Metsä Group (METS) Q1 2026 earnings summary

Executive summary

• Major cost reductions drove sequential profit improvement despite a challenging market environment, though the comparable operating result for Q1 2026 was EUR -3.8 million, down from EUR 80.9 million in Q1 2025.

• Sales declined to EUR 1,357.5 million from EUR 1,642.1 million year-over-year, mainly due to lower pulp and paperboard volumes and prices.

• Updated strategy emphasizes demand for Nordic wood, sustainability, and customer-centricity.

• Pre-engineering for a biogenic CO₂ capture plant in Rauma was launched.

• Cost savings from a EUR 300 million programme helped offset negative impacts from lower prices and adverse currency effects.

Financial highlights

• Comparable EBITDA was EUR 127.7 million, down from EUR 196.9 million year-over-year.

• Operating result was EUR -17.7 million (EUR 51.4 million); comparable operating result EUR -3.8 million (EUR 80.9 million).

• Free cash flow declined year-over-year due to lower EBITDA and increased accounts receivable.

• Owner-members received EUR 171 million in wood trade income in Q1 2026.

• Net cash flow from operations was EUR -78.6 million (EUR -9.7 million).

Outlook and guidance

• Geopolitical conflicts, economic uncertainty, and rising costs are expected to continue pressuring profitability and demand.

• Market pulp and paperboard demand remains low due to weak consumer confidence and overcapacity.

• Construction outlook in Europe is weak, constraining wood product demand.

• Tissue paper demand expected to remain stable with modest long-term growth.

• Cost savings programme expected to achieve two-thirds of its target in 2026, full impact in 2027.