Metsä Group reported a comparable operating result of Euro 4 million for the Q1 2026, compared to Euro 81 million in the same period last year, due to muted demand for market pulp in Europe and China, lower delivery volumes, and the negative impact of US import tariffs.

Sales decreased to Euro 1,358 million from Euro 1,642 million a year earlier. The comparable EBITDA was Euro 128 million, down from Euro 197 million. The operating result (IFRS) was Euro 18 million, compared to Euro 51 million in the Q1 2025.

The Pulp and Sawn Timber Industry segment reported a comparable operating result of Euro 12 million, compared to Euro 38 million a year earlier. Pulp delivery volumes fell to 727,000 tonnes from 886,000 tonnes. Average invoicing prices for softwood market pulp decreased by 9% in Europe and 13% in China compared with the Q1 2025. A market-driven shutdown began at the Joutseno pulp mill and will continue for the time being.

The Paperboard Industry segment reported a comparable operating result of Euro 11 million, compared to Euro 23 million in the Q1 2025. Total paperboard deliveries decreased to 327,000 tonnes from 367,000 tonnes, primarily due to lower folding boxboard sales to the United States resulting from import tariffs.

The Wood Products Industry segment reported a comparable operating result of Euro 7 million, compared to Euro 1 million a year earlier. Three of the segment's business units were affected by factors deviating from normal operations, including the commissioning of the Äänekoski Kerto LVL mill, the winding down of the Suolahti plywood mill, and restructuring in the United Kingdom, with a combined negative effect of Euro 11 million. Weak construction activity in Europe weighed particularly on demand for spruce plywood and Kerto LVL.

Net cash flow from operations was Euro 79 million. The Group's liquidity at the end of March was Euro 1,201 million, consisting of Euro 501 million in liquid assets and a Euro 700 million committed credit facility.

The Euro 300 million cost savings and profit improvement programme, which began in July 2025, has progressed as planned. Two thirds of the programme's target is estimated to be achieved in 2026, with full realisation expected in 2027. However, the company noted that if the war in Iran prolongs, rising oil prices could significantly undermine the impact of the savings.

Looking ahead, demand for softwood market pulp is expected to remain weak due to low consumer confidence, substitution with hardwood pulp, and structural decline in printing and writing paper demand. Supply is being reduced by capacity shutdowns in North America and industry curtailments. In Europe, the outlook for the construction sector remains weak, though a slight seasonal increase in demand for sawn timber and Kerto LVL is expected in the second quarter. Both production lines at the new Äänekoski Kerto LVL mill are scheduled to begin commercial production at the end of 2026.