Acadian Timber Corp. Reports Third Quarter Results

Executive Summary

• Acadian Timber reported Q3 2025 sales of $23.0 M (down 12% YoY) and net income of $2.9 M, or $0.16 per share, a modest increase from $2.2 M ($0.13 per share) in Q3 2024.
• Adjusted EBITDA fell to $3.5 M (15% margin) versus $4.0 M (16%) YoY; Free Cash Flow declined to $1.0 M from $2.5 M.
• The board declared a quarterly dividend of $0.29 per share (total $5.3 M), payable 15 Jan 2026, and highlighted the transition to internal logging operations in Maine as a strategic shift.

Key Details

• Financial Highlights (Three‑Month Period)
• Sales: $23.017 M vs. $25.959 M YoY.
• Operating income: $2.956 M vs. $3.899 M YoY.
• Net income: $2.928 M ($0.16/share) vs. $2.215 M ($0.13/share) YoY.
• Adjusted EBITDA: $3.508 M (15% margin) vs. $4.039 M (16%) YoY.
• Free Cash Flow: $0.991 M vs. $2.540 M YoY.

• Dividends declared: $5.256 M ($0.29/share).

• Operating Metrics

• Timber sales volume (excluding biomass): 245,200 m³, an 8% YoY decline.
• New Brunswick saw stable volumes; Maine volumes fell 42% due to limited trucking capacity and ramp‑up of internal logging.

• Weighted average selling price (ex‑biomass) flat YoY; softwood sawlog price +10%, hardwood sawlog –11%.

• Segment Performance

• New Brunswick Timberlands: Sales $20.5 M vs. $21.8 M YoY; Adjusted EBITDA $4.363 M (21% margin).
• Maine Timberlands: Sales $2.5 M vs. $4.2 M YoY; Adjusted EBITDA –$0.503 M (‑20% margin).

• Environmental Solutions: No carbon credit sales in 2025; prior year 752,100 credits generated $24.6 M revenue.

• Strategic Initiatives

• Internal logging operations launched in Maine: acquisition of A&A Brochu assets for $6.9 M (equipment $5.235 M, land/buildings $1.461 M, intangibles $0.234 M).

• Purchase of harvesting equipment for $2.4 M in Jan 2025.

• Balance Sheet (as of Sep 27 2025)

• Cash & equivalents: $2.426 M (down from $15.250 M Dec 31 2024).
• Net liquidity: $15.1 M including credit facilities.

• Long‑term debt: $112.0 M vs. $68.9 M YoY.

• Outlook & Risks

• Anticipates stable near‑term sawlog demand; pricing pressure may continue.
• Highlights U.S. softwood lumber duties and new tariffs as headwinds.
• Expects internal logging operations to improve production and cost structure in Maine over the remainder of 2025.

Notable Quotes

• “The third quarter included both operational stability and transitional pressures for Acadian,” – Adam Sheparski, President & CEO.

Materiality Assessment: Material – Positive (earnings release with dividend declaration and strategic operational shift).