Greenfirst Forest Products (GFP) investor relations material

Executive summary

• Q3 2025 reported a net loss of $57.4 million and negative adjusted EBITDA of $47.2 million, mainly due to a $33.8 million duty adjustment, $8.2 million NRV provision, and mill downtime.

• Excluding one-time items, adjusted EBITDA was negative $13.4 million, reflecting operational improvements.

• Net sales for Q3 2025 were $70.2 million, down 17% from Q2, with sales volume at 93 million board feet, impacted by market uncertainty and production downtime.

• Market conditions remained weak due to higher duty rates, tariffs, and operational downtime from modernization projects.

Financial highlights

• Total revenue for Q3 2025 was $70.2 million, down 17% quarter-over-quarter, driven by a 15% decrease in shipments and a 2% drop in average selling price.

• Average realized lumber price was $695/mfbm in Q3 2025.

• Cost of sales decreased by 6% from Q2, with an $8.2 million inventory write-down due to falling prices.

• SG&A expenses were $2.9–$3.0 million, below last year and year-to-date averages.

• Cash flow from operations was $1.1 million, with a total cash decrease of $0.9 million in Q3 2025.

Outlook and guidance

• Expect full benefit from mill upgrades in Q1 2026, with saw line commissioning by end of December 2025.

• Anticipate only modest price increases in Q4, with demand expected to remain flat but capacity reductions may help balance the market.

• Advancing feasibility study for a torrefied pellet and biochar plant to utilize by-products.

• Remain cautious in short-term forecasts due to ongoing market and tariff uncertainties.