Interfor recorded a full-year net loss of $344 million on sales of $2,806 million, as weak lumber market conditions and higher duties and tariffs increased costs and led the company to adjust operating levels to match demand.

Adjusted EBITDA was a loss of $147 million, compared with adjusted EBITDA of $19 million in 2024. The adjusted EBITDA margin was -5% in 2025 versus 1% a year earlier.

Lumber sales totaled 3,577 million board feet in 2025, down from 4,046 million board feet in 2024. Lumber production was 3,501 million board feet, down from 3,956 million board feet a year earlier. Interfor's lumber average selling price was $655 per mfbm, up from $610 per mfbm in 2024.

Export duties and tariffs were a larger cost item in 2025. Interfor recorded $272 million of export duties and tariffs expense, compared with $32 million in 2024. The company said Canadian softwood lumber shipments to the U.S. incurred combined countervailing and anti-dumping duties at a rate of 35.16%, and it paid Section 232 tariffs after the U.S. imposed a 10% tariff on imports of softwood timber and lumber effective October 14, 2025.

Interfor ended 2025 with net debt of $798 million, down from $861 million at the end of 2024, and a net debt to invested capital ratio of 36.5% versus 35.7% a year earlier. The company reported $371 million of available liquidity at December 31, 2025, and said liquidity would total $482 million on a pro forma basis after financing actions completed or arranged during and after the fourth quarter, including equity proceeds, a letter of credit facility and planned new debt issuances.

Management said North American lumber markets over the near term are expected to remain volatile as the economy adjusts to changing monetary policies, tariffs, labor shortages and geopolitical uncertainty, and as industry-wide lumber production continues to adjust to match demand. The company said benchmark lumber prices rebounded late in the fourth quarter and into early 2026, with the SYP Composite lumber price rising US$102 per mfbm, or 32%, the Western SPF Composite rising US$56 per mfbm, or 15%, and the KD H-F Stud 2x4 9' price rising US$100 per mfbm, or 26%, from the end of September 2025 through the end of January 2026.

Interfor said near-term volatility is likely to be amplified by higher duty rates on Canadian lumber exports to the U.S., the Section 232 tariff and any additional tariffs or other trade restrictions, if imposed. The company said about 60% of its lumber is produced and sold within the U.S., while about 25% of total lumber production is exported from Canada to the U.S. and exposed to duties, the Section 232 tariff and other potential trade measures.