Interfor Reports Q3’25 Results
Press Release
November 6, 2025
INTERFOR CORPORATION (“Interfor” or the “Company”) (TSX: IFP) recorded a net loss in Q3’25 of $215.8 million, or $4.19 per share, compared to net earnings of $11.1 million, or $0.22 per share in Q2’25 and a net loss of $105.7 million, or $2.05 per share in Q3’24.
Adjusted EBITDA was a loss of $183.8 million on sales of $689.3 million in Q3’25 versus Adjusted EBITDA of $17.2 million on sales of $780.5 million in Q2’25 and an Adjusted EBITDA loss of $22.0 million on sales of $692.7 million in Q3’24.
Notable items:
⦁ Earnings Impacted By Non-Cash Duty Items
o Reported Adjusted EBITDA loss of $183.8 million includes a $147.4 million net duties expense driven by the finalization of the sixth administrative review (“AR”) and revaluation of duty deposits receivable related to AR1-AR5, both as described below.
o Excluding the above, the Adjusted EBITDA loss would have been $36.4 million.
⦁ Production Curtailments to Reflect Ongoing Weak Lumber Market
o Lumber production of 912 million board feet was down 23 million board feet versus the preceding quarter. This decline largely reflects the Company’s announcement on September 4,
2025, to temporarily curtail production.
o On October 17, 2025, Interfor announced amended plans to temporarily reduce its lumber production in Q4’25 by approximately 250 million board feet, or 26%, as compared to Q2’25, which reflected a more normal operating stance. These curtailments are due to persistently weak market conditions and ongoing economic uncertainty. The Company will continue to monitor market conditions across all its operations and adjust its plans accordingly.
o Weak lumber market conditions were reflected in Interfor’s average selling price of $618 per mfbm, down $66 per mfbm versus Q2’25. This was primarily due to a 19.4% decrease in the SYP Composite benchmark lumber price quarter-over-quarter.
o The Company recorded a $23.1 million inventory provision expense in Q3’25 compared to a $7.3 million expense in Q2’25. The increase is primarily attributable to a decrease in product pricing at quarter end.
o Lumber shipments of 924 million board feet were slightly higher than lumber production, resulting in a 10 million board foot reduction in inventory volume during the quarter.
⦁ Stable Financial Position
o Net debt at quarter-end was $893.3 million, or 41.6% of invested capital compared to net debt at Q2’25 of $798.0 million, or 35.6% of invested capital.
o On a pro-forma basis, including net proceeds from the Company’s bought deal equity offering completed October 1, 2025, net debt at quarter-end would have been $755.4 million, or 35.2% of invested capital. Additionally, available liquidity would have been $385.7 million. This bought deal offering of 14,303,470 common shares at a price of $10.05 per common share, including the concurrent exercise of an over-allotment option, generated gross proceeds of $143.8 million. The net proceeds were used to pay down existing indebtedness.
⦁ On July 25, 2025, the Company completed an early renewal and extension of its Revolving Term
Line (“Term Line”) with several provisions that enhance the Company’s financial flexibility. The commitment under the Term Line totals $562.5 million and the maturity was extended from December 17, 2026 to July 25, 2029.
⦁ Monetization of Coastal B.C. Operations
⦁ The Company sold Coastal B.C. forest tenures totalling approximately 32,000 cubic metres of allowable annual cut (“AAC”) and related assets and liabilities for gross proceeds of $3.4 million and a gain of $3.6 million.
⦁ Interfor held approximately 701,000 cubic metres of AAC for disposition at September 30, 2025, subject to approvals from the Ministry of Forests.
⦁ Capital Investments
⦁ Capital spending was $32.0 million, including $17.8 million of discretionary investment primarily focused on the multi-year rebuild of the Thomaston, GA sawmill.
⦁ Total capital expenditures for 2025 are expected to be in the range of $90.0 million to $95.0 million, while total capital expenditures for 2026 are estimated to be approximately $75.0 million.
⦁ Softwood Lumber Duties
⦁ On July 29, 2025 and August 12, 2025, respectively, the U.S. Department of Commerce (“DoC”) published the “All Others” final anti-dumping (“AD”) and countervailing (“CV”) duty rates based on the results of AR6 covering shipments for the year ended December 31, 2023. The final combined rate for 2023 was 35.19%, which was subsequently amended on September 8, 2025 to correct a ministerial error to 35.16%. This compared to the cash deposit rates of 8.59% from January 1 to July 31, 2023, 7.99% from August 1 to September 12, 2023 and 8.05% from September 13 to December 31, 2023. To reflect the amended final rates for 2023, Interfor recorded a $156.7 million increase to duties expense, a $26.1 million increase to interest expense and a corresponding payable on its balance sheet. The combined rate of 35.16% was retroactively applied to new shipments effective August 12, 2025.
o During Q3’25, the Company revised its estimate of the fair value measurement of net duty deposits receivable resulting in a $9.3 million decrease to duties expense, a $4.4 million decrease to interest expense and a corresponding increase to duty deposits receivable on the balance sheet.
⦁ Interfor has paid cumulative duties of US$639.8 million, or approximately $12.65 per share on an after-tax basis, as at September 30, 2025. Except for a US$54.8 million net receivable recorded in respect of overpayments arising from duty rate adjustments and the fair value of rights to duties acquired, Interfor has recorded the duty deposits as an expense.
⦁ U.S. Tariffs
⦁ On April 2, 2025, the U.S. administration imposed reciprocal tariffs on all countries and later increased the reciprocal tariff rate on Canadian goods to 35%, however goods compliant with the United States-Mexico-Canada Agreement including lumber, are exempt from reciprocal tariffs.
o On September 29, 2025, the U.S. President issued a proclamation imposing a Section 232 tariff of 10% on all imports of softwood lumber into the U.S., including from Canada, which took effect on October 14, 2025. This tariff is in addition to the existing softwood lumber duties payable on Canadian lumber imported into the U.S.
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