Interfor
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Interfor (IFP) investor relations material

Interfor Q4 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q4 2025 earnings summary13 Feb, 2026

Executive summary

  • 2025 was marked by historically weak lumber prices, significant market volatility, and a net loss of $104.6 million in Q4'25, but operational discipline and liquidity improvements were achieved.

  • Portfolio actions included permanent closure of two high-cost U.S. South mills, significant inventory reductions, and asset write-downs.

  • The final phase of the Thomaston Mill in Georgia is nearing completion, expected to enhance long-term cost structure.

  • Employee turnover improved for the second consecutive year, especially in the U.S. South.

  • Top three North American softwood lumber producer with 26 facilities and a diversified geographic footprint, including significant exposure to the US South and Eastern Canada.

Financial highlights

  • 2025 revenues reached $2.8 billion, with 84% from softwood lumber, 8% from by-products, and 4% each from other wood products and logs.

  • Q4 2025 Adjusted EBITDA was negative CAD 29 million, an improvement from negative CAD 36 million in Q3 after normalizing for non-cash duty expenses.

  • Q4'25 sales were $600.6 million, down from $746.5 million in Q4'24 and $689.3 million in Q3'25.

  • Net debt to capitalization ratio at year-end was 36.5%, with pro forma available liquidity of CAD 482 million.

  • Maintained strong cash flow and disciplined capital deployment, with ~$2.5 billion reinvested and ~$636 million returned to shareholders from 2020 to 2025.

Outlook and guidance

  • 2026 capital spending expected at CAD 75–80 million, with 2027 preliminary estimate at CAD 60 million, focused on maintenance.

  • Free cash flow will be directed solely toward leverage reduction; timing depends on lumber prices and market conditions.

  • Near-term North American lumber markets expected to remain volatile due to economic adjustments, tariffs, labor shortages, and geopolitical uncertainty.

  • Early signs of lumber market improvement noted, but planning assumptions remain conservative.

  • Multi-year capex plan targets mill upgrades and optimization to sustain high-margin operations.

How do new debt terms impact financial flexibility?
What drove Eastern Canada impairment charge?
Strategy for managing export duties and tariffs?
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Frequently asked questions

Interfor Corp is a lumber company that produces and sells wood products such as structural lumber, decking, and specialty boards. It operates sawmills across North America and supplies customers in residential, industrial, and commercial construction markets. The company is headquartered in Burnaby, Canada, and its shares are listed on the TSX.

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