Greenfirst Forest Products (GFP) Q2 2026 earnings summary

Executive summary

• Net sales reached $96.1 million in Q2 2026, the highest in eight quarters, driven by improved lumber prices, inventory mix, and higher sales volumes.

• Adjusted EBITDA was $11.8 million, up from negative $15.1 million in Q1 2026, reflecting operational improvements and cost efficiencies.

• Net income for Q2 2026 was $5.5 million, reversing prior losses, with diluted EPS of $0.24.

• Received CAD 3.2 million in government support, aiding liquidity and strategic initiatives.

• CEO Joel Fournier announced resignation effective October 31, 2026, with a transition plan in place.

Financial highlights

• Q2 2026 net sales were $96.1 million, up from $60.6 million in Q1 and $84.5 million year-over-year.

• Operating income improved to $7.9 million from a Q1 loss of $19 million; Adjusted EBITDA turned positive at $11.8 million.

• Cost of sales was $62.1 million, aided by a $16.2 million reversal of inventory provisions.

• Duties and tariffs expense rose to $21.1 million, reflecting higher shipment volumes and prices.

• Cash at quarter-end was $2.8 million, with $24.4 million available under the revolving credit facility.

Outlook and guidance

• Cautious outlook for lumber pricing due to market uncertainty, inflation, and high mortgage rates; focus remains on operational execution and cost control.

• Chapleau Large Log Line ramp-up and optimization expected to continue through Q3, with full financial contribution anticipated by year-end.

• Strategic capital expenditures will be deferred in the short term, with ongoing evaluation of smaller investments aligned with government support.