Metsa Board Corporation

Latest Results (14.10.2025):

Metsä Board Corporation reported a challenging first half of 2025, with declining sales and operating results compared to the same period last year. The company faced operational disruptions, including a significant shutdown at the Kemi mill and the permanent closure of the Tako board mill. Despite these challenges, Metsä Board is initiating a comprehensive transformation program aimed at improving profitability and strengthening its market position.

Sales and Operating Results

For the first half of 2025, Metsä Board reported sales of EUR 940.9 million, a decrease from EUR 993.6 million in the previous year. The comparable operating result was EUR 0.1 million, significantly down from EUR 30.7 million in the same period last year. The operating result stood at EUR -25.5 million, compared to EUR 22.3 million previously.

Profitability and Earnings

Comparable earnings per share were EUR -0.02, a decline from EUR 0.03 in the first half of 2024. The comparable return on capital employed dropped to 0.2% from 2.9%, reflecting reduced profitability. Net cash flow from operations also worsened, reaching EUR -38.1 million compared to -16.5 million in the prior year.

Strategic Initiatives

Metsä Board has launched a transformation program in collaboration with Metsä Group to enhance competitiveness and optimize cost structures. The program includes EUR 100 million in cost savings and an additional EUR 100 million in profitability improvements by the end of 2027. The company aims to release at least EUR 150 million in working capital by the end of 2025.

Operational Adjustments

The Tako board mill was permanently closed on June 16, 2025, with its production transferred to the Kyro board mill. Additionally, production at the Joutseno mill has been curtailed until further notice due to weak demand in the pulp market.

Financial Position

Metsä Board issued a EUR 200 million green bond on May 21, 2025, maturing in 2031 with an annual coupon rate of 3.875%. The company's financial position remains stable, with an interest-bearing net debt to comparable EBITDA ratio of 2.9, slightly above the target maximum of 2.5.

Future Guidance

The company expects the operating result for July–September 2025 to be EUR -22.7 million, a deterioration from EUR -0.7 million in the previous quarter. Sales are projected to be EUR 460.1 million, down from EUR 509.8 million. Metsä Board anticipates continued challenges but is focused on returning to positive EBITDA by an estimated EUR 30 million through strategic transformations.