Conifex Timber (CFF) Q4 2025 earnings summary

Executive summary

• Overcame liquidity challenges in 2025 with support from PenderFund and BDC, following increased duties and tariffs on U.S. lumber exports.

• Reported a net loss of CAD 35.7 million for 2025, including a one-time non-cash charge of CAD 15.3 million for prior year duty underpayments, compared to a net loss of $29.8 million in 2024.

• Negative EBITDA of $27.5 million for 2025, with $12.6 million negative in Q4.

• Results were impacted by lower lumber shipment volumes, higher unit manufacturing costs, and significant duty and tariff expenses.

• Legal dispute ongoing with BC Hydro over denied interconnection for data center projects, impacting diversification efforts.

Financial highlights

• 2025 revenue was $142.7 million, up from $127.7 million in 2024, driven by higher lumber prices and shipment volumes.

• Full-year net loss of CAD 35.7 million, after expensing CAD 26.1 million in duty pre-deposits and tariff charges.

• Lumber revenues increased 7% year-over-year to $101.0 million; bioenergy revenues rose 8% to $25.6 million.

• Cost of goods sold rose 6% year-over-year, including a $3.0 million non-cash inventory write-down in Q4.

• SG&A costs decreased 19% year-over-year to $5.8 million due to lower headcount and legal fees.

Outlook and guidance

• 2026 is viewed as a transition year, with curtailment and single-shift operations in H1, moving to steady two-shift operations in H2.

• Not expected to be EBITDA positive on a single shift; two-shift operations anticipated to achieve EBITDA positivity in late 2026 as duty rates decrease.

• Medium-term outlook expects North American lumber demand to benefit from favorable housing fundamentals and potential interest rate moderation.

• Near-term uncertainty remains due to trade measures, housing affordability, and market volatility.

• Plans to secure additional capital for log inventory and capital projects to further lower costs.