Canfor (TSE:CFP) Announces Earnings Results

Canfor (TSE:CFP) announced its earnings results on Wednesday. The company reported C($0.48) EPS for the quarter, FiscalAI reports. The firm had revenue of C$1.28 billion during the quarter. Canfor had a negative return on equity of 23.41% and a negative net margin of 10.44%.

Here are the key takeaways from Canfor’s conference call:

• Canfor’s lumber business generated CAD 108 million in adjusted EBITDA in Q3, bringing year-to-date adjusted EBITDA to CAD 280 million. Improved North American realizations and southern yellow pine shipments, along with European log-cost relief, supported results despite subdued markets.
• The company’s U.S. lumber duty rate fell from 47.6% to 31% after the latest review, easing a significant cost pressure. Management does not expect a major rebound in Canadian exports to the U.S., as much of the capacity that exited is permanently closed.
• Canfor completed the Iron Mountain sawmill rebuild and acquired PinkWood, which management says is meeting expectations and adds exposure to specialty products. The company also closed Northwood pulp and three sawmills, saying portfolio changes should support further cost improvements.
• Management remains cautious on near-term demand amid affordability challenges and higher U.S. mortgage rates, with customers taking a more guarded view of late 2026 and 2027. European demand was mixed, and the company expects repair-and-remodel activity to remain broadly steady.
• Paper and pulp produced just CAD 2 million in adjusted EBITDA for the quarter, though that was CAD 14 million above the prior quarter. Canfor ended Q3 with about CAD 1.1 billion in available liquidity and plans to reduce capital spending from approximately CAD 210 million in 2026 to CAD 100 million in 2027.

Canfor Stock Down 4.7%

Shares of CFP opened at C$14.61 on Friday. The company has a debt-to-equity ratio of 43.03, a quick ratio of 2.14 and a current ratio of 1.29. The company has a 50-day simple moving average of C$14.98 and a 200-day simple moving average of C$14.08. Canfor has a 52 week low of C$10.86 and a 52 week high of C$16.59. The firm has a market capitalization of C$1.71 billion, a P/E ratio of -2.62 and a beta of 0.80.

Wall Street Analysts Forecast Growth

CFP has been the topic of several research analyst reports. Raymond James Financial raised Canfor from a “moderate buy” rating to a “strong-buy” rating and raised their price target for the company from C$17.00 to C$21.00 in a research report on Tuesday, September 15th. TD lowered their target price on Canfor from C$20.00 to C$18.00 and set a “buy” rating on the stock in a report on Wednesday, October 14th. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, Canfor currently has an average rating of “Moderate Buy” and a consensus price target of C$17.50.

Insider Activity

In other news, Director Cheryl Anne-Marie Yaremko purchased 10,000 shares of the stock in a transaction that occurred on Thursday, October 8th. The shares were purchased at an average cost of C$14.01 per share, for a total transaction of C$140,100.00. Following the completion of the purchase, the director directly owned 10,000 shares of the company’s stock, valued at approximately C$140,100. The trade was a ∞ increase in their position. Also, insider Stephen Roche Mackie sold 4,052 shares of the company’s stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of C$16.00, for a total value of C$64,832.00. Following the completion of the transaction, the insider directly owned 5,410 shares of the company’s stock, valued at approximately C$86,560. This trade represents a 42.82% decrease in their position. Insiders own 53.92% of the company’s stock.

About Canfor

Canfor Corp is a global leader in the manufacturing of high-value low-carbon forest products including dimension and specialty lumber, engineered wood products, pulp and paper, wood pellets and green energy. Proudly headquartered in Vancouver, British Columbia, Canfor Corp produces renewable products from sustainably managed forests, at more than 50 facilities across its diversified operating platform in Canada, the United States and Europe. Canfor Corp has a 77% stake in Vida AB, Sweden’s largest privately owned sawmill company and also owns, approximately, a 54.8% interest in Canfor Pulp.