Canada has long resisted changing its trade practices on lumber. But as the Trump administration has become more bellicose about its trade relationship with Canada, the country’s stance may be softening. Here's what to know https://t.co/f9NadLEuPn ...

Financial Performance - Western Forest Products reported Adjusted EBITDA of $0.5 million in Q2 2025, a significant decrease from $9.4 million in Q2 2024 and an increase from $3.5 million in Q1 2025 [1][3] - The company experienced a net loss of $17.4 million in Q2 2025, compared to a net loss of $5.7 million in Q2 2024 and a net income of $13.8 million in Q1 2025 [2][3] - Total revenue for Q2 2025 was $289.1 million, down from $309.5 million in Q2 2024 and up from $262.5 million in Q1 2025 [3] Operational Highlights - Lumber production was 144 million board feet in Q2 2025, down from 151 million board feet in Q2 2024, while lumber shipments were 149 million board feet, compared to 173 million board feet in Q2 2024 [8] - The average lumber selling price increased to $1,464 per thousand board feet in Q2 2025, up from $1,363 per thousand board feet in Q2 2024 [8] - The company is advancing two continuous dry kilns, with the first expected to be completed in early 2026 and the second deferred to mid-2026 [8] Balance Sheet and Liquidity - As of the end of Q2 2025, the company had liquidity of $189.7 million and a net debt to capitalization ratio of 5%, improved from $141.5 million and 13% in Q2 2024 [8] - The company extended the maturity of its $250 million credit facility to July 21, 2028 [8] Market Conditions - The North American lumber market is expected to remain volatile through Q3 2025 due to increased softwood lumber duties, high interest rates, and low consumer confidence [11] - Demand for specialty products remains strong in export markets, with anticipated price increases for certain species despite declining housing activity in Japan and China [12] Other Developments - The Columbia Vista Sawmill sustained extensive damage from a fire in late June, rendering it inoperable, and the company is evaluating its plans related to the sawmill [7] - A strike by employees at the La-kwa sa muqw Forestry Limited Partnership is ongoing, with plans for operating curtailments at BC sawmills in Q3 2025 [16]

Prime Minister Mark Carney promised as much as $508 million in loan guarantees to shore up Canada’s lumber industry https://t.co/n3v8qxmoUI ...

Financial Data and Key Metrics Changes - The company reported a negative EBITDA of $21 million for Q2 2025, a significant decrease from the positive EBITDA of $47 million in Q1 2025, primarily due to negative foreign exchange impacts and lower pulp prices in China [3][10][19] - The consolidated net loss for Q2 was $86 million, or $1.29 per share, compared to a net loss of $22 million, or $0.33 per share in Q1 [10] - Cash consumption increased to $35 million in Q2 from $3 million in Q1, driven by lower EBITDA [10][11] Business Line Data and Key Metrics Changes - The pulp segment experienced a negative EBITDA of $10 million in Q2, while the solid wood segment had a negative EBITDA of $5 million [3][25] - NBSK pulp sales realizations decreased in Q2 due to a weaker global trade environment, with the average net price in China dropping to $734 per tonne, a decrease of $59 from Q1 [4] - Lumber production decreased to approximately 120 million board feet, down 6% from Q1, and lumber sales volumes also decreased by about 8% [8][25] Market Data and Key Metrics Changes - In North America, the average list price for MBSK increased to $18.20 per tonne, up $67 from Q1, while the European price remained stable at $15.53 per tonne [4] - The average price for NBHK in China decreased to $533 per tonne, down $45 from Q1, while the North American average increased to $13.10 per tonne, up $42 from Q1 [5] - The company noted a significant decrease in pulp sales volumes, down by 51,000 tons to 427,000 tons due to weaker demand [5][6] Company Strategy and Development Direction - The company launched the "One Goal 100" program aimed at achieving $100 million in cost savings and operational efficiencies by 2026, with $5 million in savings already realized [9][15] - The company plans to reduce capital expenditures to about $100 million in 2025, focusing on maintenance and safety projects [33] - The company is exploring a carbon capture project at its Peace River Mill, which could generate significant revenue from CO2 credits [34][66] Management's Comments on Operating Environment and Future Outlook - Management highlighted that trade uncertainty and tariffs were significant factors behind the disappointing Q2 results, with expectations for pulp prices to remain weak through the summer [13][21] - The company anticipates a gradual recovery in pulp prices towards the end of Q3 and into Q4, driven by restocking after the low summer season [60][62] - Management expressed confidence in the long-term value of pulp and the potential for growth in the mass timber business, despite current market challenges [36][32] Other Important Information - The company suspended its dividend as a prudent measure to focus on debt reduction amid market uncertainties [18] - The company reported a strong liquidity position of $438 million at the end of Q2, consisting of $146 million in cash and $292 million in undrawn revolvers [11] Q&A Session Summary Question: Can you provide information on cash flow items for 2025? - The company expects cash taxes for the year to be about $25 million, with capital expenditures targeted at $100 million [39][42] Question: What is the minimum liquidity level comfortable for the company? - The company indicated that it is not close to being uncomfortable with liquidity and has room to adjust capital expenditures if needed [48][51] Question: Can you comment on softwood inventory levels? - Management stated that softwood inventory levels are slightly elevated but not concerning, and there are no current impairments expected [55] Question: What could catalyze pulp prices gaining momentum later in the year? - Management believes that restocking after the low summer season and supply constraints will drive pulp prices up in Q4 [60][62] Question: What is the potential financial impact of the carbon capture project? - The project could generate significant revenue tied to CO2 credits, potentially exceeding $100 million per year, with a capital requirement of around $500 million, of which a substantial portion is expected to be covered by grants [66][68]

Financial Data and Key Metrics Changes - Total adjusted EBITDA for Q2 2025 was $52 million, down from $63 million in Q1 2025, primarily due to seasonally lower harvest volumes and higher forest management costs in the Timberland segment, along with an inventory impairment charge in Wood Products [21][5][6] - Adjusted EBITDA for the Timberlands segment decreased from $42 million in Q1 to $40 million in Q2, with a slight decrease in harvest volumes [22][21] - Adjusted EBITDA for Wood Products dropped from $12 million in Q1 to $2 million in Q2, driven by lower lumber prices and increased processing costs [25][21] Business Line Data and Key Metrics Changes - The Wood Products division earned $2 million in adjusted EBITDA during Q2, impacted by lower lumber prices and several nonrecurring items [6][25] - Timberlands harvested 1.86 million tons in Q2, with Idaho's sawlog prices increasing by 9% per ton compared to Q1, while Southern sawlog prices rose by 2% [22][24] - The Real Estate segment produced adjusted EBITDA of $23 million in Q2, matching Q1 results, with 7,500 acres sold at an average price of $3,100 per acre [26][21] Market Data and Key Metrics Changes - Average total housing starts were just above 1.3 million units in Q2, with single-family starts around 900,000 units, indicating a stable housing market despite economic uncertainty [17][18] - The repair and remodel sector remains subdued, but slight gains in expenditures are forecasted for 2025 and modest growth in 2026 [19][18] Company Strategy and Development Direction - The company is focused on capital allocation strategies that create long-term value, including maintaining dividends, key capital investments, and opportunistic share repurchases [14][15] - The company anticipates higher lumber prices due to increased duties on Canadian softwood lumber and potential tariffs, which could positively impact domestic lumber prices [11][20] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term fundamentals driving demand in the industry, despite near-term uncertainties [20][18] - The company expects improved results in the Wood Products division in Q3, as challenges faced in Q2 are not anticipated to recur [31][30] Other Important Information - The company repurchased $56 million of its common stock in Q2 at an average price of $39 per share, marking the largest share repurchase volume in a single quarter since becoming a REIT in 2006 [14][15] - The company has $395 million in liquidity, including $95 million in cash, and plans to refinance $100 million of debt maturing in August [27][28] Q&A Session Summary Question: Can you walk us through the lumber price forecast? - Management indicated that duties are coming into effect, which will force supply adjustments in the marketplace, leading to a potential increase in prices by September [36][38] Question: Will the unfavorable costs in Wood Products reverse in Q3? - Management confirmed that the challenges faced in Q2, including inventory charges and freight issues, are expected to reverse in Q3, leading to improved earnings [40][41] Question: How does the company view share repurchases amid uncertainty? - Management emphasized the importance of protecting dividends and the balance sheet, while also being aggressive with share repurchases due to the stock trading at a significant discount to NAV [44][48] Question: What is the outlook for solar options and incentives? - Management remains optimistic about solar opportunities, indicating that recent changes in incentives have not significantly impacted their solar projects [58][66] Question: What is the company's stance on Timberland M&A? - Management expressed a desire to be an incremental buyer of Timberland but noted that current prices make it challenging to achieve acceptable returns on investment [92][93]

Core Points - Interfor Corporation has successfully closed an early renewal and extension of its revolving credit facility, increasing the commitment amount to approximately C$560 million and extending the maturity to July 2029 [1][2] - The renewal includes improved provisions that enhance the Company's financial flexibility, such as a higher threshold for the minimum EBITDA interest coverage ratio covenant [2] - Interfor has also renewed its private shelf note purchase agreement with PGIM Inc., allowing the issuance of up to US$550 million of senior secured notes, with approximately US$450 million outstanding as of June 30, 2025 [3] - As of June 30, 2025, Interfor reported a net debt to capitalization ratio of 35.6% and over C$330 million of available liquidity under the new facilities, providing ample financial capacity to pursue its strategic agenda [4] Financial Position - The Company is fully compliant with all financial covenants as of June 30, 2025 [4] - The available liquidity on a pro forma basis under the new facilities is just over C$330 million, which will help the Company navigate potential market volatility [4] Company Overview - Interfor is a growth-oriented forest products company with operations in Canada and the United States, boasting an annual lumber production capacity of approximately 4.7 billion board feet [6]

Trade Dispute - US and Canada have been in a softwood lumber dispute since the 1980s [1] - The US imports about 25% of its softwood lumber from Canada [2] - The Commerce Department is expected to increase tariffs on Canadian softwood lumber from 144% to 345% [3] Market Impact - US builders claim restrictions on Canadian imports increase home construction costs, even though lumber accounts for less than 20% of those costs [3] - Increased tariffs could negatively impact Canada's lumber industry and benefit US producers [4] - Replacing Canadian wood in the short term could increase housing costs [4] Potential Resolution - Canada may consider capping lumber exports to the US [4] - The US aims to increase domestic lumber production by streamlining permits and reducing bureaucracy [4]

The US and Canada have been fighting over lumber since the 1980s and now they are back at it again.@ilenapeng explains how this time around it could potentially drive up housing prices https://t.co/uHk0vsJQis https://t.co/cGRUTPDFrb ...

Canada has long resisted changing its trade practices on lumber. But as the Trump administration has become more bellicose about its trade relationship with Canada, the country’s stance may be softening. Here's what to know https://t.co/lNvmGxf82T ...

Canadian officials are open to considering limits on how much softwood lumber can be exported to the US to try to resolve some of the trade friction between the countries, according to the leader of British Columbia https://t.co/5Qs1XRL3Gt ...