VANCOUVER, BC, July 31, 2025 - Canfor Pulp Products Inc. ("the Company" or "CPPI") (TSX: CFX) today reported its second quarter of 2025 results:
Overview.
- For the second quarter of 2025, the Company reported an operating loss of $5 million and a net loss of $7 million, equivalent to $0.10 per share.
- Global pulp market fundamentals weakened throughout the second quarter amid trade uncertainties, particularly in China; global pulp producer inventories climbed to well above the balanced range.
- Rising global economic uncertainty put downward pressure on North American kraft paper markets.
- The Canadian dollar strengthened by 3 cents, or 4%, versus the US-dollar quarter-over-quarter, negatively impacting pulp and paper sales unit realizations.
- Pulp and paper production was relatively comparable quarter-over-quarter.
The Company reported an operating loss of $5.3 million for the second quarter of 2025, compared to operating income of $10.8 million for the first quarter of 2025. After adjusting for a $2.9 million inventory write-down in the current period, the Company's operating loss was $2.4 million for the second quarter of 2025. These results were largely driven by a decline in both the Company's average Northern Bleached Softwood Kraft ("NBSK") pulp and paper unit sales realizations in the current quarter and, to a lesser extent, an uplift in pulp unit manufacturing costs.
Commenting on the Company's second quarter performance, CPPI's President and Chief Executive Officer, Stephen Mackie, remarked, "Our results for the second quarter of 2025 were strongly influenced by persistent global economic uncertainty, significantly impacting global pulp and paper market fundamentals. We anticipate these market pressures to continue throughout the third quarter. We are closely monitoring these external factors but continue to remain focused on optimizing areas within our control, including improving safety, reliability, productivity and cost structure."
