Canada's Canfor reports Q4 operating loss due to lumber tariffs
Overview
Canada's forest products firm reported Q4 operating loss of C$415.9 mln due to market pressures
Adjusted operating loss for Q4 widened to C$145 mln from Q3
Lumber production rose 2% from Q3, aided by Hedin sawmills acquisition
Outlook
Canfor anticipates continued uncertainty in North American lumber markets through 2026
Offshore lumber market conditions in Asia forecast to remain subdued in Q1 2026
CPPI may experience continued declines in financial performance in Q1 2026
Result Drivers
LUMBER MARKET PRESSURE - Elevated US softwood lumber duties and tariffs contributed to weak demand and increased operating losses, according to CEO Susan Yurkovich
EUROPEAN OPERATIONS - Lumber production increased 2% from Q3, driven by full quarter contribution from Hedin sawmills in Europe
PULP MARKET CONDITIONS - Global softwood pulp markets remained flat due to high inventory levels, impacting pulp segment performance
Company press release: ID:nGNX3xWSmn
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Sales |
| C$1.28 bln |
|
Q4 Net Income |
| -C$390.5 mln |
|
Q4 Basic EPS |
| -C$3.35 |
|
Q4 Operating Income |
| -C$415.9 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the forest & wood products peer group is "buy"
Wall Street's median 12-month price target for Canfor Corp is C$15.50, about 14.1% above its March 5 closing price of C$13.58
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
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