Adjusted EBITDA loss of $29 million and Net Loss of $105 million
BURNABY, British Columbia, Feb. 12, 2026 (GLOBE NEWSWIRE) — INTERFOR CORPORATION (“Interfor” or the “Company”) (TSX:IFP) recorded a net loss in Q4’25 of $104.6 million, or $1.59 per share, compared to a net loss of $215.8 million, or $4.19 per share in Q3’25 and a net loss of $49.9 million, or $0.97 per share in Q4’24.
Adjusted EBITDA was a loss of $29.2 million on sales of $600.6 million in Q4’25 versus an Adjusted EBITDA loss of $183.8 million on sales of $689.3 million in Q3’25 and Adjusted EBITDA of $80.4 million on sales of $746.5 million in Q4’24.
Notable items:
- Financing Transactions
- During and subsequent to Q4’25, Interfor completed a series of financing transactions. Taken together, these transactions significantly enhance Interfor’s financial flexibility, bolster liquidity and provide meaningful additional runway as the Company continues to navigate volatile lumber market conditions. At December 31, 2025, Interfor had a net debt to invested capital ratio of 36.5% and had available liquidity of $481.6 million, proforma for the transactions outlined below.
- In October 2025, the Company completed its previously announced bought deal equity offering, which generated gross proceeds of $143.8 million through the issuance of 14,303,470 common shares.
- In December 2025, the Company entered into a US$26.0 million letter of credit facility (“LC Facility”), guaranteed by Export Development Canada (“EDC”). Letters of credit under the facility are to be used as collateral for US customs bonds, allowing for increased availability under the Company’s Revolving Term Line (“Term Line”).
- In February 2026, the Company entered into a $30.0 million term loan, guaranteed by the Business Development Bank of Canada. The financing is expected to close in Q1’26 and was arranged through the Government of Canada’s Softwood Lumber Guarantee Program.
- In February 2026, the Company amended its Term Line and its Senior Secured Notes. The amendments include the ability to exclude up to $300.0 million of non-cash asset or goodwill impairment charges from January 1, 2025 onwards from the calculation of the Company’s net debt to invested capital ratio and a higher threshold as to when the springing two times EBITDA interest coverage ratio covenant applies. Specifically, the Company can elect to increase the threshold to 47.5% from the existing 42.5% of net debt to invested capital ratio for several quarters, until an outside date of March 31, 2028. The amendments also require that Interfor maintain minimum liquidity levels of up to $175.0 million, depending on certain circumstances. There were no changes to the maturity date of July 25, 2029 for the Term Line and the commitment was amended to $540.0 million.
-
- In February 2026, the Company received commitments for US$75.0 million in Senior Secured Notes with a group of private note holders. The financing is expected to close in Q1’26, subject to final documentation, with the proceeds expected to be used to settle upcoming maturities of the Company’s existing Senior Secured Notes in 2026 and 2027. The new Senior Secured Notes will carry an annual fixed interest rate of 8.00% and have a final maturity in 2034. All other terms are largely consistent with Interfor’s existing Senior Secured Notes. Following completion of the financing and the amendments noted above, Interfor’s Senior Secured Notes will have a weighted average interest rate of 6.55%.
- Production Curtailments in Response to Market Conditions
- Lumber production of 753 million board feet was down 159 million board feet versus the preceding quarter. This decline largely reflects the temporary production curtailments announced on October 17, 2025.
- Lumber shipments of 812 million board feet exceeded production by approximately 8%, resulting in a 63 million board foot reduction in inventory volume during the quarter.
- Weak lumber market conditions were reflected in Interfor’s average selling price of $599 per mfbm, down $19 per mfbm versus Q3’25. This was primarily due to lower average prices across most of the key benchmarks quarter-over-quarter, with the exception of the SYP Composite benchmark price which remained relatively flat.
- Due to the prolonged weak lumber market, higher duties and tariffs and mill specific economic and operating factors, the Company recorded an impairment charge of $69.1 million against property, plant and equipment in Eastern Canada.
- Monetization of Coastal B.C. Operations
- The Company sold Coastal B.C. forest tenures totalling approximately 127,000 cubic metres of allowable annual cut (“AAC”) and related assets and liabilities for gross proceeds of $10.0 million and a gain of $9.5 million. During the quarter, the Company made all final settlement payments and therefore had no remaining contractual obligations related to the monetization of the Coastal B.C. operations as at December 31, 2025.
- Interfor held approximately 574,000 cubic metres of AAC for disposition at December 31, 2025, subject to approvals from the Ministry of Forests.
- Capital Investments
- Capital spending was $17.5 million, including $8.1 million of discretionary investment primarily focused on the multi-year rebuild of the Thomaston, GA sawmill, which is expected to be completed in Q1’26.
- Capital expenditures planned for 2026 are estimated to be in the range of $75.0 million to $80.0 million.
- Export Duties and Tariffs
- Interfor recorded $31.2 million of export duties expense in the quarter. This represents countervailing (“CV”) and anti-dumping (“AD”) duties incurred on shipments of softwood lumber from its Canadian operations to the U.S. at a combined rate of 35.16%.
- Interfor has paid cumulative duties of US$663.5 million, or approximately $10.09 per share on an after-tax basis, as at December 31, 2025. Except for a US$71.5 million net receivable recorded in respect of overpayments arising from duty rate adjustments and the fair value of rights to duties acquired, Interfor has recorded the duty deposits as an expense.
- Effective October 14, 2025, the U.S. imposed a tariff of 10% under Section 232 of the Trade Expansion Act, on all imports of softwood timber and lumber into the U.S., including from Canada. During the quarter, the Company paid $4.7 million in Section 232 tariffs.
Outlook
North American lumber markets over the near term are expected to remain volatile as the economy continues to adjust to changing monetary policies, tariffs, labour shortages and geo-political uncertainty, and as industry-wide lumber production continues to adjust to match demand.
Notably, benchmark lumber prices rebounded late in Q4’25 and into early Q1’26, with the SYP Composite lumber price rising US$102 per mfbm or 32%, the Western SPF Composite lumber price rising US$56 per mfbm or 15% and the KD H-F Stud 2×4 9′ lumber price rising US$100 per mfbm or 26% from the end of September 2025 through to the end of January 2026. Winter weather in North America, industry-wide market curtailments and seasonal demand factors are expected to drive ongoing price fluctuations in early 2026.
Near-term volatility is likely to be amplified by the significantly higher duty rates on Canadian lumber exports to the U.S., the Section 232 tariff and by any additional tariffs or other trade restrictions, if imposed. Overall, the Company is well positioned to navigate this volatility with a diversified product mix in Canada and the U.S., with approximately 60% of its total lumber produced and sold within the U.S. Ultimately, only about 25% of the Company’s total lumber production is exported from Canada to the U.S. and exposed to duties, the Section 232 tariff and other potential trade measures.
Over the mid-term, Canadian lumber is expected to remain a key source of supply to meet U.S. needs, as growth in U.S. lumber manufacturing capacity will likely be limited by labour constraints, lengthy equipment lead-times, residual offtake constraints and extended project ramp-up schedules. Over the same period, the North American lumber market is expected to continue to benefit from favourable underlying demand fundamentals, including the advanced age of the U.S. housing stock, a shortage of available housing and various demographic factors.
Interfor’s strategy of maintaining a diversified portfolio of operations in multiple regions allows the Company to both reduce risk and maximize returns on capital over the business cycle.
Financial and Operating Highlights1
| For the three months ended | For the year ended Dec. 31 | ||||||
| Dec. 31 | Dec. 31 | Sept. 30 | |||||
| Unit | 2025 | 2024 | 2025 | 2025 | 2024 | 2023 | |
| Financial Highlights2 | |||||||
| Total sales | $MM | 600.6 | 746.5 | 689.3 | 2,805.9 | 3,023.6 | 3,315.7 |
| Lumber | $MM | 486.8 | 619.1 | 570.7 | 2,341.5 | 2,466.8 | 2,661.3 |
| Logs, residual products and other | $MM | 113.8 | 127.4 | 118.6 | 464.4 | 556.8 | 654.4 |
| Operating earnings (loss) | $MM | (148.9) | 25.2 | (229.7) | (406.9) | (291.2) | (252.4) |
| Net loss | $MM | (104.6) | (49.9) | (215.8) | (344.4) | (304.3) | (266.8) |
| Net loss per share, basic | $/share | (1.59) | (0.97) | (4.19) | (6.26) | (5.91) | (5.19) |
| Adjusted EBITDA3 | $MM | (29.2) | 80.4 | (183.8) | (147.2) | 19.4 | 48.4 |
| Adjusted EBITDA margin3 | % | (4.9%) | 10.8% | (26.7%) | (5.2%) | 0.6% | 1.5% |
| Total assets | $MM | 2,721.5 | 3,078.7 | 2,914.8 | 2,721.5 | 3,078.7 | 3,395.7 |
| Total debt | $MM | 829.8 | 904.7 | 913.7 | 829.8 | 904.7 | 897.7 |
| Net debt3 | $MM | 797.6 | 861.3 | 893.3 | 797.6 | 861.3 | 842.7 |
| Net debt to invested capital ratio3 | % | 36.5% | 35.7% | 40.7% | 36.5% | 35.7% | 32.5% |
| Annualized return on capital employed3 | % | (20.2%) | (2.2%) | (36.9%) | (14.4%) | (10.4%) | (9.7%) |
| Operating Highlights | |||||||
| Lumber production | million fbm | 753 | 948 | 912 | 3,501 | 3,956 | 4,152 |
| U.S. South | million fbm | 396 | 425 | 433 | 1,655 | 1,824 | 1,897 |
| U.S. Northwest | million fbm | 50 | 112 | 115 | 418 | 457 | 626 |
| Eastern Canada | million fbm | 174 | 235 | 198 | 781 | 1,015 | 1,020 |
| B.C. | million fbm | 133 | 176 | 166 | 647 | 660 | 609 |
| Lumber sales | million fbm | 812 | 940 | 924 | 3,577 | 4,046 | 4,174 |
| Lumber – average selling price4 | $ per mfbm | 599 | 659 | 618 | 655 | 610 | 638 |
| Key Statistics | |||||||
| Benchmark lumber prices5 | |||||||
| SYP Composite | US$ per mfbm | 341 | 373 | 338 | 376 | 363 | 423 |
| KD H-F Stud 2×4 9′ | US$ per mfbm | 422 | 421 | 455 | 456 | 415 | 444 |
| Eastern SPF Composite | US$ per mfbm | 480 | 515 | 527 | 518 | 482 | 480 |
| Western SPF Composite | US$ per mfbm | 401 | 457 | 429 | 439 | 410 | 389 |
| USD/CAD exchange rate6 | |||||||
| Average | 1 USD in CAD | 1.3947 | 1.3982 | 1.3768 | 1.3978 | 1.3698 | 1.3497 |
| Closing | 1 USD in CAD | 1.3706 | 1.4389 | 1.3941 | 1.3706 | 1.4389 | 1.3226 |
| Notes: | |
| 1 | Figures in this table may not equal or sum to figures presented elsewhere due to rounding. |
| 2 | Financial information presented for interim periods in this release is prepared in accordance with IFRS Accounting Standards (“IFRS”) and is unaudited. |
| 3 | Refer to the Non-GAAP Measures section of this release for definitions and reconciliations of these measures to figures reported in the Company’s consolidated financial statements. |
| 4 | Gross sales including duties, tariffs and freight. |
| 5 | Based on Random Lengths Benchmark Lumber Pricing. |
| 6 | Based on Bank of Canada foreign exchange rates. |
Liquidity
Balance Sheet
Interfor’s net debt at December 31, 2025 was $797.6 million, or 36.5% of invested capital, representing a decrease of $63.7 million from December 31, 2024.
As at December 31, 2025 the Company had net working capital of $177.3 million and available liquidity of $371.3 million, based on the available borrowing capacity under its Term Line.
In October 2025, the Company completed a bought deal offering of 12,437,800 common shares of the Company and the concurrent exercise of an over-allotment option to purchase an additional 1,865,670 common shares at a price of $10.05 per common share for gross proceeds of $143.8 million.
In December 2025, the Company entered into a US$26.0 million LC Facility. Letters of credit issued under the LC Facility are to be used as collateral for US customs bonds. As at December 31, 2025, US$25.2 million of letters of credit were issued under the LC Facility and the LC Facility is guaranteed by EDC.
The Term Line and Senior Secured Notes are subject to financial covenants, including a maximum net debt to invested capital ratio of 50.0% and a minimum EBITDA interest coverage ratio of two times, which becomes effective if the net debt to invested capital ratio exceeds certain thresholds. As at December 31, 2025, Interfor was fully in compliance with all covenants relating to the Term Line and Senior Secured Notes.
Subsequent to year end, the Company completed a series of financing transactions, as discussed above under Financing Transactions.
Management believes, based on circumstances known today, that Interfor has sufficient working capital and liquidity to fund operating and capital requirements for the foreseeable future.
| For the three months ended | For the year ended | ||||
| Dec. 31 | Dec. 31 | Sept. 30 | Dec. 31 | Dec. 31 | |
| Millions of Dollars | 2025 | 2024 | 2025 | 2025 | 2024 |
| Net debt | |||||
| Net debt, period opening | $893.3 | $849.9 | $798.0 | $861.3 | $842.7 |
| Additions to Senior Secured Notes | – | – | – | – | 45.3 |
| Repayments of Senior Secured Notes | – | – | – | (47.7) | (45.3) |
| Term Line net drawings (repayments) | (69.7) | (35.1) | 82.8 | 14.5 | (69.9) |
| Decrease (increase) in cash and cash equivalents | (12.6) | (8.7) | (4.0) | 9.1 | 15.1 |
| Foreign currency translation impact on U.S. Dollar denominated cash and cash equivalents and debt | (13.4) | 55.2 | 16.5 | (39.6) | 73.4 |
| Net debt, period ending | $797.6 | $861.3 | $893.3 | $797.6 | $861.3 |
On March 26, 2025, the Company paid US$33.3 million of principal that was due on the Company’s Series C Senior Secured Notes.
On March 26, 2024, the Company issued US$33.3 million of Series I Senior Secured Notes, bearing interest at 6.37% with principal repayment due at final maturity on March 26, 2030. The proceeds were used to settle US$33.3 million of principal under the Company’s Series C Senior Secured Notes due on March 26, 2024.
Capital Resources
The following table summarizes Interfor’s credit facilities and availability as of December 31, 2025:
| Revolving | Senior | ||
| Term | Secured | ||
| Millions of Dollars | Line | Notes | Total |
| Available line of credit and maximum borrowing available | $562.5 |