Interfor (IFP) investor relations material

Executive summary

• Q3 execution benefited from improved lumber markets, cost discipline, higher productivity and inventory management; balance-sheet strengthening remained a priority.

• The two-year cost-reduction program remains on track for CAD 80 million in annualized savings; Thomaston reached full pro forma production ahead of schedule and became a top-performing asset.

Financial highlights

• Q3'26 Adjusted EBITDA was $76.9 million on sales of $832.1 million, versus $92.3 million in Q2'26 and a loss of $183.8 million in Q3'25.

• Net loss was $45.6 million, or $0.69 per share, including a $53.2 million non-cash impairment charge on a previously curtailed Eastern Canada mill.

• Lumber production rose 25 million board feet QoQ to 952 million; average selling price increased 2% to $751 per mfbm.

• Q3'26 operating cash flow after working capital changes was $61.4 million; positive operating cash flow was generated in each quarter of 2026.

• YTD production costs were $27 per mfbm, or 4%, below FY2025 levels; Q3 production costs remained below FY2025 levels.

Outlook and guidance

• Preliminary FY2027 capital expenditures are $75 million–$100 million, primarily maintenance, with discretionary spending adjusted to market conditions; 2026 spending is expected at $100 million.

• Markets are expected to remain volatile through the remainder of 2026 and early 2027; a gradual recovery is expected rather than significant near-term improvement.

• Production will be aligned with demand and planning will remain conservative; the cost-reduction program remains on track for CAD 80 million in annualized savings.