GreenFirst Reports Financial Results for the Fourth Quarter of 2025

Executive Summary

• GreenFirst reported a Q4 2025 net loss of C$32.8 M ($1.43 per diluted share), an improvement from the prior quarter’s loss but still material‑negative.
• Adjusted EBITDA for the quarter was negative C$21.7 M, reflecting continued pressure from lower lumber prices and a new 10 % U.S. softwood tariff.
• The company secured a C$30 M term loan under Canada’s Softwood Lumber Program and a C$19 M backstop letter of credit to support liquidity amid market volatility.

Key Details

• Financial Performance
• Net sales Q4 2025: C$76.9 M (≈10 % increase vs. Q3).
• Cost of sales: C$86.0 M (+16 % YoY quarter‑over‑quarter).
• Operating loss: C$34.8 M; Net loss: C$32.8 M.
• Adjusted EBITDA (continuing ops): –C$21.7 M (vs. –C$47.2 M Q3).

• Impairment charges recorded: C$9.0 M.

• Tariff Impact

• U.S. Section 232 proclamation effective Oct 14 2025 imposed a 10 % tariff on softwood lumber; GreenFirst is paying the tariff and has provisioned C$10.2 M for net realizable value adjustments.

• Liquidity & Financing

• Cash on hand at year‑end: C$3.5 M (down from C$27.8 M YoY).
• Revolving credit facility excess availability: C$27.0 M (net of draws and standby letters).
• Equipment financing agreement: C$14.1 M available, with C$10.9 M drawn.
• New term loan: C$30 M under the Softwood Lumber Program (arranged with BMO) to support operations.

• Backstop letter of credit: C$19 M from Export Development Canada.

• Operational Updates

• Completed installation of a new large‑log line at the Chapleau mill; commissioning underway, temporarily reducing production volumes.

• Approximately two weeks of downtime across most mills in early December to mitigate losses from low benchmark prices (Western Benchmark fell to US$380/mfbm).

• Outlook

• Management expects operational benefits from the Chapleau line to materialize later in 2026.
• Industry outlook remains uncertain due to macro‑economic factors, housing affordability, and ongoing trade policy risks.

Notable Quotes

“Q4 2025 was a challenging quarter for GreenFirst… we continued to focus on stabilizing operations and optimizing performance on the Chapleau line and anticipate beginning to realize operational benefits later in 2026.” – Joel Fournier, CEO, GreenFirst Forest Products Inc.