VANCOUVER, British Columbia, March 05, 2026 (GLOBE NEWSWIRE) — Canfor Pulp Products Inc. (“The Company” or “CPPI”) (TSX:CFX) today reported its fourth quarter of 2025 results:
Overview.
- Q4 2025 operating loss of $85.6 million; net loss of $133.6 million, or $2.05 per share.
- As a result of the prolonged weakness in global pulp markets and the Company’s persistent challenges accessing economically viable fibre, an asset write-down and impairment charge totaling $106.5 million was recognized in Q4 2025, which included a write-off of a previously recognized deferred tax asset of $52.5 million.
- After taking into consideration adjusting and one-time items1 totaling $57.5 million, the adjusted operating loss for Q4 2025 was $28.1 million, compared to a similarly adjusted operating loss of $11.1 million in Q3 2025.
- Global softwood pulp markets were relatively flat through Q4 2025, principally driven by elevated pulp producer inventory levels.
- Pulp production declined 4% in Q4 2025 (versus Q3 2025) primarily due to a scheduled maintenance outage at its Northwood NBSK pulp mill, including a slower than anticipated restart.
- Jointly with Canfor, the Company announced in December 2025 it had entered into an Arrangement Agreement, where Canfor would acquire all of the issued and outstanding common shares of Canfor Pulp not already owned by Canfor, for either $0.50 in cash consideration or 0.0425 of a common share of Canfor (the “Proposed Transaction”). Closing is anticipated in Q1 2026 and is subject to all applicable shareholder, court and regulatory approvals.
- As announced in February 2026, Management’s forecasts indicate a breach of financial covenants is highly probable as early as March 31, 2026. Should the Proposed Transaction not close, the Company would re-engage with its lenders for further temporary relief while it works to undertake a restructuring process.
Financial results.
The following table summarizes selected financial information for CPPI for the comparative periods:
| (millions of Canadian dollars, except per share amounts) | Q4 2025 |
Q3 2025 | YTD 2025 |
Q4 2024 | YTD 2024 | |||||||||||||||||||||
| Sales | $ | 140.2 | $ | 164.6 | $ | 678.9 | $ | 163.1 | $ | 798.6 | ||||||||||||||||
| Reported operating income (loss) before amortization, asset write-downs and impairment2 | $ | (20.1 | ) | $ | (7.2 | ) | $ | (2.5 | ) | $ | 12.3 | $ | 43.3 | |||||||||||||
| Reported operating income (loss) | $ | (85.6 | ) | $ | (16.0 | ) | $ | (96.1 | ) | $ | 4.1 | $ | (226.5 | ) | ||||||||||||
| Net income (loss)3 | $ | (133.6 | ) | $ | (12.4 | ) | $ | (146.7 | ) | $ | 2.9 | $ | (161.9 | ) | ||||||||||||
| Net income (loss) per share, basic and diluted3 | $ | (2.05 | ) | $ | (0.19 | ) | $ | (2.25 | ) | $ | 0.04 | $ | (2.49 | ) | ||||||||||||
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 $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.
3. Attributable to equity shareholders of the Company.
The Company 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.
Commenting on the Company’s fourth quarter results, CPPI’s President and Chief Executive Officer, Stephen Mackie, said, “The Company faced another extremely challenging quarter, as ongoing global economic uncertainty weighed heavily on softwood pulp market conditions. As a result, we remain cautious heading into 2026 as we continue to navigate significant external pressures on our business, including the prolonged downturn in softwood pulp markets and the ongoing constraints in securing economically viable fibre.”
Fourth quarter results, including adjusting and one-time items.
As previously announced, during the fourth quarter of 2025, the Company identified several indicators of impairment under IFRS Accounting Standards, including sustained declines in global US-dollar pulp list prices, persistent challenges in securing economically viable fibre, a reduction in the Company’s market capitalization and an increased risk of financial covenant non-compliance. Consequently, the Company recognized a non-cash asset write-down and impairment charge totaling $106.5 million in the current quarter, which included a write-off of a previously recognized deferred tax asset of $52.5 million.
After taking account of adjusting items totaling $57.5 million, as outlined in the table below, the Company’s adjusted operating loss was $28.1 million, compared to an adjusted operating loss of $11.1 million for the third quarter of 2025. 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 the Company’s scheduled maintenance downtime at its Northwood Northern Bleached Softwood Kraft (“NBSK”) pulp mill (“Northwood”).
| (millions of Canadian dollars) | Q4 2025 | Q3 2025 | YTD 2025 | Q4 2024 |
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