GreenFirst Forest Products reported a significantly wider loss in the third quarter of 2025, as weak lumber prices, increased duty expenses, and operational downtime weighed heavily on results.
The company posted a net loss of $57.4 million, compared with a loss of $9.6 million in the previous quarter. Adjusted EBITDA from continuing operations fell to negative $47.2 million, or negative $13.4 million excluding the impact of duty adjustments under AR6, compared with negative $5.2 million in Q2.
Benchmark prices declined through the quarter, with the company’s average realized price slipping to $695/mfbm, down from $712/mfbm in Q2. Shipments also fell, contributing to a 17% decline in net sales, to $70.2 million.
A major driver of the quarter’s loss was the final determination of the U.S. Department of Commerce’s Sixth Administrative Review (AR6) for 2023, which raised GreenFirst’s combined duty rate to 35.16%. The company recorded $33.8 million in additional duty expense, plus $5.9 million in interest, bringing total duty liabilities to $39.7 million as of September 27.
Operationally, GreenFirst faced higher costs associated with the installation of a new large log line at the Chapleau mill and scheduled curtailments. “Excluding the duty liability, our negative EBITDA of $13.5 million was largely driven by lower prices and higher production costs linked to modernization work,” said CEO Joel Fournier. Commissioning of the new saw line has now begun.
SG&A expenses declined to $3.0 million, reflecting lower stock-based compensation and reduced professional fees. The company ended the quarter with $3.5 million in cash, $30.4 million of excess availability under its revolving credit facility, and access to an additional $13.4 million in equipment financing.
GreenFirst said it remains focused on operational discipline and completing its modernization program to strengthen long-term competitiveness.
GreenFirst Forest Products Inc. is a forest-first business focused on sustainable forest management and lumber production. The company operates four sawmills in Ontario and manages more than six million hectares of FSC®-certified public forests (FSC®-C167905). GreenFirst believes that responsible forest practices and the carbon-sequestering benefits of lumber provide long-term competitive advantages in building materials.
