"Metsä Group's sales for 2025 increased by 1.5% compared to the previous year due to higher pulp and sawn timber volumes." – Jussi Vanhanen, President and CEO, Metsä Group.
Feb. 5, 2026 - Metsä Group today reported fourth quarter and full-year 2025 results.
January-December 2025 (1-12/2024)
October-December 2025 (10-12/2024)
Events during the fourth quarter of 2025
Metsä Group's President and CEO, Jussi Vanhanen commented:
Metsä Group's sales for 2025 increased by 1.5% compared to the previous year due to higher pulp and sawn timber volumes. The lower delivery volumes for paperboard and the poor performance of the wood product distribution business had a negative impact on sales.
The Group's comparable operating result was a loss of EUR 85 million, largely due to the lower sales prices and higher fixed costs. Ensuring cost competitiveness therefore became a key focus for the second half of the year. In July, we announced we were seeking annual savings of EUR 300 million in stages from 2026 onwards. As part of the cost savings and profit improvement programme, we initiated change negotiations, resulting in the termination of around 790 permanent positions.
However, most of the cost savings will come from variable costs. Hundreds of our employees are working with these projects every day. We are making good progress in reaching the target. Based on the current outlook, two thirds of the planned savings will be realised in our result for 2026. Our result for 2026 will also be supported by lower wood prices, as they began to decrease in the summer of 2025. The prices will also be realised in the result in stages as the felling sites purchased before the summer of 2025 are harvested.
The highlight of 2025 was a very strong operational cash flow of over half a billion euros. This is a result of matters such as the systematic storage and working capital optimisations in the second half of the year. The Group's investments similarly amounted to slightly more than half a billion euros, so our financing position remained stable. In 2026, our investments will decrease significantly, as the only notable new investment of the Äänekoski Kerto® LVL mill will start up.
Another important milestone I wish to highlight is the development of our occupational safety. Our years of systematic work are bearing fruit, as in 2025, we reached an all-time low accident frequency of 4.0 accidents per million hours worked. I wish to thank all our employees for always keeping occupational safety as a core pillar of our work. Of course, this work will also continue this year.
What will 2026 bring? The year began with yet another escalation of the geopolitical situation, as well as new tariff threats. We need to be prepared for more dramatic news in the future. This will inevitably be reflected in the consumers' outlook of the future. It is vitally important that we always adjust our cost levels to match the price levels that the global markets allow. At the strategic level, we are ready to focus more than ever on business operations with profitable growth opportunities in the future.
Geopolitical tension and uncertainty about global economic development have reduced consumer confidence, leading to weaker demand for pulp end products. Demand for softwood pulp has also been affected by the increased share of hardwood pulp in end products. These factors weaken the demand for softwood market pulp.
The cautious purchasing behaviour of consumers has a general impact on demand for packaging and weakens the predictability of paperboard sales. In Europe, over-capacity is adding to market pressure. In North America, the demand for folding boxboard is impacted by tariffs. The outlook for coated white kraftliner is better due to the limited possibilities for its replacement.
Demand for tissue paper products is expected to remain stable, and the long-term growth remains moderate. The market situation of greaseproof papers involves uncertainty due to increased Chinese competition, especially in the European market.
In much of Europe, the outlook for construction remains muted, and this continues to be reflected in muted demand for spruce plywood in particular. However, the demand for sawn timber is expected to increase due to seasonal demand in the second quarter of the year. The demand for Kerto LVL products is expected to develop moderately favourably in all main markets in the early year. In the US, this development is mainly due to new customers.
Demand for birch plywood is expected to remain stable.
In the UK, demand for sawn timber upgrading is expected to be muted over the next few months in the DIY and merchant customer segments.
Demand for wood will particularly concern felling sites planned for summer harvesting and crown wood in terms of energy wood. Demand for forest management services is expected to remain strong. Due to the decreased market prices of wood, mill prices are expected to be significantly lower in 2026 than in the previous year.
Metsä Group has its roots in the Finnish forest: its parent company Metsäliitto Cooperative is owned by approximately 90,000 forest owners. The Group focuses on pulp, paperboards, tissue and greaseproof papers, wood products, and wood supply and forest services. In 2025, Metsä Group's sales totaled EUR?5.8 billion and about 8,800 employees.
SOURCE: Metsä Group