Mercer reports Q1 EPS (33c), consensus (19c)

Reports Q1 revenue $506.97M, consensus $505.47M. CEO Juan Carlos Bueno stated: “There was continued strength in pulp markets and an improving lumber pricing environment in the first quarter of 2025. However, our operating results in the quarter were negatively impacted by annual planned maintenance downtime at our Celgar mill and the impact of the weaker dollar against the euro. We continue to monitor ongoing developments relating to U.S. and international trade policies, including tariffs, countermeasures and countervailing duties. To date, our costs and revenues have not been materially impacted by these developments. However, we recognize the potential for indirect impacts of a weaker global economy on both demand and pricing for our products and the fiber supply of our mills… In this uncertain environment and to build resiliency through the economic cycle, we continue to implement cost reduction initiatives and operational efficiency measures targeting approximately $100M in savings by the end of 2026, compared to 2024. In addition, in 2025, we are targeting a reduction of inventories of $20M and have further reduced our expected capital expenditures for the year by $20M by focusing on maintenance and accretive projects that are expected to enhance operational reliability and value across our business.”