Canfor Pulp Products reported a net loss of $12 million, or $0.19 per share, for the third quarter of 2025, ...
Canfor Pulp Products reported a net loss of $12 million, or $0.19 per share, for the third quarter of 2025, reflecting continued weakness in global pulp and paper markets.
The company posted an operating loss of $16 million, compared with a loss of $5 million in the previous quarter. After adjusting for a $4.9 million inventory write-down, the adjusted operating loss was $11 million, compared with $2 million in Q2 2025.
Pulp Prices and Inventories Remain Depressed
According to the company, global pulp market fundamentals remained at depressed levels throughout the quarter.
Northern Bleached Softwood Kraft (NBSK) pulp list prices to China averaged US$690 per tonne, down 6% from the previous quarter. Producer inventories ended August at 52 days of supply, well above the balanced range of 39–47 days.
Despite a 5% increase in pulp production across its Prince George (B.C.) mills, lower realized prices offset these gains.
Paper Segment Improvement
The company’s paper segment reported an operating income of $5 million, up from $1.5 million in Q2 2025, driven by a stronger product mix and lower manufacturing costs.
Outlook: Ongoing Challenges
President and Chief Executive Officer Stephen Mackie said:
“Persistent global economic uncertainty continued to negatively impact pulp and paper markets during the third quarter. Although our initiatives to improve reliability and productivity have mitigated some of these pressures, we expect these challenges to continue.”
Canfor Pulp anticipates that global softwood pulp market conditions will remain weak through the fourth quarter of 2025, compounded by a planned maintenance outage at the Northwood mill, expected to reduce production by 10,000 tonnes.
The company also warned that ongoing macroeconomic headwinds could lead to a risk of non-compliance with its financial covenants by year-end, and is in discussions with lenders to secure a waiver.
Canfor Pulp Products Inc. (Canfor Pulp or CPPI) is a leading global supplier of premium pulp and paper products. The company operates two mills in Prince George, British Columbia, with a total capacity of 780,000 tonnes of Northern Bleached Softwood Kraft (NBSK) pulp—including 300,000 tonnes indefinitely curtailed since 2024—and 140,000 tonnes of kraft paper.
Canfor Pulp shares trade on the Toronto Stock Exchange (TSX: CFX).
