Metsä Board: transformation programme progressing – comparable EBITDA €17 million in Q1 2026

Packaging board producer Metsä Board Oyj continued its transformation in the first quarter of 2026, while profitability remained clearly below the comparison period. The company reported lower sales and weaker earnings, but highlighted progress in its transformation programme and cost structure improvement.

Sales in January–March 2026 totaled €393.7 million, compared with €480.8 million a year earlier. Comparable EBITDA decreased to €16.7 million (4.2% of sales), down from €55.1 million in the comparison period. Comparable operating result was €-10.8 million, compared with €22.8 million a year earlier.

Operating cash flow weakened to €-70.5 million (€-27.9 million), mainly due to working capital build-up linked to higher production volumes and preparations for major maintenance shutdowns later in the year.

Transformation programme supporting cost competitiveness

At the end of the review period, Metsä Board’s transformation programme had achieved an annual run-rate improvement of approximately €100 million in EBITDA. Around €30 million of this was already reflected in reported results.

The company continues to target a total €200 million improvement by 2027.

President and CEO Esa Kaikkonen said the transformation programme is beginning to support earnings development, while the new strategy for 2026–2030 will guide the company towards improved profitability and future growth.

Weak demand in board and pulp markets

Board delivery volumes declined year-on-year, mainly due to lower shipments to the United States, where import tariffs affected demand for food service board grades.

Market pulp demand remained subdued in both Europe and China. At the end of the reporting period, production at Metsä Fibre’s Joutseno pulp mill was temporarily curtailed due to weak market conditions.

Costs and logistics pressures continue

Geopolitical tensions in the Middle East have increased energy prices, which is expected to put upward pressure on logistics and chemical costs. Metsä Board’s high energy self-sufficiency continues to support competitiveness.

The company estimates that higher energy and raw material costs will weigh on second-quarter profitability, although mitigation actions are ongoing.

Investments in logistics and customer proximity

Metsä Board strengthened its supply chain by acquiring a sheeting and distribution centre in Winschoten, the Netherlands. The investment improves delivery flexibility and supports production efficiency at the Husum mill.

The company also announced the opening of a new packaging design studio in Milan to strengthen innovation and collaboration with global brand owners.

Outlook: recovery supported by volumes and cost actions

Metsä Board expects operating cash flow to improve in the second quarter compared with the first quarter, supported by stronger working capital management and higher delivery volumes.

Board delivery volumes are expected to increase, while energy and wood costs are projected to decline. At the same time, seasonal maintenance shutdowns will increase fixed costs.

Currency impacts are expected to remain negative in 2026, with a slightly negative effect also anticipated in Q2 compared with Q1.