Canfor (TSE:CFP) Announces Earnings Results

Canfor (TSE:CFP) issued its quarterly earnings results on Wednesday. The company reported C($0.48) earnings per share for the quarter, FiscalAI reports. Canfor had a negative return on equity of 25.37% and a negative net margin of 12.04%. The business had revenue of C$1.28 billion for the quarter.

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 Up 2.3%

Canfor stock opened at C$15.33 on Thursday. The company has a quick ratio of 2.14, a current ratio of 1.35 and a debt-to-equity ratio of 41.78. Canfor has a 12-month low of C$10.86 and a 12-month high of C$16.59. The firm’s fifty day moving average is C$14.97 and its 200 day moving average is C$14.08. The company has a market capitalization of C$1.80 billion, a PE ratio of -2.75 and a beta of 1.05.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on CFP. TD dropped their price objective on Canfor from C$20.00 to C$18.00 and set a “buy” rating on the stock in a research note on Wednesday, October 14th. Raymond James Financial raised Canfor from a “moderate buy” rating to a “strong-buy” rating and raised their target price for the stock from C$17.00 to C$21.00 in a research note on Tuesday, September 15th. One analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of C$17.50.

Insiders Place Their Bets

In other Canfor news, insider Stephen Roche Mackie sold 4,052 shares of the firm’s stock in a transaction 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 sale, the insider directly owned 5,410 shares in the company, valued at approximately C$86,560. This trade represents a 42.82% decrease in their ownership of the stock. Also, Director Cheryl Anne-Marie Yaremko purchased 10,000 shares of the firm’s stock in a transaction on Thursday, October 8th. The stock was bought at an average cost of C$14.01 per share, with a total value of C$140,100.00. Following the completion of the purchase, the director owned 10,000 shares of the company’s stock, valued at approximately C$140,100. This represents a ∞ increase in their position. Company 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.