Canfor Pulp reports results for the second quarter of 2025.
Overview.
- For the second quarter of 2025, the Company reported an operating loss of
$5 million and a net loss of$7 million , equivalent to$0.10 per share. - Global pulp market fundamentals weakened throughout the second quarter amid trade uncertainties, particularly in
China ; global pulp producer inventories climbed to well above the balanced range. - Rising global economic uncertainty put downward pressure on North American kraft paper markets.
- The Canadian dollar strengthened by
3 cents , or 4%, versus the US-dollar quarter-over-quarter, negatively impacting pulp and paper sales unit realizations. - Pulp and paper production was relatively comparable quarter-over-quarter.
Financial results.
The following table summarizes selected financial information for CPPI for the comparative periods:
(millions of Canadian dollars, except per share amounts) |
|
Q2 2025 |
|
Q1 2025 |
|
YTD 2025 |
|
Q2 2024 |
|
YTD 2024 |
|||||||
Sales |
$ |
177.9 |
$ |
196.2 |
$ |
374.1 |
$ |
220.0 |
$ |
442.3 |
|||||||
Reported operating income before amortization |
$ |
3.5 |
$ |
21.3 |
$ |
24.8 |
$ |
11.0 |
$ |
12.2 |
|||||||
Reported operating income (loss) |
$ |
(5.3) |
$ |
10.8 |
$ |
5.5 |
$ |
(5.6) |
$ |
(21.3) |
|||||||
Adjusted operating income before amortization1 |
$ |
6.4 |
$ |
21.3 |
$ |
27.7 |
$ |
11.0 |
$ |
12.2 |
|||||||
Adjusted operating income (loss)1 |
$ |
(2.4) |
$ |
10.8 |
$ |
8.4 |
$ |
(5.6) |
$ |
(21.3) |
|||||||
Net income (loss) |
$ |
(6.7) |
$ |
6.0 |
$ |
(0.7) |
$ |
(6.3) |
$ |
(8.7) |
|||||||
Net income (loss) per share, basic and diluted |
$ |
(0.10) |
$ |
0.09 |
$ |
(0.01) |
$ |
(0.10) |
$ |
(0.13) |
|||||||
1. Adjusted results referenced throughout this news release are defined as non-IFRS financial measures. For further details, refer |
The Company reported an operating loss of
Commenting on the Company's second quarter performance, CPPI's President and Chief Executive Officer,
Second quarter highlights.
Global softwood pulp markets experienced downward pressure throughout the second quarter of 2025, primarily driven by weak demand from
The Company's average NBSK pulp unit sales realizations experienced a modest decline compared to the previous quarter, primarily reflecting US-dollar NBSK pricing pressure in
Pulp production was 102,000 tonnes for the second quarter of 2025, down 2,000 tonnes, or 2%, from the first quarter of 2025, primarily due to minor operational disruptions in the current period.
Operating income in the Company's paper segment was
Outlook.
Looking forward, global softwood kraft pulp market conditions are anticipated to remain weak throughout the third quarter of 2025 as purchasing activity, particularly from
The Company continues to actively monitor developments in the trade relationship between
The subdued demand for bleached kraft paper in
A minor scheduled maintenance outage will take place during the third quarter of 2025 at the Company's Intercontinental NBSK pulp mill and at its paper machine. This maintenance outage is projected to reduce both NBSK market pulp production and paper production by 2,000 tonnes each.
Additional information and conference call.
A conference call to discuss the second quarter's financial and operating results will be held on
The conference call will be webcast live and will be available at www.
Non-IFRS financial measures.
Throughout this press release, reference is made to certain non-IFRS financial measures which are used to evaluate the Company's performance but are not generally accepted under IFRS and may not be directly comparable with similarly titled measures used by other companies. The following table provides a reconciliation of these non-IFRS financial measures to figures reported in the Company's condensed consolidated interim financial statements:
(millions of Canadian dollars) |
|
Q2 2025 |
|
Q1 2025 |
|
YTD 2025 |
|
Q2 2024 |
|
YTD 2024 |
|||||||
Reported operating income (loss) |
$ |
(5.3) |
$ |
10.8 |
$ |
5.5 |
$ |
(5.6) |
$ |
(21.3) |
|||||||
Inventory write-down |
$ |
2.9 |
$ |
- |
$ |
2.9 |
$ |
- |
$ |
- |
|||||||
Adjusted operating income (loss) |
$ |
(2.4) |
$ |
10.8 |
$ |
8.4 |
$ |
(5.6) |
$ |
(21.3) |
|||||||
Amortization |
$ |
8.8 |
$ |
10.5 |
$ |
19.3 |
$ |
16.6 |
$ |
33.5 |
|||||||
Adjusted operating income before amortization |
$ |
6.4 |
$ |
21.3 |
$ |
27.7 |
$ |
11.0 |
$ |
12.2 |
Forward-looking statements.
Certain statements in this press release constitute "forward-looking statements" which involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results, performance or achievements expressed or implied by such statements. Words such as "expects", "anticipates", "projects", "intends", "plans", "will", "believes", "seeks", "estimates", "should", "may", "could", and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are based on Management's current expectations and beliefs and actual events or results may differ materially. There are many factors that could cause such actual events or results expressed or implied by such forward-looking statements to differ materially from any future results expressed or implied by such statements. Forward-looking statements are based on current expectations and
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