Canfor Reports Stronger Lumber Segment Performance in Q3 2026
Rubber and Wood | 2026-11-05 06:34:59
Across its businesses, Canfor recorded year-to-date adjusted EBITDA of $280 million.
By Paul Ploumis
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.
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How much adjusted EBITDA did Canfor's lumber operations generate in Q3 2026, excluding one-time items?
Frequently Asked Questions
- How much adjusted EBITDA did Canfor report in Q3 2026?
Canfor Corporation reported adjusted EBITDA of $108 million from its lumber operations in Q3 2026, excluding $36 million in one-time items. European lumber operations contributed an additional $20 million, taking the combined adjusted EBITDA contribution from lumber businesses to $128 million.
- How did Canfor's European lumber operations perform in the third quarter?
European lumber operations generated $20 million in adjusted EBITDA, supported by lower log costs and stronger pricing. However, price realizations declined substantially compared with the previous quarter, primarily due to uneven demand, weakness in the UK market and seasonal downtime in July.
- How did Canfor's paper and pulp operations perform during Q3 2026?
Paper and pulp operations generated $2 million in adjusted EBITDA, 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. Separately, the paper business recorded $26 million in EBITDA during January-September 2026.