Interfor (IFP) Q1 2026 earnings summary

Executive summary

• Q1 2026 saw a significant turnaround with adjusted EBITDA of CAD 31 million (USD 30.7 million), up CAD 60 million from Q4, driven by higher lumber prices and lower conversion costs despite ongoing duties and logistical constraints.

• The Thomaston, Georgia mill project was completed and ramped up ahead of expectations, expected to be a top performer in the portfolio and to reach full pro forma KPIs within four months, with a capacity of 240 million board feet annually.

• Company-wide manufacturing cost reduction initiatives target a CAD 80 million earnings improvement over two years, representing a 5% reduction in total manufacturing costs versus 2025.

• Reported a net loss of $63.3 million in Q1'26, improving from a $104.6 million loss in Q4'25 but higher than the $35.1 million loss in Q1'25.

• Sales reached $643.2 million, up from $600.6 million in Q4'25 but below $735.5 million in Q1'25.

Financial highlights

• Adjusted EBITDA for Q1 was CAD 31 million (USD 30.7 million), a sequential improvement from two negative EBITDA quarters.

• Adjusted EBITDA margin was 4.8% in Q1'26, compared to -4.9% in Q4'25 and 6.6% in Q1'25.

• Realized selling prices after duties and tariffs were approximately 8% higher quarter-over-quarter, with average lumber selling price at $666 per mfbm, up $67 from Q4'25.

• Production cost per unit improved by about 2.5% quarter-over-quarter.

• Production volumes increased by 14% over Q4, mainly from U.S. Northwest operations, with lumber production at 856 million board feet.

Outlook and guidance

• Near-term North American lumber markets remain volatile due to elevated interest rates, trade uncertainty, fuel price volatility, and geopolitical factors.

• Seasonal price improvements continued into early Q2, though Southern pricing softened recently.

• Industry curtailments in 2026 are four times the pace of 2025, supporting a constructive supply-demand setup once housing and R&R activity stabilizes.

• Expectation of working capital release and reduced CapEx in Q2 and beyond, with leverage and net debt to invested capital ratios anticipated to decline.

• Diversified operations and product mix position the company to navigate ongoing market fluctuations.