GreenFirst Forest Products returned to profitability in the second quarter of 2026, supported by higher lumber prices, increased shipments, improved operating performance and a favourable inventory valuation reversal.
The Ontario-based lumber producer reported net income of C$5.5 million, or C$0.24 per diluted share, for the quarter ended June 27. This compares with a net loss of C$20.7 million, or C$0.89 per diluted share, in the first quarter.
Adjusted EBITDA improved to C$11.8 million from negative C$15.1 million in the preceding quarter. Net sales rose 59% sequentially to C$96.1 million, driven by higher shipment volumes and stronger realized prices.
GreenFirst’s average realized lumber price increased to C$764 per thousand board feet, compared with C$666 in the first quarter. The company attributed the improvement to stronger benchmark markets and a more favourable product mix.
Manufacturing costs declined 10% sequentially, reflecting higher production volumes and improved operating performance, particularly at the Chapleau large-log line, where commissioning and optimization continued during the quarter.
Results also benefited from a C$16.2 million reversal of an inventory valuation provision, reflecting stronger lumber prices, lower inventory levels and a higher proportion of premium products. GreenFirst had recorded a C$1.8 million provision in the first quarter.
Duties and tariffs remained a significant expense, rising to C$21.1 million from C$12.1 million in the previous quarter. The increase reflected higher shipment volumes and lumber selling prices. GreenFirst said it was subject to a combined duty rate of 45.16% on exports to the United States.
CEO Joel Fournier said the company will continue working to improve operational reliability, increase production and productivity, reduce manufacturing costs and strengthen free cash flow.
GreenFirst maintained a cautious near-term outlook, citing housing affordability, trade uncertainty and volatile energy and transportation costs. However, the company said long-term lumber demand continues to be supported by the U.S. housing supply deficit, an aging housing stock and repair and renovation activity.
GreenFirst Forest Products is an Ontario-based producer of softwood lumber for residential, commercial and industrial markets. The company operates four sawmills and manages activities across more than six million hectares of FSC-certified public forest lands in Ontario. Its shares trade on the Toronto Stock Exchange under the symbol GFP.
