Despite a slight increase in sales to €5.83 billion (2024: €5.75 billion), Metsä Group’s operating result plummeted into the red, closing the year at -€271 million, compared to a profit of €186 million in 2024. The comparable operating result was also negative at -€85 million (2024: +€203 million).
The fourth quarter of 2025 exacerbated the situation: With sales of €1.33 billion, Metsä Group recorded an operating result of -€208 million. This was due to persistently weak demand for market pulp in Europe and China, as well as lower selling prices. To respond to the market situation, production was temporarily suspended at the Joutseno and Rauma pulp mills.
Near-term outlook given by Metsä Group
- Geopolitical tension and uncertainty about the further development of the global economy have negatively impacted consumer confidence, leading to weaker demand for pulp end products. Demand for softwood pulp has also been affected by the increased share of hardwood pulp in end products. These factors lead to lower demand for softwood market pulp.
- The hesitant purchasing behavior of consumers impacts demand for packaging and makes it harder to predict paperboard sales. In Europe, overcapacity is adding to market pressure. In North America, tariffs are having an impact on demand for folding boxboard. The outlook for coated white kraftliner is better thanks to limited possibilities for its replacement.
- In much of Europe, outlook for the construction industry remains subdued, and this continues to be reflected in lower demand for spruce plywood in particular. However, demand for lumber is expected to grow in the second quarter of 2026 due to seasonal demand. As for Kerto LVL products, a moderately favorable development is expected in all main markets early this year. In the US, this development is mainly driven by new customers.
