Canfor announces asset write-down and impairment charge

Core Viewpoint - Canfor Corporation will record a non-cash asset write down and impairment charge of approximately $321 million in its fourth quarter of 2025 results, primarily affecting its lumber and pulp segments [1]. Group 1: Impairment Details - The impairment charge includes $215 million related to the lumber segment, primarily due to ongoing log supply pressures in Europe, which have led to increased log costs and reduced asset carrying values [2]. - The pulp segment accounts for $106 million of the impairment, reflecting sustained declines in global US-dollar pulp list prices and challenges in securing economically viable fiber for operations [2]. Group 2: Financial Impact - The impairment charge is non-cash in nature and does not impact Canfor's liquidity position, cash flows, or day-to-day operations [3]. Group 3: Proposed Transaction - Canfor is proposing to acquire all outstanding shares of Canfor Pulp Products Inc. that it does not already own, holding 54.8% of Canfor Pulp's shares [4]. - This acquisition is part of an arrangement agreement dated December 3, 2025, and will be discussed at a special meeting of Canfor Pulp shareholders on March 6, 2026 [4]. Group 4: Company Overview - Canfor is a global leader in manufacturing high-value low-carbon forest products, including lumber, engineered wood products, pulp and paper, and green energy [6]. - The company operates over 50 facilities across Canada, the United States, and Europe, and has a significant stake in Vida AB, Sweden's largest privately owned sawmill company [6].