Information on the target
Metsä Group, a leading player in the Finnish forest industry, reported a comparable operating result of EUR -4 million for the first quarter of 2026. The company generated sales of EUR 1,358 million, a decline from EUR 1,642 million in the same period of the previous year. The EBITDA for the quarter was EUR 115 million, with a comparable EBITDA of EUR 128 million, reflecting a decrease from EUR 189 million year-over-year. The operating result was notably negative at EUR -18 million, with a comparable operating result of EUR -4 million, indicating challenges in the market environment.
During this period, Metsä Group faced several operational hurdles, including muted demand for market pulp in both Europe and China, which led to a market-driven shutdown at the Joutseno pulp mill. Additionally, the company experienced a decline in delivery volumes of paperboard, primarily due to US import tariffs. The rise in oil and natural gas prices, exacerbated by geopolitical tensions, further pressured logistics and raw material costs, impacting overall profitability.
Industry overview in the target’s specific country
The Finnish pulp and packaging industry operates within a highly competitive global market, contending with both European and international players from South America and Asia. In recent years, trade barriers have intensified, posing additional challenges to Finnish companies. The demand for Finnish pulpwood is closely tied to the industry's global competitiveness, which is currently under pressure due to rising costs and fluctuating consumer confidence.
Geopolitical tensions have heightened uncertainty in the global economy, leading to increased energy, chemical, and logistics costs. This escalation in production costs is straining profitability across the sector. Furthermore, the demand for market softwood pulp is weakening due to a structural decline in the printing and writing paper segments, alongside a cautious purchasing behavior among consumers that affects packaging demand.
In Europe, overcapacity in the market is contributing to pricing pressures, while in North America, tariffs are impacting the demand for folding boxboard. Despite these challenges, there is a more favorable outlook for coated white kraftliner due to limited replacement options. The tissue paper market is expected to remain stable, with moderate long-term growth anticipated. However, the construction sector's weakness in Europe is reflected in reduced demand for sawn timber and related products.
Looking ahead, demand for forest management services is projected to increase as wood sales volumes rise, particularly for spruce logs and FSC-certified wood. Sea…