Overview

* Canfor Q2 2025 operating loss of C$251 mln, net loss of C$203 mln

* Adjusted operating loss was C$51 mln, reflecting weak North American markets

* Co announces permanent closure of two US sawmills, C$189 mln asset write-down and impairmentcharge

Outlook

* Canfor expects North American lumber demand to remain weak in Q3 2025

* Company forecasts gradual price improvement for Western SPF later in Q3

* Canfor anticipates weak global softwood pulp market conditions in Q3 2025

* Company projects modest decrease in Japan lumber prices in Q3 2025

Result Drivers

* LUMBER PRICING - North American operations affected by sustained weakness in lumber benchmark pricing

* SAWMILL CLOSURES - Permanent closure of Estill and Darlington sawmills due to weak market conditions and financial losses

* GLOBAL UNCERTAINTY - Rising global economic uncertainty pressured pulp market fundamentals, particularly in China

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales C$1.38

bln

Q2 -C$67

Adjusted mln

Net

Income

Q2 Net -C$202.8

Income 0 mln

Q2 Basic -C$1.71

EPS

Q2 -C$251.4

Operatin 0 mln

g Income

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the forest & wood products peer group is "buy."

* Wall Street's median 12-month price target for Canfor Corp ( CFPZF ) is C$17.00, about 20.1% above its July 31 closing price of C$13.58

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.)