Canfor reports a fourth‑quarter operating loss of $46 million, with the lumber segment’s loss decreasing 89% to $37 million from $336 million in the previous quarter. This reduction is driven by capacity expansions, including the start-up of a greenfield sawmill in Axis, Alabama, and the modernization of the Urbana sawmill in Arkansas. A 3% weaker Canadian dollar and a modest uptick in North American benchmark lumber prices further support the improved production figures.
The pulp segment posts operating income of $4 million in Q4 compared with a $209 million loss in the previous quarter. Management noted that while US-dollar NBSK pulp list prices to China averaged US$767 per tonne, down US$4 per tonne from the prior quarter, the segment continues to face challenges from persistent shortages in economically viable fibre in British Columbia.
The report also indicates that new U.S. tariffs of 25%, imposed in March 2025, add cost pressures to Canadian lumber exports, compounding the impact of existing countervailing and anti-dumping duties. Management emphasizes that expanded capacity and improved shipment volumes are key to offsetting these tariff-related challenges while supporting a steady outlook in both the lumber and pulp segments.
