Greenfirst Forest Products (GFP) Q4 2024 earnings summary

Executive summary

• Achieved significant balance sheet improvement in Q4 2024, raising over CAD 55 million in cash through rights offering, asset sales, and duty recoveries.

• Completed Kap Paper spin-out in November 2024, enabling focus on core sawmill operations.

• Achieved stronger production in FY'24, setting over 30 production records despite some Q4 weather impacts.

• Temporarily paused selected strategic CapEx projects to assess the impact of potential U.S. tariffs.

• Share consolidation reduced outstanding shares by approximately 160 million.

Financial highlights

• Q4 2024 net loss from continuing operations was CAD 26.6 million; adjusted net loss excluding one-time items was CAD 6.6 million.

• Net sales for FY'24 were $282.9 million, slightly down from $284.7 million in FY'23.

• Adjusted EBITDA from continuing operations improved to negative $4.2 million in FY'24 from negative $31.8 million in FY'23.

• SG&A expenses were significantly reduced year-over-year, falling to $2.8 million in Q4 2024.

• Cash on hand was $27.8 million at December 31, 2024, with $39.3 million available under the revolving credit facility (less $8.3 million for standby letters of credit).

Outlook and guidance

• Strategic CapEx plan paused in part to monitor U.S. tariff developments; company remains focused on continuous improvement and high-payback projects.

• Forecasts 2025 Great Lakes lumber price at US$575, with current price at US$640 as of March 13, 2025.

• U.S. housing starts projected to average 1.56 million in coming years, above the historical average of 1.31 million.

• North American housing market stabilization and potential easing of mortgage rates could support lumber demand.

• Confident in ability to navigate potential U.S. tariffs with strong cash position and government support.