Interfor (IFSPF) Price Target Lowered by Raymond James Analyst | IFSPF Stock News

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Apr 30, 2025

Raymond James analyst Daryl Swetlishoff has revised the price target for Interfor (IFSPF, Financial), reducing it from C$26 to C$22. Despite the adjustment, Swetlishoff maintains a Strong Buy rating on the stock.

IFSPF Key Business Developments

Release Date: February 14, 2025

  • Operating Cash Flow: $144 million positive operating cash flow for 2024.
  • Adjusted EBITDA: $80 million for Q4.
  • Total Revenue: $747 million for Q4, an 8% increase quarter over quarter.
  • Average Realized Lumber Price: 16% increase quarter over quarter.
  • Production Costs: 5% reduction in production costs per unit of lumber sold quarter over quarter.
  • Net Loss: $50 million for Q4, including a $42 million foreign exchange loss.
  • Operating Cash Flow: $75 million for Q4.
  • Capital Expenditures: $11 million in Q4, with 2025 guidance refined to approximately $85 million.
  • Debt Repayment: $35 million in Q4.
  • Liquidity: Available liquidity grew to over $380 million.
  • BC Coast Tenure Sales: Gross proceeds of $67 million from eight tenure sales in 2024.
  • Financial Leverage: Remained flat at 36% quarter over quarter.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Interfor Corp (IFSPF, Financial) achieved positive operating cash flow of $144 million in a challenging market with low lumber prices.
  • The company completed a new planer project at the Thomaston, Georgia mill, meeting all KPI targets within 30 operating days.
  • Interfor Corp (IFSPF) reduced mill conversion costs across most regions despite significant market-related curtailments.
  • Employee turnover rates improved across the company's platform.
  • The company generated adjusted EBITDA of $80 million for Q4, with all operating regions in Canada and the US being EBITDA positive.

Negative Points

  • Interfor Corp (IFSPF) recorded a net loss of $50 million in Q4, including a $42 million foreign exchange loss.
  • The company faces ongoing volatility in the lumber industry due to uncertain economic and political environments.
  • Canadian lumber is facing headwinds for shipments to the US markets, with potential tariffs adding to cost pressures.
  • Lumber demand is showing signs of decline due to economic uncertainties, impacting short-term market stability.
  • The threat of tariffs creates a fluid and uncertain demand environment, with customers hesitant to build inventory.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.