Q2 2026 Canfor Corp Earnings Call Transcript
Key Points
- Lumber business generated solid EBITDA of $145 million in Q2 2026, a $116 million increase from the prior quarter.
- Improved lumber pricing driven by leaner inventories, industry capacity rationalizations, and transportation constraints in the US South.
- European lumber business showed improvement with $37 million in adjusted EBITDA, supported by higher pricing and modest log cost relief.
- Completed acquisition of Pinkwood, strengthening asset base in Western Canada and diversifying earnings into value-added products.
- Strong balance sheet with available liquidity of approximately $1.2 billion and net debt of $316 million, enabling opportunistic investments.
- Pulp and paper business reported an adjusted EBITDA loss of $12 million due to weak global pulp markets and planned maintenance downtime.
- Announced closures of Northwood pulp mill, two sawmills in Sweden, and Fox Creek sawmill in Alberta, impacting employees and communities.
- Near-term outlook remains cautious due to global economic uncertainty, ongoing trade disputes, and persistent affordability challenges.
- Pulp markets under significant pressure with elevated inventories and structural shifts in market dynamics.
- Expecting restructuring costs of approximately $30 million for Northwood and $35 million asset write-down for Fox Creek in Q3 2026.
Good morning. My name is Michelle and I will be your host today. Welcome to Canfor Corporation's Second Quarter Analyst Call. At this time, all lines have been placed to mute to prevent any background noise. A Q&A session will be available after today's presentation. During this call, Canfor's Chief Financial Officer will be referring to a slide presentation that is available in the investor relations section of the company's website.
Also, the companies would like to point out that this call will include forward-looking statements, so please refer to the press release for the associated risk of such statements.
I would now like to turn the meeting over to Susan Yurkovich, Campers Corporation President and Chief Executive Officer. Please go ahead, Susan.
Thanks, Michelle. Good morning, everyone. Thanks for joining our Q2 results conference call.
I'll start off with a few comments before I turn things over to Pat Elliott, CamForce Chief Financial Officer. I'm
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