Interfor (IFP) Q2 2026 earnings summary

Executive summary

• Strong execution in Q2 driven by improved lumber markets, cost reduction, higher mill productivity, and disciplined inventory management.

• Achieved net earnings of $1.0 million in Q2'26, reversing a net loss of $63.3 million in Q1'26 and down from $11.1 million in Q2'25.

• Adjusted EBITDA rose to $92.3 million on sales of $804.4 million, up from $30.7 million in Q1'26 and $17.2 million in Q2'25.

• Ongoing focus on operational efficiency, cost control, and maintaining a robust balance sheet to withstand market volatility.

• Transition of certain corporate support roles to Georgia to better align with operational footprint, while maintaining Canadian headquarters.

Financial highlights

• Generated CAD 92 million of adjusted EBITDA in Q2, a significant sequential improvement and among the best in four years.

• Operating cash flow after working capital changes was $100.8 million in Q2'26; available liquidity improved to $441.8 million at quarter-end.

• Net debt at quarter-end was $816.7 million, or 36.7% of invested capital, down from $857.7 million (38.3%) in Q1'26.

• Realized selling prices increased approximately 11% quarter-over-quarter; production volumes up 8% sequentially.

• Adjusted EBITDA margin improved to 11.5% in Q2'26 from 4.8% in Q1'26 and 2.2% in Q2'25.

Outlook and guidance

• Benchmark lumber prices remain strong into Q3, but summer seasonality and market volatility are expected.

• Industry supply rationalization continues, supporting a more balanced market.

• Total 2026 capital expenditures expected at CAD 90 million, primarily maintenance-focused.

• Cost reduction initiative on track for CAD 80 million over two years, with a likely 50/50 split between 2026 and 2027.

• Only 20% of production exposed to U.S. duties and tariffs.