GreenFirst Reports Financial Results for the Third Quarter of 2025

Executive Summary

• GreenFirst reported a Q3 2025 net loss of C$57.4 million ($2.54 per diluted share), a sharp decline from the prior quarter’s C$9.6 million loss.
• Adjusted EBITDA from continuing operations was negative C$47.2 million (‑C$13.4 million excluding one‑time duty impacts).
• A substantial US softwood lumber duty liability of C$39.7 million was recorded, driven by the final AR6 rate of 35.16%.

Key Details

• Financial Performance
• Net sales: C$70.2 million (≈17% YoY decline vs. Q2 2025).
• Cost of sales: C$75.6 million (≈6% lower than Q2 2025).
• Operating loss: C$50.9 million versus C$8.8 million in Q2 2025.
• Adjusted EBITDA (continuing): ‑C$47.2 million; excluding duty impact, ‑C$13.4 million.
• Duty Expense
• Total duties expense for the quarter: C$42.7 million (‑C$33.8 million related to AR6 under‑payment, plus C$8.9 million on shipments).
• Duty liability as of Sept 27 2025: C$39.7 million (previously nil).
• Operational Highlights
• Average realized lumber price fell to US$695/mfbm from US$712/mfbm in Q2 2025.
• Production downtime incurred for installation of a new large‑log line at the Chapleau mill and scheduled curtailments.
• Commissioning of a new saw line at Chapleau began during the quarter.
• Liquidity & Borrowings
• Cash on hand: C$3.5 million.
• Revolving credit facility availability: C$30.4 million (‑C$14.1 million standby letters of credit).
• Equipment financing availability: C$13.4 million remaining.
• Drawdowns to date: C$19.0 million (revolving) and C$11.6 million (equipment).
• Outlook & Risks
• Management expects macro‑economic stabilization may support lumber demand, but acknowledges uncertainty around mortgage rates, housing inventory, and potential tariff changes.
• Ongoing supply constraints in Western Canada (wildfire impacts, regulatory limits) could sustain price support.
• Labour market tightness and inflationary input costs remain downside risks.

Notable Quotes

• “Despite these challenges, GreenFirst remained resilient and disciplined… the new saw line positions us well to benefit when market conditions improve,” – Joel Fournier, CEO.