Slides
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Canfor Corporation Financial Performance Overview – Quarter 3, 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 “Q3 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 nine months ended September 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 nine months ended September 30, 2026.
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Canfor Corporation. Q3 2026 Review: Items impacting earning comparability 3 Millions of dollars (except for per share amounts) Q3 2026 Q2 2026 $ $/Share $ $/Share Shareholder net loss, as reported $ (88.2) $ (0.75) $ (18.5) $ (0.16) Non-operating items (after-tax, net of non-controlling interests) Foreign exchange gain on term debt (1.4) (0.01) (7.9) (0.06) Foreign exchange loss on duty deposits loan 1.1 0.01 7.3 0.06 Loss on derivative financial instruments 1.2 0.01 2.6 0.02 Asset write-downs and impairments, net of tax 30.7 0.26 10.9 0.09 Net impact of above items $ 31.6 $ 0.27 $ 12.9 $ 0.11 Shareholder net loss, as adjusted $ (56.6) $ (0.48) $ (5.6) $ (0.05)
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Canfor Corporation. Sales, operating & EBITDA summary: Q3 2026 vs Q2 2026 4 1. Earnings before interest, tax, depreciation and amortization ("EBITDA") is calculated for the Company as operating income (loss) before amortization. Adjusted EBITDA and adjusted operating income (loss), before one-time items. Refer to the Appendix for a detailed list of these items. Millions of dollars (unless otherwise noted) Q3 2026 Q2 2026 Variance Sales $ 1,284.8 $ 1,526.4 $ (241.6) Reported operating income (loss) by segment Lumber (19.9) 41.2 (61.1) Pulp and paper (44.6) (23.1) (21.5) Unallocated and other (12.1) (13.3) 1.2 Total reported operating income (loss) $ (76.6) $ 4.8 $ (81.4) Adjusting and one-time items1 Lumber 35.7 15.5 20.2 Pulp and paper 38.4 3.3 35.1 Total adjusted operating income (loss), before one-time items1 $ (2.5) $ 23.6 $ (26.1) Amortization 100.6 96.0 4.6 Total adjusted EBITDA1 $ 98.1 $ 119.6 $ (21.5)
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Canfor Corporation. Countervailing & anti-dumping duty summary 5 1. Combined CVD and ADD deposit rate of 47.59%. 2. Duty recovery reflects the estimated ADD accrual rate of 8.00% in Q3 2026, unchanged from Q2 2026. 3. Combined CVD and ADD accrual rates of 20.12% in Q3 2026, unchanged from Q2 2026. Millions of dollars Q3 2026 Q2 2026 Variance Cash deposits paid1 $ 54.2 $ 48.3 $ (5.9) Incremental duty recovery attributable to current quarter2 (31.5) (24.2) 7.3 Duty expense, as reported3 $ 22.7 $ 24.1 $ 1.4 Section 232 tariffs 9.8 10.1 0.3 Duties and tariff expense, net $ 32.5 $ 34.2 $ 1.7 Subsequent to quarter end, in October 2026, US Department of Commerce ("DOC") announced the final ADD and CVD results of the seventh period of review ("POR7") (2024): • Total cumulative cash deposits paid to September 30, 2026 of $1,253.4 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%; finalized rate of 17.00%. • CVD: deposit rate of 1.36% from January to July 2024 and 6.14% from August to December 2024; finalized rate of 14.11%. • Total estimated CVD and ADD combined expense of $45.9 million (US$32.8 million) will be recognized in the Company’s interim consolidated financial statements in the fourth quarter of 2026, to reflect the difference between the combined accrual rate of 23.36% from January to July 2024 and 28.14% from August to December 2024 and the final combined rate of 31.11%.
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Canfor Corporation - Lumber. Q3 2026 vs Q2 2026 6 1. Adjusted EBITDA and adjusted operating income (loss), before 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. Excludes PinkWood I-joist shipments of 5.5 million lineal feet, as the unit of measurement is not directly comparable to lumber shipment volumes reported in MMfbm. Lumber segment adjusted EBITDA of $108 million, $37 million unfavourable to Q2 • Western Canada: Western Spruce/Pine/Fir (“SPF”) lumber unit sales realizations were moderately higher q/q, primarily driven by significant pricing gains for most wider-width dimension products and, to a lesser extent, a 1% weaker Canadian dollar (versus the US-dollar), offset in part by lower unit sales realizations to China quarter-over-quarter. • US South: Southern Yellow Pine (“SYP”) lumber unit sales realizations experienced a slight uplift q/q, as a 4% decrease in the SYP East 2x4 #2 price and a 9% decline in the SYP East 2x6 #2 price were more than offset by favourable lumber unit sales realizations for certain wider-width dimensions. • Europe: European lumber unit sales realizations were slightly 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) Q3 2026 Q2 2026 Variance Sales $ 1,141.9 $ 1,382.3 $ (240.4) Lumber operating income (loss), as reported $ (19.9) $ 41.2 $ (61.1) Adjusting and one-time items1 35.7 15.5 20.2 Lumber adjusted operating income, before one-time items1 $ 15.8 $ 56.7 $ (40.9) Amortization 92.1 88.0 4.1 Lumber adjusted EBITDA1 $ 107.9 $ 144.7 $ (36.8) Average Western SPF 2x4 #2&Btr lumber price in CDN$ $ 681 $ 675 $ 6 Average SYP East 2x4 #2 lumber price in US$ $ 495 $ 517 $ (22) Average SYP East 2x6 #2 lumber price in US$ $ 415 $ 457 $ (42) Production - Western SPF lumber (MMfbm) 352 380 (28) Production - SYP lumber (MMfbm) 486 492 (6) Production - EUR lumber (MMfbm) 328 415 (87) Shipments - Western SPF lumber (MMfbm)2 371 388 (17) Shipments - SYP lumber (MMfbm)2 513 446 67 Shipments - EUR lumber (MMfbm)2 400 518 (118) • Relatively stable lumber segment results across all operating regions, while demand uncertainty persisted and North American benchmark lumber prices declined modestly.
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Canfor Corporation - Lumber. Cash earnings summary: Q3 2026 vs Q2 2026 7 Millions of dollars (unless otherwise noted) Q3 2026 Q2 2026 Variance Lumber operating income (loss), as reported $ (19.9) $ 41.2 $ (61.1) Adjusting and one-time items1 35.7 15.5 20.2 Lumber adjusted operating income, before one-time items1 $ 15.8 $ 56.7 $ (40.9) ADD duty recovery vs deposit rate (31.5) (24.2) (7.3) Lumber adjusted operating income (loss), before one-time items and incremental duty recovery1 $ (15.7) $ 32.5 $ (48.2) Amortization 92.1 88.0 4.1 Lumber adjusted EBITDA before incremental duty recovery1 $ 76.4 $ 120.5 $ (44.1) 1. Adjusted EBITDA and adjusted operating income (loss), before one-time items. Refer to the Appendix for a detailed list of these items.
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Canfor Corporation - Pulp and Paper. Q3 2026 vs Q2 2026 8 Pulp and paper segment EBITDA of $2 million, $14 million favourable to Q2 • Another quarter of strong earnings from the Company's paper business, combined with improved results from its pulp business, despite continued subdued global softwood pulp market conditions. • NBSK pulp 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 and paper production up q/q largely tied to scheduled maintenance outages in the previous quarter. Millions of dollars (unless otherwise noted) Q3 2026 Q2 2026 Variance Sales $ 142.9 $ 144.1 $ (1.2) Pulp and paper operating loss, as reported $ (44.6) $ (23.1) $ (21.5) Adjusting and one-time items1 38.4 3.3 35.1 Pulp and paper adjusted operating loss1 $ (6.2) $ (19.8) $ 13.6 Amortization 7.7 7.6 0.1 Pulp and paper adjusted EBITDA (loss)1 $ 1.5 $ (12.2) $ 13.7 Average NBSK pulp list price delivered to China - US$ $ 645 $ 658 $ (13) Average NBSK pulp list price delivered to China - CDN$ $ 902 $ 910 $ (8) Production - Pulp (000 mt) 103 85 18 Production - Paper (000 mt) 33 29 4 Shipments - Pulp (000 mt) 90 96 (6) Shipments - Paper (000 mt) 34 30 4 1. Adjusted EBITDA and adjusted operating income (loss), before 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 – Q3 2026 vs Q2 2026 Q3 2026 Q2 2026 Reported operating income (loss) $ (76.6) $ 4.8 Asset write-down and impairment – lumber segment1 31.8 13.7 Asset write-down and impairment – pulp segment1 10.0 – Inventory recovery, net2 (9.0) (3.7) Consolidated adjusted operating income (loss) $ (43.8) $ 14.8 One-time items – lumber segment Restructuring and closure costs1 4.6 8.8 One-time item - pulp segment Restructuring and closure costs1 36.7 – Consolidated adjusted operating income (loss) before one- time items $ (2.5) $ 23.6 Amortization 100.6 96.0 Consolidated adjusted EBITDA $ 98.1 $ 119.6 1. For the lumber segment, an asset write-down and impairment charge of $31.8M and restructuring costs of $4.6M were recorded in Q3 2026 associated with the permanent closure of the Fox Creek sawmill in Alberta (Q2 2026 – $13.7M related to the permanent closures of the Urshult and Orrefors sawmills in southern Sweden). For the pulp and paper segment, an asset write-down and impairment charge of $10.0M and restructuring costs of $36.7M were recognized in Q3 2026 related to the permanent closure of the Northwood NBSK pulp mill (Q2 2026 – no asset write-down and impairment charge and no restructuring costs were recognized). 2. For the lumber segment, a $0.7M net reversal of a previously recognized inventory write-down was recorded in Q3 2026 (Q2 2026 – $7.0M net reversal of a previously recognized inventory write-down). For the pulp and paper segment, an $8.3M net inventory recovery was recorded in Q3 2026 (Q2 2026 – $3.3M net inventory write-down expense).
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11 Lumber – Q3 2026 vs Q2 2026 Pulp – Q3 2026 vs Q2 2026 Summary of adjusting and one-time items. Q3 2026 Q2 2026 Reported operating income (loss) $ (19.9) $ 41.2 Asset write-down and impairment1 31.8 13.7 Inventory recovery, net2 (0.7) (7.0) Lumber adjusted operating income $ 11.2 $ 47.9 One-time item Restructuring and closure costs1 4.6 8.8 Lumber adjusted operating income before one-time items $ 15.8 $ 56.7 Amortization 92.1 88.0 Lumber adjusted EBITDA $ 107.9 $ 144.7 Q3 2026 Q2 2026 Reported operating loss $ (44.6) $ (23.1) Asset write-down and impairment1 10.0 – Inventory write-down (recovery), net2 (8.3) 3.3 Pulp adjusted operating loss $ (42.9) $ (19.8) One-time item Restructuring and closure costs1 36.7 – Pulp adjusted operating loss $ (6.2) $ (19.8) Amortization 7.7 7.6 Pulp adjusted EBITDA (loss) $ 1.5 $ (12.2) 1. For the lumber segment, an asset write-down and impairment charge of $31.8M and restructuring costs of $4.6M were recorded in Q3 2026 associated with the permanent closure of the Fox Creek sawmill in Alberta (Q2 2026 – $13.7M related to the permanent closures of the Urshult and Orrefors sawmills in southern Sweden). For the pulp and paper segment, an asset write-down and impairment charge of $10.0M and restructuring costs of $36.7M were recognized in Q3 2026 related to the permanent closure of the Northwood NBSK pulp mill (Q2 2026 – no asset write-down and impairment charge and no restructuring costs were recognized). 2. For the lumber segment, a $0.7M net reversal of a previously recognized inventory write-down was recorded in Q3 2026 (Q2 2026 – $7.0M net reversal of a previously recognized inventory write-down). For the pulp and paper segment, an $8.3M net inventory recovery was recorded in Q3 2026 (Q2 2026 – $3.3M net inventory write-down expense).