Core Viewpoint - Canfor Corporation will record a non-cash asset write down and impairment charge of approximately $321 million in its fourth quarter of 2025 results, primarily affecting its lumber and pulp segments [1]. Group 1: Impairment Details - The impairment charge includes $215 million related to the lumber segment, primarily due to ongoing log supply pressures in Europe, which have led to increased log costs and reduced asset carrying values [2]. - The pulp segment accounts for $106 million of the impairment, reflecting sustained declines in global US-dollar pulp list prices and challenges in securing economically viable fiber for operations [2]. Group 2: Financial Impact - The impairment charge is non-cash in nature and does not impact Canfor's liquidity position, cash flows, or day-to-day operations [3]. Group 3: Proposed Transaction - Canfor is proposing to acquire all outstanding shares of Canfor Pulp Products Inc. that it does not already own, holding 54.8% of Canfor Pulp's shares [4]. - This acquisition is part of an arrangement agreement dated December 3, 2025, and will be discussed at a special meeting of Canfor Pulp shareholders on March 6, 2026 [4]. Group 4: Company Overview - Canfor is a global leader in manufacturing high-value low-carbon forest products, including lumber, engineered wood products, pulp and paper, and green energy [6]. - The company operates over 50 facilities across Canada, the United States, and Europe, and has a significant stake in Vida AB, Sweden's largest privately owned sawmill company [6].

Company Overview - Boise Cascade Company (NYSE:BCC) is a major manufacturer of wood products and a wholesale distributor of building materials, benefiting from both construction activity and packaging-related demand trends [4] Financial Performance - On February 6, 2026, Boise Cascade announced a quarterly dividend of $0.22 per share, payable on March 18, 2026, indicating the company's commitment to returning capital to shareholders and confidence in its financial strength [1] - Truist raised its price target on Boise Cascade from $88 to $92 while maintaining a Buy rating, reflecting positive sentiment towards the company's performance [2] Investment Appeal - With a Buy rating from Truist, rising price targets, and a consistent dividend supported by solid capital discipline, Boise Cascade is positioned as an attractive stock for investors seeking income, operational stability, and cyclical upside potential [3]

Company Overview - Simpson Manufacturing Co., Inc. (NYSE:SSD) designs and produces structural connectors, fasteners, anchors, and related products for residential, commercial, and infrastructure construction markets [4] Financial Performance - In Q4, Simpson Manufacturing reported revenue of $539.3 million, surpassing the consensus estimate of $530.7 million [3] - The company achieved a 19.6% operating margin, reflecting disciplined cost control and pricing execution [3] - For 2025, Simpson Manufacturing delivered 4.5% revenue growth despite a challenging housing backdrop [3] Strategic Focus - Management emphasized ongoing investment in innovation, digital capabilities, manufacturing expansion, and distribution infrastructure [3] - The company aims to grow above market rates and achieve at least a 20% operating margin [3] Market Position - As of Q3 2025, 34 hedge funds had stakes in Simpson Manufacturing, indicating strong interest from institutional investors [4] - The company is considered one of the best lumber stocks to invest in currently [4] Analyst Insights - Stephens raised its price target on Simpson Manufacturing to $200 from $187 while maintaining an Equal Weight rating after the fourth-quarter results exceeded expectations [2] - The analyst remains cautious due to choppy construction demand and valuation near the upper end of its historical range [2]

Core Viewpoint - Louisiana-Pacific Corporation (NYSE:LPX) is positioned as a compelling investment opportunity in the building products sector, supported by an upward revision in EBITDA guidance and a positive rating from Barclays [1][3]. Group 1: Financial Performance - In Q3 2025, Louisiana-Pacific Corporation raised its full-year EBITDA guidance to $425 million from $405 million, reflecting a $20 million increase due to stronger-than-expected operational performance [3]. - Barclays increased its price target for Louisiana-Pacific Corporation to $108 from $100, maintaining an Overweight rating, indicating confidence in the company's financial outlook despite market challenges [1][3]. Group 2: Market Position and Products - Louisiana-Pacific Corporation is a leading manufacturer of engineered wood products, including Oriented Strand Board and siding, which are essential for new residential construction and remodeling activities [4]. - The company benefits from long-term structural demand drivers in the housing market, positioning it favorably for future growth [4].

Revenue and Costs - The company experienced weaker realized selling prices due to lower market pricing, higher countervailing and antidumping duties, and a 10% Section 232 tariff introduced in October [1] - Production cost per unit improved by 4%, as higher conversion costs from downtime were offset by positive inventory valuation adjustments due to improved lumber prices [1] Financial Performance - Interfor reported a negative adjusted EBITDA of CAD 29 million in Q4, an improvement from the negative CAD 36 million in Q3 after normalizing for non-cash duty expenses [2] - Cash flow from operations was break-even for the quarter, with positive cash flow totaling just over CAD 300 million over the last three years, attributed to working capital management and cost structure initiatives [6] Operational Highlights - The company significantly reduced log and lumber inventories and advanced the final phase of the Thomaston Mill project in Georgia, expecting it to be a top decile performer [3] - Interfor permanently closed two high-cost facilities in the U.S. South and adjusted operating postures at several mills to align production with demand [4][5] Liquidity and Capital Management - At year-end, Interfor had pro forma available liquidity of CAD 482 million and a net debt to capitalization ratio of 36.5% [6][7] - The company expects lower capital expenditures of CAD 75–80 million in 2026, with any free cash flow directed towards leverage reduction [10] Market Outlook - The outlook for 2026 remains uncertain due to trade and geopolitical risks, with expectations for interest rate easing potentially shifting later into the year [12] - Supply curtailments across the industry are beginning to impact the market, with Canadian lumber shipments to the U.S. annualized at about 8.5 billion board feet, down from over 10 billion in 2025 [13]

Financial Data and Key Metrics Changes - The operating EBITDA for Q4 was negative $20 million, an improvement of $8 million compared to Q3, primarily due to stable production and the One Goal 100 program, despite market headwinds [3][4] - The consolidated net loss for Q4 was $309 million, or $4.61 per share, compared to a net loss of $81 million, or $1.21 per share in Q3 [13] - Total non-cash impairment charges for Q4 amounted to $260 million, or $3.22 per share, with $204 million related to the Peace River Mill [3][4] Business Line Data and Key Metrics Changes - Both the pulp and solid wood segments reported negative quarterly EBITDA of $11 million in Q4 [4] - Softwood sales realizations decreased to $702 per ton from $728 per ton in Q3, while North American NBSK list prices averaged $1,568 per ton, down $132 from Q3 [5][6] - Lumber production decreased by about 6% to 109 million board feet in Q4, with sales volumes dropping to 103 million board feet, a decline of about 7% from Q3 [10] Market Data and Key Metrics Changes - The NBSK net price in China declined to $671 per ton, a $19 decrease from Q3, while European NBSK prices remained stable at $1,498 per ton [5][6] - Hardwood sales realizations were flat at $528 per ton compared to Q3, with the average net price for eucalyptus hardwood increasing to $540 per ton, up $37 from Q3 [6][7] - Fiber costs for both pulp and solid wood segments remained steady in Q4, but are expected to increase in Q1 2026 due to supply constraints [10][11] Company Strategy and Development Direction - The company is focused on returning the Peace River mill to profitability through strategic initiatives, including expanding softwood pulp production and exploring government support for energy generation [4][16] - The One Goal 100 program aims to improve profitability by $100 million by the end of 2026, with approximately $30 million in cost savings realized in 2025 [12][15] - The company is transitioning from hardwood to softwood production at the Peace River mill, aiming for a 50/50 split by the end of the year [46] Management's Comments on Operating Environment and Future Outlook - Management noted that ongoing market headwinds and trade uncertainties are impacting operational performance, but underlying performance has improved [14][19] - The company expects modest price improvements for NBSK and NBHK in Q1, while trade uncertainty continues to affect supply-demand dynamics [20][21] - Management is optimistic about the mass timber business, expecting revenues to exceed $120 million in 2026, driven by a healthy order book [25][26] Other Important Information - The company reported an improvement in aggregate liquidity of over $54 million to $430 million, attributed to working capital management and cost reduction activities [12] - Planned capital expenditures for 2026 are expected to be between $60 million and $80 million, focusing on maintenance and environmental projects [27] Q&A Session Summary Question: Can you say how much headroom that you have under any of your maintenance covenants as of December thirty-first? - Management is comfortable that they are well under the covenants at the end of the quarter, but expects them to tighten as the year progresses due to a weak outlook [30] Question: Any thoughts on asset recycling opportunities to expedite potential deleveraging of the balance sheet? - The company is analyzing asset sales or restructuring as part of their debt reduction plans, but acknowledges that current market conditions are not favorable for realizing reasonable value [39] Question: Is there any thought to potentially closing the Peace River mill? - The focus is on transitioning from hardwood to softwood production, which is expected to enhance profitability, and there are ongoing government-supported projects to improve the mill's performance [46][47] Question: Any updates on the extension of your two RCFs? - Discussions with lenders are ongoing, and management expects to conclude these discussions before the end of Q2 [70][71]

Financial Data and Key Metrics Changes - The operating EBITDA for Q4 2025 was negative $20 million, an improvement of $8 million compared to Q3 2025, primarily due to stable production and the One Goal One Hundred program, despite market headwinds [3][4] - The company reported a consolidated net loss of $309 million for Q4 2025, or $4.61 per share, which included non-cash impairments totaling approximately $239 million [12][3] - Aggregate liquidity improved by over $54 million to $430 million, consisting of about $187 million in cash and $243 million in undrawn revolvers [11] Business Line Data and Key Metrics Changes - Both the pulp and solid wood segments reported negative quarterly EBITDA of $11 million in Q4 2025 [4] - Pulp sales volumes increased by 20,000 tons to 472,000 tons, while pulp production remained stable at 460,000 tons [7][19] - Lumber production decreased by about 6% to 109 million board feet, with sales volumes dropping to 103 million board feet, a decline of about 7% from Q3 2025 [9] Market Data and Key Metrics Changes - Softwood sales realizations decreased to $702 per ton, down from $728 per ton in Q3 2025, while North American NBSK list prices averaged $1,568 per ton, a reduction of about $132 [5][6] - The average net price for eucalyptus hardwood in Q4 was $540 per ton, an increase of $37 from Q3, while hardwood sales realizations remained flat at $528 per ton [6] - The average price gap between softwood and hardwood pulp in China narrowed to approximately $130 per ton [6] Company Strategy and Development Direction - The company is focusing on strategic initiatives to return the Peace River mill to profitability, including expanding softwood pulp production and exploring government support for energy generation [4][15] - The One Goal One Hundred program aims to improve profitability by $100 million by the end of 2026, with approximately $30 million in cost savings realized in 2025 [11][14] - The company is transitioning from hardwood to softwood production at the Peace River mill, aiming for a 50/50 split by the end of 2026 [47] Management's Comments on Operating Environment and Future Outlook - Management noted that ongoing market headwinds and trade uncertainties are impacting operational performance, but underlying performance has improved [13][14] - The company expects modest price improvements for NBSK and NBHK in Q1 2026, while trade uncertainty continues to affect supply-demand dynamics [19] - Management expressed confidence in the mass timber business as a growth engine, with expected revenues of over $120 million in 2026 [25][26] Other Important Information - The company plans to maintain a capital expenditure budget of $60 million to $80 million in 2026, focusing on maintenance and environmental projects [27] - The company is actively lobbying against policies that prioritize wood for biofuel over higher-value wood products [80][81] Q&A Session Summary Question: Can you say how much headroom you have under any of your maintenance covenants as of December 31? - The company is comfortable that it is well under the covenants at the end of the quarter, but expects them to tighten as the year progresses [30] Question: Any thoughts on asset recycling opportunities to expedite deleveraging? - The company is analyzing asset sales or restructuring but acknowledges that current market conditions are not favorable for claiming reasonable value [40] Question: Is there any thought to potentially closing the Peace River mill? - The company is focused on transitioning from hardwood to softwood production at the Peace River mill and is working on energy projects to support profitability [47][48] Question: What are the expectations around working capital for this year? - The company expects a modest cash outflow from working capital in 2026 [51] Question: How do you see the outlook for the market, particularly for softwood pulp? - Recent developments in supply disruptions may indicate potential upward pressure on prices for both hardwood and softwood [56][58]

Financial Data and Key Metrics Changes - The operating EBITDA for Q4 2025 was negative $20 million, an improvement of $8 million compared to Q3 2025, primarily due to stable production and the One Goal One Hundred program, despite market headwinds [3][4] - The consolidated net loss for Q4 2025 was $309 million, or $4.61 per share, compared to a net loss of $81 million, or $1.21 per share in Q3 2025 [13] - Total non-cash impairment charges for the quarter amounted to $260 million, or $3.22 per share, largely due to the ongoing weakness in the hardwood pulp market [3][4] Business Line Data and Key Metrics Changes - Both the pulp and solid wood segments reported negative quarterly EBITDA of $11 million in Q4 2025 [4] - Pulp sales volumes increased by 20,000 tons to 472,000 tons, while pulp production remained stable at 460,000 tons [7][20] - Lumber production decreased by about 6% to 109 million board feet, with sales volumes dropping to 103 million board feet, a decrease of about 7% from Q3 2025 [10][22] Market Data and Key Metrics Changes - Softwood sales realizations decreased to $702 per ton, down from $728 per ton in Q3 2025, while North American NBSK list prices averaged $1,568 per ton, a reduction of about $132 from Q3 [5][6] - The average net price for eucalyptus hardwood in Q4 was $540 per ton, an increase of $37 from Q3, while hardwood sales realizations remained flat at $528 per ton [6][20] - The average price gap between softwood and hardwood pulp in China narrowed to approximately $130 per ton [6] Company Strategy and Development Direction - The company is focusing on strategic initiatives to return the Peace River mill to profitability, including expanding softwood pulp production and exploring government support for energy generation [4][15] - The One Goal One Hundred program aims to improve profitability by $100 million by the end of 2026, with approximately $30 million in cost savings realized in 2025 [12][14] - The company is transitioning from hardwood to softwood production at the Peace River mill, aiming for a 50/50 split by the end of 2026 [50] Management's Comments on Operating Environment and Future Outlook - Management noted that ongoing market headwinds and trade uncertainties are impacting operational performance, but underlying performance has improved quarter-over-quarter [14][20] - The company expects modest price improvements for NBSK and NBHK in Q1 2026, while trade uncertainty continues to affect supply-demand dynamics [20][22] - Management expressed confidence in the mass timber business as a growth engine, with expected revenues of over $120 million in 2026 [25][27] Other Important Information - The company reported an improvement in aggregate liquidity of over $54 million to $430 million, attributed to working capital management and cost reduction activities [12] - Planned capital expenditures for 2026 are expected to be between $60 million and $80 million, focusing on maintenance and environmental projects [28] Q&A Session Summary Question: Can you say how much headroom that you have under any of your maintenance covenants as of December thirty-first? - Management indicated comfort with being well under the covenants at the end of the quarter, but expects them to tighten as the year progresses due to a weak outlook [32] Question: Any thoughts on asset recycling opportunities to expedite potential deleveraging of the balance sheet? - Management is analyzing asset sales or restructuring as part of their debt reduction plans, but noted that current market conditions are not favorable for claiming reasonable value for assets [43] Question: Is there any thought to potentially closing the Peace River mill? - Management clarified that they are focused on transitioning the mill from hardwood to softwood production, which is expected to enhance profitability [50] Question: Any updates on the extension of your two RCFs? - Management stated that discussions with lenders are ongoing and are expected to conclude before the end of Q2 2026 [75][78] Question: How do you see the outlook for the market, particularly regarding softwood pulp? - Management acknowledged significant supply disruptions and indicated potential upward pressure on prices for both hardwood and softwood due to recent developments in Indonesia [59][60]

Financial Performance - Interfor Corporation reported a net loss of $104.6 million, or $1.59 per share, in Q4'25, an improvement from a net loss of $215.8 million in Q3'25 and a net loss of $49.9 million in Q4'24 [1][8] - Adjusted EBITDA was a loss of $29.2 million on sales of $600.6 million in Q4'25, compared to a loss of $183.8 million on sales of $689.3 million in Q3'25 and an Adjusted EBITDA of $80.4 million on sales of $746.5 million in Q4'24 [2][8] - Total sales for the year ended December 31, 2025, were $2,805.9 million, down from $3,023.6 million in 2024 [8] Production and Inventory - Lumber production decreased to 753 million board feet in Q4'25, down 159 million board feet from the previous quarter, reflecting temporary production curtailments [2][8] - Lumber shipments of 812 million board feet exceeded production, resulting in a 63 million board foot reduction in inventory during the quarter [2] Financing Transactions - Interfor completed a bought deal equity offering in October 2025, generating gross proceeds of $143.8 million [2][10] - The company entered into a $30 million term loan in February 2026, expected to close in Q1'26, and amended its Term Line and Senior Secured Notes to enhance financial flexibility [2][12] - As of December 31, 2025, Interfor had a net debt to invested capital ratio of 36.5% and available liquidity of $481.6 million [2][10] Market Conditions - North American lumber markets are expected to remain volatile due to economic adjustments, tariffs, labor shortages, and geopolitical uncertainty [3][5] - Benchmark lumber prices rebounded late in Q4'25, with significant increases in various lumber price indices [4] Export Duties and Tariffs - Interfor recorded $31.2 million in export duties in Q4'25, reflecting countervailing and anti-dumping duties at a combined rate of 35.16% [6][8] - The U.S. imposed a 10% tariff on all imports of softwood timber and lumber from Canada effective October 14, 2025 [6][8] Capital Investments - Capital spending was $17.5 million in Q4'25, with planned capital expenditures for 2026 estimated between $75 million and $80 million [2][8] - The company sold Coastal B.C. forest tenures for gross proceeds of $10 million, completing all final settlement payments related to this monetization [6][8]

Financial Data and Key Metrics Changes - West Fraser reported an adjusted EBITDA of -$79 million in Q4 2025, an improvement from -$144 million in the previous quarter, which included a $67 million out-of-period duty expense [4] - For the full year 2025, adjusted EBITDA was $56 million, down from $673 million in 2024 [4] - Cash flow from operations was negative $172 million in Q4, with net debt at $131 million, compared to a net cash position of $212 million reported last quarter [10] Business Line Data and Key Metrics Changes - The lumber segment posted an adjusted EBITDA of -$57 million in Q4, compared to -$123 million in Q3, excluding the $67 million export duty expense [7] - The North America EWP segment reported -$24 million of adjusted EBITDA in Q4, compared to -$15 million in Q3, with a $239 million non-cash restructuring charge related to the curtailment of the OSB mill in High Level, Alberta [8] - The pulp and paper segment reported -$1 million of adjusted EBITDA in Q4, an improvement from -$6 million in Q3 [8] - The Europe segment's adjusted EBITDA was $4 million in Q4, up from $1 million in Q3, indicating a moderately improved business environment [8] Market Data and Key Metrics Changes - The overall Q4 results showed sequential EBITDA improvement supported by reduced log costs and lower manufacturing costs, although offset by lower lumber and OSB prices [9] - Southern yellow pine shipments were 6% lower quarter-over-quarter, while unit manufacturing costs were also lower [10] Company Strategy and Development Direction - The company has focused on high-grading its mill portfolio, including closures of higher-cost assets and ramping up the Allendale OSB mill in South Carolina and the new Henderson lumber mill in Texas [5][15] - West Fraser has removed over 1.1 billion board feet of capacity since 2022, representing a 16% decrease in lumber operating capacity [15] - The company has invested nearly $1 billion in capital over the last four years to modernize assets and improve operational flexibility [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the difficult end markets in 2025 but emphasized a long-term focus on operational excellence and cost management [14][15] - The company remains optimistic about its future, particularly with the ramp-up of the Henderson Mill and ongoing portfolio optimization [15][17] - Management is cautious about the demand outlook for OSB compared to lumber, reflecting mixed sentiment from customers regarding growth in the repair and remodeling markets [51][53] Other Important Information - The company had over $1.2 billion of available liquidity at year-end, providing financial flexibility to navigate economic challenges [5][13] - Management is actively managing the portfolio to be low-cost and diverse to mitigate uncertainties in the market [17] Q&A Session Summary Question: Can you provide insights on margins between SPF and SYP in Q4? - Management noted that the spread between pricing for SPF and SYP has started to close as customer demand patterns adjust [20][21] Question: How sustainable are the lower costs observed in Q4? - Management indicated that the trends in cost structure are a result of efforts made over the last several years to lower costs [23] Question: What are the M&A opportunities given the current lumber market? - Management emphasized the importance of asset quality and the ability to react to quality opportunities that may arise [26][27] Question: How should we view the ramp-up of the Henderson Mill in a muted demand environment? - Management stated that the Henderson Mill is in early stages of startup and is expected to replace existing volume in the market [30] Question: What is the outlook for housing measures from the administration? - Management expressed optimism about discussions on housing affordability and its potential positive impact on lumber demand [49][50] Question: What drives the difference in demand outlook for OSB versus lumber? - Management noted mixed customer sentiment regarding growth in the R&R side, maintaining a cautious view on demand [51][53]