Acadian Timber (ADN) investor relations material

Executive summary

• Q1 2026 saw steady operational execution, with sales of $23.4 million, down from $24.8 million in Q1 2025, reflecting stable volumes but a shift in product mix and regional market challenges.

• Adjusted EBITDA was $4.8 million (20% margin), and net income was $3.5 million ($0.19 per share), both slightly lower year-over-year.

• Leadership transition occurred with the Chairman assuming the role of Interim President and CEO, with no change to overall strategy.

• The company marked its 20th anniversary, highlighting sustainable management and significant capital returns to shareholders.

• Free Cash Flow was $2.5 million, supporting a dividend of $0.29 per share declared for Q2 2026.

Financial highlights

• Adjusted EBITDA margin improved to 20% from 19% year-over-year.

• Net income per share was $0.19, down from $0.21 in Q1 2025.

• Free Cash Flow declined to $2.5 million from $3.0 million year-over-year.

• Net liquidity at quarter-end was $15.0 million, including cash and available credit.

• Total operating costs and expenses decreased by $1.3 million year-over-year.

Outlook and guidance

• Harvest volumes in New Brunswick expected to remain stable through 2026, with contractor availability sufficient.

• Maine operations anticipated to deliver stronger results in 2026 due to operational changes and internal harvesting progress.

• Product markets expected to remain stable; sawlog demand stable but pricing pressured, pulpwood demand subdued.

• Higher fuel prices present a challenge, but pass-through mechanisms are in place.

• Next tranche of carbon credits to be registered and available for sale in H2 2026 under updated protocols.