Metsä Board returned to a positive comparable operating result of EUR 3.1 million in Q2 2026, driven by growing paperboard volumes and rigorous cost management.
- Metsä Board achieved a comparable operating result of EUR 3.1 million in Q2 2026, marking its first profitable quarter on an operating basis since early 2025.
- The ongoing transformation programme delivered an annual EBITDA run-rate improvement of EUR 135 million toward its EUR 200 million target for 2027.
- Weakness in the global market pulp sector and geopolitical pressures on logistics costs continue to pose challenges for the second half of 2026.
Operational Turnaround Driven by Paperboard Delivery Growth
Metsä Board Corporation reported a recovery in profitability for the second quarter of 2026. Consolidated sales for April–June 2026 reached EUR 431.9 million, compared to EUR 460.1 million in the corresponding period of 2025. Despite lower net sales year-on-year, the company’s comparable operating result turned positive at EUR 3.1 million (0.7% of sales), rebounding from an operating loss of EUR 22.7 million in Q2 2025. Comparable EBITDA rose to EUR 30.3 million (7.0% of sales), up from EUR 6.1 million a year earlier.
The improvement was supported by expanding delivery volumes across both the Consumer Packaging and Retail Packaging business areas compared to Q1 2026. European market share for folding boxboard saw a slight increase, while order inflows at Finnish mills outperformed the previous year's levels. In addition, average selling prices for folding boxboard and white kraftliners demonstrated positive momentum toward the end of the review period.
Transformation Programme Progress and Mill-Level Performance
A key factor in stabilizing operating margins has been the structural efficiency initiative. By 30 June 2026, Metsä Board’s transformation programme achieved an annual run-rate EBITDA improvement of approximately EUR 135 million, bringing the company closer to its overall target of EUR 200 million by 2027. Of this total run-rate, approximately EUR 45 million has already materialized in reported EBITDA.
Performance across the production network remained uneven. The Husum integrated mill continued to post losses during the second quarter, making its operational improvement a primary focus for management. To secure long-term financial flexibility, Metsä Board also concluded a binding loan agreement to refinance its EUR 250 million bond maturing in September 2027. Operating cash flow strengthened during the quarter to EUR 8.7 million, reversing negative cash flows recorded in previous quarters.
Market Pulp Headwinds and Geopolitical Cost Pressures
The global market for long-fibre pulp remained constrained by subdued demand and low capacity utilization in paper and board manufacturing across Europe and China. Consequently, market-driven production curtailments at Metsä Fibre’s Joutseno pulp mill continued through the end of June. Metsä Fibre’s contribution to Metsä Board’s overall results remained negative.
External cost structures were impacted by rising oil and natural gas prices stemming from conflict in Iran, which drove up transport and chemical expenses. High energy self-sufficiency and strict operational spending controls partially mitigated these input cost increases. On the sustainability front, Metsä Board expanded its climate targets to include end-of-life product emissions, securing Science Based Targets initiative (SBTi) validation.
Second-Half Outlook and Strategic Positioning
Looking ahead to the third quarter of 2026, Metsä Board expects paperboard delivery volumes and operational cash flow to remain around Q2 levels. However, the operating environment will be influenced by extensive scheduled maintenance shutdowns at the Husum and Kemi integrated mills, alongside continued weakness in the market pulp segment and adverse currency hedging effects.
— Our profitability continued to improve in Q2/2026. Comparable operating result returned to a positive level for the first time since Q1/2025. The result was supported by growing paperboard volumes and the systematic implementation of efficiency improvement and cost-saving measures. In the long term, the growing need for renewable and recyclable packaging solutions will support demand for fibre-based packaging — stated CEO Esa Kaikkonen.
Summary: Execution of Efficiency Strategy Crucial for H2
Metsä Board’s Q2 2026 performance demonstrates that commercial gains in folding boxboard and structural transformation measures are successfully restoring operating profitability. While upcoming mill maintenance shutdowns and raw material cost inflation present near-term hurdles, the company's focus on premium virgin fibre paperboards and working capital management positions it to capitalize on long-term demand for sustainable packaging.
Source: Metsä Board