Interfor (IFP) Q3 2025 earnings summary

Executive summary

• Prolonged down market, economic uncertainty, and trade tensions led to weak demand and persistently low lumber prices, with significant net and EBITDA losses in Q3'25.

• Leadership is focused on supply and cost discipline, proactive curtailments, and portfolio optimization to maintain resilience and prepare for recovery.

• Recent actions include significant production curtailments, divestiture of Quebec assets, indefinite curtailment of two US sawmills, and sale of BC Coast Forest tenures.

• Balance sheet strengthened by a $143.8 million equity offering and credit facility renewal, providing flexibility to weather the downturn.

• Top three North American softwood lumber producer with 28 facilities, diversified strategy, and positive ESG profile.

Financial highlights

• Q3'25 adjusted EBITDA loss of $183.8 million, including a $147.4 million duties expense; excluding this, the loss was $36.4 million, on sales of $689.3 million.

• Operating loss for Q3'25 was $229.7 million, with an adjusted EBITDA margin of -26.7%.

• 2024 revenues reached $3.0 billion, with 81% from softwood lumber and strong US market exposure.

• Net debt at quarter-end was $893.3 million (41.6% of invested capital), with available liquidity of $247.9 million.

• Book value per share approximately $21.

Outlook and guidance

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

• Anticipates improvements in lumber markets starting in 2026, with upward trends into 2027, driven by pent-up housing demand.

• Ongoing production curtailments expected until market balance is achieved.

• Underlying US housing fundamentals are favorable mid- to long-term despite near-term volatility.