GreenFirst Forest Products Inc. reported Adjusted EBITDA from continuing operations of negative $21.7 million for the quarter ended December 31, 2025, an improvement from negative $47.2 million in the Q3 2025, as market prices declined to their lowest levels of the year.
Net loss from continuing operations was $32.8 million, or $1.43 per diluted share, compared to a net loss of $57.4 million in the prior quarter. Net sales increased by 10% to $76.9 million, driven by higher shipments, partially offset by lower realized pricing.
Average realized lumber prices fell to $654 per thousand board feet in the Q4, down from $695 per thousand board feet in the Q3. Cost of sales rose to $86.0 million, including a $10.2 million provision for net realizable value on inventory, reflecting decreases in benchmark prices. U.S. benchmark lumber prices for delivery to the Great Lakes region declined to $522 per thousand board feet for 2×4 random length and $440 per thousand board feet for studs in December.
The company recorded duties expense of $15.1 million in the Q4. The combined duty and tariff rate increased from 35.16% in the Q3 to 45.16% starting October 14, 2025, following the implementation of a 10% Section 232 tariff on softwood lumber imports.
The company recorded impairment charges of $9.0 million, driven by continued weakness in lumber market prices, macroeconomic conditions, and elevated duties and tariff rates.
In December 2025, the company received regulatory approval to distribute surplus assets from a closed defined benefit pension plan, retaining $10.7 million in surplus. It also secured a $19 million backstop on standby letters of credit from Export Development Canada. In January 2026, the company entered into a $30 million term loan under the Government of Canada's Softwood Lumber Program.
The company completed installation of the new large log line at its Chapleau mill during the quarter and anticipates beginning to realize operational benefits later in 2026. While near-term demand may remain below mid-cycle levels due to housing affordability challenges and broader economic uncertainty, the longer-term demand outlook for lumber remains supported by structural housing market dynamics, including a U.S. housing supply deficit and demographic-driven household formation.
GreenFirst Forest Products is a forest-first business, focused on sustainable forest management and lumber production.
