Metsä Board's Board of Directors has today approved the company's new strategy and long-term financial targets. During the strategy period 2026-2030, the company aims to strengthen its position as a leading partner for consumer brand packaging solutions.

The continued uncertainty in the operating environment and the unpredictability of the markets highlight the importance of profitability, cost efficiency and a solid financial position throughout the strategy period.

The strategy period will progress in two phases. In the first phase, the company will continue implementing the cost savings and profitability improvement programme launched on 31 July 2025, alongside the execution of its commercial strategy. The programme aims to deliver a EUR 200 million improvement in EBITDA by the end of 2028. Measures focus on streamlining the cost structure, improving production efficiency and returning the business to a growth path.

In the second phase, the focus shifts to growth through brand-enhancing consumer packaging solutions. These solutions emphasise material efficiency, recyclability, regulatory compliance and the product's commercial appeal.

Lead the Pack -strategy

Metsä Board's renewed Lead the Pack strategy is built around three business areas with clearly defined roles and targets. The business areas are: Consumer Packaging, Retail Packaging and Market Pulp. Financial reporting will remain unchanged and continue at the Group level.

Consumer Packaging - a strategic growth area

Growth will be driven by focusing on packaging solutions for food, food service and healthcare, as well as other fast-growing segments of demanding consumer goods. The company aims to strengthen its market position through both organic and inorganic actions. The target is annual revenue growth of over 4%, exceeding the estimated 3-4% annual growth of the target market.

Retail Packaging - improving profitability

The aim is to improve profitability in high-quality branded packaging by fully utilising the existing production capacity in close cooperation with corrugated and converting partners. The global growth of the target market is estimated at 1-2 percent per year.

Market Pulp - competitiveness through self-sufficiency

The company aims to reduce its current market pulp exposure to achieve a more balanced and stable cash flow. Demand for softwood paper market pulp is expected to decline over the strategy period. Metsä Board's own market pulp capacity is partly integrated with its Consumer Packaging and Retail Packaging businesses. In addition, the pulp capacity of associated company Metsä Fibre is highly competitive, driven by recent capacity-expanding investments and advanced by-product solutions. Self-sufficiency in pulp strengthens the company's competitiveness and supports its long-term growth.

Strategy execution

The Lead the Pack strategy is executed through four strategic pillars - Safe, Shift, Scale and Streamline. These pillars guide safety and sustainability, transformation, customer centricity and profitability turnaround. Together, they ensure consistent strategy implementation and long-term value creation. Progress is monitored through key performance indicators, with developments reported on a quarterly basis.

Metsä Board has invested around EUR 1 billion over the past five years to strengthen the competitiveness of its industrial operations. Large investments aimed at improving product quality, mill competitiveness, environmental performance, and capacity growth have now been completed. As a result of these investments, the company has increased its annual production capacity by approximately 250,000 tonnes while reducing its fossil carbon dioxide emissions by 79 percent compared to 2018. Currently, 93 per cent of its total energy consumption is fossil-free. Metsä Board is now focusing on fully realising the added value generated by these investments. No significant new investments are planned for the current strategy period.

Financial and sustainability targets and dividend policy

The strategic period focuses on restoring profitability, maintaining a strong financial position, and setting the course toward profitable growth. The financial targets and dividend policy support the long-term development of the business and the creation of shareholder value.

Financial targets for 2026-2030:

• Annual revenue growth (CAGR) of over 4% in the Consumer Packaging business (baseline year 2025)

• Comparable return on capital employed (ROCE): at least 8% in 2027-2028 and at least 12% from 2029 onwards
• Net debt to comparable EBITDA: maximum of 2.5 (unchanged)

Sustainability targets (unchanged): Metsä Board will review the targets at a later stage and will communicate any potential updates separately.

Dividend policy (unchanged): Target is to distribute a dividend of at least half of the result for the financial period over time, taking into account the company's future investment and development needs. 

Interim report and strategy update on 29 April 2026

Metsä Board will publish its January-March 2026 interim report on 29 April 2026. On the publication date, the company will hold an extended webcast in which management will cover the Q1 results as well as the key themes of the new strategy.
 

METSÄ BOARD CORPORATION