This article first appeared on GuruFocus .
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Adjusted EBITDA:Negative $29 million in Q4 2025, an improvement from negative $36 million in Q3 2025.
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Cash Flow from Operations:Breakeven for Q4 2025, with positive cash flow totaling over $300 million from 2023 to 2025.
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Net Debt to Capitalization Ratio:36.5% at the end of 2025.
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Available Liquidity:$482 million pro forma at the end of 2025.
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Capital Expenditure:Expected to be $75 million to $80 million in 2026, with preliminary estimates of around $60 million for 2027.
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Production Cost per Unit:Improved by 4% in Q4 2025.
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Canadian Lumber Shipments to US:Annualized to approximately 8.5 billion board feet over the last six months, down from over 10 billion in 2025.
Release Date: February 13, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Interfor Corp ( IFSPF ) took steps to reinforce liquidity and extend its financial runway, including proactive financing transactions.
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The company successfully reduced log and lumber inventories significantly, which is a meaningful achievement in a down cycle.
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Interfor Corp ( IFSPF ) advanced the final phase of its Thomaston mill in Georgia, with the new sawmill expected to be a top performer.
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Employee turnover continued to improve, reflecting effective engagement and retention strategies.
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Despite negative adjusted EBITDA, cash flow from operations was breakeven for the quarter due to a notable recovery of working capital.
Negative Points
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Interfor Corp ( IFSPF ) posted a negative $29 million adjusted EBITDA in the fourth quarter, reflecting weak lumber market conditions.
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Realized selling prices were weaker on average due to lower market pricing and higher countervailing antidumping duties.
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The company faced ongoing trade measures and production curtailments across its platform.
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Leverage is not at the desired level, with a net debt to capitalization ratio of 36.5%.
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The economic environment remains uncertain, with trade and geopolitical developments introducing incremental risks.
Q & A Highlights
Q: How significant is the disruption in shipments due to recent weather conditions, and how quickly do you expect things to normalize? A: Bart Bender, Senior Vice President, Sales & Marketing : The disruption is not expected to be prolonged. Winter weather has caused some railcar and truck delays, impacting shipments, but these should clear out in a couple of weeks.
Q: Have you been able to restore your operating stance in the Pacific Northwest with the current price trends? A: Ian Fillinger, President, Chief Executive Officer : We are adding incremental hours in the Pacific Northwest. This is done conservatively, based on pricing, demand, and order file, with hours increasing slightly but not rapidly.
Q: Can you provide an update on channel inventories and your own inventory levels? A: Bart Bender, Senior Vice President, Sales & Marketing : Dealer and distribution channels appear lean, with little willingness to build inventory due to market uncertainty. Ian Fillinger, President, Chief Executive Officer : Our inventories are very lean and aligned with sales prices and demand, maintaining a comfortable position across all regions.
Q: How should we think about your production in the first quarter of 2026? A: Ian Fillinger, President, Chief Executive Officer : We are adding small incremental hours, particularly in the South and Pacific Northwest. This is reviewed weekly to ensure we are not building inventory without the right price and order file.
Q: Have the recent balance sheet initiatives put you in a comfortable position, or are there other options you are considering? A: Mike Mackay, Executive Vice President, Chief Financial Officer : The recent equity raise and refinancing initiatives have significantly improved our position, clearing out debt maturity for 2026 and 2027. Duty deposits are a lower priority due to ongoing uncertainties.
Q: Can you provide context on the concessions made to get amendments from creditors and any impact on borrowing costs? A: Mike Mackay, Executive Vice President, Chief Financial Officer : The new notes are priced slightly higher, with overall interest costs around 6.5%. The equity raise demonstrated our commitment to lenders, and the incremental borrowing costs are not significant.
Q: What is the expected timeline and magnitude for asset sales, including BC Coast tenures and idle sawmill sites? A: Mike Mackay, Executive Vice President, Chief Financial Officer : For BC Coast, we expect $30 million to $35 million over the next 12 to 18 months. Asset sales are in active marketing, with meaningful proceeds expected in the same timeframe.
Q: Can you provide details on the improvement in labor turnover, particularly in the US South? A: Ian Fillinger, President, Chief Executive Officer : We've seen a 3% improvement overall in the South, with double-digit percentage improvements at focus mills. This reflects successful retention initiatives, though work remains to be done.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
