Canfor announces asset write-down and impairment charge

SEATTLE (Scrap Monster): Canfor Corporation ("the Company” or "Canfor”) (TSX: CFP) announced today that it will record a non-cash asset write down and impairment charge totaling approximately $321 million in its fourth quarter of 2025 results. Of this amount, $215 million relates to the Company’s lumber segment and $106 million relates to its pulp and paper segment.

In the lumber segment, the impairment is associated with the Company’s European operations and reflects ongoing log supply pressures in the region, which have resulted in significant increases in log costs and reduced asset carrying values.

In the pulp segment, the impairment reflects sustained declines in global US-dollar pulp list prices as well as continued challenges in securing economically viable fibre necessary to support operations.

This impairment charge is non-cash in nature and does not affect Canfor’s liquidity position, cash flows or day-to-day operations.

As previously announced, Canfor is proposing to acquire all of the issued and outstanding shares of Canfor Pulp Products Inc. ("Canfor Pulp”) that it does not already own pursuant to an arrangement agreement with Canfor Pulp dated December 3, 2025 (the "Proposed Transaction”). Canfor presently holds 54.8% of Canfor Pulp’s outstanding shares. This news release is deemed to be incorporated by reference in the management information circular dated January 28, 2026 (the "Circular”) in respect of Canfor Pulp’s special meeting of shareholders to be held on March 6, 2026 (the "Meeting”) where Canfor Pulp will be seeking shareholder approval of the Proposed Transaction. 

Courtesy: www.manilatimes.net