Conifex Announces Third Quarter 2025 Results

Core Insights - Conifex Timber Inc. reported a net loss of $16.6 million or $0.41 per share for Q3 2025, worsening from a net loss of $8.3 million or $0.20 per share in Q2 2025 and a net loss of $3.8 million or $0.09 per share in Q3 2024 [1][6][10] Financial Performance - EBITDA for Q3 2025 was negative $16.6 million, compared to negative $3.2 million in Q2 2025 and negative $3.9 million in Q3 2024 [1][10] - Total sales for Q3 2025 were $38.2 million, a decrease of 4% from Q2 2025 but an increase of 38% from Q3 2024 [3][10] - Cost of goods sold increased by 19% from Q2 2025 but decreased by 36% from Q3 2024 [11] Production and Shipments - Lumber production in Q3 2025 was approximately 38.5 million board feet, a 9% increase from Q2 2025 and a 22% increase from Q3 2024 [4][8] - Shipments of Conifex-produced lumber totaled 40.1 million board feet in Q3 2025, up 3% from Q2 2025 and up 37% from Q3 2024 [9] Bioenergy Operations - The power plant sold 47.6 GWh of electricity in Q3 2025, representing approximately 88% of targeted operating rates, an increase from 29.6 GWh in Q2 2025 and 25.9 GWh in Q3 2024 [15][16] Duty and Tariff Impacts - The company expensed countervailing and anti-dumping duty deposits of $15.3 million in Q3 2025, significantly higher than $2.0 million in Q2 2025 and $0.2 million in Q3 2024 [14] - Cumulative duties paid by the company since April 2017 amount to US$44.1 million, impacting future cash flows [28] Financial Position and Liquidity - Overall debt increased to $82.6 million as of September 30, 2025, compared to $81.6 million at June 30, 2025 [26] - Available liquidity decreased to $1.7 million from $3.0 million at June 30, 2025, primarily due to higher softwood lumber duty rates [27] Outlook - North American lumber markets are expected to face continued demand and price volatility throughout the remainder of 2025, with significant challenges from duty deposit rate increases and additional tariffs [36]