Interfor Reports Q4’25 Results

Financial Performance - Interfor Corporation reported a net loss of $104.6 million, or $1.59 per share, in Q4'25, an improvement from a net loss of $215.8 million in Q3'25 and a net loss of $49.9 million in Q4'24 [1][8] - Adjusted EBITDA was a loss of $29.2 million on sales of $600.6 million in Q4'25, compared to a loss of $183.8 million on sales of $689.3 million in Q3'25 and an Adjusted EBITDA of $80.4 million on sales of $746.5 million in Q4'24 [2][8] - Total sales for the year ended December 31, 2025, were $2,805.9 million, down from $3,023.6 million in 2024 [8] Production and Inventory - Lumber production decreased to 753 million board feet in Q4'25, down 159 million board feet from the previous quarter, reflecting temporary production curtailments [2][8] - Lumber shipments of 812 million board feet exceeded production, resulting in a 63 million board foot reduction in inventory during the quarter [2] Financing Transactions - Interfor completed a bought deal equity offering in October 2025, generating gross proceeds of $143.8 million [2][10] - The company entered into a $30 million term loan in February 2026, expected to close in Q1'26, and amended its Term Line and Senior Secured Notes to enhance financial flexibility [2][12] - As of December 31, 2025, Interfor had a net debt to invested capital ratio of 36.5% and available liquidity of $481.6 million [2][10] Market Conditions - North American lumber markets are expected to remain volatile due to economic adjustments, tariffs, labor shortages, and geopolitical uncertainty [3][5] - Benchmark lumber prices rebounded late in Q4'25, with significant increases in various lumber price indices [4] Export Duties and Tariffs - Interfor recorded $31.2 million in export duties in Q4'25, reflecting countervailing and anti-dumping duties at a combined rate of 35.16% [6][8] - The U.S. imposed a 10% tariff on all imports of softwood timber and lumber from Canada effective October 14, 2025 [6][8] Capital Investments - Capital spending was $17.5 million in Q4'25, with planned capital expenditures for 2026 estimated between $75 million and $80 million [2][8] - The company sold Coastal B.C. forest tenures for gross proceeds of $10 million, completing all final settlement payments related to this monetization [6][8]