CIBC has adjusted its price target for Interfor (IFSPF, Financial), reducing it from C$17 to C$16. Despite this change, the investment bank maintains a Neutral rating for the company's shares.
IFSPF Key Business Developments
Release Date: May 09, 2025
- Adjusted EBITDA: $49 million in Q1.
- Total Revenue: $736 million, relatively flat quarter over quarter.
- Net Loss: $35 million, including a $29 million non-cash loss on disposition of Quebec operations.
- Average Realized Lumber Price: Increased by 8%.
- Lumber Shipment Volume: Decreased by 8%.
- Production Cost per Unit: Increased by 9% quarter over quarter.
- Operating Cash Flow: Adjusted EBITDA offset by a $54 million build in working capital and $12 million in income tax installments.
- Capital Investments: $17 million in capital projects.
- Asset Sales: $19 million raised, including $3 million from BC coast operations.
- Net Debt to Invested Capital: Increased to 37% at the end of Q1.
- Available Liquidity: Over $300 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Interfor Corp (IFSPF, Financial) reported an adjusted EBITDA of $49 million in Q1, with all operating regions being EBITDA positive despite challenges.
- The company has a strong liquidity position with over $300 million available, providing financial stability.
- Interfor Corp (IFSPF) has a geographically diversified asset base, with 60% of its assets in the US, reducing exposure to tariffs.
- The company successfully increased its operating rate from 78% in Q4 to 82% in Q1, indicating improved operational efficiency.
- Interfor Corp (IFSPF) has taken steps to optimize its sawmill portfolio, contributing to stronger lumber prices and improved financial performance.
Negative Points
- Interfor Corp (IFSPF) recorded a net loss of $35 million in Q1, including a $29 million non-cash loss on the disposition of Quebec operations.
- The company faced a 9% increase in production costs per unit of lumber due to operational disruptions from harsh winter weather.
- Lumber shipments were impacted by tariff-driven customer uncertainty and constrained truck availability in the US South.
- The company anticipates continued lumber market volatility due to rising duty rates and potential tariffs.
- Interfor Corp (IFSPF) experienced a $54 million build in working capital, primarily driven by seasonal log inventory increases and tariff-related shipment delays.
