Canfor Corporation posts Q2 operating loss

Canfor

31/07/2025 23:11

Overview

Canfor Q2 2025 operating loss of C$251 mln, net loss of C$203 mln

Adjusted operating loss was C$51 mln, reflecting weak North American markets

Co announces permanent closure of two US sawmills, C$189 mln asset write-down and impairment charge

Outlook

Canfor expects North American lumber demand to remain weak in Q3 2025

Company forecasts gradual price improvement for Western SPF later in Q3

Canfor anticipates weak global softwood pulp market conditions in Q3 2025

Company projects modest decrease in Japan lumber prices in Q3 2025

Result Drivers

LUMBER PRICING - North American operations affected by sustained weakness in lumber benchmark pricing

SAWMILL CLOSURES - Permanent closure of Estill and Darlington sawmills due to weak market conditions and financial losses

GLOBAL UNCERTAINTY - Rising global economic uncertainty pressured pulp market fundamentals, particularly in China

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
C$1.38 bln
Q2 Adjusted Net Income
-C$67 mln
Q2 Net Income
-C$202.80 mln
Q2 Basic EPS
-C$1.71
Q2 Operating Income
-C$251.40 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and 1 "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$17.00, about 20.1% above its July 31 closing price of C$13.58

Press Release: ID:nCNWB3qkJa

(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.)