Liquidity remains under severe pressure as evidenced by a $85.7 million operating cash outflow in 2026Q1 and a negative free cash flow margin of -20.2%.
Mercer International Inc. (MERC) cash flow statement — 30-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | -74.62M | 8.59M | 90.2M | -69M | 360.66M | 182.21M | 41.56M | 244.28M | 236.67M | 141.93M | 140.78M | 159.22M | 144.59M | 36.33M | 60.8M | 143.94M | 121.4M | 53.47M | -16.52M | 27.96M | 64.97M | 13.42M | 13.01M | 39.53M | 41.73M | 26.66M | 39.95M | -8.64M | 18.5M | 16M | -8M |
| Operating CF Margin % | - | 0.46% | 4.41% | -3.46% | 15.81% | 10.1% | 2.92% | 15.04% | 16.24% | 12.14% | 15.11% | 15.41% | 12.3% | 3.34% | 5.51% | 12.49% | 10.14% | 6.02% | -1.65% | 2.72% | 7.89% | 2.21% | 3.87% | 16.16% | 16.62% | 14.15% | 16.91% | -6.75% | 10.58% | 8.69% | -4.28% |
| Operating CF Growth % | -3001.68% | -90.48% | 230.72% | -119.13% | 97.93% | 338.38% | -82.98% | 3.22% | 66.75% | 0.81% | -11.58% | 10.12% | 298.04% | -40.25% | -57.76% | 18.57% | 127.04% | 423.69% | -159.07% | -56.96% | 384.13% | 3.13% | -67.08% | -5.29% | 56.54% | -33.27% | 562.62% | -146.68% | 15.63% | 300% | 34.43% |
| Net Income | -495.88M | -308.7M | -85.14M | -242.06M | 247.04M | 170.99M | -17.23M | -9.64M | 128.59M | 70.48M | 34.94M | 75.5M | 120.97M | -25.77M | -13.87M | 64.9M | 114.75M | -89.1M | -100.88M | 32.39M | 83.42M | -138.64M | 27.07M | -4.52M | -6.64M | -2.53M | 29.47M | -38.11M | 9M | -32.6M | 16.1M |
| Depreciation & Amortization | 157.28M | 160.05M | 170.79M | 172.5M | 144.15M | 132.2M | 128.92M | 126.39M | 96.73M | 85.29M | 71.98M | 68.33M | 78.01M | 78.64M | 76.77M | 72.59M | 74.79M | 77.61M | 77.63M | 82.74M | 74.38M | 63.56M | 39.93M | 30.3M | 26.9M | 20.56M | 22.14M | 7.02M | 11.2M | 13.3M | 11M |
| Stock-Based Compensation | 408K | 2.29M | 3.86M | 5.92M | 6.74M | 2.39M | 928K | 3.04M | 3.94M | 2.89M | 4.66M | 2.41M | 1.59M | 3.57M | 2.7M | 4.29M | 3.18M | 651.9K | 367.51K | 541K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -21.58M | -11.32M | -35.72M | -36.39M | 7M | 18.79M | -15.25M | -7.87M | 16.6M | 22.06M | 16.81M | 17.52M | -22.02M | 11.48M | -156.06K | -3.08M | -12.98M | -8.6M | 2.75M | 11.89M | 75.04M | -13.59M | -57.54M | 0 | 0 | 0 | 0 | 0 | 300K | 0 | -3.1M |
| Other Non-Cash Items | 305.15M | 108.11M | 61.3M | 95.21M | -19.28M | 12.73M | 21.16M | 25.88M | 25.41M | 13.34M | 4.67M | 8.45M | -8.48M | -17.68M | 2.23M | 7.62M | 37.62M | -11.99M | 36.21M | -31.19M | 713K | 89.48M | -1K | 20.88M | 20.11M | 0 | 0 | 22.16M | 100K | 46.9M | -31.7M |
| Working Capital Changes | -19.99M | 58.16M | -24.88M | -64.19M | -25M | -154.89M | -76.96M | 106.48M | -34.6M | -52.14M | 7.71M | -12.99M | -25.48M | -13.93M | -6.87M | -2.38M | -95.96M | 84.89M | -32.6M | -68.41M | -13.32M | 31.23M | -46.01M | -7.14M | 1.36M | 8.63M | -11.66M | 300K | 3.4M | -11.6M | -300K |
| Change in Receivables | 37.35M | 52.59M | -32.09M | 52.51M | -20.48M | -121.58M | -6.27M | 41.37M | -10.37M | -64.95M | 9.47M | -11.26M | -25.11M | 4.78M | -7.4M | -1.6M | -40.04M | 32.1M | -14.81M | -7.38M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -80.63M | 526K | 23.91M | -15.84M | -63.18M | -96.44M | -11.43M | 24.68M | -58.08M | -19.99M | 6.84M | -13.23M | 6.45M | -14.56M | 1.77M | -22.96M | -32.53M | 46.07M | -18.56M | -56.52M | 9.72M | -4.91M | -39.27M | -9.47M | 1.8M | 2.34M | -3.39M | -996K | -2.4M | 2M | 5.3M |
| Change in Payables | -4.35M | 7.16M | -17.68M | -98.18M | 0 | 75.59M | 0 | 45.26M | 37.96M | 37.17M | -10.27M | 9.66M | -5.38M | -6.03M | -4.76K | 14.25M | -3.09M | -2.95M | 1.24M | -9.3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -41.9M | -81.33M | -66.99M | -199.87M | -424.61M | -187.13M | -59.83M | -139.36M | -467.48M | -121.55M | -44.3M | -49.82M | -49.1M | -44.97M | -31.53M | -60.03M | -47.94M | -21.84M | 2.79M | 36.47M | -82.15M | -128.02M | -298.3M | -400.37M | -205.9M | -9.25M | 38.27M | -245.41M | -60M | -17M | -16.3M |
| Capital Expenditures | -52.83M | -88.58M | -84.32M | -136.32M | -178.74M | -160.82M | -78.52M | -132.66M | -87.61M | -59.69M | -44.37M | -50.34M | -39.39M | -45.71M | -48.54M | -49M | -50.94M | -41.3M | -35.78M | -7.1M | -43.47M | -26.02M | -296.18M | -408.91M | 0 | -6.84M | 0 | 0 | -69.8M | -13.1M | -18.2M |
| CapEx % of Revenue | 2.87% | 4.74% | 4.13% | 6.84% | 7.84% | 8.92% | 5.52% | 8.17% | 6.01% | 5.11% | 4.76% | 4.87% | 3.35% | 4.2% | 4.4% | 4.25% | 4.25% | 4.65% | 3.57% | 0.69% | 5.28% | 4.28% | 88.2% | 167.18% | - | 3.63% | - | - | 39.91% | 7.12% | 9.75% |
| Acquisitions | 4.9M | 0 | 0 | -82.1M | -256.6M | -51.26M | 0 | -6.38M | -380.31M | -61.63M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7.95M | 0 | 0 | -173.51M | -1.04M | 0 | -209.59M | 0 | 0 | -255.19M | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 6.03M | 7.26M | 17.33M | 18.56M | 10.22M | 24.96M | 1.15M | -321K | 445K | -232K | 67K | 528K | -9.72M | 739K | 863.6K | 4.77M | 2.99M | 19.47M | 30.63M | 42.38M | -40.24M | 72.46M | -2.81M | 490K | 4.34M | -2.44M | 40M | 4.18M | 7.6M | -3.9M | 0 |
| Cash from Financing | 94.72M | 79.81M | -152.78M | 228.62M | 80.9M | -9.5M | 26.32M | 6.1M | 14.86M | 288.75M | -62.38M | -56.66M | -175.75M | 15.23M | -30.24M | -77.85M | -8.15M | -19.13M | -43.48M | -44.89M | 1.29M | 150.18M | 279.71M | 386.14M | 184.69M | -26.93M | -61.55M | 207.22M | 87M | -3.7M | 5.8M |
| Debt Issued (Net) | 65.76M | 89.71M | -127.98M | 253.49M | 105.33M | 9.2M | 52.65M | 43.22M | 69.12M | 337.34M | -23.08M | -33.82M | -237.4M | 9.82M | -32.14M | -92.88M | -23.8M | -31.16M | -43.85M | -44.19M | -18.35M | 40.61M | 288.58M | 374.64M | 193.44M | -21.15M | 67K | 160.56M | 99.5M | -3.2M | 5.7M |
| Equity Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | -162K | -754K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -10.62M | 0 | 0 | 0 | 444.69K | 734K | 78.87M | 5.75M | 1.15M | 287K | 0 | 0 | -217K | 3.3M | 0 | 0 |
| Dividends Paid | 0 | -10.04M | -20.06M | -19.95M | -19.85M | -17.17M | -21.89M | -35.28M | -40.72M | -29.87M | -29.73M | -7.42M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -834K | -600K | -500K | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | -162K | -754K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -10.62M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -217K | 0 | 0 | 0 |
| Other Financing | 28.96M | 138K | -4.74M | -4.91M | -4.58M | -1.53M | -4.28M | -1.09M | -13.54M | -18.72M | -9.56M | -15.43M | 61.65M | 5.41M | 2.48M | 20.64M | 17.67M | 17.81M | 370.3K | -1.15M | 18.91M | 30.69M | 132.46M | 10.35M | -9.04M | -6.79M | -61.61M | 47.7M | -15.2M | 0 | 100K |
| Net Change in Cash | -22.09M | 1.88M | -129.07M | -40.04M | 8.42M | -15.49M | 10.01M | 110.59M | -220.25M | 319.84M | 32.04M | 46.46M | -94.56M | 10.29M | -1.1M | 7.84M | 63.48M | 12.66M | -59.02M | 21.97M | -18.14M | 40.21M | -3.29M | 27.32M | 19.45M | -8.04M | 16.77M | -51.53M | 48.8M | -5.6M | -19.5M |
| Free Cash Flow | -127.44M | -80M | 5.89M | -205.33M | 181.92M | 21.39M | -37.6M | 111.63M | 149.06M | 82.23M | 96.41M | 108.88M | 105.2M | -9.38M | 12.26M | 94.93M | 70.46M | 12.17M | -52.3M | 20.86M | 21.5M | -12.6M | -283.17M | -369.39M | 41.73M | 19.81M | 39.95M | -8.64M | -51.3M | 2.9M | -26.2M |
| FCF Margin % | -6.93% | -4.28% | 0.29% | -10.3% | 7.98% | 1.19% | -2.64% | 6.87% | 10.23% | 7.03% | 10.35% | 10.54% | 8.95% | -0.86% | 1.11% | 8.24% | 5.88% | 1.37% | -5.22% | 2.03% | 2.61% | -2.07% | -84.32% | -151.02% | 16.62% | 10.52% | 16.91% | -6.75% | -29.33% | 1.58% | -14.03% |
| FCF Growth % | -107.06% | -1459.09% | 102.87% | -212.87% | 750.52% | 156.89% | -133.68% | -25.11% | 81.26% | -14.71% | -11.45% | 3.49% | 1221.3% | -176.54% | -87.09% | 34.73% | 479.18% | 123.26% | -350.72% | -2.95% | 270.55% | 95.55% | 23.34% | -985.12% | 110.62% | -50.41% | 562.62% | 83.17% | -1868.97% | 111.07% | -27.18% |
| FCF per Share | -1.90 | -1.20 | 0.09 | -3.09 | 2.73 | 0.32 | -0.57 | 1.70 | 2.27 | 1.26 | 1.48 | 1.68 | 1.68 | -0.17 | 0.22 | 1.67 | 1.24 | 0.34 | -1.44 | 0.46 | 0.54 | -0.40 | -16.35 | -21.66 | 2.51 | 1.19 | 2.53 | -0.53 | -3.35 | 0.19 | -1.87 |
| FCF Conversion (FCF/Net Income) | 0.26x | -0.02x | -1.06x | 0.29x | 1.46x | 1.07x | -2.41x | -25.34x | 1.84x | 2.01x | 4.03x | 2.11x | 1.28x | -1.38x | -3.77x | 2.22x | 1.06x | -0.60x | 0.16x | 0.86x | 0.78x | -0.10x | 0.48x | -8.75x | -6.29x | -10.55x | 1.36x | 0.23x | 2.06x | -0.49x | -0.50x |
| Interest Paid | 53.89M | 0 | 105.48M | 79.62M | 67.1M | 73.09M | 78.15M | 59.71M | 40.28M | 45.91M | 50.16M | 51.98M | 65.01M | 65.75M | 66.67M | 80.35M | 86.67M | 88.86M | 84.43M | 106.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | -11.86M | 0 | 22.49M | 63.55M | 86.04M | 22.95M | 19.33M | 52.88M | 16.15M | 10.87M | 13.35M | 8.78M | 3.72M | 7.31M | 5M | 4.45M | 613.11K | 540.14K | 1.53M | 659.02K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying MERC stock.
Mercer International Inc. (MERC) generated $8.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Mercer International Inc. (MERC) reported negative free cash flow of $80.0M in 2025, indicating capital requirements exceeded cash from operations.
Mercer International Inc. (MERC) spent $88.6M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Mercer International Inc. (MERC) returned $10.0M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Liquidity and fiber constraints
Metrics are mathematically derived from official filings.
Earnings Quality and Cash Disconnect
According to recent quarterly filings, Mercer's operating cash flow frequently decouples from net income, as evidenced by the 2026Q1 period where the company reported a $52.0 million net loss alongside an $85.7 million operating cash outflow, highlighting significant volatility in the underlying cash conversion process.
The persistent gap between net income and operating cash flow suggests that non-cash charges and working capital swings are masking the true extent of the company's cash burn. Investors should monitor whether this divergence reflects structural operational inefficiencies or merely temporary timing differences in the pulp and lumber cycles.
Free Cash Flow Margin Erosion
As reported in financial statements, Mercer's free cash flow trajectory has remained largely negative over the last ten quarters, with a notable -20.2% FCF margin in 2026Q1, indicating that the company is currently unable to self-fund its operations through internal cash generation alone.
The inability to maintain positive free cash flow during periods of cyclical weakness suggests that the company's high fixed-cost base is a significant drag on liquidity. This trend warrants further investigation into whether management can implement sufficient cost-cutting measures to stabilize cash outflows in the near term.
Working Capital Volatility and Pressure
Based on Mercer's reported figures, working capital fluctuations have been a primary driver of cash flow instability, with a significant $84.3 million outflow in 2026Q1 alone, suggesting that inventory management and collection cycles are currently exerting substantial pressure on the company's available liquidity position.
The erratic nature of these working capital changes may indicate difficulties in managing inventory levels amidst fluctuating commodity demand. Such volatility complicates cash flow forecasting and suggests that the company's liquidity is highly sensitive to short-term shifts in supply chain and customer payment dynamics.
Capital Intensity Amidst Cyclical Downturn
Data from recent filings indicates that Mercer continues to deploy capital into maintenance and infrastructure, with CapEx/Revenue ratios reaching 6.6% in 2025Q3, which appears aggressive given the current negative operating margin environment and the ongoing need to preserve cash for debt service obligations.
While these investments may be necessary to maintain the operational integrity of the German mills, the current capital intensity appears to be outpacing the company's ability to generate internal cash. This strategy may indicate a reliance on external financing to sustain long-term asset viability during this downturn.