Q2 2026 Greenfirst Forest Products Inc Earnings Call Transcript
Key Points
- Production and shipment volumes increased by over 20% and 40% respectively, with net sales up approximately 60% to $96 million.
- Positive operating income of $7.9 million and EBITDA of $11.8 million, a significant improvement from the previous quarter's losses.
- Manufacturing costs reduced by approximately $70 per thousand board feet due to higher production volumes and improved efficiency.
- Strong lumber market conditions with U.S. housing starts up 3.5% year-over-year and robust demand from home center partners.
- Received $3.2 million from the Ontario Sawmill Chip Supply Program, supporting liquidity and strategic initiatives.
- Incurred approximately $21 million in duties and tariffs during Q2, a $13 million increase year-over-year, pressuring margins.
- Cash position declined to $2.8 million from $6.5 million, reflecting ongoing liquidity challenges.
- CEO Joel Fournier announced resignation effective October 31, 2026, creating leadership uncertainty.
- Chapleau large log line ramp-up is taking longer than expected, with full financial contribution not realized until year-end.
- Market outlook remains cautious due to high mortgage rates (6.58%) and uncertainty around lumber pricing and trade negotiations.
Good morning, ladies and gentlemen, and welcome to Greenfirst's 2026 second quarter results conference call. Please note that all lines are muted to prevent any background noise. During the conference call, Greenfirst representatives will be making certain statements about future financial and operational performance, business outlook, and capital plans. These statements may contain forward-looking information or forward-looking statements within the meaning of the Canadian Securities Law.
Such statements involve certain risks, uncertainties, and assumptions which may cause Greenfirst's actual or future results and performance to be materially different from those expressed or implied in these statements. Additional information about these risks, factors, and assumptions is included in Greenfirst's MD&A and annual AIF, which can be accessed on the company's website or through CIDAR+.
After the speaker's remarks, there will be a question-and-answer session. Please submit your questions through the online portal. I will now pass over to Joel Fournier to begin the management
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