Canfor reports results for the fourth quarter of 2025.

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• Our pulp segment also remained under significant pressure this quarter, as global economic uncertainty, weak market demand and limited access to economic fibre in British Columbia continued to weigh on performance

  80% confidence

• Due to global pulp market conditions remaining weak, ongoing macroeconomic headwinds and continued challenges accessing economic fibre in British Columbia, CPPI may experience continued declines in financial performance during the first quarter of 2026, making it highly probable that CPPI will not comply with its financial covenants at March 31, 2026

  80% confidence

• Global softwood kraft pulp market conditions are anticipated to remain weak into 2026 as ongoing economic uncertainty, particularly between China and the US, continues to weigh on market demand despite some cautious optimism seen late in 2025

  80% confidence

• Our lumber business continued to face significant headwinds in the fourth quarter, with ongoing market weakness combined with elevated duty and tariff costs weighing on our results

  80% confidence

• Offshore lumber market conditions in Asia are forecast to remain subdued

  80% confidence

• With our well capitalized, globally diversified operating platform, we remain well positioned to adapt to the high duty environment, navigate near-term challenges and respond to improving demand as market fundamentals stabilize

  80% confidence

• Although demand in some regions of the US have shown early signs of stabilization, these improvements remain fragile, and overall market conditions are projected to remain subdued through at least the first half of 2026

  80% confidence

• Should tariffs be applied to US pulp and paper shipments, CPPI has mitigation strategies in place that are projected to partially offset potential impacts

  80% confidence

• In China, the weak demand environment seen in the fourth quarter of 2025 is forecast to continue in the first quarter of 2026 principally reflecting persistent pressures in the real estate sector

  80% confidence

• Industry-wide sawmill curtailments and closures in late 2025, together with low inventory levels entering the year, have begun to tighten supply

  80% confidence

• North American lumber markets are anticipated to face continued uncertainty through 2026, with volatility likely to persist amid challenging global economic conditions, unresolved trade issues and the impact of sustained higher softwood lumber duty rates

  80% confidence

• While we saw some modest signs of improvement toward the end of the quarter, ongoing weakness in the softwood pulp market continues to present challenges

  80% confidence

• Across our business, we remain focused on the areas within our control—prioritizing safe, efficient operations, maintaining disciplined cost management and prudent capital allocation as well as delivering high quality products to our customers

  80% confidence

• In Japan, lumber demand and pricing are anticipated to soften in the first quarter of 2026, mainly driven by lower new home construction activity

  80% confidence

• In Europe, lumber demand and pricing are projected to remain relatively flat through the first quarter of 2026. However, constrained lumber supply across the region is anticipated to support slight pricing improvements entering the second quarter of 2026

  80% confidence

• With a diversified global operating platform, the Company is well positioned to mitigate some of these costs, however, the tariffs present challenges for the Company's operations which export to the US

  80% confidence