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TORONTO — GreenFirst Forest Products Inc. (TSX: GFP) (“GreenFirst” or the “Company”) announced results for the year ended December 31, 2025. The Company’s audited financial statements (“Financial Statements”) and related Management’s Discussion and Analysis (“MD&A”) for the year ended December 31, 2025 are available on GreenFirst’s website at www.greenfirst.ca and on SEDAR+ at www.sedarplus.ca.
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Highlights
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- Q4 2025 net loss from continuing operations was $32.8 million or $1.43 loss per share (diluted), compared to net loss of $57.4 million or $2.54 loss per share (diluted) in Q3 2025. Adjusted EBITDA from continuing operations for Q4 2025 was negative $21.7 million (or negative $21.7 million excluding the impact of the duty liability resulting from adjustments to finalized duty rates under AR6) compared to negative $47.2 million in Q3 2025.
- Benchmark prices saw decreases during the quarter which resulted in an average realized lumber prices of $654/mfbm for Q4 2025 which was lower than the $695/mfbm pricing realized in Q3 2025.
- During the fourth quarter ended December 31, 2025, the Company identified that certain costs previously capitalized to inventory and subsequently expensed as cost of sales was more appropriately categorized as selling, general and administrative expenses during the year ended December 31, 2024. The impact on the December 31, 2024 inventory balance was not material and has not been adjusted in the Financial Statements. The Company has recorded a reclassification $4.8 million to reduce cost of sales and increase selling, general and administrative expenses in the 2024 financial statements. This adjustment has no impact on net loss, the statement of cash flows or the statement of changes in shareholders’ equity. (Please see Note 5 – Selling, General and Administration Expenses in the Company’s Financial Statements for further information).
- On September 30, 2025, the U.S. Government issued a final proclamation under Section 232 of the Trade Expansion Act of 1962, introducing new tariffs on imports of timber, lumber, and certain derivative wood products from Canada and other countries. Effective October 14, 2025, softwood lumber products became subject to a 10% tariff. GreenFirst continues to pay this tariff on its shipments, while monitoring any opportunities for relief or exemption under Section 122 of the Trade Act.
- On December 18, 2025, the Company received regulatory approval from the Financial Services Regulatory Authority of Ontario to distribute surplus assets from its closed defined benefit pension plan for Kapuskasing Organized Employees of GreenFirst Forest Products (QC) Inc. The surplus assets were distributed to eligible members, with GreenFirst retaining $10.7 million in surplus in December 2025.
- On December 18, 2025, the Company secured a $19 million backstop on its existing standby letters of credit from Export Development Canada (“EDC”) under the EDC Account Performance Security Guarantee program.
- On January 21, 2026, the Company entered into a $30 million term loan under the Softwood Lumber Program announced by the Government of Canada. The financing, arranged with the Company’s banking partner BMO, is intended to support liquidity and ongoing operations amid continued market volatility in the North American lumber sector.
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GreenFirst Reports Q4 Results Amid Market Uncertainty
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“Q4 2025 was a challenging quarter for GreenFirst, as market prices declined to their lowest levels of the year in early December, with the Western Benchmark reaching $380 per Mfbm. In response, we implemented approximately two weeks of downtime across most mills to mitigate losses. At the same time, a 10% increase in tariffs, on top of existing duties, contributed to an increase in our net realizable value provision of approximately $10.2 million for the quarter.
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During the period, we completed the installation of the new large log line at our Chapleau mill and began commissioning activities. As expected, this process temporarily impacted production volumes. Despite these headwinds, sales volumes increased compared to both the prior quarter and the same period last year, and production improved relative to the third quarter.
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We continue to focus on stabilizing operations and optimizing performance on the Chapleau line and anticipate beginning to realize operational benefits later in 2026. While market conditions remained challenging, we concentrated on managing what we could control, adjusting production levels and advancing key operational initiatives, to position the Company for stronger performance as we move into 2026,” said Joel Fournier, CEO of GreenFirst.
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Financial Highlights
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The following selected financial information is from the Company’s financial statements and MD&A:
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(In thousands of CAD, except per share amounts) | December 31, | September 27, | December 31, | ||||||
For the quarter ended | 2025 | 2025 | 2024 | ||||||
Net sales from continuing operations(3) | $ | 76,949 | $ | 70,230 | $ | 69,948 | |||
Operating loss from continuing operations | (34,816 | ) | (50,905 | ) | (5,415 | ) | |||
Net loss | (32,788 | ) | (57,383 | ) | (28,029 | ) | |||
Net loss from continuing operations | (32,788 | ) | (57,383 | ) | (26,647 | ) | |||
Basic loss per share | (1.43 | ) | (2.54 | ) | (1.47 | ) | |||
Basic loss per share from continuing operations | (1.43 | ) | (2.54 | ) | (1.39 | ) | |||
Diluted loss per share | (1.43 | ) | (2.54 | ) | (1.47 | ) | |||
Diluted loss per share from continuing operations | (1.43 | ) | (2.54 | ) | (1.39 | ) | |||
Adjusted EBITDA from continuing operations(1)(2) | $ | (21,661 | ) | $ | (47,193 | ) | $ | (913 | ) |
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(In thousands of CAD) | December 31, | December 31, | ||
As at | 2025 | 2024 | ||
Total assets | $ | 189,825 | $ | 220,466 |
Total liabilities | 129,204 | 74,850 | ||
Total shareholders’ equity | $ | 60,621 | $ | 145,616 |
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1 | Adjusted EBITDA is a Non‐GAAP measure and does not have standardized meaning under GAAP or IFRS. As a result, it may not be comparable to information presented by other companies. For an explanation and reconciliation of Adjusted EBITDA to related comparable financial information presented in the Financial Statements prepared in accordance with IFRS, refer to the Non-GAAP Measures section in the Company’s MD&A. |
2 | Non-GAAP Adjusted EBITDA before one-time duties expenses and recoveries for the fourth quarter and year ended December 31, 2025 was negative $21.7 million and negative $35.2 million respectively, compared to negative $0.9 million and negative $4.2 million respectively, for the fourth quarter and year ended December 31, 2024. |
3 | Includes net sales to external parties. |
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Net sales were $76.9 million in Q4 2025, an increase of approximately 10% compared to Q3 2025. The increase in net sales was primarily driven by higher shipments, partially offset by lower realized pricing during the quarter.
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Cost of sales were $86.0 million in Q4 2025, an increase of approximately 16% compared to Q3 2025. The increase was primarily due to higher shipment volumes, partially offset by downtime associated with the installation of the Chapleau large log line and other maintenance projects. The quarter also included a $10.2 million provision for the net realized value on inventory, reflecting decreases in benchmark prices compared to $8.6 million in the previous quarter. During December 2025, U.S. benchmark lumber prices for delivery to Great Lakes region for 2×4 2&better random length and studs were US$522/mfbm and $US440/mfbm, respectively.
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Other Expenses
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Duties expense of $15.1 million in the fourth quarter of 2025 was lower than the third quarter of 2025 of $42.7 million. During the third quarter of 2025, duties expensed consisted of $8.9 million in relation to shipments sold and $33.8 million resulting from adjustments to finalized duties rates from AR6 in relation to 2023 duties paid. The Company was subject to a combined duty rate of 35.16% during the third quarter, which increased to 45.16% starting October 14, 2025 as a results of Section 232 tariffs.
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SG&A expenses were $1.5 million in the fourth quarter of 2025, a decrease of 63% compared to the third quarter of 2025, which was primarily due to reversal of accruals no longer required on sale of assets and higher non-cash stock-based compensation expenses in the comparative period.
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For the fourth quarter December 31, 2025, the Company recorded impairment charges of $9.0 million and $9.0 million, respectively. These charges were primarily driven by continued weakness in market prices for lumber, macro-economic conditions and elevated duties and tariff rates, which resulted in the carrying value of the cash-generating unit exceeding it’s estimated recoverable amount.
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Liquidity and Borrowings
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At December 31, 2025, the Company had $3.5 million in cash on hand (December 31, 2024 – $27.8 million). In addition, the Company had $27.0 million of excess availability under the revolving credit facility (net of $18.0 million drawn and $3.9 million for standby letters of credit) compared to $39.3 million as at December 31, 2024 (net of $8.3 million for standby letters of credit). The Company also had access to $14.1 million under its equipment financing agreement (December 31, 2024 – $11.3 million) of which $10.9 million was drawn as at December 31, 2025 (December 31, 2024 – $13.7 million).
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