Acadian Timber Corp. Reports Second Quarter Results

Executive Summary

• Acadian Timber Corp. reported financial and operating results for the second quarter and first half of 2025, highlighting a significant decline in revenue and profitability compared to the prior year, primarily due to the absence of carbon credit sales and lower timber volumes in Maine.
• The company declared a quarterly dividend of $0.29 per share ($5.2 million total) and reported $15.1 million in net liquidity as of June 28, 2025.
• Operational challenges in Maine were driven by the transition to internal logging operations and unfavorable weather, while New Brunswick operations remained steady with increased softwood demand.

Key Details

• Financial Performance (Q2 2025):
  • Revenue from timber sales and services: $17.1 million (down from $21.5 million in Q2 2024).
  • Carbon credit sales: $0 (vs. $19.7 million in Q2 2024).
  • Total Sales: $17.1 million (vs. $41.2 million in Q2 2024).
  • Net Income: $2.7 million ($0.15 per share) vs. $7.9 million ($0.46 per share) in Q2 2024.
  • Adjusted EBITDA: $2.4 million (14% margin) vs. $20.6 million (50% margin) in Q2 2024.
  • Free Cash Flow: $0.8 million vs. $16.4 million in Q2 2024.
• Financial Performance (H1 2025):
  • Revenue from timber sales and services: $42.0 million (vs. $45.4 million in H1 2024).
  • Carbon credit sales: $0 (vs. $24.6 million in H1 2024).
  • Net Income: $6.3 million ($0.35 per share) vs. $13.9 million ($0.81 per share) in H1 2024.
  • Adjusted EBITDA: $7.1 million vs. $31.2 million in H1 2024.
• Dividends:
  • Declared dividends of $5.2 million ($0.29 per share) for Q2 2025.
  • Announced a new dividend of $0.29 per share for Q3 2025, payable October 15, 2025, to shareholders of record September 30, 2025.
• Operational Metrics:
  • Timber Volume: Total timber sales volume (excluding biomass) decreased 13% in Q2 2025 YoY. New Brunswick volumes increased 4%, while Maine volumes decreased 59% due to weather and ramp-up of internal operations.
  • Pricing: Weighted average selling price (excluding biomass) decreased 4% YoY in Q2. Softwood sawlog prices increased 5%, while hardwood sawlog prices decreased 4%.
  • Costs: Operating costs and expenses were $15.4 million in Q2 2025 (vs. $32.2 million in Q2 2024, which included $15.2 million in carbon credit costs).
• Maine Internal Logging Transition:
  • Acadian purchased harvesting equipment for $2.4 million in January 2025.
  • Acquired logging assets from A & A Brochu, LLC for $6.9 million on February 28, 2025.
  • Maine Adjusted EBITDA was negative $(0.9) million in Q2 2025 (vs. $0.9 million in Q2 2024) due to elevated costs during the ramp-up of internal operations.
• Carbon Credits:
  • No carbon credits were sold in Q2 or H1 2025.
  • The project is transitioning to the ACR Version 2.1 Improved Forest Management protocol, which delays registration of the second and third tranches until the second half of 2025.
  • New credits are expected to be higher-valued carbon removal credits rather than conservation credits.
• Balance Sheet:
  • Net liquidity: $15.1 million as of June 28, 2025.
  • Cash and cash equivalents: $2.6 million.
  • Long-term debt: $110.0 million.

Notable Quotes

• “During the second quarter, Acadian delivered mixed results,” said Adam Sheparski, President and Chief Executive Officer. “Steady operations in New Brunswick were offset by lower production in Maine, where we continue developing our new internal logging operations. We remain confident that these new operations will benefit Acadian over the long term.”