Interfor Corporation reported a net loss of $216 million for the third quarter of 2025, compared with earnings of $11 million in the prior quarter. Adjusted EBITDA was a loss of $184 million on sales of $689 million, versus a gain of $17 million on $781 million in Q2.

The quarterly loss included $147 million in duties expense linked to final U.S. administrative reviews on anti-dumping and countervailing duties. Excluding that charge, Adjusted EBITDA would have shown a loss of $36 million.

Lumber production reached 912 million board feet in Q3, down 23 million from the previous quarter and 8 million above Q3 2024 levels. Lumber shipments totaled 924 million board feet, exceeding production and reducing inventories by 10 million board feet.

By region, Interfor produced 433 million board feet in the U.S. South, 115 million in the U.S. Northwest, 198 million in Eastern Canada, and 166 million in British Columbia. Total company capacity stands at approximately 4.7 billion board feet per year across all operations.

Average lumber selling prices fell to $618 per thousand board feet, down from $684 in Q2, as the Southern Yellow Pine composite benchmark price declined 19% to $338 per thousand board feet. Other benchmarks averaged $527 for Eastern SPF and $429 for Western SPF lumber.

Sales from lumber accounted for $571 million of total revenue, with $119 million generated from logs, residual products, and other items. Operating loss was $230 million, widening from $28 million in Q2.

Interfor recorded an inventory provision expense of $23 million, up from $7 million in the previous quarter, reflecting lower product prices at quarter-end. Capital expenditures reached $32 million, including $18 million directed to the ongoing rebuild of the Thomaston, Georgia sawmill.

Net debt at quarter-end was $893 million, or 42% of invested capital, compared with $798 million, or 36%, in Q2. On a pro-forma basis including the $143.8 million equity offering completed October 1, 2025, net debt would have been $755 million with liquidity of $386 million.

The company will reduce Q4 lumber production by approximately 250 million board feet, or 26%, compared with Q2 levels to align with weaker market conditions. Total 2025 capital spending is expected between $90 million and $95 million, with about $75 million planned for 2026.

Interfor projects near-term volatility in North American lumber markets due to high duty rates, the new 10% Section 232 tariff on softwood lumber imports into the U.S., and ongoing economic uncertainty. About 60% of its total production is sold within the United States, while roughly 25% of total lumber output from Canada remains exposed to U.S. import duties and tariffs.