MERC vs IP: Paper and Packaging Giants Go Head-to-Head

Mercer International (NASDAQ:MERC) conscionable reported a Q4 2025 that was, successful a word, brutal. International Paper (NYSE:IP) had its ain messy quarter, buried nether restructuring charges from its DS Smith transformation. Both companies woody successful wood products and pulp, but they are moving successful other directions astatine precise antithetic speeds.

Mercer posted Q4 EPS of -$4.61 against a statement estimation of -$0.83, a miss that signals the commodity rhythm has gone from achy to existential. The header operator was a $238.7 cardinal non-cash impairment charge, including a $203.5 cardinal write-down connected its Peace River hardwood pulp mill. Shareholders' equity has collapsed to $68.06 million, down 84% year-over-year, portion full liabilities beryllium astatine $1.97 cardinal against full assets of $2.04 billion. That is simply a institution operating with astir nary fiscal cushion.

International Paper's Q3 2025 losses look alarming connected the surface, with a $1.01 cardinal impairment connected its Global Cellulose Fibers concern and $675 cardinal successful accelerated depreciation from mill closures. But adjusted EBITDA came successful astatine $859 million, up 28% sequentially, and operating currency travel reached $605 million. IP is taking symptom by choice. Mercer is absorbing symptom it cannot control.

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Mercer is trapped successful hardwood pulp. NBHK realizations fell to $528 per ADMT, down astir 9% year-over-year, and the Peace River mill has go a liability. CEO Juan Carlos Bueno said the institution is "considering each options successful respect of this asset." That is firm connection for a hard determination ahead.