Interfor Corp

Latest Results (24.03.2026):

Interfor Corporation (Interfor Corp) reported results for Q3’25 showing a net loss of $215.8 million ($4.19/share) and an Adjusted EBITDA loss of $183.8 million on sales of $689.3 million. Management attributes the large swing largely to higher duty-related non‑cash items and weak lumber market conditions, while taking steps to preserve liquidity and reduce production in response to demand and new U.S. trade measures.

Earnings

Q3’25 net loss was $215.8M versus net earnings of $11.1M in Q2’25; Adjusted EBITDA was a loss of $183.8M (Adjusted EBITDA margin -26.7%).

Duties drove most of the charge

The Adjusted EBITDA loss includes a $147.4M net duties expense tied to the final AR6 duty rates and revaluation of duty deposits; excluding these duty items Adjusted EBITDA would have been a loss of $36.4M. The DoC’s final combined AD+CV rate for 2023 was 35.16%, generating a $156.7M increase to duties expense and $26.1M to interest expense; cumulative duties paid totaled US$639.8M as of Sept. 30, 2025.

Production cuts

Lumber production was 912 million board feet (down 23 mfbf QoQ). Interfor announced temporary Q4’25 production reductions of ~250 mfbf (≈26% vs Q2’25) to match weak demand.

Prices and inventory

Average selling price fell to $618 per mfbm (down $66 QoQ) driven by a 19.4% drop in the SYP Composite benchmark; the company recorded a $23.1M inventory provision in Q3’25 (versus $7.3M in Q2’25). Lumber shipments were 924 mfbf, slightly above production, reducing inventory by ~10 mfbf.

Liquidity and capital raise

Net debt at quarter‑end was $893.3M (41.6% of invested capital). On a pro‑forma basis including the Oct. 1, 2025 bought‑deal equity raise (gross proceeds $143.8M), pro‑forma net debt would be $755.4M (35.2% of invested capital) with available liquidity of $385.7M.

Credit facilities and covenants

Interfor completed an early renewal/extension of its $562.5M Revolving Term Line to July 25, 2029, and remained in compliance with debt covenants at Sept. 30, 2025.

Asset monetization & capital spending

The company sold Coastal B.C. tenures (≈32,000 m3 AAC) for gross proceeds of $3.4M and a gain of $3.6M and held ~701,000 m3 AAC for disposition. Q3 capital spending was $32.0M (including $17.8M discretionary); full‑year 2025 capex guidance is $90–95M and 2026 is estimated ~ $75M.

Tariffs and trade outlook

In addition to duties, a U.S. Section 232 tariff of 10% on softwood lumber took effect Oct. 14, 2025, adding further near‑term uncertainty. Management notes only ~25% of Interfor’s total lumber production is exported from Canada to the U.S. and is directly exposed to duties/232 tariffs, while ~60% of production is produced and sold within the U.S.

Outlook

Interfor expects near‑term market volatility due to monetary policy, tariffs, labour/logistics and other factors but says its diversified North American footprint, flexibility to cut production and ability to reduce capex/working capital position the company to manage through the cycle.