MERCER INTERNATIONAL INC. Segments Disclosure
Note 18. Segment Information
The Company is managed based on the primary products it manufactures: pulp and solid wood, whose operating results are regularly reviewed by the Company’s CODM to assess segment performance and to make decisions about resource allocation. . Accordingly, the Company's four pulp mills are aggregated into the pulp . The Friesau sawmill, the Torgau facility and the mass timber facilities are aggregated into the solid wood segment.
Revenues between segments are accounted for at prices that approximate fair value. These include revenues from the sale of residual fiber from the solid wood segment to the pulp segment for use in the pulp production process and from the sale of residual fuel from the pulp segment to the solid wood segment for use in energy production.
The CODM uses net income (loss) before interest, tax, depreciation and amortization and impairments of long-lived assets (“Segment Operating EBITDA”) as the primary measure in its review of segment operating performance, using the measure to assess segment trends and identify strategies to improve the allocation of resources among the reportable segments.
Total assets and the income or loss items following Segment Operating EBITDA, other than depreciation, amortization and impairment of long-lived assets, are not allocated to the segments, as those items are reviewed separately by management.
Information about certain segment data for the years ended December 31, 2025, 2024 and 2023, was as follows:
Year Ended December 31, 2025 |
|
Pulp |
|
|
Solid Wood |
|
|
Total of Segments (a) |
|
|||
Revenues from external customers |
|
$ |
1,386,680 |
|
|
$ |
467,438 |
|
|
$ |
1,854,118 |
|
Intersegment revenues |
|
|
1,083 |
|
|
|
45,246 |
|
|
|
46,329 |
|
|
|
|
1,387,763 |
|
|
|
512,684 |
|
|
|
1,900,447 |
|
Less segment expenses: |
|
|
|
|
|
|
|
|
|
|||
Fiber |
|
|
635,426 |
|
|
|
269,915 |
|
|
|
|
|
Maintenance (b) |
|
|
177,857 |
|
|
|
43,827 |
|
|
|
|
|
Freight |
|
|
142,381 |
|
|
|
52,350 |
|
|
|
|
|
Labor (c) |
|
|
93,104 |
|
|
|
59,573 |
|
|
|
|
|
Chemicals |
|
|
124,821 |
|
|
|
— |
|
|
|
|
|
Energy |
|
|
42,038 |
|
|
|
30,512 |
|
|
|
|
|
Other (d) |
|
|
156,535 |
|
|
|
81,699 |
|
|
|
|
|
Segment Operating EBITDA |
|
$ |
15,601 |
|
|
$ |
(25,192 |
) |
|
$ |
(9,591 |
) |
|
|
|
|
|
|
|
|
|
|
|||
Purchase of property, plant and equipment |
|
$ |
63,059 |
|
|
$ |
25,417 |
|
|
$ |
88,476 |
|
Year Ended December 31, 2025 |
|
Pulp |
|
|
Solid Wood |
|
|
Total |
|
|||
Reconciliation of revenues |
|
|
|
|
|
|
|
|
|
|||
Total of segments’ revenues |
|
|
|
|
|
|
|
$ |
1,900,447 |
|
||
Sandalwood business revenues |
|
|
|
|
|
|
|
|
13,952 |
|
||
Elimination of intersegment revenues |
|
|
|
|
|
|
|
|
(46,329 |
) |
||
Consolidated revenues |
|
|
|
|
|
|
|
$ |
1,868,070 |
|
||
|
|
|
|
|
|
|
|
|
|
|||
Reconciliation to loss before income taxes |
|
|
|
|
|
|
|
|
|
|||
Total of segments’ Segment Operating EBITDA |
|
|
|
|
|
|
|
$ |
(9,591 |
) |
||
Segment depreciation and amortization |
|
|
(104,727 |
) |
|
|
(54,689 |
) |
|
|
(159,416 |
) |
Impairments of long-lived assets |
|
|
(203,435 |
) |
|
|
(12,247 |
) |
|
|
(215,682 |
) |
Interest expense |
|
|
|
|
|
|
|
|
(114,834 |
) |
||
Other income |
|
|
|
|
|
|
|
|
1,372 |
|
||
Corporate expenses and eliminations |
|
|
|
|
|
|
|
|
(13,060 |
) |
||
Consolidated loss before income taxes |
|
|
|
|
|
|
|
$ |
(511,211 |
) |
||
|
|
|
|
|
|
|
|
|
|
|||
Reconciliation of purchases of property, plant and equipment |
|
|
|
|
|
|
|
|
|
|||
Total of segments’ purchase of property, plant and equipment |
|
|
|
|
|
|
|
$ |
88,476 |
|
||
Corporate and other |
|
|
|
|
|
|
|
|
107 |
|
||
Consolidated purchase of property, plant and equipment |
|
|
|
|
|
|
|
$ |
88,583 |
|
||
inventories and foreign exchange gains or losses on the revaluation of dollar denominated receivable balances.
Year Ended December 31, 2025 |
|
Pulp |
|
|
Solid Wood |
|
|
Corporate |
|
|
Consolidated |
|
||||
Revenues from external customers by major products |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Pulp |
|
$ |
1,304,823 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,304,823 |
|
Lumber |
|
|
— |
|
|
|
247,572 |
|
|
|
— |
|
|
|
247,572 |
|
Energy and chemicals |
|
|
81,857 |
|
|
|
18,992 |
|
|
|
7,663 |
|
|
|
108,512 |
|
Manufactured products (a) |
|
|
— |
|
|
|
57,470 |
|
|
|
— |
|
|
|
57,470 |
|
Pallets |
|
|
— |
|
|
|
100,124 |
|
|
|
— |
|
|
|
100,124 |
|
Biofuels (b) |
|
|
— |
|
|
|
34,454 |
|
|
|
— |
|
|
|
34,454 |
|
Wood residuals |
|
|
— |
|
|
|
8,826 |
|
|
|
6,289 |
|
|
|
15,115 |
|
Total revenues from external customers |
|
$ |
1,386,680 |
|
|
$ |
467,438 |
|
|
$ |
13,952 |
|
|
$ |
1,868,070 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenues from external customers by geography (c) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. |
|
$ |
141,946 |
|
|
$ |
155,311 |
|
|
$ |
1,689 |
|
|
$ |
298,946 |
|
Foreign countries |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Germany |
|
|
280,460 |
|
|
|
193,693 |
|
|
|
1,121 |
|
|
|
475,274 |
|
China |
|
|
547,697 |
|
|
|
1,672 |
|
|
|
803 |
|
|
|
550,172 |
|
Other countries |
|
|
416,577 |
|
|
|
116,762 |
|
|
|
10,339 |
|
|
|
543,678 |
|
|
|
|
1,244,734 |
|
|
|
312,127 |
|
|
|
12,263 |
|
|
|
1,569,124 |
|
Total revenues from external customers |
|
$ |
1,386,680 |
|
|
$ |
467,438 |
|
|
$ |
13,952 |
|
|
$ |
1,868,070 |
|
Year Ended December 31, 2024 |
|
Pulp |
|
|
Solid Wood |
|
|
Total of Segments (a) |
|
|||
Revenues from external customers |
|
$ |
1,548,556 |
|
|
$ |
485,991 |
|
|
$ |
2,034,547 |
|
Intersegment revenues |
|
|
842 |
|
|
|
34,482 |
|
|
|
35,324 |
|
|
|
|
1,549,398 |
|
|
|
520,473 |
|
|
|
2,069,871 |
|
Less segment expenses: |
|
|
|
|
|
|
|
|
|
|||
Fiber |
|
|
555,832 |
|
|
|
238,992 |
|
|
|
|
|
Maintenance (b) |
|
|
148,978 |
|
|
|
45,080 |
|
|
|
|
|
Freight |
|
|
145,706 |
|
|
|
52,890 |
|
|
|
|
|
Labor (c) |
|
|
88,460 |
|
|
|
54,884 |
|
|
|
|
|
Chemicals |
|
|
121,053 |
|
|
|
— |
|
|
|
|
|
Energy |
|
|
58,835 |
|
|
|
28,488 |
|
|
|
|
|
Purchase of pulp from CPP (d) |
|
|
19,707 |
|
|
|
— |
|
|
|
|
|
Other (e) |
|
|
149,913 |
|
|
|
104,529 |
|
|
|
|
|
Segment Operating EBITDA |
|
$ |
260,914 |
|
|
$ |
(4,390 |
) |
|
$ |
256,524 |
|
|
|
|
|
|
|
|
|
|
|
|||
Purchase of property, plant and equipment |
|
$ |
46,400 |
|
|
$ |
37,732 |
|
|
$ |
84,132 |
|
Year Ended December 31, 2024 |
|
Pulp |
|
|
Solid Wood |
|
|
Total |
|
|||
Reconciliation of revenues |
|
|
|
|
|
|
|
|
|
|||
Total of segments’ revenues |
|
|
|
|
|
|
|
$ |
2,069,871 |
|
||
Sandalwood business revenues |
|
|
|
|
|
|
|
|
8,813 |
|
||
Elimination of intersegment revenues |
|
|
|
|
|
|
|
|
(35,324 |
) |
||
Consolidated revenues |
|
|
|
|
|
|
|
$ |
2,043,360 |
|
||
|
|
|
|
|
|
|
|
|
|
|||
Reconciliation to loss before income taxes |
|
|
|
|
|
|
|
|
|
|||
Total of segments’ Segment Operating EBITDA |
|
|
|
|
|
|
|
$ |
256,524 |
|
||
Segment depreciation and amortization |
|
|
(119,501 |
) |
|
|
(50,430 |
) |
|
|
(169,931 |
) |
Loss on disposal of investment in joint venture |
|
|
(23,645 |
) |
|
|
— |
|
|
|
(23,645 |
) |
Goodwill impairment |
|
|
— |
|
|
|
(34,277 |
) |
|
|
(34,277 |
) |
Interest expense |
|
|
|
|
|
|
|
|
(109,150 |
) |
||
Other income |
|
|
|
|
|
|
|
|
7,228 |
|
||
Corporate expenses and eliminations |
|
|
|
|
|
|
|
|
(13,664 |
) |
||
Consolidated loss before income taxes |
|
|
|
|
|
|
|
$ |
(86,915 |
) |
||
|
|
|
|
|
|
|
|
|
|
|||
Reconciliation of purchases of property, plant and equipment |
|
|
|
|
|
|
|
|
|
|||
Total of segments’ purchase of property, plant and equipment |
|
|
|
|
|
|
|
$ |
84,132 |
|
||
Corporate and other |
|
|
|
|
|
|
|
|
186 |
|
||
Consolidated purchase of property, plant and equipment |
|
|
|
|
|
|
|
$ |
84,318 |
|
||
inventories and foreign exchange gains or losses on the revaluation of dollar denominated receivable balances.
Year Ended December 31, 2024 |
|
Pulp |
|
|
Solid Wood |
|
|
Corporate |
|
|
Consolidated |
|
||||
Revenues from external customers by major products |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Pulp |
|
$ |
1,460,460 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,460,460 |
|
Lumber |
|
|
— |
|
|
|
217,471 |
|
|
|
— |
|
|
|
217,471 |
|
Energy and chemicals |
|
|
88,096 |
|
|
|
16,512 |
|
|
|
8,813 |
|
|
|
113,421 |
|
Manufactured products (a) |
|
|
— |
|
|
|
100,565 |
|
|
|
— |
|
|
|
100,565 |
|
Pallets |
|
|
— |
|
|
|
104,386 |
|
|
|
— |
|
|
|
104,386 |
|
Biofuels (b) |
|
|
— |
|
|
|
40,082 |
|
|
|
— |
|
|
|
40,082 |
|
Wood residuals |
|
|
— |
|
|
|
6,975 |
|
|
|
— |
|
|
|
6,975 |
|
Total revenues from external customers |
|
$ |
1,548,556 |
|
|
$ |
485,991 |
|
|
$ |
8,813 |
|
|
$ |
2,043,360 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenues from external customers by geography (c) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. |
|
$ |
151,053 |
|
|
$ |
194,880 |
|
|
$ |
2,497 |
|
|
$ |
348,430 |
|
Foreign countries |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Germany |
|
|
334,361 |
|
|
|
195,867 |
|
|
|
721 |
|
|
|
530,949 |
|
China |
|
|
574,264 |
|
|
|
2,488 |
|
|
|
— |
|
|
|
576,752 |
|
Other countries |
|
|
488,878 |
|
|
|
92,756 |
|
|
|
5,595 |
|
|
|
587,229 |
|
|
|
|
1,397,503 |
|
|
|
291,111 |
|
|
|
6,316 |
|
|
|
1,694,930 |
|
Total revenues from external customers |
|
$ |
1,548,556 |
|
|
$ |
485,991 |
|
|
$ |
8,813 |
|
|
$ |
2,043,360 |
|
Year Ended December 31, 2023 |
|
Pulp |
|
|
Solid Wood |
|
|
Total of Segments (a) |
|
|||
Revenues from external customers |
|
$ |
1,516,130 |
|
|
$ |
472,054 |
|
|
$ |
1,988,184 |
|
Intersegment revenues |
|
|
1,037 |
|
|
|
41,351 |
|
|
|
42,388 |
|
|
|
|
1,517,167 |
|
|
|
513,405 |
|
|
|
2,030,572 |
|
Less segment expenses: |
|
|
|
|
|
|
|
|
|
|||
Fiber |
|
|
633,141 |
|
|
|
243,369 |
|
|
|
|
|
Maintenance (b) |
|
|
128,511 |
|
|
|
45,526 |
|
|
|
|
|
Freight |
|
|
154,918 |
|
|
|
60,459 |
|
|
|
|
|
Labor (c) |
|
|
85,092 |
|
|
|
48,499 |
|
|
|
|
|
Chemicals |
|
|
152,120 |
|
|
|
— |
|
|
|
|
|
Energy |
|
|
97,649 |
|
|
|
39,358 |
|
|
|
|
|
Purchase of pulp from CPP |
|
|
97,836 |
|
|
|
— |
|
|
|
|
|
Other (d) |
|
|
102,011 |
|
|
|
106,537 |
|
|
|
|
|
Segment Operating EBITDA |
|
$ |
65,889 |
|
|
$ |
(30,343 |
) |
|
$ |
35,546 |
|
|
|
|
|
|
|
|
|
|
|
|||
Purchase of property, plant and equipment |
|
$ |
90,126 |
|
|
$ |
45,707 |
|
|
$ |
135,833 |
|
Year Ended December 31, 2023 |
|
Pulp |
|
|
Solid Wood |
|
|
Total |
|
|||
Reconciliation of revenues |
|
|
|
|
|
|
|
|
|
|||
Total of segments’ revenues |
|
|
|
|
|
|
|
$ |
2,030,572 |
|
||
Sandalwood business revenues |
|
|
|
|
|
|
|
|
5,660 |
|
||
Elimination of intersegment revenues |
|
|
|
|
|
|
|
|
(42,388 |
) |
||
Consolidated revenues |
|
|
|
|
|
|
|
$ |
1,993,844 |
|
||
|
|
|
|
|
|
|
|
|
|
|||
Reconciliation to loss before income taxes |
|
|
|
|
|
|
|
|
|
|||
Total of segments’ Segment Operating EBITDA |
|
|
|
|
|
|
|
$ |
35,546 |
|
||
Segment depreciation and amortization |
|
|
(114,151 |
) |
|
|
(57,320 |
) |
|
|
(171,471 |
) |
Impairment of sandalwood business |
|
|
|
|
|
|
|
|
(33,734 |
) |
||
Interest expense |
|
|
|
|
|
|
|
|
(88,246 |
) |
||
Other income |
|
|
|
|
|
|
|
|
7,197 |
|
||
Corporate expenses and eliminations |
|
|
|
|
|
|
|
|
(19,115 |
) |
||
Consolidated loss before income taxes |
|
|
|
|
|
|
|
$ |
(269,823 |
) |
||
|
|
|
|
|
|
|
|
|
|
|||
Reconciliation of purchases of property, plant and equipment |
|
|
|
|
|
|
|
|
|
|||
Total of segments’ purchase of property, plant and equipment |
|
|
|
|
|
|
|
$ |
135,833 |
|
||
Corporate and other |
|
|
|
|
|
|
|
|
491 |
|
||
Consolidated purchase of property, plant and equipment |
|
|
|
|
|
|
|
$ |
136,324 |
|
||
Year Ended December 31, 2023 |
|
Pulp |
|
|
Solid Wood |
|
|
Corporate |
|
|
Consolidated |
|
||||
Revenues from external customers by major products |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Pulp |
|
$ |
1,402,620 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,402,620 |
|
Lumber |
|
|
— |
|
|
|
217,939 |
|
|
|
— |
|
|
|
217,939 |
|
Energy and chemicals |
|
|
113,510 |
|
|
|
21,451 |
|
|
|
5,660 |
|
|
|
140,621 |
|
Manufactured products (a) |
|
|
— |
|
|
|
58,895 |
|
|
|
— |
|
|
|
58,895 |
|
Pallets |
|
|
— |
|
|
|
121,424 |
|
|
|
— |
|
|
|
121,424 |
|
Biofuels (b) |
|
|
— |
|
|
|
40,680 |
|
|
|
— |
|
|
|
40,680 |
|
Wood residuals |
|
|
— |
|
|
|
11,665 |
|
|
|
— |
|
|
|
11,665 |
|
Total revenues from external customers |
|
$ |
1,516,130 |
|
|
$ |
472,054 |
|
|
$ |
5,660 |
|
|
$ |
1,993,844 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenues from external customers by geography (c) |
|
|
|
|
|
|
|
|
|
|
||||||
U.S. |
|
$ |
123,818 |
|
|
$ |
169,883 |
|
|
$ |
1,227 |
|
|
$ |
294,928 |
|
Foreign countries |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Germany |
|
|
349,685 |
|
|
|
224,741 |
|
|
|
472 |
|
|
|
574,898 |
|
China |
|
|
551,945 |
|
|
|
2,981 |
|
|
|
— |
|
|
|
554,926 |
|
Other countries |
|
|
490,682 |
|
|
|
74,449 |
|
|
|
3,961 |
|
|
|
569,092 |
|
|
|
|
1,392,312 |
|
|
|
302,171 |
|
|
|
4,433 |
|
|
|
1,698,916 |
|
Total revenues from external customers |
|
$ |
1,516,130 |
|
|
$ |
472,054 |
|
|
$ |
5,660 |
|
|
$ |
1,993,844 |
|
The Company’s long-lived assets by geographic area based on the location of the assets as of December 31, 2025 and December 31, 2024 were as follows:
|
|
December 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
U.S. |
|
$ |
125,033 |
|
|
$ |
140,627 |
|
Foreign countries |
|
|
|
|
|
|
||
Germany |
|
|
772,649 |
|
|
|
725,229 |
|
Canada |
|
|
217,808 |
|
|
|
388,859 |
|
|
|
|
990,457 |
|
|
|
1,114,088 |
|
|
|
$ |
1,115,490 |
|
|
$ |
1,254,715 |
|
In 2025, no single customer accounted for greater than 10% of the Company’s total revenues (2024 – no customer; 2023 – no customer).
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 12, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 15, 2024 | |
| 2022 | Feb 16, 2023 | |
| 2021 | Feb 17, 2022 | |
| 2020 | Feb 16, 2021 | |
| 2019 | Feb 13, 2020 | |
| 2018 | Feb 14, 2019 | |
| 2017 | Feb 16, 2018 | |
| 2016 | Feb 10, 2017 | |
| 2015 | Feb 12, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.