Interfor (IFP) Q2 2026 earnings summary

Executive summary

• Strong execution in Q2 driven by improved lumber markets, cost reduction, higher mill productivity, and disciplined inventory management.

• Pure-play exposure to North American lumber with a regionally diversified platform and top quartile margin performance.

• Achieved net earnings of $1.0 million in Q2'26, reversing a net loss of $63.3 million in Q1'26 and down from $11.1 million in Q2'25.

• Structurally strengthened to withstand market cycles, with significant production growth and operational excellence.

• Positioned for long-term fundamentals with clear capital allocation priorities and a focus on sustainability.

Financial highlights

• Generated CAD 92 million of adjusted EBITDA in Q2, a significant sequential improvement and among the best in four years.

• Adjusted EBITDA rose to $92.3 million on sales of $804.4 million, up from $30.7 million in Q1'26 and $17.2 million in Q2'25.

• Operating cash flow after working capital changes was $100.8 million in Q2'26; available liquidity improved to $441.8 million at quarter-end.

• Net debt to invested capital ratio improved to 36.7% from 38.3% in Q1; available liquidity over CAD 440 million.

• Production has increased more than 6x since 2008, reaching 4.5 billion board feet of lumber capacity.

Outlook and guidance

• Benchmark lumber prices remain strong into Q3, but summer seasonality and monetary policy shifts may introduce volatility.

• Focus on deleveraging after a period of elevated strategic investment, targeting net debt-to-capitalization below 20%.

• Total 2026 capital expenditures expected at CAD 90 million, primarily maintenance-focused.

• Cost reduction initiative on track for CAD 80 million over two years, with a likely 50/50 split between 2026 and 2027.

• Long-term market fundamentals remain strong, supported by housing demand and favorable demographics.