$MERC

MERCER INTERNATIONAL INC.

CIK:0001333274|SEC Filings

INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Revenues	$ 460,278	$ 453,524	$ 949,582	$ 960,498
Costs and expenses
Cost of sales, excluding depreciation and amortization	449,798	444,047	902,783	874,294
Cost of sales depreciation and amortization	37,903	37,451	78,569	77,741
Selling, general and administrative expenses	31,551	30,430	60,096	60,134
Operating loss	(58,974)	(58,404)	(91,866)	(51,671)
Other income (expenses)
Interest expense	(30,920)	(28,411)	(60,021)	(56,566)
Other income (expenses)	503	(1,120)	2,323	(1,305)
Total other expenses, net	(30,417)	(29,531)	(57,698)	(57,871)
Loss before income taxes	(89,391)	(87,935)	(149,564)	(109,542)
Income tax recovery	13,413	1,864	21,590	1,132
Net loss	$ (75,978)	$ (86,071)	$ (127,974)	$ (108,410)
Net loss per common share
Basic	$ (1.13)	$ (1.29)	$ (1.91)	$ (1.62)
Diluted	(1.13)	(1.29)	(1.91)	(1.62)
Dividends declared per common share	$ 0	$ 0.075	$ 0	$ 0.15

INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Cash flows from (used in) operating activities
Net loss	$ (75,978)	$ (86,071)	$ (127,974)	$ (108,410)
Adjustments to reconcile net loss to cash flows from operating activities
Depreciation and amortization	37,981	37,523	78,721	77,878
Deferred income tax recovery	(13,254)	(1,632)	(21,263)	(11,138)
Inventory impairment	29,000	11,000	51,000	11,000
Defined benefit pension plans and other post-retirement benefit plan expense (income)	(82)	175	(161)	344
Stock compensation expense	(857)	1,036	(69)	2,042
Foreign exchange transaction losses (gains)	(621)	9,361	(5,261)	17,779
Other	2,462	3,012	2,250	4,640
Changes in working capital
Accounts receivable	18,580	31,588	(13,452)	14,790
Inventories	(46,597)	(17,175)	(81,727)	(24,066)
Accounts payable and accrued expenses	(87)	(12,046)	12,579	16,386
Prepaid expenses and other	34,337	18,703	4,575	(8,760)
Net cash used in operating activities	(15,116)	(4,526)	(100,782)	(7,515)
Cash flows from (used in) investing activities
Purchase of property, plant and equipment	(12,164)	(24,331)	(25,330)	(44,413)
Proceeds from government grants	4,825	3,115	4,825	3,115
Other	821	(1,557)	1,162	(1,335)
Net cash used in investing activities	(6,518)	(22,773)	(19,343)	(42,633)
Cash flows from (used in) financing activities
Proceeds from revolving credit facilities, net	24,153	3,607	30,001	25,361
Dividend payments	0	(5,015)	0	(5,015)
Payment of finance lease obligations	(3,753)	(2,405)	(7,316)	(4,913)
Other	(4,551)	545	(5,078)	545
Net cash from (used in) financing activities	15,849	(3,268)	17,607	15,978
Effect of exchange rate changes on cash, cash equivalents and restricted cash	19	(4,407)	(512)	(4,256)
Net decrease in cash, cash equivalents and restricted cash	(5,766)	(34,974)	(103,030)	(38,426)
Cash, cash equivalents and restricted cash, beginning of period	89,541	181,473	186,805	184,925
Cash, cash equivalents and restricted cash, end of period	83,775	146,499	83,775	146,499
Supplemental cash flow disclosure:
Cash paid for interest	29,183	28,209	54,230	53,415
Cash paid for income taxes	0	12,679	0	29,591
Supplemental schedule of non-cash investing and financing activities:
Leased production and other equipment	$ 1,011	$ 4,072	$ 4,413	$ 5,460

INTERIM CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets
Cash and cash equivalents	$ 78,775	$ 186,805
Restricted cash	5,000	0
Accounts receivable, net	308,554	298,889
Inventories	375,301	359,401
Prepaid expenses and other	15,720	20,707
Total current assets	783,350	865,802
Property, plant and equipment, net	1,028,469	1,115,490
Amortizable intangible assets, net	24,335	26,110
Operating lease right-of-use assets	5,696	6,818
Pension asset	11,328	12,975
Deferred income tax assets	4,929	7,839
Other long-term assets	11,800	6,386
Total assets	1,869,907	2,041,420
Current liabilities
Accounts payable and other	270,496	269,217
Pension and other post-retirement benefit obligations	718	745
Current debt	329,662	13,664
Total current liabilities	600,876	283,626
Long-term debt	1,305,711	1,605,144
Pension and other post-retirement benefit obligations	10,786	10,392
Operating lease liabilities	3,048	3,858
Deferred income tax liabilities	33,079	58,298
Other long-term liabilities	14,381	12,042
Total liabilities	1,967,881	1,973,360
Shareholders’ equity
Common shares $1 par value; 200,000,000 authorized; 67,018,000 issued and outstanding (2025 - 66,983,000)	67,083	66,871
Additional paid-in capital	365,066	365,357
Accumulated deficit	(404,990)	(277,016)
Accumulated other comprehensive loss	(125,133)	(87,152)
Total shareholders' equity (deficit)	(97,974)	68,060
Total liabilities and shareholders’ equity	1,869,907	2,041,420
Commitments and contingencies (Note 14)