Interfor (IFP) Q1 2025 earnings summary

Executive summary

• Adjusted EBITDA reached $49 million in Q1, with all operating regions EBITDA positive despite weather and tariff challenges.

• Top three North American softwood lumber producer with 28 facilities and a diversified, growth-focused strategy.

• Q1'25 net loss of $35.1 million ($0.68/share), improving from $49.9 million loss in Q4'24 and $72.9 million loss in Q1'24.

• The company is geographically diversified, with 60% of assets in the U.S. and 76% of production not subject to U.S. duties or trade actions.

• Strong ESG focus with sustainable forestry and climate-friendly products.

Financial highlights

• Q1 adjusted EBITDA was $49 million on total revenue of $736 million, a significant year-over-year improvement.

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

• Net loss of $35 million in Q1, including a $29 million non-cash loss from the disposition of Quebec operations.

• Adjusted EBITDA margin at 6.6%, up from -2.7% in Q1'24 but down from 10.8% in Q4'24.

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

Outlook and guidance

• Conservative outlook for 2025 due to geopolitical uncertainty and aggressive U.S. trade policy.

• Near-term North American lumber markets expected to remain volatile due to monetary policy, tariffs, labor shortages, and geopolitical uncertainty.

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

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

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