Roger Spitz's questions to MERCER INTERNATIONAL (MERC) leadership • Q2 2025
Question
Roger Spitz from Bank of America inquired about Mercer's 2025 cash flow projections, specifically asking for estimates on cash taxes, interest, and operating cash flow less CapEx. He also asked for details on the German revolver facility, including any maintenance covenants and the current headroom available.
Answer
CFO Richard Short provided guidance, estimating 2025 cash taxes at approximately $25 million, interest around $110 million, and a $100 million CapEx target, with working capital expected to be flat to slightly negative. Short also confirmed the German revolver has no maintenance covenants and possesses significant headroom, likely in the range of $150 million to $200 million.