January–March 2025 (1–3/2024)
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Sales were EUR 1,642 million (1,457).
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Operating result was EUR 51 million (58). Comparable operating result was EUR 81 million (70).
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Result before taxes was EUR 37 million (45). Comparable result before taxes was EUR 67 million (57).
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Comparable return on capital employed was 4.4% (4.0).
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Net cash flow from operations was EUR -10 million (-137).
Events during the first quarter of 2025
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The average sales prices of Metsä Group’s softwood market pulp remained at the same level in Europe and increased by 3% in China compared to the previous quarter.
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Demand for softwood market pulp has remained stable in Europe and North America. In China, demand was at a good level during the early part of the year but weakened in March. The global supply of softwood pulp has decreased due to previous capacity shutdowns.
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Metsä Group’s paperboard delivery volumes increased from the previous quarter. Average paperboard prices remained at roughly the same level as in 2024.
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A decision was made to shut down the Tako board mill and improve the operational efficiency of the Kyro board mill. These measures will lead to the reduction of 208 jobs.
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In February, Metsä Group initiated pre-engineering of a Kuura textile fibre mill in preparation for the fibre’s industrial production.
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Plans for capacity adjustments and equipment renewals are underway at the Kreuzau tissue paper mill. The Mänttä tissue paper mill is investing in fresh fibre processing and equipment renewals, and planning to phase out recycled fibre. Change negotiations are underway at both mills.
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Jussi Vanhanen was appointed as the CEO of Metsä Group starting from July 1, 2025.
Result guidance April–June 2025
In April–June 2025, Metsä Group’s comparable operating result is expected to be weaker an in January–March 2025.
President and CEO Ilkka Hämälä:
"Like last year, the first quarter of 2025 was marked by low demand and a weak financial result. Comparable result improved from the first quarter of 2024, largely because of the impact of political strikes in the comparison period.
The market outlook for business areas is consistent with previous reports. Wood supply is progressing as planned at a slightly increasing price level, while demand in the mechanical forest industry is not showing signs of recovery in the construction industry. Demand for Kerto® LVL has remained at a good level, and sawn timber prices have increased during the first quarter.
Market development of the pulp business is affected by the uncertainties concerning China’s economy, and the increased capacity of eucalyptus pulp. However, the price indexes for both the Chinese and European markets increased slightly in the first quarter.
The folding boxboard market continues to be disturbed by the significant overcapacity of corresponding qualities from Asian producers. The market situation for coated linerboard was normal. The US tariffs announced after the reporting period are creating uncertainty in delivery estimates. The market for tissue and greaseproof papers has remained stable.
The ongoing development investment projects have progressed as scheduled. Equipment installations began at the Äänekoski Kerto LVL mill, and test runs will be initiated in a year. The installation of the main equipment for the Mariestad tissue paper mill investment is underway, and test runs of the converting lines and automated warehouse will begin with the products of current lines in the second quarter. Construction of the lignin demo plant is progressing in Äänekoski, and preparations are underway for the commissioning of a carbon capture demo plant in Rauma. Pre-engineering of new product investments is continuing. As for MuotoTM moulded fibre packaging, the demo plant’s products are now being sold on the market. Pre-engineering of industrial production of the KuuraTM textile fibre was initiated.
In addition to development investments, Metsä Group must ensure its current mills’ competitiveness. The maintenance of Metsä Group’s mills is based on the long-term life-cycle plans drawn up for each mill. A planned development programme is underway at the Simpele board mill, the first phase of which includes the renewal of the production line’s coating section. The investment is valued at approximately EUR 60 million and is expected to be completed in the second half of 2025.
Change negotiations were initiated at the Kreuzau and Mänttä tissue paper mills to improve the efficiency of the mills’ production processes and shut down production lines at the end of their life-cycles.
A decision was made to close the Tako board mill, and the production of its products has been or will be moved to other mills. Efficiency improvement measures were determined for the Kyro board mill. Overall, these decisions will see slightly more than two hundred job reductions.
Production at the Suolahti birch plywood mill ceased at the end of the quarter in accordance with the decision made in the previous quarter.
The growth trend in global demand for forest industry products has continued, and the importance of forestry and the forest industry remains strong for Finnish society. The conditions for pursuing profitable business remain good in Finland despite the recent upheaval in global politics and economic uncertainties.
The Group has a strong 57% equity ratio, and its net gearing ratio is approximately at 20% level. We have carried out several investments to strengthen our competitiveness, and our development portfolio contains many projects for developing our current business and expanding Metsä Group’s product portfolio. Our goal is to increase the added value of our products and replace fossil raw materials. Metsä Group’s future choices will be guided by its ownership strategy, which essentially strives to create value for the forest assets of the Cooperative’s owner-members.
In February, the Board of Directors of Metsäliitto Cooperative appointed the next President and CEO, who will assume the post on 1 July 2025. I am convinced that Metsä Group and its parent company Metsäliitto Cooperative have a successful future ahead of them as important players in the global forest industry. Success is based on persistent and systematic work, and our ownership base provides excellent opportunities for this.
To conclude my last interim report, I wish to thank all our owner-members and owners of the other Group companies for your trust and cooperation. I also wish to thank the many representatives of our stakeholders for the fruitful discussions and feedback that have encouraged me and our organisation to move forward on the path of continuous improvement.
| Key figures | |||
| 2025 | 2024 | 2024 | |
| 1–3 | 1–3 | 1–12 | |
| Sales, EUR million | 1,642.1 | 1,457.5 | 5,747.2 |
| EBITDA, EUR million | 189.5 | 184.7 | 654.1 |
| Comparable, EUR million | 196.9 | 185.5 | 648.8 |
| % of sales | 12.0 | 12.7 | 11.3 |
| Operating result, EUR million | 51.4 | 57.7 | 186.4 |
| Comparable, EUR million | 80.9 | 69.9 | 203.0 |
| % of sales | 4.9 | 4.8 | 3.5 |
| Result before income tax, EUR million | 37.4 | 45.2 | 131.3 |
| Comparable, EUR million | 66.9 | 57.0 | 147.6 |
| Result for the period, EUR million | 27.6 | 40.4 | 108.5 |
| Return on capital employed, % | 2.9 | 3.3 | 2.7 |
| Comparable, % | 4.4 | 4.0 | 2.9 |
| Return on equity, % | 2.0 | 2.9 | 1.9 |
| Comparable, % | 3.6 | 3.6 | 2.1 |
| Equity ratio, % | 57.1 | 56.5 | 56.2 |
| Net gearing ratio, % | 22.9 | 15.9 | 22.2 |
| Interest-bearing net liabilities, EUR million | 1,311.0 | 887.4 | 1,235.7 |
| Total investments, EUR million | 99.1 | 116.1 | 603.3 |
| Personnel at the end of the period | 9,561 | 9,506 | 9,581 |
| Sales and Operating result | |||||
| 1–3/2025, EUR million | Wood Supply and Forest services | Wood Products Industry | Pulp and Sawn timber industry | Paperboard Industry | Tissue and Greaseproof papers |
| Sales | 742.2 | 127.2 | 788.7 | 480.8 | 283.9 |
| Other operating income | 3.0 | 2.4 | 7.2 | 10.6 | 1.7 |
| Operating expenses | -729.3 | -126.7 | -691.6 | -447.6 | -258.5 |
| Depreciation and impairment losses | -1.7 | -8.5 | -65.9 | -47.6 | -11.5 |
| Operating result | 14.2 | -5.6 | 38.5 | -3.8 | 15.6 |
| Items affecting comparability | -1.2 | 4.3 | -0.2 | 26.6 | 0.0 |
| Comparable operating result | 13.0 | -1.3 | 38.3 | 22.8 | 15.6 |
| % of sales | 1.7 | -1.0 | 4.9 | 4.7 | 5.5 |
Near-term outlook
The demand for wood will focus particularly on felling sites suitable for summer harvesting and on roundwood from delivery sales. We will also buy regeneration felling as usual. In energy wood, the demand will focus on crown wood and small trees. Demand for forest management services is projected to increase in 2025 compared to the previous year.
In much of Europe, the outlook for construction remains muted, and this is reflected in the weak demand for spruce plywood in particular. Moreover, cheaper alternatives are increasing their market share in spruce plywood. However, demand for Kerto LVL products remains stable.
The overall demand for birch plywood is expected to remain stable, but industrial customers’ demand for speciality plywood products is expected to remain low.
In the UK, demand for the upgrading business is expected to remain stable in the DIY segment, but weaker than normal in the wholesale customer segment and new construction in the coming months.
The US tariff policy has fuelled global economic uncertainty. If implemented, the tariffs will reduce demand for market pulp due to slower economic growth and shift trade flows for softwood market pulp between different market areas.
The pulp capacity closures announced in 2024 and the constraints affecting the availability of wood raw material especially in North America will further reduce the global supply of softwood market pulp.
A slight seasonal increase in demand for sawn timber is expected in the second quarter.
A repair shutdown of evaporation plant will begin at the Kemi bioproduct mill in the second quarter, in which the units damaged in the gas explosion, which were repaired earlier, will be replaced with new ones to ensure availability and the original life-cycle. The repair shutdown beginning in May is expected to last five weeks. The gas explosion compensation process, which began in 2024, will be continued with the insurance company after the final repairs to the evaporation plant are completed.
Consumers’ cautious purchase behaviour and the supply of fresh fibre paperboards increasing faster than demand, especially in the EMEA region, add to the uncertainties of paperboard sales development. The tariffs imposed by the United States will directly and indirectly affect sales development and the board market in general, which will weaken predictability in the near future. Metsä Board's total board deliveries in April-June are estimated to remain at approximately the same level as in January-March.
The repair shutdown beginning at the Kemi bioproduct mill will also affect kraftliner production.
Demand for tissue and greaseproof papers is expected to remain stable.
METSÄ GROUP