Greenfirst Forest Products (GFP) Q2 2025 earnings summary

Executive summary

• Q2 2025 posted a net loss of $9.6 million and negative adjusted EBITDA of $5.2 million, reversing Q1 profitability, mainly due to higher costs and lower byproduct revenue.

• Achieved record lumber production of up to 116 million board feet (approx. 115,766 mfbm) and sales volume of about 110,000 mfbm in Q2 2025.

• Operational performance improved with lower manufacturing costs and strong home center partnerships.

• Ended Q2 2025 with $39.8 million in excess liquidity and a strong balance sheet.

• Major capital projects at Chapleau mill advanced, including new saw line, planer mill, and cogeneration plant, with government funding anticipated.

Financial highlights

• Net sales in Q2 2025 were $84.5 million, up 18% from Q1 2025, driven by a 22% increase in shipment volume despite lower prices.

• Cost of sales rose 29% to $80.1 million, mainly from higher shipments and increased unit costs.

• SG&A expenses increased to $4.6 million, primarily due to non-cash compensation and higher professional/legal fees.

• Duties expense rose to $8.3 million in Q2, up from $5.7 million in Q1, reflecting higher shipments.

• Adjusted EBITDA from continuing operations was negative $5.2 million in Q2 2025, versus positive $5.1 million in Q1 2025.

Outlook and guidance

• Anticipates cost of sales to decrease in Q3 as lower-cost Q2 production is sold.

• Cautious outlook for the next quarter, expecting only modest price gains and flat demand.

• 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.

• Persistent U.S. housing inventory shortages and demographic trends are expected to support long-term lumber demand.