Canfor Pulp reports results for the third quarter of 2025

Executive Summary

• Canfor Pulp Products Inc. reported a material third‑quarter 2025 operating loss of C$16 million and a net loss of C$12 million, translating to a loss per share of C$0.19.
• Revenue declined to C$164.6 million versus C$177.9 million in Q2 2025, reflecting weak global pulp pricing and elevated inventory levels.
• Management warned that continued macro‑economic headwinds and a scheduled maintenance outage could push the company toward covenant non‑compliance as early as 31 Dec 2025, prompting cost‑saving measures and lender negotiations.

Key Details

• Operating Performance – Operating loss of C$16.0 M (Q2 2025: loss of C$5.3 M). Adjusted operating loss after a C$4.9 M inventory write‑down was C$11.1 M.
• Net Loss – Net loss of C$12.4 M; basic & diluted loss per share of C$0.19 (Q2 2025: loss per share C$0.10).
• Sales – Q3 2025 sales were C$164.6 M, down from C$177.9 M in the prior quarter and C$193.2 M year‑over‑year.
• Pulp Production – Produced 107,000 tonnes of NBSK pulp (up 5 % QoQ), partially offset by a minor maintenance outage at the Intercontinental mill.
• Paper Segment Income – Operating income rose to C$5.0 M from C$1.5 M in Q2 2025, driven by a favorable sales mix and lower manufacturing costs.
• Pricing Environment – US‑dollar NBSK list price to China averaged US$690/tonne, down US$44 (6 %) versus the prior quarter. Inventories rose to 52 days of supply (+2 days QoQ), well above the balanced range (39‑47 days).
• Outlook – Q4 2025
• Anticipated continued weakness in softwood kraft pulp markets and elevated inventories.
• Scheduled maintenance at Northwood NBSK mill expected to cut production by 10,000 tonnes, further pressuring results.
• Management forecasts a decline in Q4 earnings and highlights risk of breaching financial covenants; cost‑saving initiatives and capital expenditure deferrals are being pursued, with active lender negotiations for a potential waiver.
• Paper Outlook – Bleached kraft paper demand remains subdued in North America due to Canada‑US trade uncertainties and broader economic challenges.
• Conference Call – Management will discuss results on 6 Nov 2025 at 9:00 AM PT (toll‑free numbers provided).

Notable Quotes

“Persistent global economic uncertainty continued to negatively impact global pulp and paper fundamentals throughout the third quarter… we anticipate these economic challenges to continue.” – Stephen Mackie, President & CEO, Canfor Pulp Products Inc.