Canfor Reports Stronger Lumber Segment Performance in Q3 2026

Rubber and Wood  |  2026-11-05 06:34:59   |   By

Across its businesses, Canfor recorded year-to-date adjusted EBITDA of $280 million.

Summary

  • Canfor's Lumber Operations Generate $108 Million in Adjusted EBITDA

    Canfor Corporation reported $108 million in adjusted EBITDA from its lumber operations in Q3 2026, excluding $36 million in one-time items. European lumber operations contributed another $20 million, benefiting from lower log costs and stronger pricing despite seasonal downtime and weakening demand in the UK market.

  • Paper and Pulp Operations Show Quarterly Improvement

    Canfor's paper and pulp operations generated $2 million in adjusted EBITDA during Q3, representing a $14 million improvement over the previous quarter. The figure excludes $38 million in one-time costs related to the Northwood pulp mill closure. Its paper business recorded $26 million in EBITDA during the first nine months of 2026.

  • Liquidity Reaches $1.1 Billion; Capital Spending Expected to Decline

    Canfor ended Q3 with approximately $1.1 billion in available liquidity and net debt of $364 million, excluding its duty loan. The company expects 2026 capital expenditures to total approximately $210 million, including $40 million for pulp operations. Spending is projected to decline to $100 million in 2027 following the completion of major investments.

SEATTLE (Scrap Monster): Canfor Corporation reported adjusted EBITDA of $108 million from its lumber operations in the third quarter of 2026, excluding $36 million in one-time items. The company also highlighted improved liquidity and lower U.S. duty rates amid subdued lumber market conditions.

European lumber operations generated adjusted EBITDA of $20 million, benefiting from lower log costs and stronger pricing despite seasonal downtime in July. However, European price realizations declined substantially from the previous quarter, primarily due to uneven demand and weakness in the UK market.

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Across its businesses, Canfor recorded year-to-date adjusted EBITDA of $280 million. Paper and pulp operations contributed $2 million in adjusted EBITDA during Q3, marking a $14 million improvement over the previous quarter. This figure excludes $38 million in one-time costs associated with the Northwood pulp mill closure. The paper business generated $26 million in EBITDA during the first nine months of 2026.

Canfor ended the quarter with approximately $1.1 billion in available liquidity and net debt of $364 million, excluding its duty loan. Liquidity declined by roughly $70 million during the quarter, mainly on account of PinkWood acquisition and Iron Mountain capital expenditures.

The company expects 2026 capital spending to reach approximately $210 million, including $40 million for pulp operations. Spending is projected to decline to $100 million in 2027 following the completion of major investments.