Canfor Narrows Q1 Loss on Stronger North American Lumber Prices
Rubber and Wood | 2026-05-07 07:01:43
Canfor said global lumber markets remained challenging due to subdued demand, elevated U.S. tariffs, trade tensions, and geopolitical risks linked to the Iran conflict.
By Paul Ploumis
SEATTLE (Scrap Monster): Canadian forestry company Canfor Corporation reported a narrower loss for the first quarter of 2026 as stronger North American lumber pricing and improved production levels partially offset weak global demand and ongoing geopolitical uncertainty.
The company posted an operating loss of $73 million and a net loss attributable to shareholders of $72 million, or $0.62 per share, for Q1 2026. After adjusting for a $20 million inventory write-down reversal, Canfor’s adjusted operating loss stood at $93 million, improving from an adjusted loss of $145 million in the previous quarter.
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Canfor said global lumber markets remained challenging due to subdued demand, elevated U.S. tariffs, trade tensions, and geopolitical risks linked to the Iran conflict. However, tighter lumber supply in North America supported benchmark pricing during the quarter.
The lumber segment reported an operating loss of $43.7 million, significantly lower than the $318.8 million loss recorded in Q4 2025. Higher production volumes of Southern Yellow Pine and Western Spruce/Pine/Fir contributed to the improvement.
Meanwhile, global pulp markets remained weak, especially in China, where sluggish housing demand and elevated inventories continued to pressure prices. Canfor expects ongoing volatility and cautious market conditions through the second quarter of 2026.
POLL
What was the biggest factor behind Canfor’s improved Q1 2026 performance?
Frequently Asked Questions
- Why did Canfor’s losses narrow in Q1 2026?
Improved North American lumber pricing and higher production volumes helped reduce losses despite weak global demand.
- How did the lumber segment perform?
The lumber division reported a significantly lower operating loss of $43.7 million compared to $318.8 million in Q4 2025.
- What challenges is Canfor facing globally?
The company cited weak pulp demand, elevated U.S. tariffs, trade tensions and geopolitical uncertainty linked to the Iran conflict.
