Conifex Timber Inc. reported EBITDA from continuing operations of negative $27.5 million for the year ended December 31, 2025, compared to negative $13.6 million in the previous year, due to elevated duty deposit rates, the imposition of a new tariff, and reduced operating rates.

The net loss for the year was $35.7 million, or $0.87 per share, compared to a net loss of $29.8 million, or $0.73 per share, in 2024. Revenues increased to $142.7 million from $127.7 million a year earlier, driven by higher benchmark lumber prices and increased shipment volumes in the first half of the year.

The company recorded softwood lumber duties, deposits, and tariffs of $26.1 million in 2025, a 493% increase from 2024. The combined countervailing and anti-dumping duty rate rose to 35.16% following finalization of the sixth administrative review, and an additional 10% Section 232 tariff became effective October 14, 2025, bringing the total combined rate to 45.16%. A non-cash additional duty expense of $15.3 million was recorded in connection with the AR6 finalization.

Lumber production was 147.9 million board feet in 2025, an annualized operating rate of 62%, compared to 134.8 million board feet in 2024. Shipments of Conifex-produced lumber totaled 141.1 million board feet, a 3% increase from the prior year. The average Canadian dollar-denominated Western Spruce/Pine/Fir lumber price increased 16% to $651 per thousand board feet.

The bioenergy segment contributed revenues of $25.6 million, an 8% increase from 2024, with electricity production of 179.0 gigawatt hours.

Total debt stood at $87.7 million as of December 31, 2025, and available liquidity was $4.4 million. Subsequent to year-end, the company secured a $5 million bridge advance and a $19 million term loan from the Business Development Bank of Canada under the Softwood Lumber Guarantee Program. Cumulative duties of US$46.0 million paid since the inception of the trade dispute remain held in trust by the U.S. government.

The company expects a material reduction in duty rates in the Q4 2026 in connection with the seventh administrative review. Over the medium-term, North American lumber demand is expected to benefit from favourable housing fundamentals, though near-term uncertainty persists regarding trade measures and housing affordability. Management remains focused on cost discipline and liquidity management, and may adjust operating formats in response to market and trade conditions.

Conifex and its subsidiaries' primary business currently includes timber harvesting, reforestation, forest management, sawmilling logs into lumber and wood chips, and value added lumber finishing and distribution.