Total costs and expenses grew by 7% to US-$525.7 million, mainly because of higher raw material costs and the negative exchange rate effects. Margins were negatively impacted by the weak global economy, a slump in demand for pulp, and low paper prices in China.
Revenues in the Solid Wood segment (lumber, glued timber, pallets, biofuels) decreased by 6% to US-$117.2 million in the third quarter of 2025 (Q3 2024: US-$125.1 million). The segment’s EBITDA declined, from -US-$1.9 million to -US$9.3 million.
- Lumber: Revenues increased by 24% to US-$61.0 million. Sales volumes remained stable at 110 Mbft (260,000 m³). Average sales realizations increased to US-$553/1,000 bft (€309/m³; Q3 2024: US-$451/1,000 bft or €252/m³) due to higher prices in Europe and the USA.
- Glued timber (CLT, glulam): Revenues decreased by 66% to US-$12.2 million.
- Pallets: Revenues remained unchanged at US-$26.7 million.
- Biofuels: Sales grew by 10% and totaled US-$10.2 million.
Log prices, which account for around 75% of production costs, rose by approximately 35% year on year.
For the fourth quarter of 2025, Mercer expects higher prices for lumber and wood products in Europe and the US, driven by higher input costs and additional US import tariffs (10% under Section 232). These measures could lead to Canadian producers reducing their supply.
The company is continuing its “One Goal One Hundred” efficiency and cost reduction program, which aims to achieve savings of US-$100 million by the end of 2026 (US-$30 million expected by the end of 2025). In addition, investments are to be reduced and liquidity increased in 2026.
