Canfor announces asset write-down and impairment charge

Executive Summary

• Canfor Corp. announced a non‑cash asset write‑down and impairment charge of approximately $321 million for Q4 2025.
• The impairment consists of $215 million related to the lumber segment (European operations) and $106 million related to the pulp & paper segment.
• The charge is non‑cash, does not affect liquidity or cash flow, and is disclosed in connection with the pending acquisition of the remaining shares of Canfor Pulp Products Inc.

Key Details

• Total non‑cash impairment: ~$321 M (Q4 2025).
• Lumber segment impairment: $215 M, driven by log supply pressures and higher log costs in Europe, reducing asset carrying values.
• Pulp & paper segment impairment: $106 M, reflecting sustained declines in global US‑dollar pulp list prices and challenges securing economically viable fibre.
• The impairment is purely accounting; it has no impact on cash flows or day‑to‑day operations.
• Canfor currently holds 54.8 % of Canfor Pulp Products Inc.; the company proposes to acquire the remaining shares under an arrangement agreement dated December 3, 2025.
• The announcement is incorporated by reference in the management information circular dated January 28, 2026 for a special shareholders’ meeting scheduled for March 6, 2026 to seek approval of the proposed transaction.

Notable Quotes

(No direct quotes were provided in the release.)