VANCOUVER, British Columbia, March 19, 2026 (GLOBE NEWSWIRE) -- Canfor Corporation (TSX:CFP) (“Canfor” or the “Company”) announced today that it has received regulatory approval to renew a normal course issuer bid that will expire in March 2026. Under the new bid, the Company may purchase for cancellation up to 5,821,442 common shares of the Company (the “Shares”) or approximately 5% of the 116,428,846 Shares outstanding as of March ‎16, 2026, at prevailing market prices, in accordance with the rules of The ...

Core Insights - Canfor is navigating a challenging environment in 2025 but is starting to see benefits from strategic actions taken to strengthen its operations and diversify its asset base [1][3] Financial Performance - Canfor reported a Q4 adjusted EBITDA loss of CAD 8 million in lumber and CAD 17 million in pulp, driven by weak market conditions and trade actions [6][14] - The company ended Q4 with approximately CAD 226 million in net debt and CAD 1.2 billion in liquidity, with plans for capital expenditures of about CAD 175 million for lumber and CAD 35 million for pulp in 2026 [5][17][16] Strategic Actions - Since 2023, Canfor has closed nine high-cost sawmills, including two in 2025, totaling a capacity reduction of 2.3 billion board feet [2][7] - The company is investing in new facilities in the U.S. South and expanding operations in Sweden to diversify its asset base and reduce costs [2][7] Market Conditions - The lumber segment is facing weak market conditions, particularly for southern yellow pine, exacerbated by the introduction of Section 232 tariffs [8][9] - Canfor's European lumber business generated an adjusted EBITDA of CAD 42 million in 2025, but ongoing weak demand and high log costs have led to recent losses [10][11] Transformation Efforts - Canfor is undergoing a significant transformation aimed at improving cost competitiveness and reducing the impact of elevated duties [3][4] - The company is focused on targeted cost reductions and improving operational performance in its pulp unit, which continues to face challenges from weak global markets [12][13]

Core Viewpoint - Canfor Corporation reported significant financial losses in Q4 2025, primarily due to ongoing market weakness in the lumber and pulp segments, elevated duty and tariff costs, and global economic uncertainty [4][5][18]. Financial Results - Sales for Q4 2025 were $1,282.3 million, a slight increase from $1,259.8 million in Q3 2025 and $1,285.7 million in Q4 2024 [2]. - The reported operating loss for Q4 2025 was $415.9 million, compared to a loss of $208.3 million in Q3 2025 and a loss of $45.9 million in Q4 2024 [3][7]. - The net loss for Q4 2025 was $390.5 million, or $3.35 per share, compared to a net loss of $172.4 million, or $1.48 per share in Q3 2025 [5][7]. - An asset write-down and impairment charge of approximately $320.4 million was recorded in Q4 2025, with $213.9 million related to the lumber segment and $106.5 million to the pulp and paper segment [5][7]. Lumber Segment Highlights - The lumber segment reported an operating loss of $318.8 million in Q4 2025, worsening from a loss of $182.2 million in Q3 2025 [8]. - Adjusted for one-time items, the lumber segment's operating loss was $105.4 million, compared to $90.1 million in the previous quarter [8]. - North American lumber markets faced pressure due to elevated US softwood lumber duties and tariffs, leading to weak demand [10][11]. Pulp and Paper Segment Highlights - The pulp and paper segment reported an operating loss of $85.6 million in Q4 2025, compared to a loss of $16.0 million in Q3 2025 [18]. - After adjustments, the adjusted operating loss for the pulp segment was $28.1 million, worsening from $11.1 million in the previous quarter [18]. - Global softwood pulp markets remained flat, with elevated inventory levels impacting pricing and demand [20][21]. Market Outlook - North American lumber markets are expected to face continued uncertainty through 2026, with volatility likely due to unresolved trade issues and sustained higher duty rates [14][15]. - Offshore lumber demand in Asia is projected to remain subdued, particularly in China and Japan, due to ongoing economic pressures [16]. - In Europe, lumber demand is anticipated to remain flat, although constrained supply may support slight pricing improvements [17]. Company Positioning - Canfor is focused on maintaining safe and efficient operations, disciplined cost management, and high-quality product delivery to navigate current market challenges [4]. - The company is well-capitalized and globally diversified, positioning it to adapt to high duty environments and respond to improving demand as market fundamentals stabilize [4].