Revenue growth remains structurally challenged with a 3.5% year-over-year decline in 2026Q1, while operating margins have deteriorated to -6.7% due to rigid overhead costs.
| 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 |
|---|
| Sales/Revenue | 1.85B | 1.87B | 2.04B | 1.99B | 2.28B | 1.8B | 1.42B | 1.62B | 1.46B | 1.17B | 931.62M | 1.03B | 1.18B | 1.09B | 1.1B | 1.15B | 1.2B | 888.02M | 1B | 1.03B | 823.52M | 608.21M | 335.8M | 244.59M | 251.16M | 188.41M | 236.2M | 127.87M | 174.9M | 184.1M | 186.7M |
| Revenue Growth % | -7.34% | -8.58% | 2.48% | -12.59% | 26.49% | 26.71% | -12.39% | 11.44% | 24.68% | 25.5% | -9.83% | -12.08% | 7.97% | -1.34% | -4.3% | -3.76% | 34.87% | -11.44% | -2.52% | 24.9% | 35.4% | 81.12% | 37.29% | -2.61% | 33.3% | -20.23% | 84.72% | -26.89% | -5% | -1.39% | -32.18% |
| Cost of Goods Sold | 1.92B | 1.94B | 1.85B | 2.03B | 1.78B | 1.38B | 1.29B | 1.47B | 1.13B | 952.41M | 773.35M | 821.28M | 965.39M | 999.14M | 987.68M | 958.43M | 855.87M | 867.81M | 872.75M | 883.09M | 684.15M | 573.32M | 314.4M | 225.91M | 224.2M | 165.31M | 156.2M | 110.3M | 127.5M | 128.3M | 134.4M |
| COGS % of Revenue | - | 103.62% | 90.73% | 101.6% | 78.16% | 76.4% | 90.82% | 90.26% | 77.41% | 81.46% | 83.01% | 79.49% | 82.15% | 91.8% | 89.53% | 83.15% | 71.46% | 97.73% | 87.04% | 85.85% | 83.08% | 94.26% | 93.63% | 92.36% | 89.27% | 87.74% | 66.13% | 86.26% | 72.9% | 69.69% | 71.99% |
| Gross Profit | -68.97M | -67.63M | 189.36M | -31.86M | 498.2M | 425.52M | 130.6M | 158.23M | 329.33M | 216.73M | 158.27M | 211.92M | 209.72M | 89.24M | 115.47M | 194.27M | 341.81M | 20.2M | 129.96M | 145.53M | 139.37M | 34.89M | 21.4M | 18.69M | 26.96M | 23.1M | 80M | 17.57M | 47.4M | 55.8M | 52.3M |
| Gross Margin % | -3.73% | -3.62% | 9.27% | -1.6% | 21.84% | 23.6% | 9.18% | 9.74% | 22.59% | 18.54% | 16.99% | 20.51% | 17.85% | 8.2% | 10.47% | 16.85% | 28.54% | 2.27% | 12.96% | 14.15% | 16.92% | 5.74% | 6.37% | 7.64% | 10.73% | 12.26% | 33.87% | 13.74% | 27.1% | 30.31% | 28.01% |
| Gross Profit Growth % | - | -135.71% | 694.34% | -106.4% | 17.08% | 225.83% | -17.46% | -51.95% | 51.95% | 36.94% | -25.32% | 1.05% | 135% | -22.72% | -40.56% | -43.16% | 1592.1% | -84.46% | -10.7% | 4.42% | 299.42% | 63.07% | 14.5% | -30.68% | 16.69% | -71.12% | 355.28% | -62.93% | -15.05% | 6.69% | -46.36% |
| Operating Expenses | 152.72M | 114.44M | 174.35M | 156.91M | 105.83M | 78.93M | 66.87M | 74.23M | 61.46M | 49.68M | 44.53M | 46.24M | 47.93M | 51.17M | 50.67M | 50.25M | 118.72M | 38.54M | 111.41M | 43.91M | 17.28M | 15.55M | 45.74M | 24.4M | 28.96M | 16.5M | 36.42M | 29.44M | 34.7M | 36.9M | 35.9M |
| OpEx % of Revenue | - | 6.13% | 8.53% | 7.87% | 4.64% | 4.38% | 4.7% | 4.57% | 4.22% | 4.25% | 4.78% | 4.47% | 4.08% | 4.7% | 4.59% | 4.36% | 9.91% | 4.34% | 11.11% | 4.27% | 2.1% | 2.56% | 13.62% | 9.97% | 11.53% | 8.76% | 15.42% | 23.02% | 19.84% | 20.04% | 19.23% |
| Selling, General & Admin | 112.75M | 114.44M | 116.43M | 123.18M | 105.83M | 78.93M | 66.87M | 74.23M | 61.46M | 49.68M | 44.53M | 46.24M | 47.93M | 51.17M | 50.67M | 50.25M | 44.48M | 39.28M | 41.98M | 43.91M | 37.88M | 36.02M | 36.71M | 24.29M | 26.23M | 16.5M | 14.28M | 22.42M | 23.5M | 23.6M | 24.9M |
| SG&A % of Revenue | - | 6.13% | 5.7% | 6.18% | 4.64% | 4.38% | 4.7% | 4.57% | 4.22% | 4.25% | 4.78% | 4.47% | 4.08% | 4.7% | 4.59% | 4.36% | 3.71% | 4.42% | 4.19% | 4.27% | 4.6% | 5.92% | 10.93% | 9.93% | 10.45% | 8.76% | 6.05% | 17.53% | 13.44% | 12.82% | 13.34% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 1000K | 0 | 57.92M | 33.73M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -76.7K | 0 | -146.3K | -739.3K | -7.81M | 0 | -20.6M | -20.46M | 9.03M | 105K | 2.73M | 0 | 22.14M | 7.02M | 11.2M | 13.3M | 11M |
| Operating Income | -221.69M | -182.07M | 15.01M | -188.77M | 392.37M | 346.58M | 63.73M | 84M | 267.87M | 167.05M | 113.74M | 165.68M | 161.8M | 31.66M | 64.81M | 144.02M | 223.09M | -18.34M | 18.56M | 101.62M | 122.09M | 19.34M | -24.34M | -5.71M | 725K | 6.6M | 43.58M | -11.87M | 12.7M | 18.9M | 16.4M |
| Operating Margin % | -11.98% | -9.75% | 0.73% | -9.47% | 17.2% | 19.22% | 4.48% | 5.17% | 18.38% | 14.29% | 12.21% | 16.04% | 13.77% | 2.91% | 5.87% | 12.49% | 18.63% | -2.07% | 1.85% | 9.88% | 14.82% | 3.18% | -7.25% | -2.33% | 0.29% | 3.5% | 18.45% | -9.28% | 7.26% | 10.27% | 8.78% |
| Operating Income Growth % | - | -1313.21% | 107.95% | -148.11% | 13.21% | 443.84% | -24.13% | -68.64% | 60.35% | 46.87% | -31.35% | 2.4% | 411.05% | -51.15% | -55% | -35.44% | 1316.57% | -198.83% | -81.74% | -16.77% | 531.17% | 179.45% | -326.51% | -887.31% | -89.02% | -84.85% | 467.19% | -193.44% | -32.8% | 15.24% | -54.57% |
| EBITDA | -61.26M | -22.02M | 7.78M | -16.27M | 536.52M | 478.78M | 192.65M | 210.4M | 364.6M | 252.35M | 185.73M | 234.02M | 239.81M | 110.31M | 141.58M | 216.61M | 297.88M | 59.27M | 96.18M | 184.35M | 196.46M | 82.9M | 15.59M | 24.6M | 27.63M | 27.16M | 65.71M | -4.85M | 23.9M | 32.2M | 27.4M |
| EBITDA Margin % | -3.31% | -1.18% | 0.38% | -0.82% | 23.52% | 26.55% | 13.54% | 12.95% | 25.01% | 21.58% | 19.94% | 22.65% | 20.41% | 10.13% | 12.83% | 18.79% | 24.87% | 6.67% | 9.59% | 17.92% | 23.86% | 13.63% | 4.64% | 10.06% | 11% | 14.41% | 27.82% | -3.79% | 13.66% | 17.49% | 14.68% |
| EBITDA Growth % | -131.75% | -383.06% | 147.81% | -103.03% | 12.06% | 148.52% | -8.43% | -42.29% | 44.48% | 35.87% | -20.64% | -2.42% | 117.41% | -22.09% | -34.64% | -27.28% | 402.54% | -38.37% | -47.83% | -6.16% | 136.98% | 431.87% | -36.63% | -10.97% | 1.72% | -58.67% | 1455.21% | -120.29% | -25.78% | 17.52% | -45.2% |
| D&A (Non-Cash Add-back) | 160.43M | 160.05M | -7.23M | 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 |
| EBIT | -192.72M | -182.07M | 22.23M | -181.58M | 416.8M | 346.58M | 63.73M | 84M | 270.51M | 168.55M | 115.12M | 165.68M | 161.8M | 52.58M | 67.66M | 156.32M | 208.13M | -18.95M | -24.09M | 153.61M | 122.09M | 22.07M | -24.34M | -5.71M | -2M | 11.88M | 43.58M | -11.87M | 12.7M | 18.91M | 16.4M |
| Net Interest Income | -57.58M | -114.83M | -97.39M | -79.23M | -65.04M | -68.32M | -80.75M | -75.75M | -51.46M | -54.8M | -51.58M | -53.89M | -67.52M | -69.16M | -71.77M | -82.11M | -89.93M | -92.8M | -91.54M | -104.1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 11.76M | 9.02M | 6.46M | 1.73M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1 | 0 | -1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 57.58M | 114.83M | 109.15M | 88.25M | 71.5M | 70.05M | 80.75M | 75.75M | 51.46M | 54.8M | 51.58M | 53.89M | 67.52M | 69.16M | 71.77M | 76.46M | 89.93M | 92.8M | 91.54M | 104.1M | 91.93M | 86.86M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -298.53M | -329.14M | -101.92M | -81.05M | -47.06M | -86.02M | -74.87M | -74.42M | -90.6M | -64.62M | -54.28M | -60.73M | -57.61M | -48.23M | -67.13M | -80.46M | -105.49M | -90.11M | -140.1M | -20.08M | 46.52M | -191.16M | -11.74M | -1.92M | -7.64M | -9.05M | -13.99M | -25.15M | -3.4M | -51.41M | -3.9M |
| Pretax Income | -520.22M | -511.21M | -86.92M | -269.82M | 345.3M | 260.57M | -11.14M | 9.59M | 177.27M | 103.94M | 59.46M | 104.95M | 104.19M | -16.57M | -4.23M | 69.1M | 118.19M | -111.75M | -115.63M | 49.58M | 168.61M | -172.4M | -36.08M | -7.63M | -6.92M | -2.45M | 29.58M | -37.02M | 9.3M | -32.5M | 12.5M |
| Pretax Margin % | -28.11% | -27.37% | -4.25% | -13.53% | 15.14% | 14.45% | -0.78% | 0.59% | 12.16% | 8.89% | 6.38% | 10.16% | 8.87% | -1.52% | -0.38% | 5.99% | 9.87% | -12.58% | -11.53% | 4.82% | 20.47% | -28.34% | -10.75% | -3.12% | -2.75% | -1.3% | 12.52% | -28.95% | 5.32% | -17.65% | 6.7% |
| Income Tax | 7.32M | -13.32M | -1.77M | -27.77M | 98.26M | 89.58M | 6.1M | 19.23M | 48.68M | 33.45M | 24.52M | 29.45M | -16.77M | 9.2M | 9.65M | -900.78K | -7.82M | -8.41M | 3.45M | 15.06M | 75.81M | -12.84M | -59.82M | 3.99M | -277K | 74K | 108K | 1.09M | 300K | 100K | -3.1M |
| Effective Tax Rate % | -1.41% | 2.61% | 2.04% | 10.29% | 28.46% | 34.38% | -54.73% | 200.54% | 27.46% | 32.19% | 41.24% | 28.06% | -16.1% | -55.49% | -228.05% | -1.3% | -6.62% | 7.52% | -2.98% | 30.38% | 44.96% | 7.45% | 165.8% | -52.27% | 4% | -3.02% | 0.37% | -2.95% | 3.23% | -0.31% | -24.8% |
| Net Income | -527.55M | -497.89M | -85.14M | -242.06M | 247.04M | 170.99M | -17.23M | -9.64M | 128.59M | 70.48M | 34.94M | 75.5M | 113.15M | -26.38M | -16.11M | 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 |
| Net Margin % | -28.51% | -26.65% | -4.17% | -12.14% | 10.83% | 9.48% | -1.21% | -0.59% | 8.82% | 6.03% | 3.75% | 7.31% | 9.63% | -2.42% | -1.46% | 5.63% | 9.58% | -10.03% | -10.06% | 3.15% | 10.13% | -22.8% | 8.06% | -1.85% | -2.64% | -1.34% | 12.48% | -29.8% | 5.15% | -17.71% | 8.62% |
| Net Income Growth % | -481.14% | -484.78% | 64.83% | -197.98% | 44.48% | 1092.1% | -78.8% | -107.5% | 82.44% | 101.71% | -53.72% | -33.27% | 529.02% | -63.67% | -124.83% | -43.44% | 228.78% | 11.67% | -411.47% | -61.18% | 160.17% | -612.26% | 699.18% | 31.97% | -162.76% | -108.57% | 177.34% | -523.43% | 127.61% | -302.48% | -74.88% |
| Net Income (Continuing) | -527.55M | -497.89M | -85.14M | -242.06M | 247.04M | 170.99M | -17.23M | -9.64M | 128.59M | 70.48M | 34.94M | 75.5M | 120.97M | -25.77M | -13.49M | 75.17M | 126.01M | -103.34M | -119.08M | 34.47M | 88.26M | -161.14M | 27.07M | -4.52M | -6.64M | -2.52M | 29.47M | -38.11M | 9M | -32.6M | 15.6M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3.13M | 0 | -2.24M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -10.76M | -22.32M | -24.07M | -29.93M | -53.37M | -47.5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -7.88 | -7.44 | -1.27 | -3.65 | 3.71 | 2.58 | -0.26 | -0.15 | 1.96 | 1.08 | 0.54 | 1.17 | 1.81 | -0.47 | -0.29 | 1.24 | 2.07 | -2.45 | -2.78 | 0.85 | 2.08 | -4.42 | 1.56 | -0.26 | -0.40 | -0.15 | 1.87 | -2.33 | 0.59 | -2.18 | 1.15 |
| EPS Growth % | -484.44% | -485.83% | 65.21% | -198.38% | 43.8% | 1092.31% | -73.33% | -107.65% | 81.48% | 100% | -53.85% | -35.36% | 485.11% | -62.07% | -123.39% | -40.1% | 184.49% | 11.87% | -427.06% | -59.13% | 147.06% | -383.33% | 700% | 35% | -166.67% | -108.02% | 180.26% | -494.92% | 127.06% | -289.57% | -77.05% |
| EPS (Basic) | - | -7.44 | -1.27 | -3.65 | 3.74 | 2.59 | -0.26 | -0.15 | 1.97 | 1.09 | 0.54 | 1.17 | 1.82 | -0.47 | -0.29 | 1.39 | 2.98 | -2.45 | -2.78 | 0.90 | 2.51 | -4.42 | 1.56 | -0.26 | -0.40 | -0.15 | 1.91 | -2.33 | 0.59 | -2.18 | 1.15 |
| Diluted Shares Outstanding | 66.96M | 66.92M | 66.82M | 66.41M | 66.6M | 66.28M | 65.77M | 65.55M | 65.77M | 65.39M | 65.1M | 64.78M | 62.51M | 55.67M | 55.6M | 56.99M | 56.96M | 36.3M | 36.29M | 45.3M | 40.04M | 31.34M | 17.31M | 17.05M | 16.65M | 16.62M | 15.76M | 16.36M | 15.31M | 14.95M | 14M |
| Basic Shares Outstanding | 66.96M | 66.92M | 66.82M | 66.32M | 66.1M | 65.94M | 65.77M | 65.55M | 65.13M | 64.92M | 64.63M | 64.38M | 62.01M | 55.67M | 55.6M | 50.12M | 38.59M | 36.3M | 36.29M | 36.08M | 33.3M | 31.34M | 17.31M | 17.05M | 16.65M | 16.62M | 15.43M | 16.36M | 15.25M | 14.95M | 14M |
| Dividend Payout Ratio | - | - | - | - | 8.03% | 10.04% | - | - | 31.67% | 42.37% | 85.09% | 9.82% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 6.67% | - | - |
Fiber supply and liquidity
As indicated by recent quarterly filings, Mercer's top-line performance has faced consistent downward pressure, with revenue growth rates remaining negative for several consecutive periods, culminating in a 3.5% year-over-year decline in 2026Q1 as global commodity demand for pulp and lumber remains structurally challenged.
The consistent negative revenue growth suggests that the company is struggling to find a floor in a market defined by weak pricing power. Investors should monitor whether the current trajectory reflects a cyclical trough or a more permanent loss of market share in the face of substitution risks.
Based on the provided financial data, Mercer's gross margin has deteriorated into negative territory, reaching -0.9% in 2026Q1, which highlights the company's inability to pass through elevated fiber and conversion costs to customers in the current depressed commodity price environment.
The shift from positive gross margins in early 2024 to the recent negative figures suggests that the company's high fixed-cost base is no longer being adequately absorbed by production volumes. This margin compression appears to be a direct consequence of the 'scissors effect' between rising input costs and falling market prices for NBSK pulp.
According to the income statement history, Mercer's operating income has consistently lagged behind gross profit, with operating margins falling to -6.7% in 2026Q1, demonstrating that the company's overhead structure remains rigid even as gross profitability evaporates during this cyclical downturn.
The inability to scale SG&A expenses downward in proportion to revenue declines suggests a lack of operational flexibility. This high operating leverage may indicate that the company is highly sensitive to even minor fluctuations in production volume, which warrants further investigation into the sustainability of current cost structures.
As reported in financial statements, Mercer's net income has been severely impacted by non-operating items and significant quarterly losses, including a massive $308.7 million net loss in 2025Q4, which obscures the underlying operational performance and raises concerns regarding the durability of future earnings.
The extreme volatility in net income, punctuated by large non-cash charges, suggests that reported EPS may not be a reliable indicator of cash-generating capability. Investors should be wary of the impact of potential asset impairments and the high debt-servicing burden on the company's bottom line.
Based on the reported figures, the combination of negative operating margins and a sustained cash burn profile suggests that Mercer faces significant liquidity risks if commodity prices do not recover, potentially forcing management to consider further asset curtailments or expensive capital raises.
Short-sellers would likely focus on the company's inability to maintain positive operating cash flow, which may necessitate a re-evaluation of the firm's debt-servicing capacity. The reliance on European energy subsidies to offset pulp production costs remains a critical vulnerability that could impair the company's competitive moat.
Quick answers to the most common questions about buying MERC stock.
For fiscal year 2025, Mercer International Inc. (MERC) reported total revenue of $1.87B. This represents a 900.6% increase compared to $186.7M in 1996.
Mercer International Inc. (MERC) reported a net loss of $497.9M for the fiscal year ending 2025.
Mercer International Inc. (MERC) reported an operating income of $-182.1M, resulting in an operating profit margin of -9.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Mercer International Inc. (MERC) generated $-67.6M in gross profit for the year, representing a gross profit margin of -3.6%. This demonstrates the company's core pricing power and production efficiency.