Interfor Reports Q3'25 Results
Executive Summary
- Interfor reported a Q3 2025 net loss of C$215.8 million ($4.19 per share), a significant deterioration from the prior quarter’s profit and from Q3 2024.
- Adjusted EBITDA was a loss of C$183.8 million on sales of C$689.3 million, driven largely by a C$147.4 million duty expense related to soft‑wood lumber anti‑dumping and countervailing duties.
- The company completed a bought‑deal equity offering (14.3 M shares at $10.05) raising gross proceeds of C$143.8 million, used to reduce net debt; net debt at quarter‑end was C$893.3 million (41.6% of invested capital).
Key Details
- Financial Performance
- Net loss: C$215.8 M vs. C$105.7 M in Q3 2024.
- Adjusted EBITDA loss: C$183.8 M (vs. a $17.2 M gain in Q2 2025).
- Sales: C$689.3 M, down slightly from C$692.7 M in Q3 2024.
- Lumber production: 912 M board feet, down 23 M bf vs. prior quarter; shipments 924 M bf.
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Average selling price: $618 per mfbm, a $66 decline QoQ.
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Duty Impact
- Finalized sixth administrative review (AR6) and revaluation of duty deposits added C$147.4 M to expenses.
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Recorded a $156.7 M increase to duties expense and a $26.1 M increase to interest expense from the revised 35.16% combined AD/CV rate for 2023 shipments.
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Capital Structure & Liquidity
- Bought‑deal equity offering (14,303,470 shares at $10.05) generated C$143.8 M gross; net proceeds used to pay down debt.
- Revolving Term Line commitment: $562.5 M, maturity extended to July 2029.
- Net debt (including term‑line draws): C$893.3 M; pro‑forma net debt after equity raise would be C$755.4 M.
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Available liquidity at quarter‑end: C$247.9 M.
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Asset Dispositions
- Sold Coastal B.C. forest tenures (≈32,000 m³ AAC) for gross proceeds of C$3.4 M, realizing a gain of C$3.6 M.
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Retained ≈701,000 m³ AAC pending regulatory approvals.
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Capital Expenditures
- Q3 capital spending: C$32.0 M (incl. $17.8 M discretionary for Thomaston sawmill rebuild).
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FY 2025 capex guidance: $90‑95 M; FY 2026 estimate: ≈$75 M.
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Outlook & Market Conditions
- Anticipates continued near‑term volatility in North American lumber markets due to higher duty rates, Section 232 tariff (10% on softwood imports), and macroeconomic uncertainty.
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Maintains flexibility to adjust production, capex, and working capital as demand evolves.
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Conference Call
- Scheduled for Friday, 7 Nov 2025 at 08:00 a.m. PT; dial‑in 1‑888‑510‑2154 (webcast link provided).
Notable Quotes
“Interfor is well positioned to navigate the heightened volatility with a diversified product mix and flexible cost structure,” – Richard Pozzebon, EVP & CFO.