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Greenfirst Forest Products (GFP) investor relations material
Greenfirst Forest Products Q2 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Reported a net loss of $9.6M and adjusted EBITDA of negative $5.2M for Q2 2025, mainly due to higher cost of sales, increased SG&A, and lower byproduct revenue.
Achieved record lumber production of 160M board feet and sales volume of 110M board feet, supported by operational improvements and strong home center partnerships.
Ended Q2 2025 with $39.8M in excess liquidity and a strong balance sheet, despite ongoing net losses.
Operations now solely focused on lumber, with four Ontario sawmills and a stable fibre supply following the spin-out of paper operations.
Sustainability, capital discipline, and cost control remain core strategic priorities.
Financial highlights
Q2 2025 net sales were $84.5M, up 18% quarter-over-quarter and 21% year-over-year, driven by a 22% increase in shipments.
Adjusted EBITDA from continuing operations was negative $5.2M in Q2 2025, improved from negative $6.1M in Q2 2024.
Cost of sales rose to $80M, reflecting higher shipment volumes and a 7% increase in average cost per unit.
SG&A expenses increased to $4.6M, mainly due to non-cash compensation.
Cash on hand at June 28, 2025 was $4.4M, with net debt of $20.4M and shareholders' equity of $138.8M.
Outlook and guidance
Anticipates cost of sales reduction in Q3 as lower-cost Q2 production is sold and plans to reduce higher WIP inventory by Q4 2025.
Expects demand to remain flat in the short term, with only modest price gains anticipated.
New combined duty rate of 35.19% effective August; Section 232 investigation findings expected November 2025.
U.S. housing starts projected to average 1.48M units, above historical average, supporting demand.
Cautious approach to capital expenditures and cash management in light of potential new tariffs and economic headwinds.
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