Canfor Corporation reported a first-quarter 2025 operating loss of CAD 28.5 million (USD 21.1 million), down from CAD 45.9 million (USD 34.0 million) in Q4 2024, as lumber markets saw modest price recovery and company performance improved in North America and Europe.<\/p>\n
Lumber segment results improved, with an adjusted operating loss of CAD 29.2 million (USD 21.6 million), compared to CAD 72.7 million (USD 53.8 million) the previous quarter. The improvement was driven by higher North American benchmark prices, improved performance in Western Canada, and stable earnings in Europe. Canfor\u2019s sales totaled CAD 1.42 billion (USD 1.05 billion), up 10% quarter-over-quarter.<\/p>\n
Production and shipments increased, particularly in the US South, thanks to the ramp-up of Canfor\u2019s modernized Urbana mill in Arkansas and the greenfield sawmill in Axis, Alabama. However, gains were partially offset by lower output in Western Canada, where SPF production declined due to permanent closures, and by escalating log costs in Europe.<\/p>\n
In North America, lumber prices rose on tighter supply due to mill closures and adverse weather. Japan\u2019s market saw better demand in multi-family and non-residential construction, while China remained weak due to ongoing property sector issues. In Europe, prices firmed as high log costs constrained supply.<\/p>\n
Canfor\u2019s net loss for the quarter was CAD 31.0 million (USD 22.9 million), or CAD 0.26 per share. The adjusted net loss came in at CAD 38.1 million (USD 28.2 million).<\/p>\n
Outlook: continued volatility ahead<\/strong><\/p>\n Canfor expects North American lumber markets to remain volatile in Q2 2025. While long-term fundamentals are positive, near-term demand is likely to be restrained by housing affordability concerns and potential disruptions tied to softwood lumber duties. The company continues to monitor the Canada\u2013US trade situation and is redirecting efforts toward domestic and non-US markets to reduce tariff exposure.<\/p>\n In Japan, lumber demand is forecast to remain strong in the multi-family and non-residential sectors, supported by low inventories. In contrast, subdued market conditions are expected to persist in China. European lumber supply will likely remain tight in Q2 due to ongoing log shortages and elevated log costs, potentially supporting further price gains.<\/p>\n \"Through our diversified operating platform in Canada, the US South and Europe, we are positioned to mitigate these challenges while staying focused on safe and efficient operations,\" said CEO Susan Yurkovich.<\/p>","protected":false},"excerpt":{"rendered":" Canfor Corporation reported a first-quarter 2025 operating loss of CAD 28.5 million (USD 21.1 million), down from CAD 45.9 million (USD 34.0 million) in Q4 2024, as lumber markets saw modest price recovery and company performance improved in North America … Continue reading