Canfor Corporation reported an operating loss of $251.4 million for the 2Q 2025, compared to an operating loss of $28.5 million in the Q1 2025. After accounting for adjusting items totaling $200.7 million, consisting of an inventory write-down as well as an asset write-down and impairment charge, the Company’s operating loss was $50.7 million for the current quarter. This compares to a similarly adjusted operating loss of $32.2 million in the prior quarter. These results reflect a decline in results for both the lumber and pulp and paper segments.
Canfor's Q2 2025 sales were $1,379.4 million, compared to $ 1,381.5 million in the Q2 2024.
For the lumber segment, the operating loss was $229.2 million for the Q2 2025, compared to the previous quarter’s operating loss of $25.5 million. These results include adjusting items consisting of an asset write-down and impairment charge of $188.6 million and an inventory write-down of $9.2 million.
North American housing markets experienced a moderate decline through the Q2 2025. Ongoing affordability concerns, combined with general economic and political uncertainty, especially relating to potential US tariffs, continued to dampen demand and slow market activity. These factors led to an increase in housing supply and a reduction in new home construction as well as repair and remodel activity, all of which exerted downward pressure on most North American lumber benchmark prices compared to the previous quarter.
In Japan, lumber demand and pricing strengthened as the Q2 progressed, driven largely by an increase in building activity in the current period following a surge in homebuying in the previous quarter ahead of building code changes. In contrast, lumber demand and prices in China remained under pressure throughout most of the Q2, primarily due to elevated inventory levels in the region.
European lumber demand continued to face downward pressure through the Q2 2025, principally reflecting affordability challenges and muted consumer sentiment. However, some pressure on lumber inventory supply in the region led to a slight uplift in pricing quarter-over-quarter.
Canfor Corporation is a global leader in the manufacturing of low-carbon forest products, delivering sustainable, high-quality wood solutions to markets worldwide.
