GreenFirst Reports Financial Results for the Second Quarter of 2025
Highlights
Q2 2025 net loss from continuing operations was $9.6 million or $0.42 loss per share (diluted), compared to net income of $0.9 million or $0.04 earnings per share (diluted) in Q1 2025. Adjusted EBITDA from continuing operations for Q2 2025 was negative $5.2 million compared to positive $5.1 million in Q1 2025.
Benchmark lumber prices declined during the quarter, resulting in an average realized lumber price of $712 per thousand board feet (mfbm) in Q2 2025, down from $729/mfbm in Q1 2025.
During Q2 2025, the Company continued collaboration with the Chapleau large log line supplier to ensure the project remains on schedule and within budget. This counter-cyclical investment is supported by anticipated government funding expected in the coming months. The new production line is projected to enhance productivity and reduce unit costs, delivering significant EBITDA benefits starting in 2026 and beyond.
On August 8, 2025, the US DOC's Final Determination of its Sixth Administrative Review with respect to imports of softwood lumber products from Canada for 2023 assessed a duty rate higher than what the Company was assessed in 2023. Based on this final rate, calculated to be 35.19%, the Company will record a non-cash duty expense of approximately US$19 million ($26 million CAD), plus accrued interest, in the third quarter of 2025 related to the increase in ADD and CVD rates. Cash deposits are paid at the most recent final ADD and CVD duty rates. Amounts paid to date remain held in trust by the US DOC.
GreenFirst Reports Q2 Results Amid Market Uncertainty
"Despite market uncertainty, we finished Q2 2025 with higher sales volumes compared to Q1 2025 - approximately 110,000 mfbm versus 90,000 mfbm. We recorded a negative EBITDA of $5.2 million in Q2 2025, primarily due to lower selling prices and higher lumber costs associated with inventory produced in Q1 2025," said Joel Fournier, GreenFirst's Chief Executive Officer. "On a positive note, GreenFirst set a new high during the quarter in terms of production records with volume reaching 115,000 mfbm, the highest in Company history for continuing operations. Looking ahead, we will maintain a prudent approach, preserve a solid balance sheet, and remain focused on the factors we can control - improving operational effectiveness and driving long-term performance.'
Financial Highlights
The following selected financial information is from the Company's financial statements and MD&A:
(In thousands of CAD, except per share amounts)
June 28,
March 29,
June 29,
For the quarter ended
2025
2025
2024 (4
)
Net sales from continuing operations (3)
$
84,538
$
71,830
$
69,650
Operating earnings (loss) from continuing
operations
(8,828
)
1,411
(9,650
)
Net income (loss)
(9,593
)
920
(14,529
)
Net income (loss) from continuing operations
(9,593
)
920
(9,946
)
Basic earnings (loss) per share
(0.42
)
0.04
(0.82
)
Basic earnings (loss) per share from continuing
operations
(0.42
)
0.04
(0.56
)
Diluted earnings (loss) per share
(0.42
)
0.04
(0.82
)
Diluted earnings (loss) per share from continuing
operations
(0.42
)
0.04
(0.56
)
Adjusted EBITDA from continuing operations (1)(2)
$
(5,161
)
$
5,060
$
(6,075
)
Expand
(In thousands of CAD)
June 28,
December 31,
As at
2025
2024
Total assets
$
216,080
$
220,466
Total liabilities
77,306
74,850
Total shareholders' equity
$
138,774
$
145,616
Expand
1 Adjusted EBITDA is a Non‐GAAP measure and does not have standardized meaning under GAAP or IFRS. As a result, it may not be comparable to information presented by other companies. For an explanation and reconciliation of Adjusted EBITDA to related comparable financial information presented in the Financial Statements prepared in accordance with IFRS, refer to the Non-GAAP Measures section in the Company's MD&A.
2 Non-GAAP Adjusted EBITDA before one-time duties recoveries for the second quarter and two quarters ended June 28, 2025 was negative $5.2 million and negative $0.1 million respectively, compared to negative $6.1 million and $0.2 million respectively, for the second quarter and two quarters ended June 29, 2024.
3 Includes net sales to external parties.
4 Certain prior period amounts have been restated as a result of a change in presentation of the Company's Financial Statements for continuing and discontinued operations under IFRS. Please refer to Note 4 - Discontinued Operations, in the Company's Financial Statements for further information.
Net sales in Q2 2025 were $84.5 million, representing an approximate 18% increase compared to Q1 2025. This increase was primarily driven by higher shipments during the quarter, partially offset by lower realized prices.
Cost of sales were $80.1 million, an increase of approximately 29% compared to Q1 2025. The increase in cost of sales was primarily due to higher shipment volumes during the quarter.
Other Expenses
Duties expense of $8.3 million in the second quarter of 2025 was higher than the first quarter of 2025 of $5.7 million due to higher shipments. During both quarters the Company was subject to a combined duty rate of 14.4%.
SG&A expenses were $4.6 million in the second quarter of 2025 compared to $2.6 million in the first quarter of 2025, which was primarily due to non-cash compensation expenses in addition to higher non-recurring professional and legal services in the current period.
Liquidity and Borrowings
At June 28, 2025, the Company had $4.4 million in cash on hand and $39.8 million, less $8.1 million for standby letters of credit, of excess availability under its revolving portion of the credit facility. In addition, the Company also had access to $12.7 million remaining under its equipment financing portion of the credit facility. The Company had drawn down $12.5 million under its revolving portion of the credit facility and $12.3 million (net of repayments) under its equipment financing agreement as at June 28, 2025.
Outlook
The economic outlook for the lumber industry reflects a balance of ongoing challenges and emerging opportunities. Macroeconomic concerns are beginning to stabilize, which may support a recovery in lumber demand and pricing. In North America, the housing market is showing signs of recovery after recent volatility. Mortgage rates are expected to ease while price growth moderates in 2025, which should improve affordability for borrowers. This could provide relief to homeowners and support demand in new construction, remodeling, and renovation activity which are all key factors that are expected to continue driving lumber demand. However, it's hard to say for sure how much mortgage rates will go down and it is also possible they will rise due to the current economic uncertainty.
Structural market dynamics are also contributing to longer-term demand fundamentals. A persistent shortage of housing inventory in the U.S., the aging of the existing housing stock, and demographic-driven demand are likely to support the lumber market both in the near and long term.
In the short term, reduced lumber demand and conservative inventory management are creating supply-side pressures. Supply constraints persist, particularly in Western Canada due to wildfire impacts, regulatory harvest limits, and mill curtailments. While these factors mainly affect Western provinces, limited timber availability and transportation challenges also influence the broader Canadian lumber supply chain, including Ontario. These constraints contribute to ongoing tightness in lumber supply which could help stabilize or even support lumber prices in the coming months.
Labour market constraints remain a key challenge for the industry, contributing to higher costs and occasional production disruptions. Inflationary pressures across North America have further increased the cost of critical inputs, placing additional strain on operational efficiency. Staffing challenges and tight wood supply are ongoing risks that could negatively impact production output and margins across the industry.
Despite these pressures, continuous improvements in production and processing techniques are driving gains in efficiency and helping reduce costs. Companies with access to capital to invest in modern, efficient equipment are better positioned to enhance long-term competitiveness.
A growing focus on environmental sustainability is also reshaping the industry landscape. Organizations that prioritize sustainable forest management and environmentally responsible operations are increasingly gaining favor among regulators, consumers, and investors. GreenFirst is aligned with this trend, producing high-quality lumber in a safe and responsible manner. We are committed to protecting our employees and the environment while creating long-term value for our stakeholders. Our renewable building materials sequester carbon and represent a natural solution in the global effort to combat climate change.
Nonetheless, downside risks remain. Should broader economic conditions or employment levels weaken significantly, or if interest rates remain elevated for an extended period without sufficient adjustments in housing prices, affordability could remain strained. This scenario could suppress new home construction and, in turn, reduce near-term demand for lumber products.
Our company, based in Ontario, primarily supplies SPF lumber products to the U.S. market. On a year-to-date basis, SPF lumber prices have rebounded in 2025, with benchmark prices increasing approximately 8-10%. Pricing strength is supported by constrained supply, elevated U.S. rebuilding demand (notably in wildfire-affected areas), and ongoing trade-related duties on Canadian exports.
Similar to most Canadian softwood lumber exporters, our company faces combined anti-dumping and countervailing duties of approximately 34–35 % imposed by the U.S. Department of Commerce. Our SPF products have largely remained exempt from tariffs due to compliance with the United States-Mexico-Canada Agreement (USMCA), except for a two-day period in the first quarter of 2025.
The actual impact of any current or future tariffs remains unknown and cannot be reasonably estimated at this time. Several factors will influence the outcome, including the effective date and duration of any new trade actions, potential changes in the amount, scope, or nature of the tariffs, and the possibility of countermeasures by the Canadian government. Additionally, any mitigating actions available to the Company or the broader industry may affect the overall impact. We continue to monitor developments closely and assess their potential implications for our operations and financial position.
Reconciliation of Adjusted EBITDA
References to EBITDA in this document are measures of earnings (loss) before interest and finance costs, income taxes, depreciation and amortization, while references to Adjusted EBITDA reflect EBITDA plus other non-operating costs such as impact of valuation changes on the Company's investments, loss on sale of assets and other non-operating losses. Management believes that certain lenders, investors, and analysts use EBITDA and Adjusted EBITDA as a common valuation measurement and to measure the Company's ability to service debt and meet other payment obligations. EBITDA and Adjusted EBITDA are not intended to replace net earnings (loss), or other measures of financial performance and liquidity reported in accordance with GAAP. For more information on non-GAAP measures, please see the Company's MD&A.
1 Adjusted EBITDA is a Non‐GAAP measure and does not have standardized meaning under GAAP or IFRS. As a result, it may not be comparable to information presented by other companies. For an explanation and reconciliation of Adjusted EBITDA to related comparable financial information presented in the Financial Statements prepared in accordance with IFRS, refer to the Non-GAAP Measures section in the Company's MD&A.
2 Non-GAAP Adjusted EBITDA before one-time duties recoveries for the second quarter and two quarters ended June 28, 2025 was negative $5.2 million and negative $0.1 million respectively, compared to negative $6.1 million and $0.2 million respectively, for the second quarter and two quarters ended June 29, 2024.
3 Certain prior period amounts have been restated as a result of a change in presentation of the Company's Financial Statements for continuing and discontinued operations under IFRS. Please refer to Note 4 - Discontinued Operations, in the Company's Financial Statements for further information.
Earnings Conference Call
GreenFirst will host a conference call to review the Q2 2025 financial results on Wednesday, August 13, 2025 at 9:00am (Eastern). The live webcast of the earnings conference call can be accessed via web: http://momentum.adobeconnect.com/greenfirstq2/ and via phone: (+1) 416 764 8658 or (+1) 888 886 7786. A replay of the webcast and presentation slides will be available on GreenFirst's website following the conference call.
About GreenFirst
GreenFirst Forest Products is a forest-first business, focused on sustainable forest management and lumber production. The Company owns four sawmills located in rich wood baskets proudly operating over six million hectares of FSC® certified public Ontario forest lands (FSC®-C167905). The Company believes that responsible forest practices, coupled with the long-term green advantage of lumber, provide GreenFirst with significant cyclical and secular advantages in building products.
Forward Looking Information
Certain information in this news release constitutes forward-looking statements under applicable securities laws. Any statements that are contained in this news release that are not statements of historical fact are forward-looking statements. Forward looking statements are often identified by terms such as 'may', 'should', 'anticipate', 'expect', 'potential', 'believe', 'intend', 'estimate' or the negative of these terms and similar expressions. Forward-looking statements are based on certain assumptions and, while GreenFirst considers these assumptions to be reasonable, based on information currently available, they may prove to be incorrect. In addition, forward-looking statements necessarily involve known and unknown risks, including those set out in GreenFirst's public disclosure record filed under its profile on www.sedarplus.ca. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement and reflect our expectations as of the date hereof, and thus are subject to change thereafter. GreenFirst disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
8 minutes ago
- Yahoo
Apple's $500 Billion Investment Into America Just Got Larger: Does That Mean You Should Buy the Stock?
Key Points Apple is increasing its U.S. spending plans from $500 billion to $600 billion, although this figure is a bit misleading. The company's revenue growth is recovering, but it's still slower than other big tech players. The stock looks expensive relative to its growth. 10 stocks we like better than Apple › A splashy $600 billion announcement may have just gotten Apple (NASDAQ: AAPL) in the White House's good graces. After months of worries over how tariffs will affect costs for iPhones made in China or India, Apple just projected a $100 billion increase in its spending plans over the next four years in the United States, including an investment in homegrown semiconductors. Apple stock shot up over 10% on the news. Does this new spending plan mean you should load the boat with Apple stock? Here's the big picture that investors need to understand today. A $100 billion spending increase .... over four years Last week, Apple claimed it would spend $600 billion in the United States. This is a large number, but it's also a bit misleading compared to other recent announcements from major tech companies such as Alphabet. The parent company of Google is forecasting $85 billion of capital expenditures this year, with much of that going to artificial intelligence (AI). Meanwhile, Apple's spending is over four years. The latest increase adds $25 billion in annual spending, bringing the grand total up from $500 billion to $600 billion. What's more, this includes various expenses such as employee salaries, data center buildouts, money paid to suppliers, and more -- it's not exclusive to capital expenditures. Other big tech peers are likely spending this amount or more if you cast as wide a net Apple does when calculating total spending. The announcement may put Apple in good standing with the U.S. government, but it's not a radical change from management. The company is still doing the bulk of its manufacturing in China, and this new commitment only represents a slight deviation from its previously announced plans. Improving financial performance Financial performance and earnings power are what matter for Apple stock. Last quarter, revenue growth hit its highest level since 2022, though it was still below 10% year over year. The growth is coming from its software services division as well as the iPhone, the key drivers for the business over the last decade. iPhone sales showed strong growth but have posted many quarters of stagnation, which should worry investors. This is a mature product that has seen declining unit volumes and upgrade cycles for years. Services revenue keeps growing quickly but is at risk of losing its cash cow Google Search payment if an antitrust lawsuit goes the wrong way. Apple receives an estimated $20 billion a year from Google to make it the default search engine, or about 15% of Apple's overall operating income. This could be wiped out overnight if the lawsuit doesn't work out for them. The big picture with Apple stock In totality, Apple's announced spending plans may seem ambitious but are actually not a huge change from its long-term roadmap. It was already investing in component manufacturing in the United States, and this is just a modest increase in that context. The stock's 12% month-to-date gain may be fleeting as a result. But should investors buy the stock today? Apple is the slowest-growing company among the "Magnificent Seven", outside of Tesla, which is grappling with declining sales. The others are putting up solid double-digit revenue growth quarter after quarter. Despite this slow growth, Apple stock trades at a premium to several of its peers on a price-to-earnings basis. Its P/E ratio of 35 is also significantly higher than that of the S&P 500 and Nasdaq-100 indexes. This leads me to believe that Apple is overvalued, especially following its recent gains from the $600 billion spending announcement. Should you invest $1,000 in Apple right now? Before you buy stock in Apple, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Apple wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $663,630!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,115,695!* Now, it's worth noting Stock Advisor's total average return is 1,071% — a market-crushing outperformance compared to 185% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 13, 2025 Brett Schafer has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet, Apple, and Tesla. The Motley Fool has a disclosure policy. Apple's $500 Billion Investment Into America Just Got Larger: Does That Mean You Should Buy the Stock? was originally published by The Motley Fool
Forbes
10 minutes ago
- Forbes
How To Protect Your Retirement Savings From Inflation
A recent Money and Mental Health Survey found that 43% of U.S. adults admit to money negatively impacting their mental health at least occasionally. Among them, 69% cite inflation, or rising prices, as the primary stressor. This is up from 65% in 2024 and 68% in 2023, marking the highest level in three years. Though a cause for concern, inflation does not necessarily spell disaster for folks attempting to save for a happy retirement. It is a persistent feature of modern economies by design, and attempts to eradicate it within that paradigm would be misguided. Indeed, a modest level of inflation is actually considered healthy for the U.S. economy. Inflation Can Work In Your Favor—Here's How One reason a small level of inflation can be considered nearly essential is that it nudges individuals to spend and invest today rather than waiting for prices to increase tomorrow. Secondly, because cutting nominal wages often triggers backlash, inflation makes it easier for a company's real wages to adjust without doing so. Finally, inflation can help borrowers repay loans with dollars that are 'cheaper,' or less valuable, than when they originally borrowed. As such, the Federal Reserve aims to achieve an annual inflation rate of 2%. The Overlooked Threat To Your Retirement What does inflation mean for your retirement? It means every dollar not invested is typically losing at least 2% of purchasing power annually. While the idea of stagnant dollar bills 'wilting' would be an exaggeration, that image effectively illustrates how money flow can affect the economy's dynamics. A helpful thought experiment is to consider pricing out a potential car purchase: In 2020, a used car is selected with a sticker price of $30,000. However, due to unforeseen delays, the transaction is postponed. By 2023, inflation may have increased the price to $40,000. The original $30,000 set aside is no longer sufficient to buy the same vehicle. Over a 20-year retirement, even modest inflation can erode purchasing power, limiting individuals from life experiences they could've otherwise afforded and, more importantly, cherished. Beating Inflation Starts With Stocks While inflationary trends can feel overwhelming, the good news is that investors do have tools to help manage the impact. While no investment is guaranteed, stocks have historically outpaced inflation over the long term, making them a commonly used tool to seek growth. When inflation increases, companies have the option to raise prices on goods to match their increased expenditures, which tends to keep profits steadier and dividend flows more consistent. In other words, companies can inflate along with inflation, and consequently, those who own shares in these companies may benefit. One eye-opening example emerges from analyzing how dividend growth has outpaced inflation over time—offering a powerful hedge for preserving purchasing power. The data below encapsulates roughly 150 years, demonstrating dividend growth's historical tendency to consistently eclipse inflation. Bonds: Your Portfolio's Unsung Risk Manager Though typically attracting less attention than equities, bonds have often shown the ability to keep investors in front of inflation with lower volatility risk. The 2‑year Treasury yield recently stood at around 3.72%—above its long‑term average of roughly 3.2%. That yield may not spark lively cocktail party conversation, but when inflation's running around 2.7%, it allows future retirees to maintain or slightly increase their spending strength. Real Estate: A Concrete Counterbalance Real estate can be a valuable inflation buffer. For many, their primary home appreciates at or above the rate of inflation, particularly during periods when building costs increase. According to the U.S. Treasury, inflation‑adjusted U.S. single‑family home prices were roughly 65% higher in June of 2024 than in 2000. Individuals who have paid off their mortgage can lock in housing costs, while others are forced to deal with rising rents and taxes. For those seeking similar benefits without the hassle of tenants' late-night plumbing emergencies, real estate investment trusts (REITs) may be a practical option. Bottom Line: Align Investments With Inflation's Trajectory Many view financial freedom as a crucial element of a happy retirement. Inflation isn't going away—it's built into our economy's framework. Future and current happy retirees take the time to learn what tools can be used to keep their money growing at a positive real rate—one that exceeds inflation. Rather than lamenting the increases and fearing price escalation, a more constructive attitude may be to harness inflation itself. A portfolio that seeks to invest in companies with pricing flexibility, dividend-paying stocks, risk-stabilizing bonds, and the protective benefits of real estate has the potential not only to stay ahead of inflation but also to leverage its trajectory for momentum.
Bloomberg
10 minutes ago
- Bloomberg
Bloomberg Surveillance: Trump-Putin and Inflation
Watch Tom and Paul LIVE every day on YouTube: Bloomberg Surveillance hosted by Tom Keene & Paul Sweeney August 15th, 2025 Featuring: 1) Kate Moore, CIO at Citi Wealth, brings us into retail sales and discusses the outlook for equities and rate cuts amid concern over an inflation resurgence. S&P 500 futures edged higher 0.1% after a flat session Thursday, following back-to-back record closes earlier in the week, after a surprising PPI report that showed higher services costs in the US as tariffs take effect. 2) Peter Tchir, Head: Macro Strategy at Academy Securities, talks about how markets might play or shrug off the Trump-Putin summit and inflation fears reigniting in the US. In Europe, the Stoxx 600 advanced 0.2% toward the highest level since March amid guarded hopes that Friday's US-Russia summit could be an initial step toward brokering a peace deal in Ukraine and thawing relations. 3) Heidi Crebo-Rediker, Adjunct Senior Fellow at the Council on Foreign Relations, talks about the Trump-Putin summit and why she believes there's "no chance" that Russia negotiates a ceasefire on acceptable terms for Europe and Ukraine. President Trump and Russian president Vladimir Putin will measure success at their summit in Alaska very differently, with Trump seeking a ceasefire in Ukraine and Putin seeing the meeting as a win without making concessions. 4) Jennifer Lee, Senior Economist at BMO Capital Markets, reacts to retail sales and discusses the paradigm shifts across global economies.
