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Canfor swung to a much deeper loss in the fourth quarter of 2025 as high US lumber duties, Section 232 tariffs and weak market conditions continued to weigh on its lumber business, even as its European operations lifted production following the acquisition of the Hedin sawmills.<\/p>\n
The Canadian forest products group reported an operating loss of C$415.9mn on sales of C$1.28bn for the quarter, compared with an operating loss of C$208.3mn in the third quarter. Net loss amounted to C$390.5mn, or C$3.35 a share. The result included asset write-downs and impairments of about C$320.4mn, of which C$213.9mn related to the lumber segment, as well as other adjusting items. On an adjusted basis, Canfor\u2019s operating loss widened to C$145mn from C$111.3mn in the previous quarter.<\/p>\n
The lumber business remained under pressure across all operating regions, but the contrast between North America and Europe was clear in the quarter. In North America, production and shipments fell as seasonal year-end downtime coincided with still weak demand and the burden of elevated countervailing and anti-dumping duties. Conditions were further clouded by the 10 per cent Section 232 tariff introduced in October, which added to uncertainty in the US market.<\/p>\n
Canfor said benchmark lumber prices in North America improved towards the end of the quarter after a wave of industry-wide curtailments announced in mid-December, combined with low inventories and normal seasonal downtime, tightened supply. Even so, the market remained difficult for most of the period. Repair and remodelling demand was described as stable, but broader construction activity remained subdued.<\/p>\n
Europe was the more supportive part of the lumber division in volume terms. Total lumber production rose 2 per cent from the third quarter, driven mainly by the first full-quarter contribution from the recently acquired AB Karl Hedin S\u00e5gverk facilities. European production and shipments also benefited from the resumption of operations after regular summer downtime in the prior quarter.<\/p>\n
That did not mean Europe was strong. Canfor said demand in the region remained under pressure despite some seasonal inventory replenishment. Buying was held back by constrained spruce log availability and persistently high log costs. Those conditions were severe enough for the group to record a C$213.9mn impairment charge tied to one of its European lumber operations, where ongoing log supply constraints and sharply higher log costs weighed on the outlook.<\/p>\n
Offshore markets were also soft. Demand and pricing in Asia remained subdued through the quarter, with continued weakness in China\u2019s housing and property sectors weighing on prices, while demand in Japan moderated and prices were broadly flat against the previous quarter.<\/p>\n
For the lumber segment alone, Canfor reported an operating loss of C$318.8mn, compared with C$182.2mn in the previous quarter. After adjustments and one-off items, the adjusted operating loss for the segment widened to C$105.4mn from C$90.1mn.<\/p>\n
Looking ahead, Canfor said North American lumber markets were likely to remain uncertain through 2026 as trade disputes, higher duty rates and the effect of Section 232 tariffs continue to cloud demand. While some US regions have shown early signs of stabilisation, the company expects overall conditions to remain subdued at least through the first half of the year. In Europe, lumber demand and pricing are expected to remain broadly flat in the first quarter, although constrained regional supply could support slight price improvements heading into the second quarter.<\/p>","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":98152,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[5204],"tags":[],"class_list":["post-98149","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news"],"acf":[],"yoast_head":"\n