid approximately $35.8 million under our revolving credit facilities and we paid dividends of $5.0 million.
Previous wording
Amounts differ from interest expense, which includes non-cash items. See supplemental disclosure of cash flow information from our Interim Consolidated Statements of Cash Flows included in this report.
Current wording
Amounts differ from interest expense, which includes non-cash items. See supplemental disclosure of cash flow information in our Interim Consolidated Statements of Cash Flows included in this report.
Previous wording
As of March 31, 2025, we had cash and cash equivalents of $181.5 million, approximately $289.2 million available under our revolving credit facilities and aggregate liquidity of about $470.7 million.
Current wording
As of June 30, 2025, we had cash and cash equivalents of $146.5 million, approximately $291.6 million available under our revolving credit facilities and aggregate liquidity of about $438.1 million.
Previous wording
Based upon the current level of operations and our current expectations for future periods in light of the current economic environment, and in particular, current and expected pulp and lumber pricing and foreign exchange rates, we believe that cash flow from operations and available cash, together with available borrowings under our revolving credit facilities, will be adequate to finance the capital requirements for our business including the payment of our quarterly dividend during the next 12 months.
Current wording
Based upon the current level of operations and our current expectations for future periods in light of the current economic environment, and in particular, current and expected pulp and lumber pricing and foreign exchange rates, we believe that cash flow from operations and available cash, together with available borrowings under our revolving credit facilities, will be adequate to finance the capital requirements for our business.
Showing the first 40 of 45 pairs. Open the source sections for the rest.
Rearranged current paragraphs (7)
Current report — wording carried from elsewhere
In the second quarter of 2025, other expenses were $1.1 million compared to other income of $4.3 million in the same quarter of 2024. Other expenses in the second quarter of 2025 primarily consisted of foreign exchange losses on the revaluation of dollar denominated cash held at our operations as the dollar weakened against the euro at the end of the second quarter of 2025 mostly offset by interest earned on cash. In the second quarter of 2024, other income primarily consisted of interest earned on cash and foreign exchange gains on the revaluation of dollar denominated cash held at our operations as the dollar strengthened at the end of the second quarter of 2024.
Current report — wording carried from elsewhere
China are net of discounts, allowances and rebates whereas quoted prices for Europe and North America are before applicable discounts, allowances and rebates.
Current report — wording carried from elsewhere
Fiber costs were approximately 80% of our lumber cash production costs in the second quarter of 2025. In the second quarter of 2025, per unit fiber costs for lumber production increased by approximately 25% compared to the same
Current report — wording carried from elsewhere
Segment Operating EBITDA is a measure of segment profit or loss presented in our financial statements under GAAP. Refer to the segment information note in our consolidated financial statements for more information.
Current report — wording carried from elsewhere
Segment Operating EBITDA is a measure of segment profit or loss presented in our financial statements under GAAP. Refer to the segment information note in our consolidated financial statements for more information.
Current report — wording carried from elsewhere
Average lumber sales realizations in the first half of 2025 increased by approximately 14% to $524 per Mfbm from $461 per Mfbm in the same period of 2024 as a result of lower supply and improved demand in both the U.S. and European markets. The U.S. market accounted for approximately 46% of our lumber revenues and approximately 39% of our lumber sales volumes in the first half of 2025. The majority of the balance of our lumber sales were to Europe.
Current report — wording carried from elsewhere
QUARTERLY REPORT - PAGE 42 corrupt practices and competition laws, the violation of which could adversely affect our operations;
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
We translate foreign denominated assets and liabilities into dollars at the rate of exchange on the balance sheet date.