Canfor reports results for the second quarter of 2026

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VANCOUVER, British Columbia, July 29, 2026 (GLOBE NEWSWIRE) — Canfor Corporation (the “Company” or “Canfor”) (TSX: CFP) today reported its second quarter of 2026 results:

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Overview.

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Subsequent events.

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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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^{1.  Adjusted operating income (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 “Second quarter results, including adjusting and one-time items” table and the “Non-IFRS financial measures” sections of this document
2.  Attributable to equity shareholders of the Company.}

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The Company reported operating income of $4.8 million for the current quarter, compared to an operating loss of $72.5 million for the first quarter of 2026.

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Commenting on the Company’s second quarter of 2026 results, Canfor’s President and Chief Executive Officer, Susan Yurkovich, said, “Our second quarter results reflect an improvement in earnings, principally driven by a solid operating performance across all of our lumber regions and an ongoing improvement in our underlying cost structure, combined with an uplift in lumber market conditions in North America. Despite this short-term uptick, we continue to take disciplined actions to address longer-term structural fibre and market challenges, while investing in opportunities that support long-term value creation. The acquisition of PinkWood strengthens our value-added manufacturing platform, while our recent operational decisions at Urshult and Orrefors, as well as at Fox Creek, position the Company to better align production capacity with available fibre supply and evolving market conditions. While current pricing remains steady, North American lumber markets are likely to moderate later in the third quarter and through the balance of the year. As a result, we remain focused on the factors within our control, including safety, operational reliability and cost discipline.”

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Yurkovich added, “Global pulp markets remained challenging during the second quarter as the ongoing structural shift in market fundamentals combined with subdued demand and elevated inventories continued to pressure pricing. Against this backdrop, we made the difficult but necessary decision to permanently close our Northwood pulp mill. As global pulp market conditions are likely to remain under pressure in the near-term, we remain focused on optimizing our footprint, controlling costs, and strengthening the long-term competitiveness of our pulp and paper operations.”

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Second quarter results, including adjusting and one-time items.

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After taking account of adjusting and one-time items totaling $18.8 million, as outlined in the table below, the Company’s adjusted operating income for the second quarter of 2026 was $23.6 million compared to a similarly adjusted operating loss of $92.5 million for the previous quarter. These results primarily reflected improved results in the lumber segment, partially offset by lower earnings in the pulp and paper segment.

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^{3.  For the lumber segment, an asset write-down and impairment charge totaling $13.7 million was recognized in Q2 2026 (Q1 2026 – no asset write-down and impairment charges were recognized, Q2 2025 – $188.6 million asset write-down and impairment charge related to the permanent closures of Darlington and Estill sawmills).
4.  For the lumber segment, a $7.0 million net reversal of a previously recognized inventory write-down was recorded in Q2 2026 (Q1 2026 – $20.0 million net reversal of a previously recognized inventory write-down, Q2 2025 – $9.2 million net inventory write-down expense). For the pulp and paper segment, a $3.3 million net inventory write-down expense was recognized in Q2 2026 (Q1 2026 – no inventory valuation adjustment was recognized, Q2 2025 – $2.9 million net inventory write-down expense).
5.  Adjusted operating income (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.
6.  Restructuring and closure costs of $8.8 million were recognized in Q2 2026, primarily related to the permanent closures of the Urshult and Orrefors sawmills in Europe (Q1 2026 – no restructuring and closure costs were recognized, Q2 2025 – restructuring and closure costs of $6.7 million in the lumber segment, related to the permanent closures of Darlington and Estill sawmills).}

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Second quarter lumber segment highlights.

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For the lumber segment, operating income was $41.2 million for the second quarter of 2026, compared to the previous quarter’s operating loss of $43.7 million. After taking into consideration adjusting and one-time items totaling $15.5 million, as previously noted in the table, the lumber segment’s adjusted operating income was $56.7 million, compared to a similarly adjusted operating loss of $63.7 million in the prior quarter. These adjusted earnings reflect solid results across all of the Company’s operating regions, primarily driven by an uptick in lumber unit sales realizations, largely associated with higher benchmark prices, and, to a lesser extent, an increase in lumber production as well as an improvement in lumber unit manufacturing and product costs.

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In May 2026, the Company announced that it would permanently close its Urshult and Orrefors sawmills. The closures reflect an ongoing imbalance between production capacity and fibre supply in southern Sweden. As a result of this announcement, the Company recognized an asset write-down and impairment charge of $13.7 million and restructuring costs of $8.8 million in the second quarter of 2026.

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North American lumber markets modestly strengthened through most of the second quarter of 2026. Despite persistent affordability challenges, elevated mortgage rates, and geopolitical uncertainty, tighter supply and seasonal demand contributed to improved market fundamentals in the current quarter. A modest uptick in North American benchmark lumber prices during the period was driven primarily by lean field inventories, constrained transportation capacity, and increased species substitution, which particularly benefited Southern Yellow Pine (“SYP”) pricing. Meanwhile, the repair and remodeling sector remained relatively resilient throughout the current quarter.

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Offshore lumber market conditions remained under pressure throughout the second quarter of 2026. In Japan, weak housing starts, reduced import volumes into the region and a structural shift towards a greater use of domestic fibre, continued to weigh on lumber demand. Shortages of petroleum-based building materials further delayed construction activity during the period. In China, construction activity remained subdued, resulting in continued weak lumber demand.

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Following weak market fundamentals in the first quarter, European lumber markets experienced some positive momentum through the second quarter of 2026. Leaner inventory levels supported modest price gains despite muted demand and ongoing geopolitical uncertainty. Demand in Central Europe remained weak, while Scandinavia benefited from improved weather conditions and stronger purchasing activity. In the United Kingdom (“UK”), subdued residential construction activity was partly offset by resilient repair and remodeling demand. In the Middle East and North Africa (“MENA”), geopolitical tensions initially disrupted market conditions; however, easing tensions later in the period supported improved shipments and pricing.

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Lumber segment outlook.

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Looking ahead, North American lumber markets are anticipated to remain solid in the early part of the third quarter of 2026, underpinned by lean inventories and ongoing transportation constraints, particularly in the US South. However, North American lumber markets are likely to moderate later in the third quarter of 2026, reflecting persistent affordability challenges and macroeconomic uncertainty.

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Offshore lumber market conditions in Asia are projected to remain challenging. In Japan, continued substitution towards domestically sourced species is projected to pressure import lumber demand and pricing through the third quarter of 2026. In China, demand is forecast to remain subdued, amid ongoing weakness in construction activity and limited evidence of a near-term market recovery.

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In Europe, lumber market fundamentals are anticipated to remain relatively balanced through the third quarter of 2026. Steady demand, constrained supply, and ongoing export activity are projected to support pricing. Market conditions in the UK are likely to remain stable, while demand and pricing in the MENA are dependent on geopolitical tensions in the region.

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Second quarter pulp and paper segment highlights.

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For the pulp and paper segment, the operating loss was $23.1 million for the second quarter of 2026, compared to an operating loss of $16.2 million for the first quarter of 2026. After adjusting for a $3.3 million inventory write-down in the current period, the pulp and paper segment’s adjusted operating loss for the second quarter of 2026 was $19.8 million, compared to an adjusted operating loss of $16.2 million for the first quarter of 2026. Results in the current period primarily reflect lower pulp shipments and a 17% decline in pulp production, largely attributable to a scheduled maintenance outage at the Company’s Intercontinental NBSK pulp mill (“Intercon”), as well as a modest decline in US-dollar NBSK list prices to China.

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Global softwood pulp market conditions remained challenging throughout the second quarter of 2026, as subdued demand and elevated producer inventories continued to weigh on pricing. Consequently, the US-dollar NBSK list prices to China, the world’s largest pulp consumer, averaged US$658 per tonne, down US$27 per tonne, or 4%, compared to the previous quarter.

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Global softwood pulp producer inventories remained elevated during the second quarter of 2026, ending May at 47 days of supply, one day higher than March 2026 and at the upper end of the balanced range. Typically, market conditions are considered balanced when inventories are in the 39-47 days of supply range.

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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 under pressure during the third quarter of 2026, largely reflecting a structural shift in pulp market fundamentals as additional global pulp capacity continues to enter the market. In addition, persistent economic and geopolitical uncertainty is projected to continue to weigh on near-term demand, contributing to elevated producer inventories and subdued softwood pulp pricing.

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Demand for bleached kraft paper is projected to remain stable through the third quarter of 2026, globally and in North American markets. This outlook is supported by strengthening paper-based packaging demand, though ongoing uncertainty surrounding Canada-US trade relations and global manufacturing overcapacity remain notable offsetting factors.

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No major maintenance outages are scheduled at the Company’s pulp mills or paper machine through the balance of 2026.

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Additional information and conference call.

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A conference call to discuss the second quarter’s financial and operating results will be held on Thursday, July 30, 2026, at 9:00 a.m. Pacific time.

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Please note that we have transitioned to a new webcast service provider:

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To view the webcast online, click here. Analysts only: To register to join the call by phone, click here.
To view our Conference Call Participant Guide, click here.

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Instant replay access will be available until September 28, 2026, on canfor.com/investors, under Webcasts.

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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. Canfor shares are traded on the Toronto Stock Exchange under the symbol CFP. For more information visit canfor.com.

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