Canfor reports $88.2 million third-quarter loss

Canfor Corp. reported a third-quarter loss of $88.2 million for 2026, according to reports from thestar.com and Yahoo Finance. This compares to a loss of $172.4 million in the same quarter of the previous year.

Financial Performance

According to Lesprom Network, the company posted an operating loss of $76.6 million in the third quarter of 2026, following an operating income of $4.8 million in the second quarter. The company stated that asset write-downs, closure costs, and one-time items weighed on the result.

Key financial figures for the quarter include:

• Shareholder net loss: $88.2 million, or $0.75 per share.
• Sales: $1,284.8 million, compared with $1,526.4 million in the second quarter and $1,259.8 million a year earlier.
• Reported EBITDA: $24.0 million.
• Adjusted EBITDA: $98.1 million, compared with $119.6 million in the prior quarter.

In its lumber segment, the company reported an operating loss of $19.9 million, compared with an operating income of $41.2 million in the second quarter. The decrease was primarily driven by lower lumber shipment volumes in Europe, which the company said was largely tied to regular summer production downtime. This was partly offset by higher shipments in the US South and improved lumber unit sales realizations across all operating regions.

In the pulp and paper segment, the operating loss was $44.6 million, compared with $23.1 million in the second quarter. However, paper business EBITDA rose to $10.5 million from $8.0 million.

Facility Closures and Acquisitions

During the quarter, Canfor recorded costs related to the permanent closure of two facilities. The company announced in July 2026 the permanent closure of its Fox Creek sawmill in Alberta. The mill wound down in September, and the company recorded a $31.8 million asset write-down and impairment charge and $4.6 million in restructuring costs in the quarter.

Additionally, the company announced in July the permanent closure of its Northwood pulp mill in Prince George, British Columbia, which is expected to close by the end of 2026. This mill carried a $10.0 million asset write-down and $36.7 million in restructuring and closure costs in the third quarter.

In other business developments, Canfor completed the acquisition of PinkWood Ltd., which the company says expands its engineered wood products capacity.

Market Outlook

Canfor expects North American lumber markets to soften through the fourth quarter of 2026 due to a seasonal slowdown in construction and weaker demand. The company expects elevated mortgage rates and affordability challenges to persist into 2027.

"Looking ahead, we anticipate market conditions will remain challenging through the balance of the year, with softer seasonal demand for lumber and continued pressure in global pulp markets," said Susan Yurkovich, Canfor's President and Chief Executive Officer.

Regarding the fourth quarter, the company expects to recognize a duty expense of $45.9 million (US$32.8 million) after the final rates for the seventh period of review are finalized.

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Sources

• thestar.com: Canfor reports $88.2M Q3 loss compared with $172.4M loss a year ago, sales edged up
• lesprom.com: Canfor posts $76.6 million third-quarter operating loss, sees softer lumber markets ahead
• ca.finance.yahoo.com: Canfor reports $88.2M Q3 loss compared with $172.4M loss a year ago, sales edged up

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.