Acadian Timber (ADN) investor relations material

Executive summary

• Q2 2026 saw sales of $14.6 million, down from $17.1 million in Q2 2025, due to lower production and sales volumes in New Brunswick and operational changes in Maine.

• Adjusted EBITDA was $1.3 million (9% margin), down from $2.4 million (14% margin) in Q2 2025; net income was $1.3 million ($0.07 per share), down from $2.7 million ($0.15 per share).

• Operational improvements in Maine led to reduced costs and improved efficiency, though operations remained unprofitable.

• Real Estate and Environmental Solutions segments advanced, with new lots brought to market and progress on carbon credit registration.

• Dividend of $0.29 per share declared, with net liquidity at $15.0 million at quarter-end.

Financial highlights

• Revenue for Q2 2026 was $14.6 million, down from $17.1 million in Q2 2025; six-month revenue was $38.0 million, down from $42.0 million year-over-year.

• Net income for Q2 2026 was $1.3 million ($0.07 per share), down from $2.7 million ($0.15 per share) in Q2 2025.

• Operating costs and expenses decreased by $1.7 million year-over-year; six-month operating costs decreased by $3.0 million.

• Free Cash Flow for Q2 2026 was $0.2 million, down from $0.8 million in Q2 2025.

• Weighted average selling price increased 19% year-over-year, offsetting some volume declines.

Outlook and guidance

• Positive outlook for the remainder of 2026, with stable contractor availability in New Brunswick and continued operational improvements in Maine.

• Sawlog demand expected to remain stable, but pricing may face pressure until end-use markets improve.

• Pulpwood demand and pricing expected to remain soft until customer production increases or new facilities open.

• Carbon credit registration delayed to H2 2026 due to protocol updates, with improved marketability expected.