Slides
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Canfor Corporation Financial Performance Overview – Quarter 2, 2026 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”, “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 Canfor assumes no obligation to update such information to reflect later events or developments, except as required by law. • Adjusted results referenced throughout the presentation are not generally accepted under IFRS Accounting Standards and are defined as non-IFRS financial measures. Refer to the “Q2 overview, including adjusting and one-time items” and “Non-IFRS financial measures” sections of the Management Discussion & Analysis for Canfor Corporation for the three and six months ended June 30, 2026, for further details. • For further details on these factors and our assumptions and applicable risks and uncertainties, please refer to Canfor Corporation’s Management Discussion & Analysis for the three and six months ended June 30, 2026.
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Canfor Corporation. Q2 2026 Review: Items impacting earning comparability 3 Millions of dollars (except for per share amounts) Q2 2026 Q1 2026 $ $/Share $ $/Share Shareholder net loss, as reported $ (18.5) $ (0.16) $ (72.1) $ (0.62) Non-operating items (after-tax, net of non-controlling interests) Foreign exchange gain on term debt (7.9) (0.06) (3.4) (0.03) Foreign exchange loss on duty deposits loan 7.3 0.06 4.7 0.04 Loss on derivative financial instruments 2.6 0.02 2.2 0.02 Asset write-downs and impairments, net of tax 10.9 0.09 – – Net impact of above items $ 12.9 $ 0.11 $ 3.5 $ 0.03 Shareholder net loss, as adjusted $ (5.6) $ (0.05) $ (68.6) $ (0.59)
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Canfor Corporation. Sales, operating & cash earnings summary: Q2 2026 vs Q1 2026 4 1. Operating income (loss) before adjusting and one-time items. Refer to the Appendix for a detailed list of these items. Millions of dollars (unless otherwise noted) Q2 2026 Q1 2026 Variance Sales $ 1,526.4 $ 1,359.1 $ 167.3 Reported operating income (loss) by segment Lumber 41.2 (43.7) 84.9 Pulp and Paper (23.1) (16.2) (6.9) Unallocated and Other (13.3) (12.6) (0.7) Total reported operating income (loss) $ 4.8 $ (72.5) $ 77.3 Adjusting and one-time items1 Lumber 15.5 (20.0) 35.5 Pulp and Paper 3.3 – 3.3 Total operating income (loss), before adjusting and one-time items $ 23.6 $ (92.5) $ 116.1 Amortization 96.0 101.0 (5.0) Total adjusted operating income, before amortization and one-time items $ 119.6 $ 8.5 $ 111.1
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Canfor Corporation. Countervailing & anti-dumping duty summary 5 1. Combined CVD and ADD deposit rate of 47.59%. 2. Duty expense (recovery) reflects the estimated ADD accrual rate of 8.00% in Q2 2026, unchanged from Q1 2026. 3. Combined CVD and ADD accrual rates of 20.12% in Q2 2026, unchanged from Q1 2026. Millions of dollars Q2 2026 Q1 2026 Variance Cash deposits paid1 $ 48.3 $ 40.2 $ (8.1) Incremental duty recovery attributable to current quarter2 (24.2) (20.2) 4.0 Duty expense, as reported3 $ 24.1 $ 20.0 $ (4.1) Section 232 tariffs 10.1 8.1 (2.0) Duties and tariff expense, net $ 34.2 $ 28.1 $ (6.1) Preliminary ADD and CVD results of the seventh period of review ("POR7") (2024) announced by US Department of Commerce ("DOC") in April 2026, and adjusted in June 2026: • Total cumulative cash deposits paid to June 30, 2026 of $1,199.2 million. • ADD: deposit rate of 5.25% from January to July 2024 and 10.44% from August to December 2024; accrued at estimated rate of 22.00%; preliminary rate of 16.85%. • CVD: deposit rate of 1.36% from January to July 2024 and 6.14% from August to December 2024; adjusted preliminary rate of 14.52%. • Total estimated CVD and ADD combined expense of $47.7 million (US$33.6 million) to be recognized upon finalization of rates (anticipated in Q4 2026).
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Canfor Corporation - Lumber. Q2 2026 vs Q1 2026 6 1. Operating income (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 trim blocks, wholesale shipments and lumber sold on behalf of third parties. Lumber segment adjusted operating income of $57 million, $120 million favourable to Q1 • Delivered solid results across all lumber operating regions as tighter lumber supply and seasonal demand supported a modest improvement in lumber benchmark prices. • Western Canada: Western Spruce/Pine/Fir (“SPF”) umber unit sales realizations were moderately higher than the previous quarter, principally related to a 5% increase in Western SPF 2x4 #2&Btr pricing and improved pricing for wider-width dimensions, partially offset by unfavourable offshore unit sales realizations (most notably in Japan). • US South: Southern Yellow Pine (“SYP”) lumber unit sales realizations experienced a significant increase q/q, mainly attributable to a 4% increase in the SYP East 2x4#2 price and an 8% uptick in the SYP East 2x6#2 price, coupled with more pronounced pricing increases in wider-width dimensions. • Europe: European lumber unit sales realizations were moderately higher than in the previous quarter, principally reflecting improved lumber market pricing in the region, partially offset by the impact of a 2% stronger Canadian dollar (versus the SEK). Millions of dollars (unless otherwise noted) Q2 2026 Q1 2026 Variance Sales $ 1,382.3 $ 1,192.8 $ 189.5 Lumber operating income (loss), as reported 41.2 $ (43.7) 84.9 Adjusting and one-time items1 15.5 $ (20.0) 35.5 Lumber operating income (loss), before one-time items $ 56.7 $ (63.7) $ 120.4 Amortization 88.0 $ 92.3 (4.3) Lumber operating income, before amortization, adjusting and one-time items $ 144.7 $ 28.6 $ 116.1 Average Western SPF 2x4 #2&Btr lumber price in CDN$ $ 675 $ 635 $ 40 Average SYP East 2x4 #2 lumber price in US$ $ 517 $ 495 $ 22 Average SYP East 2x6 #2 lumber price in US$ $ 457 $ 425 $ 32 Production - Western SPF lumber (MMfbm) 380 371 9 Production - SYP lumber (MMfbm) 492 473 19 Production - EUR lumber (MMfbm) 415 368 47 Shipments - Western SPF lumber (MMfbm)2 388 352 36 Shipments - SYP lumber (MMfbm)2 446 444 2 Shipments - EUR lumber (MMfbm)2 518 461 57
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Canfor Corporation - Lumber. Cash earnings summary: Q2 2026 vs Q1 2026 7 Millions of dollars (unless otherwise noted) Q2 2026 Q1 2026 Variance Lumber operating income (loss), as reported $ 41.2 $ (43.7) $ 84.9 Adjusting and one-time items1 15.5 $ (20.0) 35.5 Lumber adjusted operating income (loss), before one-time items $ 56.7 $ (63.7) $ 120.4 ADD duty recovery vs deposit rate (24.2) (20.2) (4.0) Lumber adjusted operating income (loss) before one-time items and incremental duty recovery $ 32.5 $ (83.9) $ 116.4 Amortization 88.0 $ 92.3 (4.3) Lumber adjusted operating income before amortization, one-time items and incremental duty recovery $ 120.5 $ 8.4 $ 112.1 1. Operating income (loss) before adjusting and one-time items. Refer to the Appendix for a detailed list of these items.
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Canfor Corporation - Pulp and Paper. Q2 2026 vs Q1 2026 8 Pulp and paper segment adjusted operating loss of $20 million, $4 million unfavourable to Q1 • Global softwood pulp market conditions remained challenging throughout the second quarter of 2026, with prices pressured by ongoing structural changes in markets combined with subdued demand and elevated producer inventories. • NBSK unit sales realizations down slightly q/q principally tied to the decline in US-dollar pulp list prices to China, offset in part by a 1% weaker Canadian dollar. • Pulp production down q/q primarily due to a reduction in operating days at Intercon. Millions of dollars (unless otherwise noted) Q2 2026 Q1 2026 Variance Sales $ 144.1 $ 166.3 $ (22.2) Pulp and paper operating loss, as reported $ (23.1) $ (16.2) $ (6.9) Inventory write-down, net1 3.3 – 3.3 Pulp and paper adjusted operating loss $ (19.8) $ (16.2) $ (3.6) Amortization 7.6 7.9 (0.3) Pulp and paper adjusted operating loss before amortization $ (12.2) $ (8.3) $ (3.9) Average NBSK pulp list price delivered to China - US$ $ 658 $ 685 $ (27) Average NBSK pulp list price delivered to China - CDN$ $ 910 $ 940 $ (30) Production - Pulp (000 mt) 85 103 $ (18) Shipments - Pulp (000 mt) 96 117 $ (21) 1. Operating income (loss) before adjusting and one-time items. Refer to the Appendix for a detailed list of these items.
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Appendix.
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Summary of adjusting and one-time items. 10 Consolidated – Q2 2026 vs Q1 2026 Operating income (loss) Q2 2026 Actual Q1 2026 Actual Reported operating income (loss) $ 4.8 $ (72.5) Asset write-down and impairment – lumber segment1 13.7 – Inventory recovery, net2 (3.7) (20.0) Consolidated adjusted operating income (loss) $ 14.8 $ (92.5) One-time items – lumber segment Restructuring and closure costs1 8.8 – Consolidated adjusted operating income (loss) before one- time items $ 23.6 $ (92.5) Amortization 96.0 101.0 Consolidated adjusted operating income before amortization and one-time items $ 119.6 $ 8.5 1.For the lumber segment, an asset write-down and impairment charge of $13.7M and restructuring costs of $8.8M were recognized in Q2 2026 related to the permanent closures of the Urshult and Orrefors sawmills in southern Sweden (Q1 2026 – no asset write- down and impairment charge and no restructuring costs were recognized). 2. For the lumber segment, a $7.0M net reversal of a previously recognized inventory write-down was recorded in Q2 2026 (Q1 2026 – $20.0M net reversal of a previously recognized inventory write- down). For the pulp and paper segment, a $3.3M net inventory write- down expense was recorded in Q2 2026 (Q1 2026 – no inventory valuation adjustment was recognized).
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11 Lumber – Q2 2026 vs Q1 2026 Pulp – Q2 2026 vs Q1 2026 Summary of adjusting and one-time items. Operating income (loss) Q2 2026 Actual Q1 2026 Actual Reported operating income (loss) $ 41.2 $ (43.7) Asset write-down and impairment1 13.7 – Inventory write-down (recovery), net2 (7.0) (20.0) Lumber adjusted operating income (loss) $ 47.9 $ (63.7) One-time items Restructuring and closure costs1 8.8 – Lumber adjusted operating income (loss) before one-time items $ 56.7 $ (63.7) Amortization 88.0 92.3 Lumber adjusted operating income before amortization and one-time items $ 144.7 $ 28.6 1.For the lumber segment, an asset write-down and impairment charge of $13.7M and restructuring costs of $8.8M were recognized in Q2 2026 related to the permanent closures of the Urshult and Orrefors sawmills in southern Sweden (Q1 2026 – no asset write-down and impairment charge and no restructuring costs were recognized). 2. For the lumber segment, a $7.0M net reversal of a previously recognized inventory write-down was recorded in Q2 2026 (Q1 2026 – $20.0Mnet reversal of a previously recognized inventory write-down). For the pulp and paper segment, a $3.3M net inventory write- down expense was recorded in Q2 2026 (Q1 2026 – no inventory valuation adjustment was recognized). Operating income (loss) Q2 2026 Actual Q1 2026 Actual Reported operating income (loss) $ (23.1) $ (16.2) Inventory write-down, net2 3.3 – Pulp adjusted operating income (loss) $ (19.8) $ (16.2) Amortization 7.6 7.9 Pulp adjusted operating income (loss) before amortization $ (12.2) $ (8.3)