Conifex Timber (CFF) investor relations material

Executive summary

• Q1 2026 marked a transition period with continued curtailments and single-shift operations, resulting in a net loss of CAD 9.4 million (CAD 0.23 per share), improved from Q4 2025 but down from Q1 2025 net income.

• EBITDA loss was CAD 7.7 million, better than Q4 2025 loss of CAD 12.6 million, but below Q1 2025 positive EBITDA of CAD 4.9 million.

• Sawmill operations resumed two-shift configuration in February 2026, but a seven-week curtailment was announced for May-July 2026 due to market conditions.

• Management is actively pursuing additional capital and government funding to support operational improvements.

• Focus remains on achieving steady two-shift operations and returning to positive EBITDA by the end of 2026.

Financial highlights

• Lumber revenues were $15.0 million, down 5% sequentially and 52% year-over-year due to fewer shipments and lower prices.

• Bioenergy revenues were $5.2 million, down from $8.6 million in Q4 2025 and $7.0 million in Q1 2025 due to an unplanned outage.

• Lumber production was 21.7 million board feet, representing 36% of capacity, down 22% sequentially and 53% year-over-year.

• SG&A costs decreased to $1.1 million from $1.4 million in both comparative quarters.

• Cost of goods sold declined sequentially but unit costs increased year-over-year due to reduced operating days.

Outlook and guidance

• Positive EBITDA is not expected until two-shift operations are achieved, anticipated in the closing months of 2026.

• Market conditions for Canadian softwood lumber are expected to remain challenging through 2026, with uneven demand and persistent pricing volatility.

• Analyst consensus for SPF prices in 2026 suggests continued pressure on margins until production increases.

• Gradual improvement in U.S. housing starts is anticipated over the medium term, but near-term demand remains uncertain.

• Management expects improved cost structure and lower duty deposit rates to support profitability in late 2026.