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VANCOUVER, British Columbia, March 05, 2026 (GLOBE NEWSWIRE) — Canfor Corporation (“the Company” or “Canfor”) (TSX: CFP) today reported its fourth quarter of 2025 results:
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Overview.
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- For the fourth quarter of 2025, the Company reported an operating loss of $415.9 million and a net loss of $390.5 million, equivalent to $3.35 per share.
- An asset write-down and impairment charge of approximately $320.4 million has been recorded in Q4 2025 (including a $52.5 million write off of a previously recognized deferred tax asset), of which $213.9 million relates to the Company’s lumber segment and $106.5 million relates to the pulp and paper segment.
- After taking into consideration adjusting and one-time items1 of $270.9 million, the adjusted operating loss for Q4 2025 was $145.0 million, compared to a similarly adjusted operating loss of $111.3 million in Q3 2025.
- North American lumber markets continued to face pressure in Q4 2025, as elevated US softwood lumber duties along with tariffs, further dampened already weak demand. Sawmill curtailments and seasonally lower inventories supported a slight improvement in benchmark prices late in Q4 2025.
- Lumber production was up 2% from the previous quarter, driven primarily by the full quarter contribution from the recently acquired Hedin sawmills in Europe, partially offset by seasonal holiday downtime across all operating regions.
- Global softwood pulp markets were relatively flat through Q4 2025, principally driven by elevated pulp producer inventory levels.
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Financial results.
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The following table summarizes selected financial information for the Company for the comparative periods:
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| (millions of Canadian dollars, except per share amounts) | Q4 2025 | Q3 2025 | YTD 2025 | Q4 2024 | YTD 2024 | ||||||||||||||||
| Sales | $ | 1,282.3 | $ | 1,259.8 | $ | 5,339.0 | $ | 1,285.7 | $ | 5,252.8 | |||||||||||
| Reported operating income (loss) before amortization, asset write-downs and impairments² | $ | (38.7 | ) | $ | (110.7 | ) | $ | (37.2 | ) | $ | 52.7 | $ | (170.2 | ) | |||||||
| Reported operating loss | $ | (415.9 | ) | $ | (208.3 | ) | $ | (904.1 | ) | $ | (45.9 | ) | $ | (942.2 | ) | ||||||
| Net loss³ | $ | (390.5 | ) | $ | (172.4 | ) | $ | (796.7 | ) | $ | (63.3 | ) | $ | (669.0 | ) | ||||||
| Net loss per share, basic and diluted³ | $ | (3.35 | ) | $ | (1.48 | ) | $ | (6.78 | ) | $ | (0.53 | ) | $ | (5.64 | ) | ||||||
| 1. Adjusted operating loss as well as adjusting and one-time items referenced throughout this news release are defined as non-IFRS financial measures. For further details, refer to the “Fourth quarter results, including adjusting and one-time items” table and the “Non-IFRS financial measures” section of this news release. | |||||||||||||||||||||
| 2. An asset write-down and impairment charge totaling $320.4 million was recognized in Q4 2025 (Q3 2025 and Q4 2024 – no asset write-down and impairment adjustment was recognized), which included a $52.5 million write-off of a previously recognized deferred tax asset. The deferred tax asset write-off is not included in reported operating income (loss) and as a result, reported operating income (loss) in the table above, is only adjusted by $267.9 million, representing the asset write-down and impairment charge associated with goodwill, property, plant and equipment and material and supplies inventories. | |||||||||||||||||||||
| 3. Attributable to equity shareholders of the Company. | |||||||||||||||||||||
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For the fourth quarter of 2025, the Company reported an operating loss of $415.9 million, compared to an operating loss of $208.3 million for the third quarter of 2025.
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Commenting on the Company’s fourth quarter of 2025 results, Canfor’s President and Chief Executive Officer, Susan Yurkovich, said, “Our lumber business continued to face significant headwinds in the fourth quarter, with ongoing market weakness combined with elevated duty and tariff costs weighing on our results. Across our business, we remain focused on the areas within our control—prioritizing safe, efficient operations, maintaining disciplined cost management and prudent capital allocation as well as delivering high quality products to our customers. With our well capitalized, globally diversified operating platform, we remain well positioned to adapt to the high duty environment, navigate near-term challenges and respond to improving demand as market fundamentals stabilize.”
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Yurkovich added, “Our pulp segment also remained under significant pressure this quarter, as global economic uncertainty, weak market demand and limited access to economic fibre in British Columbia continued to weigh on performance. While we saw some modest signs of improvement toward the end of the quarter, ongoing weakness in the softwood pulp market continues to present challenges.”
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Fourth quarter results, including adjusting and one-time items.
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After taking account of adjusting and one-time items totaling $270.9 million, as outlined in the table below, the Company’s adjusted operating loss for the fourth quarter of 2025 was $145.0 million compared to a similarly adjusted operating loss of $111.3 million for the previous quarter. These results reflect a decline in results for both the lumber and pulp and paper segments.
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| (millions of Canadian dollars) | Q4 2025 | Q3 2025 | YTD 2025 | Q4 2024 | YTD 2024 | |||||||||||||||||
| Reported operating loss | $ | (415.9 | ) | $ | (208.3 | ) | $ | (904.1 | ) | $ | (45.9 | ) | $ | (942.2 | ) | |||||||
| Asset write-down and impairment – lumber segment | $ | 213.9 | $ | – | $ | 402.5 | $ | – | $ | 131.9 | ||||||||||||
| Asset write-down and impairment – pulp segment4 | $ | 54.0 | $ | – | $ | 54.0 | $ | – | $ | 211.0 | ||||||||||||
| Inventory write-down (recovery), net5 | $ | 3.0 | $ | 19.8 | $ | 31.2 | $ | (36.1 | ) | $ | (29.7 | ) | ||||||||||
| Adjusted operating loss6 | $ | (145.0 | ) | $ | (188.5 | ) | $ | (416.4 | ) | $ | (82.0 | ) | $ | (629.0 | ) | |||||||
| One-time items – lumber segment6 | ||||||||||||||||||||||
| Restructuring and closure costs7 | $ | – | $ | – | $ | 6.7 | $ | 4.9 | $ | 74.0 | ||||||||||||
| Duty expense related to finalized rates8 | $ | – | $ | 77.2 | $ | 77.2 | $ | – | $ | 67.2 | ||||||||||||
| Duty expense related to fair value measurement9 | $ | – | $ | – | $ | – | $ | – | $ | 53.4 | ||||||||||||
| Gain on sale of assets, net9 | $ | – | $ | – | $ | – | $ | – | $ | (34.9 | ) | |||||||||||
| One-time items – corporate restructuring costs6,7 | $ | – | $ | – | $ | – | $ | 0.6 | $ | 2.7 | ||||||||||||
| Adjusted operating loss before one-time items6 | $ | (145.0 | ) | $ | (111.3 | ) | $ | (332.5 | ) | $ | (76.5 | ) | $ | (466.6 | ) | |||||||
| Amortization | $ | 109.3 | $ | 97.6 | $ | 410.4 | $ | 98.6 | $ | 429.1 | ||||||||||||
| Adjusted operating income (loss) before amortization and one-time items6 | $ | (35.7 | ) | $ | (13.7 | ) | $ | 77.9 | $ | 22.1 | $ | (37.5 | ) | |||||||||
| 4. For the pulp segment, an asset write-down and impairment charge totaling $106.5 million was recorded in Q4 2025 (Q3 2025 and Q4 2024 – no asset write-down and impairment adjustment was recognized), which included a $52.5 million write off of a previously recognized deferred tax asset. The deferred tax asset write-off is not included in reported operating income (loss) and as a result, reported operating income (loss) in the table above, is only adjusted by $54.0 million, representing the asset write-down and impairment charge associated with property, plant and equipment and material and supplies inventories. | ||||||||||||||||||||||
| 5. For the lumber segment, a $0.5 million net reversal of a previously recognized inventory write-downs was recorded in Q4 2025 (Q3 2025 – $14.9 million net inventory write-down expense, Q4 2024 – $36.1 million net reversal of a previously recognized inventory write-downs). For the pulp and paper segment, a $3.5 million net inventory write-down expense was recognized in Q4 2025 (Q3 2025 – $4.9 million net inventory write-down expense, Q4 2024 – no inventory valuation adjustment was recognized). | ||||||||||||||||||||||
| 6. Adjusted operating loss as well as adjusting and one-time items referenced throughout this news release are defined as non-IFRS financial measures. For further details, refer to the “Non-IFRS financial measures” section of this news release. | ||||||||||||||||||||||
| 7. No restructuring and closure costs were recognized in Q4 2025 and Q3 2025, with $6.7 million in restructuring and closure costs recognized in the lumber segment in Q2 2025, largely related to the permanent closure of the Darlington and Estill sawmills in the US South (Q4 2024 – restructuring and closure costs of $5.5 million related to the closure of the Jackson and Mobile sawmills, Q3 2024 – $38.6 million related to the closure of the Plateau and Fort St. John sawmills, Q2 2024 –$32.6 million related to the closure of the Polar and Houston). | ||||||||||||||||||||||
| 8. A net duty expense of $77.2 million (US$56.2 million) was recognized in Q3 2025 following the finalization of CVD and ADD rates applicable to the sixth period of review. | ||||||||||||||||||||||
| 9. Refer to the Company’s Q3 2024 new release for details on gain on sale of assets, net and duty expense related to fair value adjustment. | ||||||||||||||||||||||
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Fourth quarter lumber segment highlights.
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For the lumber segment, the operating loss was $318.8 million for the fourth quarter of 2025, compared to the previous quarter’s operating loss of $182.2 million. After taking account of adjustments and one-time items totaling $213.4 million for the lumber segment in the current period, as noted in the aforementioned table, the lumber segment’s adjusted operating loss was $105.4 million, compared to a similarly adjusted operating loss of $90.1 million in the prior quarter.
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These results reflect another challenging quarter for all of the Company’s operating regions, largely driven by the ongoing weakness in lumber market conditions and the associated pricing pressure, together with lower production and shipments in North America, tied to seasonal downtime towards the end of the year. These factors were mitigated, in part, by higher production and shipments in Europe, following the resumption of operations after regular seasonal summer downtime in the prior period and the first full-quarter contribution from the acquisition of AB Karl Hedin Sågverk facilities (“Hedin”) in September 2025.
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North American lumber markets remained challenging through most of the fourth quarter of 2025, weighed down by elevated US countervailing and anti‑dumping duties and heightened uncertainty following the introduction of a 10% tariff under Section 232 of the Trade Expansion Act in October. These developments further impacted already weak demand. However, the announcement of industry-wide sawmill curtailments in mid‑December, combined with low inventory levels and seasonal production curtailments, supported a modest improvement in North American benchmark lumber prices toward the end of the current period. Conditions in the repair and remodeling sector remained stable over the fourth quarter.
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Offshore lumber demand and pricing in Asia were subdued throughout the fourth quarter of 2025. In China, continued weakness in the housing and real estate sectors exerted downward pressure on pricing. In Japan, demand moderated in the current period, resulting in relatively flat pricing compared to the prior quarter.
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European lumber demand continued to come under pressure during the fourth quarter, despite an uptick in purchasing activity largely driven by seasonal inventory replenishment. The region continued to face constrained spruce log availability, and persistently high log costs tempered buying behaviour.
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Lumber segment outlook.
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Looking ahead, North American lumber markets are anticipated to face continued uncertainty through 2026, with volatility likely to persist amid challenging global economic conditions, unresolved trade issues and the impact of sustained higher softwood lumber duty rates, including the Section 232 tariffs. Although demand in some regions of the US have shown early signs of stabilization, these improvements remain fragile, and overall market conditions are projected to remain subdued through at least the first half of 2026. Industry-wide sawmill curtailments and closures in late 2025, together with low inventory levels entering the year, have begun to tighten supply. As a result, the price improvements that were observed late in 2025, carried into 2026. The extent of this supply-driven pricing uplift remains uncertain, however, and could be constrained by ongoing demand and macroeconomic pressures.
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Canfor continues to monitor the trade situation between Canada and the US. With a diversified global operating platform, the Company is well positioned to mitigate some of these costs, however, the tariffs present challenges for the Company’s operations which export to the US.
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Offshore lumber market conditions in Asia are forecast to remain subdued. In Japan, lumber demand and pricing are anticipated to soften in the first quarter of 2026, mainly driven by lower new home construction activity. In China, the weak demand environment seen in the fourth quarter of 2025 is forecast to continue in the first quarter of 2026 principally reflecting persistent pressures in the real estate sector.
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In Europe, lumber demand and pricing are projected to remain relatively flat through the first quarter of 2026. However, constrained lumber supply across the region is anticipated to support slight pricing improvements entering the second quarter of 2026.
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Fourth quarter pulp and paper segment highlights.
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For the pulp and paper segment, Canfor Pulp Product Inc.’s (“CPPI”) reported an operating loss of $85.6 million for the fourth quarter of 2025, compared to an operating loss of $16.0 million for the third quarter of 2025. After taking account of adjusting items totaling $57.5 million, as outlined in the table above, CPPI’s adjusted operating loss was $28.1 million for the fourth quarter of 2025, compared to an adjusted operating loss of $11.1 million for the third quarter of 2025.
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These adjusted results largely reflect the continued impact of soft global pulp market conditions throughout most of the current period, combined with reduced pulp production associated with CPPI’s scheduled maintenance downtime at its Northwood Northern Bleached Softwood Kraft (“NBSK”) pulp mill (“Northwood”).
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Global softwood pulp markets were relatively flat through the fourth quarter of 2025, driven mainly by elevated pulp producer inventory levels. Towards the end of the period, however, buyer sentiment began to improve. Lower global pulp prices prompted a modest uptick in purchasing activity, particularly in China, as producers worked to draw down higher-than-average inventory levels. As a result, US-dollar NBSK list prices to China, the world’s largest pulp consumer, gained some positive momentum late in the quarter, finishing December at US$690 per tonne. Despite this late uplift, for the fourth quarter overall, US-dollar NBSK pulp list prices to China averaged US$671 per tonne, down US$19 per tonne, or 3%, from the prior quarter. Outside China, market conditions remained difficult. Demand and pricing in other global regions weakened through the fourth quarter, with the average US-dollar NBSK pulp list price to North America falling by 8% from the previous quarter.
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Global softwood pulp producer inventories remained elevated and at the top end of the balanced range throughout the current quarter, ending December 2025 at 47 days of supply, in line with September 2025. Market conditions are typically considered balanced when inventories fall within the 39-47 days of supply.
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Pulp and paper segment outlook.
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Looking ahead, global softwood kraft pulp market conditions are anticipated to remain weak into 2026 as ongoing economic uncertainty, particularly between China and the US, continues to weigh on market demand despite some cautious optimism seen late in 2025.
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CPPI continues to closely monitor developments in Canada–US trade relations. Should tariffs be applied to US pulp and paper shipments, CPPI has mitigation strategies in place that are projected to partially offset potential impacts.
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No major maintenance outages are planned at CPPI’s pulp mills for the first quarter of 2026. In the second quarter of 2026, a maintenance outage is scheduled at CPPI’s Intercontinental NBSK pulp mill (“Intercon”) with a projected 20,000 tonnes of reduced NBSK market pulp production. For the rest of 2026, no further scheduled downtime at CPPI’s pulp mills is anticipated.
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As announced on February 17, 2026, Management’s forecast indicates that due to global pulp market conditions remaining weak, ongoing macroeconomic headwinds and continued challenges accessing economic fibre in British Columbia, CPPI may experience continued declines in financial performance during the first quarter of 2026, making it highly probable that CPPI will not comply with its financial covenants at March 31, 2026.
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Although Management is undertaking mitigation initiatives and as announced on December 3, 2025, advancing an Arrangement Agreement with Canfor Corporation (the “Proposed Transaction”), the ultimate success of these actions cannot be assured at this time. Management’s discussions with its lenders regarding future financial covenant relief are currently on hold, pending the outcome of the Proposed Transaction. Should the Proposed Transaction not close, CPPI would re-engage with its lenders for further temporary relief while it works to undertake a restructuring process.
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Refer to the Company’s annual Management’s Discussion and Analysis for further discussion on the Company’s results for the fourth quarter of 2025 on page 24.
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Additional information and conference call.
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A conference call to discuss the fourth quarter’s financial and operating results will be held on Friday, March 6, 2026, at 9:00 AM Pacific time. To participate in the call, please click here. The instant replay access will be available until May 1, 2026, on canfor.com/investors, under Webcasts.
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The conference call will be webcast live and will be available at canfor.com. This news release, the attached financial statements and a presentation used during the conference call can be accessed via the Company’s website at canfor.com/investors.
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Non-IFRS financial measures.
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Throughout this press release, reference is made to certain non-IFRS financial measures which are used to evaluate the Company’s performance but are not generally accepted under IFRS Accounting Standards and may not be directly comparable with similarly titled measures used by other companies.
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Forward-looking statements.
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Certain statements in this press release constitute “forward-looking statements” which involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results, performance or achievements expressed or implied by such statements. Words such as “expects”, “anticipates”, “projects”, “intends”, “plans”, “will”, “believes”, “seeks”, “estimates”, “should”, “may”, “could”, and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are based on Management’s current expectations and beliefs and actual events or results may differ materially. There are many factors that could cause such actual events or results expressed or implied by such forward-looking statements to differ materially from any future results expressed or implied by such statements. Forward-looking statements are based on current expectations and Canfor assumes no obligation to update such information to reflect later events or developments, except as required by law.
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About Canfor.
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Canfor is a global leader in the manufacturing of high-value low-carbon forest products including dimension and specialty lumber, engineered wood products, pulp and paper, wood pellets and green energy. Proudly headquartered in Vancouver, British Columbia, Canfor produces renewable products from sustainably managed forests, at more than 50 facilities across its diversified operating platform in Canada, the United States and Europe. The Company has a 77% stake in Vida AB, Sweden’s largest privately owned sawmill company and also owns a 54.8% interest in Canfor Pulp Products Inc. Canfor shares are traded on The Toronto Stock Exchange under the symbol CFP. For more information visit canfor.com.
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