In This Article:
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Adjusted EBITDA (Lumber): $22 million in Q4, down from $64 million in Q3.
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Adjusted EBITDA (Pulp): $12 million in Q4, down $7 million from the prior quarter.
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Net Debt (Canfor Pulp): $83 million at the end of Q4.
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Available Liquidity (Canfor Pulp): $71 million at the end of Q4.
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Net Cash (Canfor excluding Canfor Pulp and duty loan): Approximately $115 million at the end of Q4.
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Capital Expenditures (Q4): 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): Approximately $250 million.
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Projected Capital Spend (2025 - 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 Pulp Products Inc (CFPUF) successfully executed strategic priorities, transforming its business structure to navigate future challenges.
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The company has improved its operating cost base and enhanced geographic diversification, with 70% of its lumber business now 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 Pulp Products Inc (CFPUF) has a strong balance sheet, allowing it to evaluate strategic growth opportunities and consider share repurchases.
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The company is benefiting from a weak Canadian dollar and has a unique high-strength fiber characteristic, which helps minimize the impact of tariffs.
Negative Points
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2024 was an extremely challenging year, with difficult decisions made to close high-cost assets in British Columbia and the US South.
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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 in the short term.
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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 Products Inc (CFPUF) anticipates a significant reduction in shipments following the wind-down of one production line at Northwood.
Q & A Highlights
Q: Can you discuss the margin profile of the Canadian portfolio after recent cost structure changes? A: Stephen Mackie, Chief Operating Officer and CEO of Canfor Pulp, stated that while specific details won't be disclosed, the Canadian business has improved, particularly in Alberta. The closure of higher-cost mills in British Columbia has enhanced the portfolio's performance.