Canfor Corporation reports an operating loss of $208 million and a net loss of $172 million, equal to $1.48 per share, for the third quarter of 2025; after $97 million in inventory and duty items, the adjusted operating loss is $111 million, according to Canfor's Q3 2025 Interim Report.
The lumber segment posts an operating loss of $182 million; after $92 million of adjustments, the adjusted operating loss is $90 million. These results reflect lower production and shipments tied to regular summer downtime in Europe, higher duties in Western Canada, and the full-quarter impact of the Darlington and Estill closures in the US South.
Lumber sales total $1,095 million, down 9% from the prior quarter, driven by reduced volumes and lower unit realizations across all operating regions.
Western Spruce/Pine/Fir 2x4 #2&Btr averages US$477 per thousand board feet, up 1% from the prior quarter. Southern Yellow Pine 2x4 #2 averages US$373 per thousand board feet, down 22% quarter over quarter.
US housing starts average 1.37 million units at a seasonally adjusted annual rate through August, with affordability and uncertainty limiting demand. Repair and remodeling remains steady.
Offshore markets in Asia weaken as trade uncertainty disrupts supply chains. Japan sees softer pricing, while China shows only a modest uptick amid continued real estate weakness.
European demand remains under pressure. Sweden faces elevated log costs. The United Kingdom experiences additional pricing pressure from redirected pine supply and soft demand.
The pulp and paper segment records a $16 million operating loss; after a $5 million inventory write-down, the adjusted operating loss is $11 million. Improved mill productivity reduces per-unit manufacturing costs but does not offset weaker prices.
Northern Bleached Softwood Kraft list prices to China average US$690 per tonne, down US$44, or 6%, from the prior quarter. North American list prices average US$1,700 per tonne, down US$120, or 7%, from the prior quarter.
Global softwood pulp producer inventories end August at 52 days of supply, above the balanced range of 39 to 47 days.
A duty expense of $77 million related to finalized countervailing and anti-dumping rates is recognized in the quarter.
Canfor states that North American lumber markets will remain weak through the balance of 2025 as affordability challenges, market uncertainty, and new Section 232 tariffs early in the fourth quarter will pressure near-term demand. Industry curtailments and closures are forecast to drive modest price improvement later in the year.
Offshore lumber markets are projected to see slight downward pressure in the fourth quarter of 2025. Europe is anticipated to see modest supply-driven pricing improvement through the fourth quarter as reduced supply places upward pressure on prices.
For pulp, market conditions are anticipated to remain weak through the fourth quarter of 2025 as economic uncertainty persists and inventories stay above the balanced range. A scheduled maintenance outage at the Northwood mill will reduce NBSK production by 10 thousand tonnes in the fourth quarter.
Management indicates that these factors could leave Canfor Pulp Product Inc. with minimal headroom under financial covenants by year-end and is working on cost measures, deferrals, and lender waivers.
