NASDAQ$MERC
Mercer International Inc · Q2 2024 earnings
Q2 2024 earnings · · Investor relations
Briefing
Mercer International Inc. experienced improved operating cash flows and liquidity driven by strengthened pulp markets, but reported a net loss due to a non-cash impairment.
Mercer International Inc. reported second quarter Operating EBITDA of $30.4 million, an increase from negative Operating EBITDA of $68.7 million in the same quarter of 2023. Net loss was $67.6 million ($1.01 per share), which included a non-cash impairment of $34.3 million.
- Second quarter Operating EBITDA of $30.4 million and net loss of $67.6 million.
- Strengthened pulp markets drive improvement in operating cash flows and liquidity.
- Pulp prices are expected to soften slightly in the third quarter of 2024.
- Lumber prices are expected to remain relatively steady in the third quarter.
Headline financials
Revenue & EPS history
Mercer · Revenue · Quarterly
$499M
Revenue by segment
Mercer · $468M total across 2 segments · Q3 2023
- Pulp Segment$349M-23.6%74.5%
- Solid Wood Segment$120M+61.0%25.5%
Forward guidance
The company expects pulp prices to soften slightly and lumber prices to remain relatively steady in the third quarter of 2024.
Tailwinds
- Continue to expect to realize the synergies at Torgau as market and economic conditions improve.
- Proceed with certain previously announced, high-return capital projects at the Torgau facility designed to increase the facility's lumber production capacity to approximately 440 million board feet and planing capacity to approximately 145 million board feet.
- Completing optimization projects at our Mercer Spokane facility which are expected to have a meaningful impact on our production costs.
- Believe we are well-positioned to realize on strengthened pulp markets going into the second half of 2024.
- Expect stable per unit fiber costs in the third quarter of 2024.
Headwinds
- Pulp prices to soften slightly in the third quarter of 2024 due to easing supply-side disruptions and lower seasonal demand.
- Lumber pricing was relatively flat in the second quarter of 2024 compared to the first quarter of 2024 due to continued weakness in both the U.S. and Europe.
- Lumber prices to remain relatively steady in the third quarter as demand continues to be impacted by the high interest rate environment and economic uncertainty.
- Recognized a non-cash goodwill impairment of $34.3 million related to the Torgau facility as a result of ongoing weakness in European lumber, pallet and biofuel markets stemming from high interest rates and other economic conditions.
- Solid wood segment continues to be negatively impacted by the high interest rate environment.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q2 2024
+0.3%
Avg return
Earnings day
-1.2%
Avg return
5 days after
-1.7%
Avg return
30 days after
44%
28 / 64 earnings
Positive
+24.5%
Q4 2015
Best reaction
-15.5%
Q1 2010
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | +3.6% | -26.9% | -24.3% | |
| Q3 2025 | -6.9% | -6.3% | -11.7% | |
| Q1 2025 | -7.3% | -20.0% | -15.0% | |
| Q4 2024 | +16.9% | +22.8% | -1.1% | |
| Q3 2024 | -0.2% | -2.3% | -4.3% | |
| Q2 2024 | +6.6% | +0.8% | -12.6% | |
| Q1 2024 | -2.4% | -3.3% | -17.2% | |
| Q4 2023 | +9.1% | +7.7% | +20.4% | |
| Q3 2023 | +22.4% | +19.3% | +23.4% | |
| Q2 2023 | +7.1% | -4.9% | +7.1% | |
| Q1 2023 | -5.1% | -3.6% | -6.7% | |
| Q4 2022 | -2.4% | -5.6% | -17.8% | |
| Q3 2022 | -4.7% | -11.6% | -3.4% | |
| Q2 2022 | +0.0% | -5.4% | +1.8% | |
| Q1 2022 | +1.4% | +3.5% | -5.4% | |
| Q4 2021 | +1.4% | +4.6% | +11.0% | |
| Q3 2021 | +2.2% | +0.3% | +5.7% | |
| Q2 2021 | -0.3% | +0.9% | +0.4% | |
| Q1 2021 | -3.8% | -5.8% | -13.4% | |
| Q4 2020 | -4.8% | -2.2% | +5.9% | |
| Q3 2020 | +6.8% | +16.5% | +39.9% | |
| Q2 2020 | -6.9% | -10.5% | +6.0% | |
| Q1 2020 | -2.9% | -13.9% | -16.1% | |
| Q4 2019 | -5.5% | -4.5% | -30.8% | |
| Q3 2019 | +3.4% | +6.9% | +1.9% | |
| Q2 2019 | -5.4% | -10.6% | -7.6% | |
| Q1 2019 | +23.8% | +23.8% | +2.0% | |
| Q4 2018 | -2.3% | -3.7% | -9.4% | |
| Q3 2018 | -8.0% | -13.0% | -30.8% | |
| Q2 2018 | +2.1% | +7.2% | +5.7% | |
| Q1 2018 | +1.5% | +7.1% | +20.6% | |
| Q4 2017 | +1.5% | -2.3% | -0.8% | |
| Q3 2017 | -2.4% | +2.8% | +0.0% | |
| Q2 2017 | -7.0% | -9.0% | -9.0% | |
| Q1 2017 | -2.0% | -5.2% | -7.6% | |
| Q4 2016 | +0.4% | +4.2% | +2.1% | |
| Q3 2016 | +1.9% | +1.3% | +23.2% | |
| Q2 2016 | -3.2% | -2.7% | +2.9% | |
| Q1 2016 | -12.8% | — | — | |
| Q4 2015 | +24.5% | — | — | |
| Q3 2015 | +1.7% | — | — | |
| Q2 2015 | -0.9% | — | — | |
| Q1 2015 | -2.4% | — | — | |
| Q4 2014 | +0.9% | — | — | |
| Q3 2014 | +11.4% | — | — | |
| Q2 2014 | +0.3% | — | — | |
| Q1 2014 | +8.3% | — | — | |
| Q4 2013 | +0.6% | — | — | |
| Q3 2013 | +5.6% | — | — | |
| Q2 2013 | +0.0% | — | — | |
| Q1 2013 | +0.5% | — | — | |
| Q4 2012 | -0.7% | — | — | |
| Q3 2012 | -0.1% | — | — | |
| Q2 2012 | +7.2% | — | — | |
| Q1 2011 | -0.1% | — | — | |
| Q1 2012 | +0.6% | — | — | |
| Q4 2009 | -0.3% | — | — | |
| Q4 2011 | -0.3% | — | — | |
| Q3 2011 | -5.7% | — | — | |
| Q3 2010 | -5.7% | — | — | |
| Q2 2010 | -9.1% | — | — | |
| Q2 2011 | -9.1% | — | — | |
| Q4 2010 | -9.1% | — | — | |
| Q1 2010 | -15.5% | — | — |
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