Acadian Timber (ADN) investor relations material

Executive summary

• Q3 2026 Adjusted EBITDA rose to $5.0 million from $3.5 million YoY; net income increased to $4.384 million from $2.928 million.

• Higher prices and improved Maine harvesting partly offset lower New Brunswick volumes; sales and services were $24.021 million versus $23.017 million.

• Maine’s leaner harvesting operations improved results, while New Brunswick contractor availability supports winter-season readiness.

Financial highlights

• Q3 operating income was $3.756 million versus $2.956 million; net income per share was $0.23 versus $0.16.

• Timber sales were relatively flat: a 17% higher weighted-average selling price excluding biomass offset 14% lower sales volumes.

• Q3 operating costs and expenses increased $0.2 million YoY; higher New Brunswick unit costs and silviculture spending were partly offset by lower Maine unit costs and reduced volumes.

• 9M sales and services were $61.994 million versus $64.980 million; net income was $9.168 million versus $9.253 million, or $0.49 versus $0.51 per share.

• 9M timber sales volume fell to 625.1 thousand m³ from 718.5 thousand m³; weighted-average selling prices excluding biomass rose 9%.

Outlook and guidance

• New Brunswick contractor capacity is expected to support steady volumes through the rest of 2026 and the 2027 winter season; Q4 inventories and demand were viewed as normalized.

• Maine plans include adding equipment capacity, developing markets for select products and optimizing block selection; stronger results are expected in 2027 than in 2026.

• Sawlog demand and pricing are expected to remain stable; pulpwood demand and pricing are expected to stay reduced until customer production rises and new facilities start up.

• The next Maine carbon-credit tranche is transitioning to ACR’s updated Improved Forest Management protocol; registration is anticipated before end-2026.

• Management anticipates no significant near-term market or pricing changes, with a positive longer-term outlook as end-use markets improve and customers raise consumption.