Overview

* Canfor Pulp Q2 2025 sales just beat analyst expectations, despite operating loss of C$5.3 mln

* Company reports net loss of C$6.7 mln amid weakened global pulp market fundamentals

* Stronger Canadian dollar negatively impacted pulp and paper sales unit realizations

Outlook

* Company anticipates subdued North American kraft paper demand in Q3 2025

* Scheduled maintenance to reduce pulp and paper production by 2,000 tonnes each in Q3 2025

Result Drivers

* WEAK DEMAND - Global pulp market weakened due to trade uncertainties, particularly impacting demand from China

* STRONGER CURRENCY - 4% stronger Canadian dollar negatively impacted sales unit realizations

* OPERATIONAL DISRUPTIONS - Minor operational disruptions led to a 2% decline in pulp production

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Beat C$177.90 C$177.20

mln mln (1

Analyst)

Q2 Net -C$6.70

Income mln

Q2 C$3.50

Adjusted mln

Operatin

g Income

Q2 Basic -C$0.1

EPS

Q2 -C$5.30

Operatin mln

g Income

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the paper products peer group is "buy."

* Wall Street's median 12-month price target for Canfor Pulp Products Inc ( CFPUF ) is C$1.00, about 34% above its July 31 closing price of C$0.66

* The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 2 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)