Interfor (IFP) Q1 2025 earnings summary

Executive summary

• Adjusted EBITDA reached $49 million in Q1'25, with all operating regions EBITDA positive despite weather and tariff challenges, driven by higher sales realizations across regions.

• Net loss of $35.1 million in Q1'25, including a $29 million non-cash loss from the disposition of Quebec operations, improving from a $49.9 million loss in Q4'24.

• Top three North American softwood lumber producer with 28 facilities, a diversified, growth-focused strategy, and a 10-year lumber production volume CAGR of 6%.

• Well-capitalized, high-margin sawmill portfolio with strong ESG focus and disciplined capital allocation.

Financial highlights

• Q1'25 adjusted EBITDA was $48.6 million on total revenue of $735.5 million, with an adjusted EBITDA margin of 6.6%.

• 2024 revenues reached $3.0 billion, with 81% from softwood lumber and 9% from wood chips and by-products.

• Production costs per unit rose 9% quarter over quarter due to weather disruptions and shipment constraints.

• Working capital increased by $54 million, mainly from seasonal log inventory build and shipment delays.

• Generated $40.4 million positive operating cash flow before working capital changes.

Outlook and guidance

• Conservative outlook for 2025 due to ongoing geopolitical and trade policy uncertainties, with anticipated continued lumber market volatility and rising duty rates.

• Only 24% of total lumber production is exposed to potential U.S. tariffs.

• Mid-term outlook remains positive, supported by U.S. housing demand and constrained supply growth.

• Strategy focuses on diversification and flexibility to reduce capex and adjust production if downturn persists.

• Ongoing capex investments in US South and other regions to drive future growth.