Greenfirst Forest Products (GFP) Q2 2025 earnings summary

Executive summary

• Q2 2025 saw record lumber production of 116 million board feet and sales volume of 110 million, despite economic uncertainty and market headwinds.

• Net loss for Q2 2025 was $9.6 million on revenues of $84.5 million; adjusted EBITDA was negative $5.2 million.

• Operations now focus solely on lumber, with four Ontario sawmills and a strong commitment to sustainability and cost control.

• Cash and liquidity positions remain strong, with $4.4 million in cash and $39.8 million in excess liquidity at quarter-end.

• Major capital projects and agreements to explore new by-product utilization are underway at the Chapleau mill.

Financial highlights

• Q2 2025 net sales were $84.5 million, up 18% quarter-over-quarter and 21% year-over-year; H1 2025 net sales reached $156.4 million.

• Cost of sales rose to $80.1 million in Q2, with duties expense at $8.3 million and SG&A at $4.6 million due to one-time compensation.

• Adjusted EBITDA from continuing operations was negative $5.2 million in Q2 2025, improved from negative $6.1 million in Q2 2024.

• Average realized lumber selling price was $713/mfbm; cost of sales net of by-products was $672/mfbm.

• Cash increased by $1.9 million in Q2 2025, with $12.5 million drawn on the revolver.

Outlook and guidance

• Management expects increased lumber production from Ontario sawmills, supported by operational improvements and strategic upgrades.

• Anticipates cost of sales to decrease in Q3 as lower-cost Q2 production is sold; plan to reduce higher WIP inventory by Q4 2025.

• New combined duty rate of 35.19% effective August; Section 232 investigation findings expected November 2025.

• North American housing market is stabilizing, with potential for improved demand as mortgage rates ease, but uncertainty remains.

• Plans to leverage government support programs and increased Canadian housing starts.