Interfor (IFP) Q2 2025 earnings summary

Executive summary

• Achieved net income of $11.1 million in Q2'25, reversing prior losses, with $17.2 million adjusted EBITDA on $780.5 million sales and improved cash flow.

• Q2 production improved by 4% and shipment volumes increased, reducing inventory by 37 million board feet.

• Monetization of Coastal B.C. operations generated $8.2 million, with further asset sales expected.

• Portfolio adjustments and disciplined capital allocation have positioned the company strongly for 2025.

• Top three North American softwood lumber producer with 28 facilities and a focus on US South and Eastern Canada for cost advantages.

Financial highlights

• Q2'25 sales reached $780.5 million, up from $735.5 million in Q1'25, with adjusted EBITDA margin at 2.2%.

• Net debt at quarter-end was $798.0 million, with available liquidity of $369.7 million.

• Net debt to invested capital improved to 35.6% at June 30, 2025.

• Operating cash flow of $85 million, supported by working capital release and asset sales.

• Maintained top quartile EBITDA margins and returns on capital employed through the cycle.

Outlook and guidance

• Near-term North American lumber markets expected to remain volatile due to economic, policy, and trade factors.

• Mid-term demand fundamentals remain favorable, with Canadian lumber key to U.S. supply.

• 2025 capital expenditures projected at $85–95 million, with flexibility to reduce capex if downturn persists.

• No curtailment plans for Q3; regular summer shutdowns are not practiced.

• No material increase in log costs expected in Canada or the U.S. South.