Canada's Interfor Q2 sales and EBITDA beat estimates on higher lumber prices
XLB•Outlook
- Company expects near-term North American lumber markets to remain volatile due to economic and policy shifts
- Benchmark lumber prices rebounded in 2026, with further increases seen in July
- Industry-wide curtailments, tariffs and logistics constraints expected to drive ongoing price fluctuations in 2026
Overview
- Canada forest products firm's Q2 sales rose and beat analyst expectations
- Adjusted EBITDA for Q2 beat analyst expectations, driven by higher lumber prices and lower costs
- Net earnings turned positive from a loss in the prior quarter, but falls year-over-year
Result Drivers
- Higher lumber prices - Co said average selling price rose 11% from Q1, driven by industry-wide production curtailments and seasonal demand
- Increased production - Co attributed higher output to ramp-up of rebuilt Thomaston, GA sawmill and improved operating rates after earlier curtailments
- Lower production costs - Co said unit production costs fell for third straight quarter due to productivity and portfolio optimization initiatives
