Canfor Corporation reported a net loss of $390.5 million in the fourth quarter of 2025, as weak lumber demand, elevated U.S. duties and significant asset impairments weighed on results.
Asset write-downs and impairment charges totaling $320.4 million weighed heavily on the quarter, including $213.9 million tied to the lumber segment and $106.5 million related to pulp and paper operations.

The Vancouver-based forest products company reported an operating loss of $415.9 million, compared with a loss of $208.3 million in the previous quarter.

Excluding one-time items, the adjusted operating loss reached $145 million, compared with $111.3 million in the third quarter.

“Our lumber business continued to face significant headwinds in the fourth quarter, with ongoing market weakness combined with elevated duty and tariff costs weighing on our results,” said Susan Yurkovich, President and Chief Executive Officer of Canfor.

North American lumber markets remained under pressure through most of the quarter. High U.S. countervailing and anti-dumping duties continued to weigh on exports, while the introduction of a 10% tariff under Section 232 in October added further uncertainty for producers.

Demand also softened in offshore markets. China’s struggling housing sector weighed on lumber consumption, while Japan saw weaker demand linked to reduced housing starts. In Europe, constrained spruce log availability and persistently high log costs limited purchasing activity despite seasonal inventory replenishment.

Industry-wide sawmill curtailments announced late in the quarter, combined with low inventories and seasonal production downtime, helped support a modest improvement in benchmark lumber prices toward year-end.

Canfor’s lumber production increased 2% from the previous quarter, supported primarily by the full-quarter contribution from the recently acquired Hedin sawmills in Europe. These gains partly offset lower output during seasonal holiday downtime in North America.

Canfor expects volatility to persist into 2026. While supply curtailments and low inventories could support lumber prices, demand remains fragile amid global economic uncertainty and ongoing Canada–U.S. trade tensions.

Canfor is a global manufacturer of high-value forest products including dimension and specialty lumber, engineered wood products, pulp and paper, wood pellets and green energy. Headquartered in Vancouver, the company operates more than 50 facilities across Canada, the United States and Europe and holds a 54.8% interest in Canfor Pulp Products Inc.

Source: canfor.com