Core Insights - Mercer International Inc. has commenced operation of a carbon dioxide (CO₂) capture demonstration unit at its Mercer Peace River pulp mill in Alberta, in collaboration with Svante Technologies Inc. [1][2] - The pilot project aims to evaluate Svante's solid sorbent carbon capture technology on biogenic CO₂ emissions from the mill's recovery boiler flue gas [1][3] - The demonstration is expected to last six months and will generate data to support future engineering phases and long-term planning for carbon capture technology [2][3] Company Overview - Mercer International Inc. is a global forest products company with operations in Germany, the U.S., and Canada [4] - The company has a consolidated annual production capacity of 2.1 million tonnes of pulp, 960 million board feet of lumber, 210 thousand cubic meters of CLT, 45 thousand cubic meters of glulam, 17 million pallets, and 230,000 metric tonnes of biofuels [4]

Accelerating Growth Rooted In Excellence Weyerhaeuser 2025 Investor Day December 11, 2025 Agenda 9:00 a.m. – 11:00 a.m. | Prepared Remarks Leadership Team DAVIE WOLD SVP & Chief DEVIN STOCKFISH President & Chief Executive Officer TRAVIS KEATLEY SVP Timberlands BRIAN CHANEY SVP Wood Products PAUL HOSSAIN SVP & Chief Development Officer KRISTY HARLAN SVP, Gen. Counsel & Corporate Secretary DENISE MERLE SVP & Chief Administration Officer Financial Officer 2 ▪ Welcome & Strategic Overview Devin Stockfish ▪ Timb ...

Core Viewpoint - Shares are currently undervalued, presenting an attractive opportunity for long-term investors [1] Group 1 - The market has seen a significant decline in share prices, leading to a perception of value among investors [1] - Long-term investment strategies may benefit from the current market conditions, as the potential for recovery exists [1]

Core Points - West Fraser Timber Co. Ltd. announced the indefinite curtailment of its oriented strand board (OSB) mill in High Level, Alberta, due to a significant weakening of OSB demand, which will reduce the company's capacity by 860 million square feet [2][4] - The company will also continue the idling of one production line at its Cordele, Georgia OSB facility, which has a capacity of 440 million square feet [3] - An estimated asset impairment loss of approximately $200 million is expected to be recorded in the fourth quarter of 2025 due to the curtailment of the High Level OSB mill [4] Company Operations - West Fraser operates more than 50 facilities across Canada, the United States, the United Kingdom, and Europe, producing a variety of wood products including lumber, engineered wood products, pulp, and newsprint [5] - The primary uses for West Fraser's North American OSB products include residential construction, repair and remodeling, and industrial applications [4]

Group 1: Impact of Tariffs on Home Construction - President Trump's tariffs have increased builder costs by $7,500 to $10,000 per home, according to estimates from U.S. homebuilders [1] - Rising lumber prices are expected to add about $4,900 per home on average, significantly impacting the home construction industry [2] - A $1,000 increase in the median price of a new home can disqualify approximately 106,000 potential buyers [1] Group 2: North American Builder's Supply Bankruptcy - North American Builder's Supply filed for Chapter 11 bankruptcy protection on December 3, 2025, reporting estimated assets and liabilities between $500,001 and $1 million [5][7] - The bankruptcy filing is attributed to financial distress, including claims and a lawsuit from creditor Proventure Capital LLC, indicating creditor pressure and litigation [7] - The Chapter 11 filing suggests the company may be seeking reorganization rather than outright liquidation [8]

Core Points - Doman Building Materials Group Ltd. has successfully closed a private placement offering of $170 million in 7.50% senior unsecured notes due September 17, 2029 [1][2] - The company plans to use approximately $167 million of the net proceeds to redeem all outstanding 5.25% senior unsecured notes due May 15, 2026, with the redemption expected to be completed on December 17, 2025 [4] Financial Details - The newly issued notes are part of a single series with the existing $365 million aggregate principal amount of 7.50% senior unsecured notes due 2029 [2] - The notes were issued at a price of $1,016.25 per $1,000 principal amount, plus accrued interest from September 17, 2025 [2] Company Overview - Doman Building Materials Group Ltd. is headquartered in Vancouver, British Columbia, and is the only fully integrated national distributor in the building materials sector in Canada [5] - The company operates multiple divisions and facilities across Canada and the United States, including treating plants, planing mills, and distribution centers [6]

Core Viewpoint - BofA Securities downgraded PotlatchDeltic Corp. from Buy to Underperform, reducing its price target to $46 from $49 due to ongoing weakness in the lumber and construction markets [1] Group 1: Market Conditions - Lumber prices and construction demand are expected to remain subdued through the winter [1] - Lumber operating rates of 78–80% indicate an oversupplied market, which limits the impact of tariffs or duties on pricing [2] Group 2: Company Valuation - Potlatch's land value supports its long-term asset base, but current valuations are not compelling on an operating cash flow basis due to weak commodity pricing [3] - The new price target of $46 reflects a lower target AFFO multiple of 16–20x, down by two turns from the previous estimate [3] Group 3: Future Catalysts - The closing of Potlatch's planned merger with Rayonier is unlikely to occur before late Q1 or early Q2 2026 [3]

Core Viewpoint - Boise Cascade Company (NYSE:BCC) is facing challenges due to its connection to the housing market, which is currently underperforming. The company is considered too leveraged to a specific segment of the market, making it less favorable compared to larger home improvement retailers, especially in the context of potential Federal Reserve rate cuts [1]. Group 1: Company Overview - Boise Cascade Company manufactures engineered wood products and plywood, and distributes building materials such as lumber, siding, roofing, and millwork [2]. - Third Avenue Management has initiated new positions in Boise Cascade Company, indicating interest in the building materials distributor and manufacturer [2].

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]

Financial Data and Key Metrics Changes - The company reported an EBITDA of negative $28 million for Q3 2025, a decrease from negative EBITDA of $21 million in Q2 2025, primarily due to lower pulp pricing and demand [3][9] - The consolidated net loss for Q3 was $81 million, or $1.21 per share, compared to a net loss of $86 million, or $1.29 per share, in Q2 [9] - Cash consumption increased to $48 million in Q3 from $35 million in Q2, driven by lower EBITDA [10] Business Segment Data and Key Metrics Changes - The pulp segment had a negative EBITDA of $13 million, while the solid wood segment reported a negative EBITDA of $9 million [3][23] - Pulp sales volumes increased by 26,000 tons to 453,000 tons, while pulp production remained flat at 459,000 tons [5][20] - Lumber production decreased by about 4% to 150 million board feet, and lumber sales volumes decreased by about 9% to 110 million board feet [6][23] Market Data and Key Metrics Changes - Average published prices for MBSK and MBHK pulp decreased across all markets compared to Q2, with the MBSK net price in China at $690 per ton, down $44, and the European average at $1,497 per ton, down $56 [4][5] - Lumber pricing in the U.S. remained stable, with the benchmark price for Western SPF No. 2 Stud averaging $477 per 1,000 board feet, a modest increase from $472 [6] - Electricity sales totaled 204 gigawatt hours, a 6% decrease from Q2, while pricing increased to about $106 per megawatt hour [7][8] Company Strategy and Development Direction - The company is focused on its "One Goal 100" program, targeting $100 million in cost savings and operational efficiencies by the end of 2026, with an expected $30 million in savings by the end of 2025 [9][12] - The company aims to transform its pulp mills into biorefineries, enhancing resilience during commodity downturns [30][31] - The mass timber business is expected to grow, with a backlog of projects valued at about $80 million and increasing interest in sustainable construction [27][50] Management's Comments on Operating Environment and Future Outlook - Management highlighted significant industry headwinds due to trade uncertainty, impacting demand for both paper and lumber [11][29] - The company expects modest NBSK price improvements late in Q4 2025 and into Q1 2026, driven by curtailments and market dynamics [20][29] - Management remains optimistic about the long-term value of its products and the potential for market recovery as economic conditions improve [29][30] Other Important Information - The company plans to reduce capital expenditures in 2026, focusing on maintenance and essential projects [28][45] - The company is actively engaging in discussions with banks regarding liquidity and financing options [41][56] Q&A Session Summary Question: Potential asset sales to expedite deleveraging - Management is considering asset sales but acknowledges that current market conditions are not ideal for divestitures [32] Question: Industry supply-demand balance and capacity adjustments - Management indicated that closures of pulp mills may be necessary to right-size the industry, especially in Canada and Finland [33] Question: Substitution issues in the pulp market - Substitution has been ongoing, with a recent increase attributed to a significant price differential between hardwood and softwood pulp [35][38] Question: Liquidity-enhancing actions - Management is exploring various liquidity-enhancing actions, including discussions with banks and potential asset divestitures [41][43] Question: Industry supply pressures from sawmill closures - Management noted that the situation regarding chip access is already tight, and closures of sawmills could further impact pulp mills [54]