Acadian Timber (ADN) Q4 2025 earnings summary

Executive summary

• Fourth quarter sales reached CAD 22 million, up from CAD 20.2 million in Q4 2024, with adjusted EBITDA of CAD 5.2 million and free cash flow of CAD 1.9 million.

• Full-year 2025 revenues from timber sales and services were $87 million, down from $91.6 million in 2024, with no carbon credit sales in 2025 compared to $24.6 million in 2024.

• Net income for Q4 was CAD 39.7 million, up from CAD 5.6 million in Q4 2024, mainly due to higher non-cash fair value adjustments.

• The balance sheet remains strong with $17.4 million in net liquidity at year-end.

• New Brunswick operations delivered increased sales, higher volumes, lower variable costs, and improved adjusted EBITDA, offsetting operational challenges in Maine.

Financial highlights

• Adjusted EBITDA for Q4 was CAD 5.2 million (23–24% margin), up from CAD 3.7 million (18% margin) in Q4 2024.

• Full-year adjusted EBITDA was $15.8 million (18% margin), down from $38.9 million (33% margin) in 2024, mainly due to the absence of carbon credit sales.

• Q4 free cash flow was CAD 1.9 million; full-year free cash flow was $6.6 million, down from $29.7 million in 2024.

• Dividends declared in 2025 totaled $20.9 million ($1.16/share); Q4 dividends were CAD 5.3 million (CAD 0.29 per share).

• Net income for 2025 was $49.0 million ($2.70/share), up from $21.7 million ($1.24/share) in 2024, driven by higher fair value adjustments.

Outlook and guidance

• 2026 outlook anticipates stable demand for sawlogs, with pricing remaining challenged until end-use markets improve.

• U.S. housing starts projected at 1.38 million in 2026, supporting long-term demand.

• Production in Maine expected to improve through winter, with some seasonal easing in Q2 and Q3.

• Registration of 400,000 carbon credits in Maine expected soon, with future projects under evaluation; carbon credit issuance delayed due to protocol transition.

• Near-term market pressures persist, with U.S. duties on Canadian softwood lumber and tariffs on wood products posing risks.