Metsä Board, part of Metsä Group, has experienced a prolonged period of unsatisfactory profitability and cash flow performance. Intensified competition and more cautious consumer behaviour have reduced demand for paperboard packaging. Additionally, high wood raw material costs and the weak development of the pulp market have negatively impacted the company's performance and competitiveness.

In response to the changing market environment, the company is accelerating growth and strengthening its services in Europe by leveraging its strong market position, leading sustainability performance, and expertise in developing material-efficient, safe, and recyclable packaging solutions for customers. This development is further supported by the tightening requirements for packaging of the EU Packaging and Packaging Waste Regulation (PPWR).

The company's objective is to maintain a strong market position in the U.S. and drive growth especially through existing customer relationships. Over the past ten years, Metsä Board's growth has been strongly focused on the U.S. market. Increasing global uncertainty and import tariffs have together temporarily reduced Metsä Board's paperboard deliveries to the United States. Due to growth-related uncertainties, new growth efforts are also being directed toward other markets.

Metsä Board's Board of Directors has today decided to launch a cost savings and profitability improvement programme, targeting an annual EBITDA increase of EUR 200 million. The programme consists of cost savings (EUR 100 million) and profitability improvement (EUR 100 million). Implementation will begin immediately by initiating project planning and execution under a new management structure. Progress will be reported regularly.

The programme is expected to improve comparable EBITDA by EUR 100 million in 2026, with the majority of the impact in the second half of the year. The remaining impact is expected to be realised by the end of 2027. Additionally, the closure of the Tako mill and efficiency improvements at the Kyro mill are expected to contribute approximately EUR 30 million in annual EBITDA improvement starting from Q4 2025.

In addition to delivering cost savings, the programme sharpens commercial focus by redefining key customer segments and strategically aligning sales efforts to support profitable growth.

Product development will focus on meeting evolving regulatory requirements, particularly in the fast-growing food and foodservice packaging segments, healthcare, and other strongest growing brand segments. Supply chain efficiency will be improved by streamlining the product portfolio and reducing complexity.

To strengthen cash flow, Metsä Board aims to release at least EUR 150 million in working capital by the end of 2025. The company will conduct a critical review of ongoing investment pre-engineering projects and its ERP programme and provide an update on them latest in its interim report for January-September 2025. In addition, Metsä Board will update its strategy and renew its financial targets - currently ROCE >12% and net debt to EBITDA < 2.5 - by the end of first quarter of 2026.

Progress of the programme will be reported on a regular basis.

CEO Esa Kaikkonen: "We must take immediate actions to improve our profitability and competitiveness. Our cost structure must be adjusted to reflect current market conditions. Before launching the programme, we conducted a thorough analysis of our operating environment and our strengths. Our leading position in high-quality, fresh fibre-based packaging solutions, long-term customer relationships, and committed personnel form a strong foundation for profitability improvement."

Metsä Board's half-year financial report 2025

Metsä Board will publish its half-year financial report for January-June 2025 on 31 July 2025 at 12.00 EEST. Webcast presentation and conference call in English will be held on the same day at 3:00 pm. EEST. The event can be followed via the link: https://metsaboard.events.inderes.com/q2-2025.

METSÄ BOARD CORPORATION