Canfor reported narrower losses in the first quarter of 2026 as tighter lumber supply conditions supported North American wood prices, partially offsetting continued weakness in global pulp markets.
The company posted an operating loss of CAD 72.5 million for the quarter ended March 31, compared with an operating loss of CAD 415.9 million in the previous quarter. Adjusted operating loss improved to CAD 92.5 million from CAD 145 million in the fourth quarter of 2025.
Sales totalled CAD 1.36 billion, up from CAD 1.28 billion in the prior quarter but below the CAD 1.42 billion recorded a year earlier.
Canfor said results improved primarily due to stronger lumber segment performance, driven by a supply-related increase in North American benchmark lumber prices and higher production levels for Southern Yellow Pine and Western SPF products.
The lumber segment reported an operating loss of CAD 43.7 million, compared with a loss of CAD 318.8 million in the previous quarter.
Lumber markets improve on tighter supply
Despite the improvement, the company said market conditions remained difficult across most regions due to subdued demand, elevated trade duties and broader geopolitical uncertainty. Canfor noted that the conflict in Iran contributed to higher freight costs and additional pressure on global trade flows and purchasing activity during the quarter.
In Europe, colder weather early in 2026 and weak construction demand weighed on lumber markets, while Asian markets remained pressured by weak housing activity in China and softer demand in Japan.
Pulp markets remain under pressure
Global pulp markets also remained under pressure through the quarter. Canfor said softwood pulp demand in China stayed weak and producer inventories remained elevated.
The pulp and paper segment reported an operating loss of CAD 16.2 million, improved from a loss of CAD 85.6 million in the previous quarter, helped by modestly higher pulp pricing and a 30% increase in pulp shipments.
Average Northern Bleached Softwood Kraft (NBSK) pulp prices in China reached US$685 per tonne during the quarter, up 2% from the previous quarter. However, global producer inventories remained high at 47 days of supply, at the upper end of the industry’s balanced range.
During the quarter, Canfor also completed the acquisition of the remaining outstanding shares of Canfor Pulp Products Inc., giving the company full ownership of its pulp subsidiary.
Looking ahead, Canfor said lumber markets could weaken later in the second quarter as supply levels recover, while pulp markets are expected to remain challenging amid ongoing economic and geopolitical uncertainty.
The company also announced planned maintenance outages at its Intercontinental NBSK pulp mill and paper machine in the second quarter, expected to reduce pulp production by approximately 20,000 tonnes and paper production by 5,000 tonnes.
Canfor is a global producer of forest products, including lumber, engineered wood products, pulp and paper, wood pellets and renewable energy. Headquartered in Vancouver, British Columbia, the company operates manufacturing facilities across Canada, the United States and Europe. Canfor also holds a majority stake in Swedish sawmill company Vida AB.
