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Canfor Corporation & Canfor Pulp Products Inc. Financial Performance Overview – Quarter 3, 2025 Presented by: Pat Elliott – CFO & Corporate Secretary
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Forward - looking statements. 2 • The presentation and answers to questions today contain 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”, “w ill”, “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 o r results may differ materially. There are many factors that could cause such actual events or results expressed or implied by suc h 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 Canfor assumes no obligation to update such information to reflect later eve nts or developments, except as required by law. • Adjusted results referenced throughout the presentation are not generally accepted under IFRS Accounting Standards and are de fin ed as non - IFRS financial measures. Refer to the “Non - IFRS financial measures” section of Canfor Corporation’s and Canfor Pulp Produ cts Inc.’s Management Discussion & Analysis for the quarter ended September 30, 2025, for further details. • For further details on these factors and our assumptions and applicable risks and uncertainties, please refer to Canfor Corpo rat ion’s and Canfor Pulp Products Inc.’s Management Discussion & Analysis for the year ended December 31, 2024.
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Canfor Corporation. Q3 2025 Review: Items impacting earning comparability 3 $ $/Share $ $/Share Shareholder net loss, as reported (172.4) $ (1.48) $ (202.8) $ (1.71) $ Non-operating items (after-tax, net of non-controlling interests) Foreign exchange (gain) loss on term debt (3.4) $ (0.03) $ 7.3 $ 0.06 $ Foreign exchange (gain) loss on duty deposits loan 6.2 $ 0.05 $ (14.7) $ (0.11) $ Gain on derivative financial instruments (1.6) $ (0.01) $ (0.7) $ (0.01) $ Asset write-downs and impairments - $ - $ 143.9 $ 1.21 $ Net impact of above items 1.2 $ 0.01 $ 135.8 $ 1.15 $ Shareholder net loss, as adjusted (171.2) $ (1.47) $ (67.0) $ (0.56) $ Q3 2025 Q2 2025 Millions of dollars (except for per share amounts)
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Canfor Corporation. Sales, operating & cash earnings summary: Q3 2025 vs. Q2 2025 4 1. Operating loss before adjusting and one - time items. Refer to the Appendix for a detailed list of these items. Sales 1,259.8 $ 1,379.4 $ (119.6) $ Reported operating loss by segment Lumber (182.2) $ (229.2) $ 47.0 $ Pulp and Paper (16.0) $ (5.3) $ (10.7) $ Unallocated and Other (10.1) $ (16.9) $ 6.8 $ Total operating loss, as reported (208.3) $ $ (251.4) $ 43.1 Adjusting and one-time items 1 Lumber 92.1 $ 204.5 $ (112.4) $ Pulp and Paper 4.9 $ 2.9 $ 2.0 $ Unallocated and Other - $ - $ - $ Total operating loss, before adjusting and one-time items (111.3) $ (44.0) $ $ (67.3) Amortization 97.6 $ 102.4 $ (4.8) $ Total operating income (loss), before amortization, as adjusted (13.7) $ 58.4 $ $ (72.1) Q3 2025 Q2 2025 Variance Millions of dollars (unless otherwise noted)
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Canfor Corporation. Countervailing & anti - dumping duty summary 5 1. Combined CVD and ADD deposit rate of 16.58% from January to August 2025 and 47.59% for August 2025 onwards. 2 . Duty recovery reflects the estimated ADD accrual rate of 10.00%. 3. Combined CVD and ADD accrual rates of 16.14% from January to August 2025 and 22.12% for August 2025 onwards for the eighth ad ministrative review period ("POR8"). 4. Q3 2025 duty expense reflects the finalized rates for the sixth period of administrative review (“POR6”), outlined below. Final CVD and ADD results of the sixth period of review (“POR 6 ”) ( 2023 ) announced by US Department of Commerce (“DOC”) in August 2025 and September 2025 , respectively : ▪ Total cumulative cash deposits paid to September 30 , 2025 of $ 1 , 070 . 7 million . ▪ ADD : deposit rate of 4 . 92 % from January to July 2023 & 5 . 25 % from August to December 2023 ; accrued at estimated rate of 35 . 00 % ; finalized rate of 35 . 47 % . ▪ CVD : deposit rate of 0 . 95 % from January to July 2023 & 1 . 36 % from August to December 2023 ; finalized rate of 12 . 12 % . ▪ Total finalized CVD and ADD combined expense of $ 77 . 2 million (US $ 56 . 2 million) was recorded in Q 3 2025 to reflect the difference between the combined accrual rate of 35 . 95 % between January and July 2023 and 36 . 36 % for August to December 2025 . ▪ No cash duties to be refunded until litigation regarding the imposition of CVD and ADD has been settled . Effective duties by quarter Cash deposits paid 1 31.4 $ 19.0 $ (12.4) $ Incremental duty recovery attributable to current quarter 2 (9.2) $ (0.4) $ 8.8 $ Duty expense, before prior period adjustments 3 22.2 $ 18.6 $ (3.6) $ Duty expense related to finalization of POR6 rates 4 77.2 $ - $ (77.2) $ Duty expense, as reported 99.4 $ 18.6 $ (80.8) $ Variance Q3 2025 Q2 2025 Millions of dollars
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Canfor Corporation - Lumber. Q3 2025 vs. Q2 2025 6 1. Operating loss before adjusting and one - time items. Refer to the Appendix for a detailed list of these items. 2. Includes Canfor produced lumber, as well as lumber purchased for resale, remanufactured and engineered wood, excluding tri m blocks, wholesale shipments and lumber sold on behalf of third parties. Lumber segment adjusted operating loss of $90 million, $65 million unfavourable to Q2 • Sustained pressure on global lumber market conditions and pricing through most of the third quarter. • Western Canada: Western Spruce/Pine/Fir (“SPF”) lumber unit sales realizations experienced a moderate decrease q/q, as a 1% increase in SPF 2x4 #2&Btr was more than offset by pronounced declines in certain wider - width dimensions and, to a lesser extent, unfavourable offshore unit sales realizations. • US South: Southern Yellow Pine (“SYP”) lumber unit sales realizations were significantly lower than the previous quarter, largely reflecting a 22% drop in the SYP East 2x4 #2 price, coupled with notable pricing declines for most wider - width dimensions and, to a lesser extent, a 3% decrease in the SYP East 2x6 #2 price. • Europe: European lumber unit sales realizations were modestly lower than the previous quarter, principally related to the decline in lumber market pricing throughout the region, mitigated in part by a 1% weaker Canadian dollar versus the SEK. Sales 1,095.2 $ 1,201.5 $ (106.3) $ Lumber operating loss, as reported (182.2) $ (229.2) $ 47.0 $ Adjusting and one-time items - lumber segment 1 92.1 $ 204.5 $ (112.4) $ Lumber operating loss, before one-time items (90.1) $ (24.7) $ (65.4) $ Amortization 88.1 $ 93.0 $ (4.9) $ Lumber operating income (loss), before amortization, adjusting and one-time items (2.0) $ 68.3 $ (70.3) $ Average Western SPF 2x4 #2&Btr lumber price in CDN$ 657 $ 651 $ 6 $ Average SYP East 2x4 #2 lumber price in US$ 373 $ 481 $ (108) $ Average SYP East 2x6 #2 lumber price in US$ 315 $ 325 $ (10) $ Production - Western SPF lumber (MMfbm) 376 382 (6) Production - SYP lumber (MMfbm) 475 511 (36) Production - EUR lumber (MMfbm) 311 375 (64) Shipments - Western SPF lumber (MMfbm) 2 379 448 (69) Shipments - SYP lumber (MMfbm) 2 488 512 (24) Shipments - EUR lumber (MMfbm) 2 352 427 (75) Q3 2025 Q2 2025 Variance Millions of dollars (unless otherwise noted)
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Canfor Corporation - Lumber. Cash earnings summary: Q3 2025 vs. Q2 2025 7 1. Operating loss before adjusting and one - time items. Refer to the Appendix for a detailed list of these items. Millions of dollars (unless otherwise noted) Q3 2025 Q2 2025 Variance Lumber operating loss, as reported (182.2) $ (229.2) $ 47.0 $ Adjusting and one-time items - lumber segment 1 92.1 $ 204.5 $ (112.4) $ Lumber operating loss, before adjusting and one-time items (90.1) $ (24.7) $ (65.4) $ ADD duty recovery vs deposit rate (9.2) $ (0.4) $ (8.8) $ Lumber operating loss, as adjusted, excl. one-time items and incremental duty recovery (99.3) $ (25.1) $ (74.2) $ Amortization 88.1 $ 93.0 $ (4.9) $ Lumber operating income (loss), as adjusted, before amortization, one-time items and incremental duty recovery (11.2) $ 67.9 $ (79.1) $
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Canfor Pulp Products Inc. Pulp: Q3 2025 vs. Q2 2025 8 Canfor Pulp adjusted operating loss of $11 million, $9 million unfavourable to Q2 • Global softwood pulp market fundamentals remained at depressed levels throughout the quarter; markets in China were persistently weak, while North American markets softened, adjusting to the lower global pricing environment . • NBSK unit sales realizations experienced a significant decline q/q principally tied to the decrease in global US - dollar pulp list prices. • Pulp production up 5% q/q reflecting improved productivity; pulp shipment volumes up 3% q/q principally tied to the increase in pulp production. 1. Operating loss before adjusting and one - time items. Refer to the Appendix for a detailed list of these items. Sales 164.6 $ 177.9 $ (13.3) $ Reported operating income (loss) by segment Pulp (19.2) $ (4.4) $ (14.8) $ Paper 5.0 $ 1.5 $ 3.5 $ Unallocated (1.8) $ (2.4) $ 0.6 $ Pulp operating loss, as reported (16.0) $ (5.3) $ (10.7) $ Asset write-down and impairment – pulp segment 1 4.9 $ 2.9 $ 2.0 $ Pulp adjusted operating loss (11.1) $ (2.4) $ (8.7) $ Reported operating income (loss) before amortization Pulp (11.4) $ 3.2 $ (14.6) $ Paper 6.0 $ 2.7 $ 3.3 $ Unallocated (1.8) $ (2.4) $ 0.6 $ Pulp operating income (loss), before amortization (7.2) $ 3.5 $ (10.7) $ Inventory write-down, net 4.9 $ 2.9 $ 2.0 $ Pulp adjusted operating income (loss), before amortization (2.3) $ 6.4 $ (8.7) $ Average NBSK pulp list price delivered to China - US$ 690 $ 734 $ (44) $ Average NBSK pulp list price delivered to China - CDN$ 950 $ 1,015 $ (65) $ Production - Pulp (000 mt) 107 102 5 Shipments - Pulp (000 mt) 105 102 3 Q3 2025 Q2 2025 Variance Millions of dollars (unless otherwise noted)
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Appendix.
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Summary of adjusting and one - time items. 10 Consolidated – Q3 2025 1. For the lumber segment, a $15M net inventory write - down expense was recorded in Q3 2025 (Q2 2025 – $9M net inventory write - down expense). For pulp and paper segment, a $5M net inventory write - down expense was recorded in Q3 2025 (Q2 2025 - $3M net inventory write - down expense). 2. No restructuring and closure costs was recorded in Q3 2025 (Q2 2025 – restructuring and closure costs of $7M related to Darlington and Estill ). 3. Duty expense of $77M recognized in Q3 2025 following the finalization of CVD and ADD rates applicable to POR6 (Q2 2025 – no duty expense was recognized). Consolidated Operating income (loss) Q3 2025 Actual Q2 2025 Actual Reported operating loss (208.3) $ (251.4) $ Asset write-down and impairment – lumber segment - $ 188.6 $ Inventory write-down, net 1 19.8 $ 12.1 $ Consolidated adjusted operating loss (188.5) $ (50.7) $ One-time items – lumber segment Restructuring and closure costs 2 - $ 6.7 $ Duty expense related to finalized rates 3 77.2 $ - $ Consolidated adjusted operating loss before one-time items (111.3) $ (44.0) $ Amortization 97.6 $ 102.4 $ Consolidated adjusted operating income (loss) before amortization and one-time items (13.7) $ 58.4 $
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11 Lumber – Q3 2025 Pulp – Q3 2025 Summary of adjusting and one - time items. 1. For the lumber segment, a $15M net inventory write - down expense was recorded in Q3 2025 (Q2 2025 – $9M net inventory write - down expense). For pulp and paper segment, a $5M net inventory write - down expense was recorded in Q3 2025 (Q2 2025 - $3M net inventory write - down expense). 2. No restructuring and closure costs was recorded in Q3 2025 (Q2 2025 – restructuring and closure costs of $7M related to Darlington and Estill ). 3. Duty expense of $77M recognized in Q3 2025 following the finalization of CVD and ADD rates applicable to POR6 (Q2 2025 – no duty expense was recognized). Pulp Operating income (loss) Q3 2025 Actual Q2 2025 Actual Reported operating loss (16.0) $ (5.3) $ Inventory write-down, net 1 4.9 $ 2.9 $ Pulp adjusted operating loss (11.1) $ (2.4) $ Amortization 8.8 $ 8.7 $ Pulp adjusted operating income (loss) before amortization (2.3) $ 6.3 $ Lumber Operating income (loss) Q3 2025 Actual Q2 2025 Actual Reported operating loss (182.2) $ (229.2) $ Asset write-down and impairment – lumber segment - $ 188.6 $ Inventory write-down, net 1 14.9 $ 9.2 $ Consolidated adjusted operating loss (167.3) $ (31.4) $ One-time items – lumber segment Restructuring and closure costs 2 - $ 6.7 $ Duty expense related to finalized rates 3 77.2 $ - $ Lumber adjusted operating loss before one-time items (90.1) $ (24.7) $ Amortization 88.1 $ 93.0 $ Lumber adjusted operating income (loss) before amortization and one-time items (2.0) $ 68.3 $