January-December 2025 (compared to 1-12/2024)

• Sales were EUR 1,775.7 million (1,938.6).
• The comparable operating result was EUR -80.2 million (69.0), or -4.5% of sales (3.6). Operating result was EUR -169.5 million (62.3).
• Comparable earnings per share were EUR -0.24 (0.09), and earnings per share were EUR -0.44 (0.07).
• Comparable return on capital employed was -3.1% (3.2).
• Net cash flow from operations was EUR 239.6 million (37.8).

October-December 2025 (compared to 10-12/2024)

• Sales were EUR 393.5 million (446.0).
• The comparable operating result was EUR -34.7 million (-3.6), or -8.8% (-0.8) of sales. Operating result was EUR -99.2 million (-1.7).
• Comparable earnings per share were EUR -0.10 (-0.03), and earnings per share were EUR -0.25 (-0.02).
• Comparable return on capital employed was -5.6% (-0.3).
• Net cash flow from operations was EUR 155.6 million (49.7).

Events in October-December 2025

• In October-December, paperboard deliveries were reduced due to seasonality.
• By the end of the year, the impact of the measures implemented in the change programme on EBITDA (run-rate) is approximately EUR 52 million (total target EUR 200 million by the end of 2027). The impact will be reflected in the result gradually starting from 2026.
• The release of working capital supported the October-December cash flow from operations, which was EUR 156 million (Q4'24: 50)
• As a result of the change negotiations concerning all personnel, a total of 310 positions were reduced at Metsä Board. In connection with the negotiations, the company recognised EUR 14 million in one-off costs in comparable operating result for October-December 2025 as an item affecting comparability.
• The EUR 60 million renewal project at Simpele board mill was completed.
• The demand for market pulp remained subdued in both Europe and China. Pulp production at associated company Metsä Fibre's Joutseno mill was paused from June until December. Metsä Fibre is also preparing for production curtailments in 2026.
• Insurance compensation negotiations related to the gas explosion and the repair shutdown of the recovery boiler (in 2024) at Metsä Fibre's bioproduct mill in Kemi have been completed. The comparable operating result for October-December 2025 includes insurance compensation of approximately EUR 14 million, including the impact of Metsä Fibre's share of the result.
• Metsä Board signed a EUR 250 million revolving credit facility with a margin tied to long-term climate and energy efficiency targets.
• Metsä Board achieved the highest A rating from the environmental organisation CDP in all three assessment categories: Climate Change, Forests, and Water Security.
• Metsä Group's ERP system renewal project, which also involves Metsä Board, has been suspended for the time being. In connection with the project, Metsä Board has recorded a EUR 35 million impairment in its operating result for October-December 2025 as an item affecting comparability. The project's continuation, scope and method of implementation will be reassessed later.

Board of Directors' proposal for the distribution of profit

The Board of Directors proposes to the Annual General Meeting to be held on 19 March 2026 that no dividend be paid for the 2025 financial period. Earnings per share was EUR -0.44 for the financial period.

Metsä Board's CEO Esa Kaikkonen:

"In 2025, our business was negatively affected by weak consumer demand, US import tariffs, overcapacity in Europe and persistently high raw material costs. The situation also remained challenging in the pulp market, which had a significant impact on Metsä Board's result both directly and through its holding in Metsä Fibre. Towards the end of the year, the cost level eased due to both declining raw material prices and our own efficiency measures.

The challenging market conditions and the need for renewal have guided us to focus on solutions that we can control. Our ongoing transformation programme aims to improve our annual EBITDA by about EUR 200 million by the end of 2027. The programme focuses on cost savings, strengthening commercial capabilities, and simplifying and streamlining operations. The earnings impact of the measures implemented by the end of the year is approximately EUR 52 million (run-rate). The  profitability improvement actions will continue systematically toward the set target.

In the short term, our key objective has been to secure cash flow by releasing working capital. The EUR 150 million target set in the summer was clearly exceeded, and in the second half of the year, approximately EUR 300 million of working capital was released, mainly through inventory optimisation and financing arrangements for wood purchases. Cash flow from operations strengthened in 2025, amounting to EUR 240 million (2024: 38). Cash flow after investments was also clearly positive, totalling EUR 118 million (2024: -92).

Sales in 2025 were EUR 1,776 million (2024: 1,939) and the comparable operating result was clearly negative at EUR -80 million (2024: 69). Folding boxboard deliveries decreased by approximately 10%, or 100,000 tonnes. The largest decline came from U.S. food service cartonboard. The sales prices of paperboards in euros remained almost unchanged. Profitability was also weakened by the decline in market pulp prices, Metsä Fibre's negative share of result, market driven production curtailments, and a decrease in the sale of unused emission allowances.

At the production unit level, the greatest challenges were faced by the Husum integrated mill, which was particularly affected by US import tariffs and the weak pulp market. The overall result of the integrated mill remained clearly negative and was the single most significant factor behind Metsä Board's loss for the entire financial year. On the other hand, Husum is well positioned for an improvement in its financial performance as the market environment stabilises and the measures under the transformation programme strengthen its operational efficiency. In addition, the acquisition of the Winschoten sheeting and distribution hub, announced after the financial period, will enhance the utilisation of Husum's capacity in the company's key European markets.

In October, the investment to renew the paperboard machine at the Simpele mill was completed, improving the quality of folding boxboard and making the mill nearly fossil-free in its production.

The substantial investments made in recent years have largely been completed, and the next step is to take full advantage of them. The investment level in 2026 is expected to be significantly lower than in 2025, reflecting a shift from the investment phase towards improved efficiency and profitability.

In the last quarter of the year, we held extensive change negotiations, which resulted in the termination of approximately 310 jobs. These decisions were difficult and painful, but necessary to ensure the company's long-term competitiveness.

Our eyes are on the future, and the foundation for building it is strong: skilled personnel, long-term customer relationships, sustainable operations and competitive products. In recent months, we have significantly enhanced our commercial capabilities. Furthermore, we operate in a market with significant long-term growth potential, driven in particular by the replacement of plastics and stricter regulation. The renewed strategy will be published in the coming weeks and will clarify our direction towards sustainable growth.

Our financial position remains strong. Through our holding in Metsä Fibre, we are more than self-sufficient in pulp, and our shareholding in Pohjolan Voima improves our self-sufficiency in energy. These investments bring stability to our operations."

Near-term outlook

Outlook for the operating environment for the next 3-6 months

Consumers' cautious purchasing behavior continues to weigh on packaging demand, making sales development less predictable. In Europe, excess capacity intensifies competitive pressure, while in North America, import tariffs are impacting the demand for paperboard.

Global demand for market pulp continues to be constrained by low utilisation rates in the paper and paperboard industry. In Europe, market-based production curtailments may continue due to weak demand, and cost and currency pressures.

The declining trend in pulpwood prices in Finland and Sweden that started last summer will support Metsä Board's profitability from 2026 onwards.

Exchange rate fluctuations, including hedging, are expected to have a clearly negative impact on earnings compared to last year. For the first quarter of the year, the estimated impact on results is around EUR -20 million compared with the fourth quarter of 2025.

Company-specific outlook for January-March 2026 (October-December 2025)

Metsä Board's operational steering remains cash-flow-based. Production adjustments based on the market situation will continue if demand does not improve The adjustments are expected to focus particularly on the Husum integrated mill, reflecting the subdued demand for market pulp and paperboard in North America

Working capital management remains key to securing cash flow for business operations. In the first quarter, working capital will increase due to seasonality and lower accounts payable compared with the previous quarter.

Delivery volumes of folding boxboard are expected to increase, while volumes of white kraftliners are expected to remain stable

Variable costs are expected to decrease significantly. This development is driven by the decline in pulpwood prices and the measures implemented under the company's transformation programme. In addition, reduced personnel and ICT costs will bring down fixed costs.

There will be fewer planned maintenance and investment shutdowns at mills than in the fourth quarter.

The result for October-December 2025 included approximately EUR 14 million of insurance compensations related to the gas explosion at Metsä Fibre's bioproduct mill in Kemi in the spring of 2024. The compensation negotiations have now been finalised.

METSÄ BOARD CORPORATION