VANCOUVER, BC, July 31, 2025 /CNW/ – Canfor Corporation (“the Company” or “Canfor”) (TSX:CFP) today reported its second quarter of 2025 results:
Overview.
- Q2 2025 operating loss of $251 million, shareholder net loss of $203 million, or $1.71 per share.
- After taking into consideration adjusting items1 of $201 million, Q2 2025 operating loss of $51 million, compared to a similarly adjusted operating loss of $32 million in Q1 2025.
- Solid earnings from Europe; North American operations impacted by sustained weakness in lumber benchmark pricing.
- Persistent weak market conditions in the US South led to the announcement of the permanent closure of the Company’s Estill and Darlington sawmills, and, as a result, an asset write-down and impairment charge of $189 million and restructuring costs of $7 million in the lumber segment.
- Rising global economic uncertainty put downward pressure on global pulp market fundamentals, particularly in China, and on North American kraft paper markets; global pulp producer inventories climbed to well above the balanced range.
- The Canadian dollar strengthened by 3 cents, or 4%, versus the US-dollar quarter-over-quarter, weakening revenues.
- Vida AB announced agreement to purchase AB Karl Hedin Sågverk (“Hedin”) for $164 million, including approximately $39 million of working capital, which will add 230 million board feet to Vida’s annual capacity.
Financial results.
The following table summarizes selected financial information for the Company for the comparative periods:
|
(millions of Canadian dollars, except per share amounts) |
Q2 2025 |
Q1 2025 |
YTD 2025 |
Q2 2024 |
YTD 2024 |
||||||||||
|
Sales |
$ |
1,379.4 |
$ |
1,417.5 |
$ |
2,796.9 |
$ |
1,381.5 |
$ |
2,764.2 |
|||||
|
Reported operating income (loss) before amortization, asset write-downs and impairments |
$ |
39.6 |
$ |
72.6 |
$ |
112.2 |
$ |
(98.3) |
$ |
(78.5) |
|||||
|
Reported operating loss |
$ |
(251.4) |
$ |
(28.5) |
$ |
(279.9) |
$ |
(250.8) |
$ |
(336.6) |
|||||
|
Adjusted operating income (loss) before amortization, asset write-downs and impairments1 |
$ |
51.7 |
$ |
68.9 |
$ |
120.6 |
$ |
(46.9) |
$ |
(57.3) |
|||||
|
Adjusted operating loss1 |
$ |
(50.7) |
$ |
(32.2) |
$ |
(82.9) |
$ |
(167.8) |
$ |
(283.8) |
|||||
|
Net loss2 |
$ |
(202.8) |
$ |
(31.0) |
$ |
(233.8) |
$ |
(191.1) |
$ |
(255.6) |
|||||
|
Net loss per share, basic and diluted2 |
$ |
(1.71) |
$ |
(0.26) |
$ |
(1.97) |
$ |
(1.61) |
$ |
(2.15) |
|||||
|
Adjusted net loss1, 2 |
$ |
(67.0) |
$ |
(38.1) |
$ |
(105.1) |
$ |
(168.7) |
$ |
(220.8) |
|||||
|
Adjusted net loss per share, basic and diluted 1, 2 |
$ |
(0.56) |
$ |
(0.32) |
$ |
(0.88) |
$ |
(1.42) |
$ |
(1.86) |
|||||
|
1. Adjusted results 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 document. |
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|
2. Attributable to equity shareholders of the Company. |
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The Company reported an operating loss of $251.4 million for the second quarter of 2025, compared to an operating loss of $28.5 million in the first quarter of 2025. After accounting for adjusting items totaling $200.7 million, consisting of an inventory write-down as well as an asset write-down and impairment charge, the Company’s operating loss was $50.7 million for the current quarter. This compares to a similarly adjusted operating loss of $32.2 million in the prior quarter. These results reflect a decline in results for both the lumber and pulp and paper segments.
Commenting on the Company’s second quarter results, Canfor’s President and Chief Executive Officer, Susan Yurkovich, stated: “While our European operations produced solid earnings this quarter, the North American market continued to experience significant challenges reflecting the impact of sluggish demand and a persistent weak pricing environment. During the second quarter, we made the difficult decision to permanently close our Estill and Darlington sawmills in