Greenfirst Forest Products (GFP) investor relations material

Executive summary

• Q1 2026 saw an Adjusted EBITDA loss of $15.1M and a net loss of $20.7M, with net sales of $60.6M and sales volumes of 83,172 MFBM; results were impacted by temporary mill curtailments and winter weather disruptions, but losses improved from Q4 2025.

• Average realized lumber selling price was $666/MFBM, supported by benchmark price increases.

• Operational improvements included ramp-up at the Chapleau mill, with production at 90%+ of target and improved lumber quality.

• Exploring partnership with Texana for a torrefied pellet plant to support green energy and address sawmill residue surplus.

• Federal support for housing and potential new building materials facility could secure long-term demand for sawmill residue.

Financial highlights

• Net sales for Q1 2026 were $60.6M, down from $71.8M year-over-year and $77.0M sequentially, with a $1.8M provision for net realized value on inventory.

• Adjusted EBITDA was negative $15.1M, better than negative $21.7M in Q4 2025.

• Net loss widened to $20.7M from a net income of $0.9M in Q1 2025, but improved from a $32.8M loss in Q4 2025.

• Duties and tariffs expense was $12.1M, with a duty rate increase to 45.16%.

• Cash on hand at quarter-end was $6.5M, up from $3.5M at year-end 2025.

Outlook and guidance

• Forecasting only modest lumber price increases for the remainder of the year, with continued market volatility and macroeconomic uncertainty.

• Long-term fundamentals for wood product demand remain positive, but near-term demand may stay below mid-cycle levels due to housing affordability and economic uncertainty.

• Gradual recovery in residential construction and renovation is possible as financial conditions improve.

• Short-term strategic capital expenditures will be deferred.

• Supply constraints, regulatory limits, and wildfires continue to impact industry production.