Interfor returned to profitability in the second quarter of 2026 as higher lumber prices, increased production and lower operating costs contributed to a sharp improvement in adjusted EBITDA.
The company reported net earnings of C$1 million, or C$0.02 per share, compared with a net loss of C$63.3 million in the first quarter. Interfor earned C$11.1 million in the second quarter of 2025.
Adjusted EBITDA reached C$92.3 million on sales of C$804.4 million, up from C$30.7 million on sales of C$643.2 million in the preceding quarter. A year earlier, adjusted EBITDA stood at C$17.2 million on sales of C$780.5 million.
Higher Prices and Production
Interfor’s average lumber selling price increased to C$739 per thousand board feet, an 11% rise from the first quarter. The company attributed the improvement to stronger pricing across its operating regions, supported by seasonal demand and industry-wide production curtailments implemented over the past several years.
Lumber production increased by 71 million board feet from the preceding quarter to 927 million board feet. The gain primarily reflected the ramp-up of the rebuilt Thomaston sawmill in Georgia and higher operating rates in the U.S. Northwest and British Columbia following temporary curtailments early in the year.
Shipments reached 941 million board feet, exceeding production and reducing lumber inventories by 14 million board feet. Interfor said logistics conditions improved modestly, although supply-chain constraints remain an issue, particularly in the U.S. South.
Thomaston Rebuild Supports Results
The multi-year rebuild of the Thomaston sawmill was substantially completed during the first quarter. The facility is now ramping up toward a projected annual production capacity of 240 million board feet.
Interfor said Thomaston generated a significant positive contribution to adjusted EBITDA in the second quarter, reversing the negative contribution recorded during the final construction phase in the preceding quarter.
Production costs declined for a third consecutive quarter despite continued inflation in fuel and other inputs. Costs during the quarter were C$41 per thousand board feet, or 6%, below the company’s full-year 2025 level.
Interfor spent C$22.7 million on capital projects during the quarter, including C$9.7 million in discretionary investments primarily related to the completion of the Thomaston rebuild. Capital expenditures for 2026 are expected to total approximately C$90 million.
Cash Flow and Market Outlook
Operating cash flow after working-capital changes reached C$100.8 million. Available liquidity increased to C$441.8 million at June 30, while net debt declined to C$816.7 million, representing 36.7% of invested capital.
Interfor expects North American lumber markets to remain volatile as production adjusts to demand and the broader economy responds to changing monetary policies, trade measures, oil prices and geopolitical uncertainty.
Benchmark lumber prices continued to strengthen in July. Compared with second-quarter averages, monthly prices rose across southern yellow pine and eastern and western spruce-pine-fir benchmarks.
Approximately 65% of Interfor’s lumber is produced and sold within the United States. About 20% of its total production is exported from Canada to the U.S. and remains exposed to softwood lumber duties and other potential trade measures.
Interfor is a forest products company operating in Canada and the United States. It has annual lumber production capacity of approximately 4.5 billion board feet and supplies customers in North America and international markets.
