Canada's Canfor Q2 loss narrows as lumber markets improve
Canada's Canfor Q2 loss narrows as lumber markets improve
Overview
Canada forest products maker's Q2 revenue rose yr/yr, returning to operating income
Company posted net loss for Q2, but loss narrowed from prior year
Canfor announced permanent closures of mills in Sweden and Canada, and acquired PinkWood Ltd
Outlook
Canfor expects North American lumber markets to moderate later in Q3 2026
Company projects continued weak lumber demand in Asia through Q3 2026
Canfor anticipates global softwood pulp markets to remain under pressure in Q3 2026
Result Drivers
LUMBER SEGMENT IMPROVEMENT - Co said improved results in the lumber segment were mainly due to higher benchmark prices, increased production, and lower manufacturing and product costs
SEASONAL DEMAND & TIGHTER SUPPLY - North American lumber prices modestly improved due to seasonal demand, lean inventories, and constrained transportation capacity
PULP SEGMENT WEAKNESS - Lower pulp shipments and production, along with subdued global demand and elevated inventories, weighed on pulp and paper segment results
Company press release: ID:nGNX7Pz7sH
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales |
| C$1.53 bln |
|
Q2 Net Loss |
| C$18.50 mln |
|
Q2 Loss Per Basic Share |
| C$0.16 |
|
Q2 Operating Income |
| C$4.80 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the forest & wood products peer group is "buy."
Wall Street's median 12-month price target for Canfor Corp is C$15.75, about 12.8% above its July 28 closing price of C$13.96
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)