In This Article:
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Adjusted EBITDA (Lumber Business): $22 million in Q4 2024, down from $64 million in Q3 2024.
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Adjusted EBITDA (Pulp Business): $12 million in Q4 2024, down $7 million from the prior quarter.
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Net Debt (Canfor Pulp): $83 million at the end of Q4 2024.
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Net Cash (Canfor excluding Canfor Pulp and duty loan): Approximately $115 million at the end of Q4 2024.
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Available Liquidity (Canfor Pulp): $71 million at the end of Q4 2024.
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Capital Expenditures (Q4 2024): Approximately $137 million, including $6 million for Canfor Pulp.
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Total Capital Spend (2024): $525 million, including $51 million for Canfor Pulp.
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Projected Capital Spend (2025 - Lumber Business): Approximately $250 million.
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Projected Capital Spend (2025 - Canfor Pulp): Approximately $50 million.
Release Date: March 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Canfor Corp (CFPZF) successfully executed strategic priorities, transforming its business structure and improving its operating cost base.
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The company has enhanced geographic diversification, with approximately 70% of its lumber business located outside of Canada.
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Lumber prices have steadily increased, supporting improved profitability, particularly in Western Canada.
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Canfor Corp (CFPZF) is well-positioned to capitalize on mid- to longer-term lumber demand fundamentals.
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The company maintains a strong balance sheet, allowing for strategic growth opportunities and share repurchases.
Negative Points
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2024 was an extremely challenging year, with difficult decisions to close high-cost assets in British Columbia.
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The company faces ongoing challenges with elevated duties and tariffs, impacting 20% of its sales.
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Global lumber demand remains tepid, with continued volatility and market uncertainty expected.
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There is uncertainty regarding fiber supply in 2025 due to elevated softwood lumber duties and potential additional tariffs.
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Canfor Pulp experienced a reduction in shipments and adjusted EBITDA due to the wind-down of a production line.
Q & A Highlights
Q: Can you discuss the margin profile of your Canadian portfolio after recent cost structure changes? A: Stephen Mackie, Chief Operating Officer, stated that while specific details won't be disclosed, the Canadian business has improved significantly. Alberta continues to perform well, and the closure of higher-cost mills in British Columbia has enhanced the portfolio's performance.
Q: Have you adjusted inventory levels in anticipation of tariffs? A: Kevin Pankratz, Senior Vice President of Sales and Marketing, mentioned that there hasn't been a significant shift in inventory due to the recent announcement of tariffs. Any changes are modest and seasonal.