VANCOUVER, British Columbia, Nov. 04, 2026 (GLOBE NEWSWIRE) -- Canfor Corporation (the “Company” or “Canfor”) (TSX: CFP) today reported its third quarter of 2026 results:

Overview.

• Reported operating loss of $77 million and a shareholder net loss of $88 million, equivalent to $0.75 per share.
• After taking into consideration adjusting and one-time items of $74 million, adjusted EBITDA¹ was $98 million in Q3 2026, compared to $120 million in Q2 2026.
• Relatively stable lumber segment results across all operating regions, while demand uncertainty persisted and North American benchmark lumber prices declined modestly.
• Another quarter of strong earnings from the Company's paper business, combined with improved results from its pulp business, despite continued subdued global softwood pulp market conditions.
• Completed the acquisition of PinkWood Ltd., expanding the Company's engineered wood products capacity.
• Announced the permanent closures of the Fox Creek sawmill in Fox Creek, Alberta and the Northwood Northern Bleached Softwood Kraft pulp mill in Prince George, British Columbia. Fox Creek completed its wind down during the third quarter and Northwood is anticipated to close by the end of the year.

Financial results.

The following table summarizes selected financial information for the Company for the comparative periods:

^{1. Earnings before interest, tax, depreciation and amortization ("EBITDA") is calculated for the Company as operating income (loss) before amortization. EBITDA, adjusted EBITDA, adjusted operating income (loss) as well as adjusting and one-time items referenced throughout this news release are defined as non-IFRS financial measures. For further details, refer to the "Third quarter results, including adjusting and one-time items" table and the "Non-IFRS financial measures" sections of this document.
2. Attributable to equity shareholders of the Company.}

The Company reported an operating loss of $76.6 million for the current quarter, compared to operating income of $4.8 million for the second quarter of 2026.

"Despite continued uncertainty across our markets, our lumber business delivered relatively stable earnings across all regions in the third quarter, while improved pulp performance and another strong quarter from our paper business contributed positively to our results,” said Susan Yurkovich, Canfor’s President and Chief Executive Officer. “Looking ahead, we anticipate market conditions will remain challenging through the balance of the year, with softer seasonal demand for lumber and continued pressure in global pulp markets."

Yurkovich added, “The difficult decisions announced this quarter to permanently close our Fox Creek sawmill and Northwood pulp mill are part of our ongoing efforts to adapt our operating footprint with market conditions and position our businesses to be more resilient and competitive over the long term.”

Third quarter results, including adjusting and one-time items.

After taking account of adjusting and one-time items totaling $74.1 million, as outlined in the table below, the Company’s adjusted EBITDA for the third quarter of 2026 was $98.1 million compared to a similarly adjusted EBITDA of $119.6 million for the previous quarter. These results reflected a slight decline in results for the lumber segment and improved earnings for the pulp and paper segment.

<sup>3. EBITDA is calculated for the Company as operating income (loss) before amortization. EBITDA, adjusted EBITDA, adjusted operating income (loss) as well as adjusting and one-time items referenced throughout this news release are defined as non-IFRS financial measures. For further details, refer to the “Non-IFRS financial measures” section of this news release.
4. For the lumber segment, an asset write-down and impairment charge totalling $31.8 million was recognized in Q3 2026 related to the permanent closure of the Company's Fox Creek sawmill (Q2 2026 - $13.7 million related to the permanent closures of Urshult and Orrefors sawmills in Europe; Q3 2025 - no asset write-down and impairment charge was recognized).
5. For the pulp and paper segment, an asset write-down and impairment charge totalling $10.0 million was recorded in Q3 2026 related to the permanent closure of the Company's Northwood NBSK pulp mill ("Northwood") (Q2 2026 and Q3 2025 - no asset write-down and impairment charge was recognized).
6. For the lumber segment, a $0.7 million net reversal of a previously recognized inventory write-down was recorded in Q3 2026 (Q2 2026 - $7.0 million net reversal of a previously recognized inventory write-down, Q3 2025 - $14.9 million net inventory write-down expense). For the pulp and paper segment, an $8.3 million net reversal of a previously recognized inventory write-down was recognized in Q3 2026 (Q2 2026 - $3.3 million net inventory write-down expense, Q3 2025 - $4.9 million net inventory write-down expense).
7. For the lumber segment, restructuring and closure costs of $4.6 million were recognized in Q3 2026, primarily related to the permanent closure of the Fox Creek sawmill in Alberta (Q2 2026 - restructuring and closure costs of $8.8 million, related to the permanent closures of the Urshult and Orrefors sawmills in Europe; Q3 2025 - no restructuring and closure costs were recognized). For the pulp and paper segment, $36.7 million restructuring and closure costs were recognized in Q3 2026 related to the permanent closure of the Northwood pulp mill in British Columbia (Q2 2026 and Q3 2025 - no restructuring and closure costs were recognized).
8. No corresponding adjustment was recognized in Q3 2026, as the final countervailing (“CVD”) and anti-dumping duty (“ADD”) rates applicable to the seventh period of review ("POR7") were finalized subsequent to quarter-end and an expense of $45.9 million (US$32.8 million) will be recognized in Q4 2026 (Q3 2025 - a net duty expense of $77.2 million (US$56.2 million) was recognized following the finalization of CVD and ADD rates applicable to the sixth period of review (“POR6”)).</sup>

Third quarter lumber segment highlights.

For the lumber segment, the operating loss was $19.9 million for the third quarter of 2026, compared to the previous quarter’s operating income of $41.2 million. After taking into consideration adjusting and one-time items totalling $35.7 million, as noted in the table, the lumber segment’s adjusted EBITDA was $107.9 million, compared to a similarly adjusted EBITDA of $144.7 million in the prior quarter. These earnings reflected relatively stable results across all of the Company's operating regions. The quarter-over-quarter decrease was primarily driven by lower lumber shipment volumes in Europe, largely associated with regular summer production downtime, mitigated in part by higher shipment volumes in the US South and improved lumber unit sales realizations across all of the Company's operating regions.

In July 2026, the Company announced the permanent closure of its Fox Creek sawmill in Fox Creek, Alberta, with operations winding down in September 2026. As a result of this announcement, the Company recognized an asset write-down and impairment charge of $31.8 million, as well as restructuring costs of $4.6 million, during the third quarter of 2026.

Throughout the third quarter of 2026, North American lumber market conditions remained relatively consistent with the previous quarter. While underlying market fundamentals were generally stable, elevated mortgage rates and continued political and economic uncertainty weighed on demand. Customer purchasing activity remained cautious, with inventories maintained at lean levels. Against this backdrop, North American benchmark lumber prices generally experienced modest declines during the current quarter, while wider-width dimensions saw some positive momentum. Activity in the repair and remodeling sector remained broadly steady throughout the current quarter.

Offshore lumber market conditions in Asia continued to face pressure throughout the third quarter of 2026. In Japan, pricing was relatively stable; however, softwood lumber imports declined amid weak domestic demand and continued substitution toward domestic species. In China, persistent weakness in residential construction and real estate activity continued to dampen lumber demand.

European lumber markets improved slightly through the current quarter. Pricing in Central Europe remained relatively steady, while Northern Europe strengthened modestly, benefiting from favourable weather and improved demand. In the United Kingdom (“UK”), however, subdued construction activity and ample supply weighed on pricing. In the Middle East and North Africa (“MENA”), lumber demand and pricing were stable through the current quarter, notwithstanding ongoing geopolitical tensions in the region.

Lumber segment outlook.

Looking ahead, North American lumber markets are anticipated to soften through the fourth quarter of 2026, as a seasonal slowdown in construction activity and weaker underlying demand are projected to weigh on North American benchmark lumber prices. Elevated mortgage rates and affordability challenges are anticipated to persist into 2027, while cautious purchasing behaviour continues to constrain demand. However, lower softwood lumber duty rates, effective mid-October, are projected to partially mitigate the impact of weaker Western Spruce/Pine/Fir ("Western SPF") pricing on lumber unit sales realizations through the remainder of the year.

In Asia, modest improvements in Japanese lumber demand and pricing are forecast for the fourth quarter of 2026 as delayed projects advance and manufacturing activity accelerates. Demand in China is anticipated to remain subdued amid continued weakness in residential construction activity.

In Europe, lumber market conditions are projected to soften through the fourth quarter of 2026, with regional pricing forecast to modestly decline. Pricing pressure in the UK is anticipated to persist and extend into Central Europe, while market conditions in Northern Europe and MENA are projected to remain relatively stable.

Third quarter pulp and paper segment highlights.

For the pulp and paper segment, the operating loss was $44.6 million for the third quarter of 2026, compared to an operating loss of $23.1 million for the second quarter of 2026. After taking into consideration adjusting and one-time items totaling $38.4 million, the pulp and paper segment's adjusted EBITDA for the third quarter of 2026 was $1.5 million, compared to an adjusted EBITDA loss of $12.2 million for the second quarter of 2026. Included in the third quarter adjusted EBITDA of $1.5 million is another quarter of strong earnings from the Company's paper business, with EBITDA of $10.5 million in the current quarter, compared to $8.0 million in the previous quarter.

Overall, the improved quarter-over-quarter results for the pulp and paper segment primarily reflected an increase in pulp and paper production, largely the result of the scheduled maintenance downtime completed in the prior period, partially offset by a slight decline in US-dollar Northern Bleached Softwood Kraft ("NBSK") pulp list prices to China.

Global softwood pulp market conditions remained relatively subdued during the third quarter of 2026, as a structural shift in pulp market fundamentals, combined with soft demand and elevated producer inventory levels continued to weigh on pricing. Supply constraints provided some relief, moderating further price declines during the current quarter. Consequently, the US-dollar NBSK pulp list prices to China, the world’s largest pulp consumer, averaged US$645 per tonne, down US$13 per tonne, or 2%, compared to the previous quarter.

Global softwood pulp producer inventories remained elevated during the third quarter of 2026, ending August at 46 days of supply, two days higher than at the end of June 2026 and at the upper end of the balanced range. Typically, market conditions are considered balanced when inventories are in the 39-47 days of supply range.

Conversely, global kraft paper demand continued to maintain its positive momentum in the third quarter of 2026, building on the strength seen in the prior quarter. In North America, demand benefited from growth in paper-based packaging applications, supported by higher plastic raw material costs, the ongoing substitution of plastic-based products, and stronger food packaging demand.

Pulp and paper segment outlook.

Looking ahead, global softwood kraft pulp market conditions are anticipated to remain subdued through the balance of the year. The ongoing structural shift in pulp market fundamentals experienced throughout 2026 is projected to persist, as additional pulp production capacity continues to enter the market. These factors, coupled with relatively soft demand, are forecast to keep market conditions challenging. Ongoing economic and geopolitical uncertainty is projected to continue to constrain purchasing activity, keeping producer inventory levels elevated and limiting near-term price recovery. However, recent and potential further supply reductions may provide some pricing relief.

Demand for bleached kraft paper is anticipated to remain stable through the fourth quarter of 2026, both globally and in North American markets, supported by continued growth in paper-based packaging applications.

Results in the fourth quarter of 2026 will reflect the closure of the Company's Northwood pulp mill, including the associated impact on pulp production, shipments and costs. No major maintenance outages are scheduled at the Company's facilities through the balance of 2026.

Additional information and conference call.

A conference call to discuss the third quarter’s financial and operating results will be held on Wednesday, November 4, 2026, at 8:00 a.m. PCT (Vancouver time).

To view the webcast online, click here.Analysts only:To register to join the call by phone, click here.
To view our Conference Call Participant Guide, click here.

Instant replay access will be available until January 5, 2027, on canfor.com/investors, under Webcasts.

This news release, attached financial statements, and a presentation used during the conference call can also be accessed at canfor.com/investors.

Non-IFRS financial measures.

Throughout this press release, reference is made to certain non-IFRS financial measures which are used to evaluate the Company’s performance but are not generally accepted under IFRS Accounting Standards and may not be directly comparable with similarly titled measures used by other companies.

Forward-looking statements.

Certain statements in this press release constitute “forward-looking statements” which involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results, performance or achievements expressed or implied by such statements. Words such as “expects”, “anticipates”, “projects”, “intends”, “plans”, “will”, “believes”, “seeks”, “estimates”, “should”, “may”, “could”, and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are based on Management’s current expectations and beliefs and actual events or results may differ materially. There are many factors that could cause such actual events or results expressed or implied by such forward-looking statements to differ materially from any future results expressed or implied by such statements. Forward-looking statements are based on current expectations and Canfor assumes no obligation to update such information to reflect later events or developments, except as required by law. 

About Canfor.

Canfor is a global leader in the manufacturing of high-value low-carbon forest products including dimension and specialty lumber, engineered wood products, pulp and paper, wood pellets and green energy. Proudly headquartered in Vancouver, British Columbia, Canfor produces renewable products from sustainably managed forests, at more than 50 facilities across its diversified operating platform in Canada, the United States and Europe. Canfor has a 77% stake in Vida AB, Sweden’s largest privately owned sawmill company. Canfor shares are traded on the Toronto Stock Exchange under the symbol CFP. For more information visit canfor.com.