Canada's Interfor Q3 adjusted EBITDA beats estimates as lumber prices rise

Interfor

05/11/2026 22:11

Overview
Canada forest products firm's Q3 adjusted EBITDA beat analyst expectations
Q3 sales rose yr/yr and sequentially
Company posted net loss largely due to a C$53.2 mln non-cash impairment charge

Outlook
Company expects North American lumber markets to remain volatile in the near term
Benchmark lumber prices have weakened into early Q4'26 due to seasonal slowdown in demand
Company expects ongoing price fluctuations for lumber through the rest of 2026 and into early 2027

Result Drivers
NON-CASH IMPAIRMENT - Net loss in Q3 driven largely by a C$53.2 mln non-cash impairment charge related to a previously curtailed mill in Eastern Canada
LUMBER PRICES - Average selling price rose 2% sequentially to C$751 per thousand board feet, with increases across all operating regions except the U.S. South
PRODUCTION RAMP-UP - Lumber production rose due to ramp-up at rebuilt Thomaston, GA sawmill and higher operating rates at B.C. and U.S. South operations

Company press release: ID:nGNX4Hs5R

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Beat
C$832.10 mln
C$784.10 mln (2 Analysts)
Q3 Net Loss
 
C$45.60 mln
 
Q3 Adjusted EBITDA
Beat
C$76.90 mln
C$66.45 mln (6 Analysts)
Q3 Adjusted EBITDA Margin
 
9.20%
 
Q3 Net Debt
 
C$788.20 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "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 Interfor Corporation is C$17.00, about 15.5% above its November 4 closing price of C$14.72

Reuters Recommended Reads
Nov 4 - Canfor Q3 posts net loss on lower lumber shipment volumes
Nov 5 - Canada's Western Forest Products Inc Q3 revenue edges up
Nov 3 - Rayonier Advanced Materials Q3 sales and EBITDA miss estimates on tariffs, impairments

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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.)