Segment Information (Tables)

9 Months Ended

Sep. 30, 2025

Schedule of Segment Reporting Information, by Segment

Information about certain segment data for the three and nine months ended September 30, 2025 and 2024 was as follows:


Three Months Ended September 30, 2025	Pulp			Solid Wood			Total of Segments (a)
Revenues from external customers	$	339,038		$	117,234		$	456,272
Intersegment revenues		331			12,875			13,206
		339,369			130,109			469,478
Less segment expenses:
Fiber		163,745			68,964
Maintenance (b)		41,765			13,262
Freight		33,832			13,062
Labor (c)		22,472			15,249
Chemicals		32,478			—
Energy		16,185			6,683
Other (d)		41,578			22,157
Segment Operating EBITDA	$	(12,686	)	$	(9,268	)	$	(21,954	)

Purchase of property, plant and equipment	$	21,264		$	8,736		$	30,000

(a)

The total of segments’ Segment Operating EBITDA is reconciled to consolidated loss before income taxes in the Interim Consolidated Statements of Operations as follows:


Three Months Ended September 30, 2025	Pulp			Solid Wood			Total
Reconciliation to loss before income taxes
Total of segments’ Segment Operating EBITDA							$	(21,954	)
Segment depreciation and amortization		(25,725	)		(13,640	)		(39,365	)
Interest expense								(28,506	)
Other income								539
Corporate expenses and eliminations								(6,270	)
Consolidated loss before income taxes							$	(95,556	)

(b)

Maintenance expense for the pulp segment includes expenditures for planned annual maintenance downtime at our pulp mills.

(c)

Labor expense excludes maintenance and indirect labor costs.

(d)

Other expenses primarily include selling, general and administrative expenses, the net change in finished goods inventories and foreign exchange gains or losses on the revaluation of dollar denominated receivable balances.


Three Months Ended September 30, 2025	Pulp		Solid Wood		Corporate and Other		Consolidated
Revenues from external customers by major products
Pulp	$	318,622	$	—	$	—	$	318,622
Lumber		—		60,971		—		60,971
Energy and chemicals		20,416		4,894		836		26,146
Manufactured products (a)		—		12,171		—		12,171
Pallets		—		26,650		—		26,650
Biofuels (b)		—		10,183		—		10,183
Wood residuals		—		2,365		960		3,325
Total revenues from external customers	$	339,038	$	117,234	$	1,796	$	458,068

Revenues from external customers by geography (c)
U.S.	$	32,095	$	35,107	$	304	$	67,506
Foreign countries
Germany		69,143		51,672		109		120,924
China		137,506		410		—		137,916
Other countries		100,294		30,045		1,383		131,722
		306,943		82,127		1,492		390,562
Total revenues from external customers	$	339,038	$	117,234	$	1,796	$	458,068

(a)

Manufactured products primarily include cross-laminated timber and glue-laminated timber.

(b)

Biofuels include pellets and briquettes.

(c)

Sales are attributed to countries based on the ship-to location provided by the customer.


Three Months Ended September 30, 2024	Pulp		Solid Wood			Total of Segments (a)
Revenues from external customers	$	373,268	$	125,093		$	498,361
Intersegment revenues		323		7,689			8,012
		373,591		132,782			506,373
Less segment expenses:
Fiber		132,609		54,529
Maintenance (b)		32,308		13,471
Freight		36,549		12,615
Labor (c)		21,597		14,351
Chemicals		28,280		—
Energy		14,190		6,413
Other (d)		53,413		33,336
Segment Operating EBITDA	$	54,645	$	(1,933	)	$	52,712

Purchase of property, plant and equipment	$	13,688	$	13,571		$	27,259

(a)

The total of segments’ Segment Operating EBITDA is reconciled to consolidated loss before income taxes in the Interim Consolidated Statements of Operations as follows:


Three Months Ended September 30, 2024	Pulp			Solid Wood			Total
Reconciliation to loss before income taxes
Total of segments’ Segment Operating EBITDA							$	52,712
Segment depreciation and amortization		(28,651	)		(12,741	)		(41,392	)
Interest expense								(26,429	)
Other expenses								(91	)
Corporate expenses and eliminations								(2,479	)
Consolidated loss before income taxes							$	(17,679	)

(b)

Maintenance expense for the pulp segment includes expenditures for planned annual maintenance downtime at our pulp mills.

(c)

Labor expense excludes maintenance and indirect labor costs.

(d)


Three Months Ended September 30, 2024	Pulp		Solid Wood		Corporate and Other		Consolidated
Revenues from external customers by major products
Pulp	$	354,176	$	—	$	—	$	354,176
Lumber		—		49,093		—		49,093
Energy and chemicals		19,092		2,593		3,780		25,465
Manufactured products (a)		—		35,798		—		35,798
Pallets		—		26,525		—		26,525
Biofuels (b)		—		9,262		—		9,262
Wood residuals		—		1,822		—		1,822
Total revenues from external customers	$	373,268	$	125,093	$	3,780	$	502,141

Revenues from external customers by geography (c)
U.S.	$	38,706	$	56,766	$	776	$	96,248
Foreign countries
Germany		83,035		46,610		241		129,886
China		143,711		511		—		144,222
Other countries		107,816		21,206		2,763		131,785
		334,562		68,327		3,004		405,893
Total revenues from external customers	$	373,268	$	125,093	$	3,780	$	502,141

(a)

Manufactured products primarily include cross-laminated timber and glue-laminated timber.

(b)

Biofuels include pellets and briquettes.

(c)

Sales are attributed to countries based on the ship-to location provided by the customer.


Nine Months Ended September 30, 2025	Pulp		Solid Wood			Total of Segments (a)
Revenues from external customers	$	1,052,426	$	357,222		$	1,409,648
Intersegment revenues		840		34,444			35,284
		1,053,266		391,666			1,444,932
Less segment expenses:
Fiber		469,029		205,307
Maintenance (b)		130,828		34,595
Freight		102,171		39,750
Labor (c)		71,612		44,934
Chemicals		92,583		—
Energy		42,420		19,878
Other (d)		117,699		61,623
Segment Operating EBITDA	$	26,924	$	(14,421	)	$	12,503

Purchase of property, plant and equipment	$	50,826	$	23,566		$	74,392

(a)

The total of segments’ Segment Operating EBITDA is reconciled to consolidated loss before income taxes in the Interim Consolidated Statements of Operations as follows:


Nine Months Ended September 30, 2025	Pulp			Solid Wood			Total
Reconciliation to loss before income taxes
Total of segments’ Segment Operating EBITDA							$	12,503
Segment depreciation and amortization		(78,636	)		(38,264	)		(116,900	)
Interest expense								(85,072	)
Other expenses								(766	)
Corporate expenses and eliminations								(14,863	)
Consolidated loss before income taxes							$	(205,098	)

(b)

Maintenance expense for the pulp segment includes expenditures for planned annual maintenance downtime at our pulp mills.

(c)

Labor expense excludes maintenance and indirect labor costs.

(d)


Nine Months Ended September 30, 2025	Pulp		Solid Wood		Corporate and Other		Consolidated
Revenues from external customers by major products
Pulp	$	989,291	$	—	$	—	$	989,291
Lumber		—		192,689		—		192,689
Energy and chemicals		63,135		14,002		5,833		82,970
Manufactured products (a)		—		43,413		—		43,413
Pallets		—		76,413		—		76,413
Biofuels (b)		—		24,502		—		24,502
Wood residuals		—		6,203		3,085		9,288
Total revenues from external customers	$	1,052,426	$	357,222	$	8,918	$	1,418,566

Revenues from external customers by geography (c)
U.S.	$	103,122	$	122,692	$	1,553	$	227,367
Foreign countries
Germany		213,732		145,329		490		359,551
China		405,487		916		—		406,403
Other countries		330,085		88,285		6,875		425,245
		949,304		234,530		7,365		1,191,199
Total revenues from external customers	$	1,052,426	$	357,222	$	8,918	$	1,418,566

(a)

Manufactured products primarily include cross-laminated timber and glue-laminated timber.

(b)

Biofuels include pellets and briquettes.

(c)

Sales are attributed to countries based on the ship-to location provided by the customer.


Nine Months Ended September 30, 2024	Pulp		Solid Wood		Total of Segments (a)
Revenues from external customers	$	1,173,043	$	374,354	$	1,547,397
Intersegment revenues		594		26,560		27,154
		1,173,637		400,914		1,574,551
Less segment expenses:
Fiber		412,731		181,726
Maintenance (b)		123,859		35,314
Freight		113,932		40,487
Labor (c)		67,078		42,793
Chemicals		89,714		—
Energy		45,289		20,517
Purchase of pulp from CPP (d)		19,707		—
Other (e)		146,543		79,781
Segment Operating EBITDA	$	154,784	$	296	$	155,080

Purchase of property, plant and equipment	$	36,470	$	27,035	$	63,505

(a)

The total of segments’ Segment Operating EBITDA is reconciled to consolidated loss before income taxes in the Interim Consolidated Statements of Operations as follows:


Nine Months Ended September 30, 2024	Pulp			Solid Wood			Total
Reconciliation to loss before income taxes
Total of segments’ Segment Operating EBITDA							$	155,080
Segment depreciation and amortization		(83,217	)		(38,078	)		(121,295	)
Loss on disposal of investment in joint venture		(23,645	)		—			(23,645	)
Goodwill impairment		—			(34,277	)		(34,277	)
Interest expense								(80,831	)
Other income								9,147
Corporate expenses and eliminations								(11,249	)
Consolidated loss before income taxes							$	(107,070	)

(b)

Maintenance expense for the pulp segment includes expenditures for planned annual maintenance downtime at our pulp mills.

(c)

Labor expense excludes maintenance and indirect labor costs.

(d)

Purchases of pulp inventory from the Cariboo Pulp & Paper Company mill (“CPP”) prior to the disposition of the Company’s equity interest in 2024.

(e)


Nine Months Ended September 30, 2024	Pulp		Solid Wood		Corporate and Other		Consolidated
Revenues from external customers by major products
Pulp	$	1,109,279	$	—	$	—	$	1,109,279
Lumber		—		158,885		—		158,885
Energy and chemicals		63,764		11,732		7,558		83,054
Manufactured products (a)		—		87,892		—		87,892
Pallets		—		81,286		—		81,286
Biofuels (b)		—		28,671		—		28,671
Wood residuals		—		5,888		—		5,888
Total revenues from external customers	$	1,173,043	$	374,354	$	7,558	$	1,554,955

Revenues from external customers by geography (c)
U.S.	$	122,317	$	158,094	$	2,201	$	282,612
Foreign countries
Germany		247,777		148,985		601		397,363
China		425,857		1,710		—		427,567
Other countries		377,092		65,565		4,756		447,413
		1,050,726		216,260		5,357		1,272,343
Total revenues from external customers	$	1,173,043	$	374,354	$	7,558	$	1,554,955

(a)

Manufactured products primarily include cross-laminated timber and glue-laminated timber.

(b)

Biofuels include pellets and briquettes.

(c)

Sales are attributed to countries based on the ship-to location provided by the customer.

MERCER INTERNATIONAL INC. 10-Q