Metsä Board Corporation, Interim report 29 April 2026 at 12:00 noon EEST
January-March 2026 (compared to 1-3/2025)
- Sales were EUR 393.7 million (480.8).
- The comparable EBITDA was EUR 16.7 million (55.1), or 4.2% of sales (10.6). EBITDA was EUR -12.9 million (43.8).
- The comparable operating result was EUR -10.8 million (22.8), or -2.7% of sales (4.7). Operating result was EUR -14.5 million (-3.8).
- Comparable earnings per share were EUR -0.03 (0.04), and earnings per share were EUR -0.04 (-0.02).
- Comparable return on capital employed was -1.7% (3.9).
- Net cash flow from operations was EUR -70.5 million (-27.9).
Main events in January-March 2026
- Metsä Board published a new strategy and financial targets for 2026-2030.
- By 31 March, the transformation programme had delivered an annual run-rate EBITDA improvement of approximately EUR 100 million, with approximately EUR 30 million realised in reported EBITDA.
- Cash flow was weakened by an increase in working capital, mainly reflecting higher production volumes compared with the previous quarter and preparations for upcoming major shutdowns.
- Delivery and production volumes declined year-on-year, mainly due to U.S. import tariffs.
- The increase in oil and natural gas prices resulting from the conflict involving Iran is creating upward pressure on logistics and chemical costs. Metsä Board's high energy self-sufficiency supports its competitiveness.
- Demand for market pulp remained weak in both Europe and China. At the end of the period, a market-driven production shutdown was initiated at Metsä Fibre's Joutseno pulp mill for an indefinite period.
- Metsä Board acquired the Winschoten sheeting and distribution centre in the Netherlands.
- The Annual General Meeting of Metsä Board Corporation held on 19 March 2026 supported all proposals of the Board of Directors and resolved that no dividend be paid for the financial year 2025.
Metsä Board's CEO Esa Kaikkonen:
"Year 2026 started with strong activity. In March, we presented our new "Lead the Pack" strategy for 2026-2030, which will guide Metsä Board's development in the coming years. The first phase of the strategy focuses on profitability improvement, supported by the transformation programme that was launched last summer, and whose effects are beginning to show in our financial performance. In the second phase of the strategy, the focus shifts to growth driven by brand-enhancing consumer packaging solutions.
The strategy also provides clearer focus at the business area level. In consumer packaging business, we are seeking growth, while our focus in the retail packaging business is on improving profitability and creating value through selected partnerships. In the Market Pulp business, our objective is to achieve more stable cash flow by reducing our current, clearly surplus pulp position, while retaining the strategic competitive advantage provided by self-sufficiency.
The operating environment remained challenging during the review period. Tensions in the Middle East are reflected in our cost base, particularly through logistics and certain raw materials, and the impacts are expected to become more visible in the coming quarters. However, our high level of energy self-sufficiency supports our cost competitiveness and secures continuity of production. We have also taken additional measures to safeguard profitability.
During January-March, sales declined by nearly EUR 90 million compared to the comparison period. The decrease was primarily driven by lower food service board deliveries to the United States, as well as weak demand for market pulp. Comparable operating result weakened to EUR -10.8 million (Q1/2025: 22.8), and was impacted by volume changes, a weaker U.S. dollar and lower average paperboard prices in euros.
Profitability was supported by the actions taken under the transformation programme. By the end of the period, the programme had delivered approximately EUR 100 million in annual run-rate EBITDA improvement, representing about half of the EUR 200 million target set for 2027. The operating result of the Husum integrated mill remained negative, while the operating result of the Finnish mills was positive. Husum remains a key focus of our transformation programme.
Cash flow during the review period was weak as expected due to an increase in working capital, driven by higher production volumes compared to the previous quarter and preparations for extended shutdowns at the Kemi and Husum mills in the second half of the year. We continue to maintain strict cash-flow-based operational discipline: capex has been significantly reduced, and working capital management - particularly inventories - remains a key focus.
Our new strategy places even greater emphasis on customer centricity. The sheeting capacity acquired in the Netherlands earlier this year improves supply chain flexibility and shortens lead times, while supporting the more efficient utilisation of the Husum mill. We also announced the opening of a new packaging design studio in Milan to strengthen innovation and collaboration with global brands.
The packaging market is driven by changes in consumer behaviour and increasingly stringent sustainability and regulatory requirements, which are supporting the shift toward renewable, fibre-based solutions. The EU Packaging and Packaging Waste Regulation supports this development, and Metsä Board's products already meet many of the upcoming requirements. The vast packaging market offers us significant long-term potential, and our competitive product portfolio provides a solid foundation for growing our market share in selected segments."
Near-term outlook
Outlook for the operating environment
Cautious consumer purchasing behaviour continues to weigh on packaging demand and limit sales visibility. In Europe, market overcapacity is increasing price pressure, while in North America paperboard demand is affected by import tariffs. However, overall packaging demand is expected to be supported by customer restocking and seasonality in the second quarter.
Global demand for market pulp continues to be constrained by low utilisation rates in the paper and paperboard industry. In Europe, market-based production curtailments may continue due to sluggish demand.
The rising prices of oil and natural gas caused by the conflict in Iran is placing upward pressure on logistics and chemical costs in particular. This is expected to reduce the operating result in the second quarter by approximately EUR 10 million. The company is pursuing mitigating measures to defend margins.
Exchange rate fluctuations, taking hedging into account, are expected to have a clearly negative result effect in 2026 compared to the previous year. The impact in April-June is expected to be slightly negative compared to January-March.
Company-specific outlook for April-June 2026 (January-March 2026)
Working capital management plays a key role in ensuring the cash flow for operations. The cash flow is expected to strengthen in the second quarter compared to the first.
Preparations for upcoming major shutdowns are keeping production levels high, particularly at the Kemi and Husum mills.
Delivery volumes of paperboard are expected to increase.
Energy and wood costs are expected to decline. The measures implemented as part of Metsä Board's transformation programme are expected to further lighten the cost structure. Fixed costs will increase due to seasonality - more maintenance and higher employee costs.
Key figures
| 2026 | 2025 | 2025 | 2025 | |
| Q1 | Q1 | Q4 | Q1-Q4 | |
| Sales, EUR million | 393.7 | 480.8 | 393.5 | 1,775.7 |
| EBITDA, EUR million | 12.9 | 43.8 | -37.4 | -3.9 |
| comparable, EUR million | 16.7 | 51.1 | -9.4 | 29.6 |
| EBITDA, % of sales | 3.3 | 9.1 | -9.5 | -0.2 |
| comparable, % of sales | 4.2 | 10.6 | -2.4 | 1.7 |
| Operating result, EUR million | -14.5 | -3.8 | -99.2 | -169.5 |
| comparable, EUR million | -10.8 | 22.8 | -34.7 | -80.2 |
| Operating result, % of sales | -3.7 | -0.8 | -25.2 | -9.5 |
| comparable, % of sales | -2.7 | 4.7 | -8.8 | -4.5 |
| Result before taxes, EUR million | -19.3 | -7.3 | -105.0 | -186.9 |
| comparable, EUR million | -15.6 | 19.3 | -40.5 | -97.5 |
| Result for the period, EUR million | -16.7 | -4.9 | -94.8 | -164.6 |
| comparable, EUR million | -13.6 | 16.4 | -42.1 | -92.2 |
| Earnings per share, EUR | -0.04 | -0.02 | -0.25 | -0.44 |
| comparable, EUR | -0.03 | 0.04 | -0.10 | -0.24 |
| Return on equity, % | -3.9 | -1.0 | -21.0 | -9.0 |
| comparable, % | -3.2 | 3.4 | -9.3 | -5.0 |
| Return on capital employed, % | -2.3 | -0.4 | -16.5 | -6.9 |
| comparable, % | -1.7 | 3.9 | -5.6 | -3.1 |
| Equity ratio 1), % | 60 | 63 | 60 | 60 |
| Net gearing 1), % | 20 | 21 | 15 | 15 |
| Interest-bearing net liabilities/comparable EBITDA, 12 months rolling | neg. | 2.4 | 8.6 | 8.6 |
| Shareholders' equity per share 1), EUR | 4.24 | 5.00 | 4.48 | 4.48 |
| Interest-bearing net liabilities 1), EUR million | 341.0 | 401.6 | 254.8 | 254.8 |
| Total investment, EUR million | 13.6 | 16.1 | 75.8 | 139.5 |
| Net cash flow from operations, EUR million | -70.5 | -27.9 | 155.6 | 239.6 |
| Personnel 1) | 1,855 | 2,290 | 1,939 | 1,939 |
| 1) at the end of the period |
METSÄ BOARD CORPORATION
Further information:
Anssi Tammilehto, CFO, tel. +358 10 465 4913
Katri Sundström, VP, Investor Relations, tel. +358 10 462 0101
The company will host an English-language webcast and conference call for analysts and investors on 29 April 2026 at 3:00 p.m. EEST, which will be broader in scope than a regular results presentation. In addition to the Q1/2026 results, the company will present its new Lead the Pack strategy and its key focus areas. The results will be presented by CEO Esa Kaikkonen and CFO Anssi Tammilehto, and the strategy presentations will also include other members of Metsä Board's Leadership Team.
The webcast and conference call can be followed online on the company's website at https://metsaboard.events.inderes.com/q1-2026
Participation in the conference call requires registration through the following link: https://events.inderes.com/metsaboard/q1-2026/dial-in
After the registration, the participant will be provided with a phone number, a User ID and a Conference ID to access the conference. By participating in the conference call, the participant agrees that personal information such as name and company name can be collected.
The webcast presentation and conference call will be recorded and archived on the company's website, where it can be viewed afterwards at: https://www.metsagroup.com/metsaboard/investors/reports-and-presentations/webcasts-and-conference-calls/.
Metsä Board
metsagroup.com/metsaboard
Metsä Board is a producer of lightweight and high-quality folding boxboards, foodservice boards and white kraftliners. The fresh wood fibres we use in our products are a renewable and recyclable resource that can be traced back to Northern European forests. We aim to phase out the use of fossil energy in our production by 2030. We promote a culture of diversity, equality and inclusion. Metsä Board's shares are listed on the Nasdaq Helsinki.
In 2025, our sales totalled EUR 1.8 billion, and we employ about 1,900 people. Metsä Board is part of Metsä Group, whose parent company Metsäliitto Cooperative is owned by approximately 90,000 Finnish forest owners. Total sales of Metsä Group were EUR?5.8 billion.
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