Interfor Corporation posted a net loss of USD 26.0 million in the first quarter of 2025, an improvement from USD 36.9 million in Q4 2024 and USD 54.0 million in Q1 2024, supported by stronger lumber prices despite reduced shipments and ongoing trade duties.<\/p>\n
Adjusted EBITDA came to USD 36.0 million on revenues of USD 544.5 million, down from USD 59.5 million in the previous quarter. The average lumber selling price increased to USD 527 per thousand board feet, up USD 39 from Q4, following industry-wide production cuts and temporary shifts in trade policy.<\/p>\n
Lumber shipments fell to 863 million board feet, a decrease of 77 million board feet from Q4, mainly due to the sale of Quebec operations, weather-related downtime, and delays caused by uncertainty around US tariffs.<\/p>\n
Interfor recorded USD 22.3 million in softwood lumber duties at a 14.4% rate on Canadian shipments to the US. Net debt stood at USD 655 million at the end of March, with USD 226.5 million in available liquidity. Operating cash flow before working capital was USD 30.5 million, while seasonal log purchases and shipment delays led to a USD 40.5 million increase in working capital.<\/p>\n
In January, Interfor sold its Quebec sawmills and a remanufacturing plant for USD 12.1 million, recording a USD 21.6 million loss. The company also sold coastal B.C. timber rights for USD 5.5 million. Capital spending for the quarter totaled USD 12.8 million.<\/p>\n
On trade, the US has proposed a preliminary combined duty rate of 34.45% on Canadian softwood lumber for 2023 shipments. If finalized, Interfor expects to record a non-cash expense of USD 84.2 million later in the year. A separate US government investigation into wood imports is ongoing and may result in new trade measures.<\/p>\n
Outlook<\/strong><\/p>\n Lumber markets are expected to remain unstable in the short term due to changing economic conditions, labor constraints and uncertainty around US tariffs. Around 60% of Interfor\u2019s lumber is produced and sold within the US, while about 24% of its total output is exported from Canada to the US and exposed to potential trade measures.<\/p>\n Over the medium term, the company sees continued demand in the US market due to housing needs and demographic factors. New supply growth is expected to be limited by labor availability and long project timelines. Interfor said it will continue to adjust production and spending based on market conditions.<\/p>","protected":false},"excerpt":{"rendered":" Interfor Corporation posted a net loss of USD 26.0 million in the first quarter of 2025, an improvement from USD 36.9 million in Q4 2024 and USD 54.0 million in Q1 2024, supported by stronger lumber prices despite reduced shipments … Continue reading