Canadian lumber producer Interfor Corporation (TSX: IFP) posted a net loss of $63.3 million, or $0.96 per share, in the first quarter of 2026, a marked improvement from the $104.6 million loss ($1.59 per share) recorded in the final quarter of 2025, though it compared less favourably to the $35.1 million loss ($0.68 per share) a year earlier.

Adjusted EBITDA recovered to $30.7 million on revenues of $643.2 million, reversing the $29.2 million adjusted EBITDA loss on $600.6 million in sales during Q4'25. Year-over-year, however, the metric declined from $48.6 million on $735.5 million in Q1'25.

Pricing and production gains
Pricing momentum strengthened considerably in the opening quarter. Interfor's average selling price climbed to $666 per thousand board feet, up $67 from the prior quarter, benefiting from widespread industry-wide production slowdowns initiated in 2025 and improved seasonal demand across all regions.

Production volumes rebounded to 856 million board feet, an increase of 103 million board feet from Q4'25, as the U.S. Northwest and British Columbia mills ran at higher operating rates. Fourth-quarter production had been curtailed due to depressed market conditions.

The company took decisive action on underperforming assets, indefinitely suspending operations at its Ear Falls sawmill in Ontario during Q1'26, with additional curtailments announced at the Nairn and Gogama mills in April 2026.

Shipments and inventory challenges
Lumber shipments of 806 million board feet fell short of production by approximately 6%, causing inventory to swell by 52 million board feet during the quarter. The gap reflected logistics friction in U.S. transportation networks towards quarter-end rather than demand weakness.

Liquidity and leverage
The company strengthened its financial position by completing a series of previously announced refinancing arrangements. Available liquidity improved by $14.5 million to $385.8 million as of 31 March 2026, whilst net working capital stood at $249.8 million.

Operating cash flow before working capital changes generated $23.8 million, primarily driven by the higher average lumber prices achieved. However, $22.9 million was deployed into working capital, chiefly reflecting delayed shipments from logistics constraints and seasonally elevated log stocks in Canada.

Net debt climbed to $857.7 million, representing 38.3% of invested capital, compared to $797.6 million (36.5% of invested capital) at the end of 2025.

Source: brokerchooser.com