Metsä Board (METSB) investor relations material

Executive summary

• Profitability remained under pressure in 2025, with sales declining to EUR 1,775.7 million and a comparable operating result of EUR -80.2 million, but strong operating cash flow and a solid financial position provided stability despite market headwinds.

• Transformation programme delivered EUR 52 million in annualised cost savings by year-end, with a target of EUR 200 million by 2027.

• Major investment phase ended with the completion of the Simpele mill modernization.

• No dividend proposed for 2025 due to notable losses.

Financial highlights

• 2025 sales: EUR 1.78 billion, down 8% year-over-year; Q4 sales: EUR 394 million.

• Comparable operating result: EUR -80.2 million (-4.5% margin); earnings per share: EUR -0.44.

• Strong operating cash flow of EUR 240 million, up 534% year-over-year, driven by working capital release.

• Significant non-recurring items: EUR 27 million Tako Mill impairment, EUR 21 million transformation costs, EUR 35 million ERP project impairment.

• Q4 included EUR 40 million insurance compensation related to Kemi Bioproduct Mill incident.

Outlook and guidance

• Folding boxboard delivery volumes expected to improve from Q4 lows in Q1 2026; variable costs to decline due to lower wood prices and transformation actions.

• FX headwinds expected to negatively impact Q1 by EUR 20 million versus Q4.

• Overcapacity in Europe, soft consumer sentiment, and U.S. tariffs to continue impacting sales.

• No major new investments planned; annual maintenance CapEx to remain at EUR 40–50 million for 2026–2028.

• Working capital will increase seasonally in Q1 2026.