GreenFirst Forest Products Inc. reported an Adjusted EBITDA from continuing operations of negative $47.2 million for the Q3 ended September 27, 2025, compared to negative $5.2 million in the previous quarter, driven by weak lumber prices and a $39.7 million duty expense, according to GreenFirst.
Net loss from continuing operations was $57.4 million, or $2.54 per diluted share. Excluding the duty liability impact, Adjusted EBITDA was negative $13.4 million. Net sales decreased by 17% to $70.2 million, due to lower shipment volumes and a decrease in the average realized lumber price to $695 per thousand board feet.
The results included a $39.7 million duty expense, comprising a $33.8 million charge plus $5.9 million in accrued interest, following the U.S. Department of Commerce's final determination for the sixth Administrative Review, which raised the company's combined duty rate to 35.16% from 14.4%.
Cost of sales was $75.6 million, which included an $8.2 million provision for the net realized value on inventory due to decreases in benchmark prices. The company also incurred higher production costs related to downtime for the installation of the new large log line at its Chapleau mill.
The company ended the quarter with $3.5 million in cash and $19.0 million drawn on its revolving credit facility. It had $30.4 million of excess availability under the revolving facility, less $14.1 million for standby letters of credit.
The company has begun commissioning the new saw line at its Chapleau mill. It stated that macroeconomic concerns are beginning to stabilize, which may support a recovery in lumber demand and pricing, and that mortgage rates are expected to ease in 2026, improving affordability. Supply constraints, particularly in Western Canada due to wildfires and regulatory limits, are expected to contribute to ongoing tightness in lumber supply, which could help stabilize or support prices in the coming months. The company noted that effective October 14, 2025, softwood lumber products became subject to a 10% U.S. tariff, but the actual impact of this and any future tariffs remains unknown and cannot be reasonably estimated.
