Conifex Q2 Results Hit by Sawmill Curtailment, Higher Lumber Costs
Rubber and Wood | 2026-08-17 23:10:52
The combined anti-dumping and countervailing duty deposits stood at 35.16%. The company recorded $3.7 million in duty deposits during the quarter.
By Paul Ploumis
Conifex Timber Reports $9.5M Q2 Loss Amid Sawmill Shutdown and Trade Duties
MONTREAL (Scrap Monster): Conifex Timber Inc. posted a wider second-quarter loss as prolonged curtailments at its Mackenzie sawmill and elevated U.S. trade duties weighed on results. The company recorded a net loss of $9.5 million, or $0.23 per share, for Q2 2026, compared with a loss of $8.3 million, or $0.20 per share, in the same period last year.
What Readers Should Know
- Net loss widened to $9.5M in Q2 2026 from $8.3M a year earlier
- EBITDA remained negative at $6.3M, improving from a $7.7M Q1 loss
- Mackenzie sawmill operated at ~23% capacity; output down 60% year-on-year
- Combined U.S. anti-dumping and countervailing duty deposits stood at 35.16%
- Revenue fell to $23.0M from $33.9M; lumber sales contributed $19.0M
- Company expects Canadian lumber markets to stay difficult through 2026
Why Results Deteriorated
Operations were pressured by a prolonged sawmill shutdown and elevated U.S. trade duties. EBITDA remained negative at $6.3 million, although it improved from a $7.7 million loss in the first quarter. Revenue fell to $23.0 million from $33.9 million a year earlier. Lumber sales contributed $19.0 million, while bioenergy revenue reached $2.8 million.
Sawmill Curtailment Drives Volume Decline
The company's Mackenzie sawmill operated at only about 23% of annual capacity, producing 14.1 million board feet, down 60% year-on-year. Operations were curtailed in May because of limited sawlog availability during the spring breakup season. The shutdown has continued beyond its initially planned seven-week period.
Power Plant Maintenance Underway
The Power Plant entered its scheduled annual maintenance shutdown in May this year. The maintenance activities are in progress with the company's previously announced maintenance plan. Power generation is expected to restart along with the commencement of sawmill operations, it said.
Also Read
Trade Duty Burden Persists
The combined anti-dumping and countervailing duty deposits stood at 35.16%. The company recorded $3.7 million in duty deposits during the quarter.
Outlook Remains Challenging
The company expects Canadian lumber markets to remain difficult through the rest of 2026.
People Also Ask
What was Conifex Timber's Q2 2026 net loss?
Conifex Timber reported a net loss of $9.5 million, or $0.23 per share, for the second quarter of 2026.
How much did Mackenzie sawmill production fall?
The Mackenzie sawmill produced 14.1 million board feet in Q2, down 60% year-on-year, operating at about 23% of annual capacity.
What is the current U.S. duty rate on Conifex lumber?
Combined anti-dumping and countervailing duty deposits stood at 35.16%, with $3.7 million recorded in the quarter.
Why was the Mackenzie sawmill curtailed?
Operations were curtailed in May due to limited sawlog availability during the spring breakup season, extending beyond the planned seven-week shutdown.
What is Conifex's outlook for Canadian lumber markets?
The company expects Canadian lumber markets to remain difficult through the rest of 2026.
Explore More
- Lumber Extends Decline Amid Tariff Uncertainty
- Conifex Timber Announced Robust Q1 2025 Results
- Lumber Market Sees Modest Price Gains as Supply Constraints Persist
Courtesy: Scrap Monster
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What was the main challenge affecting Conifex Timber’s Q2 2026 performance?
Frequently Asked Questions
- What was Conifex Timber’s net loss in Q2 2026?
Conifex Timber reported a net loss of $9.5 million, or $0.23 per share, compared with a $8.3 million loss, or $0.20 per share, in Q2 2025.
- How did Conifex’s revenue perform in the second quarter?
Revenue declined to $23.0 million from $33.9 million a year earlier. Lumber sales generated $19.0 million, while bioenergy revenue contributed $2.8 million.
- Why did Mackenzie sawmill production decline sharply?
The Mackenzie sawmill operated at only about 23% of annual capacity, producing 14.1 million board feet, a 60% year-on-year decline. Operations were curtailed because of limited sawlog availability during the spring breakup season, with the shutdown extending beyond the planned seven weeks.
