Metsä Group approaches break-even as cost savings take effect – Finnish wood trade expected to remain active

Metsä Group’s comparable operating result improved to a loss of EUR 4 million in July–September, despite a decline in sales. Cost savings and stronger paperboard performance supported earnings. In Finland, the group expects wood trade to remain active towards the end of the year, with good demand for all types of harvesting sites.

Metsä Group reported sales of EUR 1,267 million for the third quarter of 2026, down from EUR 1,440 million a year earlier. Its comparable operating loss narrowed to EUR 4 million from EUR 72 million in the corresponding period of 2025.

Comparable EBITDA increased from EUR 39 million to EUR 100 million. The reported operating result nevertheless remained negative at EUR 41 million. Net cash flow from operations totalled EUR 128 million, compared with EUR 207 million a year earlier.

According to President and CEO Jussi Vanhanen, earnings improved particularly in the paperboard business as demand strengthened. However, profitability across all of the group’s businesses remained well below target levels.

Cost savings progress ahead of schedule

Metsä Group launched its EUR 300 million cost savings and profit improvement programme in July 2025. According to Vanhanen, the programme reached an earnings impact of EUR 200 million at the beginning of the fourth quarter, significantly ahead of schedule.

Weak demand, exchange rates and rising costs have nevertheless offset some of the benefits. Vanhanen said the increase in oil and diesel prices following the conflict in the Middle East weakened the group’s third-quarter result by approximately EUR 47 million.

Logistics costs remained high, while refunds of US customs duties supported earnings. Annual maintenance shutdowns and market-related downtime at the Husum and Joutseno mills reduced production volumes and weakened profitability.

More active wood trade supports demand for forest services

Metsä Group says wood trade in Finland has picked up during the autumn and expects activity to remain strong for the rest of the year. The group reports good demand for all types of harvesting sites, with particular interest in FSC-certified wood.

Growing wood trade volumes are also expected to stimulate demand for forest management services.

The Wood Supply and Forest Services business recorded sales of EUR 1,701 million and a comparable operating profit of EUR 17.2 million in January–September.

Pulp and sawn timber markets remain subdued

Demand and prices for market pulp remained weak in the third quarter. Average softwood pulp sales prices fell by one per cent in Europe and two per cent in China compared with the previous quarter.

Metsä Group expects the outlook for softwood market pulp demand to remain subdued. However, production curtailments and capacity closures are expected to gradually improve the market balance in the coming months.

The annual maintenance shutdown at the Kemi bioproduct mill in the fourth quarter will be longer than usual due to an upgrade to the mill’s cooking process.

Demand for sawn timber is also expected to remain weak towards the end of the year. High customer inventories, subdued demand and ample supply continue to put pressure on prices in Europe.

The paperboard market balance has improved, supporting the pricing environment. Birch plywood demand is expected to remain stable, with an improved outlook in the heavy transport equipment industry.

Investment in Muoto packaging, Kuura plans discontinued

During the reporting period, Metsä Group decided to invest approximately EUR 25 million in Muoto fibre packaging production in Äänekoski, Finland. The new mill is scheduled to start operating in 2028.

The group also discontinued planning for a Kuura textile fibre mill. According to Vanhanen, the conditions for building a commercially sustainable business around the product are not currently in place.

For January–September, Metsä Group’s sales totalled EUR 4,008 million, down from EUR 4,508 million a year earlier. The comparable operating loss was EUR 11 million, compared with a loss of EUR 27 million in the corresponding period of 2025.