Key Points – Interfor posted a strong Q1 turnaround, with EBITDA rising to CAD 31 million from a negative result in the prior quarter.
The improvement was driven by higher lumber prices across all regions and lower conversion costs. – The company is making progress on major cost cuts, targeting CAD 80 million in earnings improvement over two years through a manufacturing cost reduction program
Management said early results are already helping reduce costs and improve productivity. – Interfor’s new Thomaston, Georgia mill is ramping ahead of plan and is expected to become a top performer in the portfolio. The company also expects working capital to unwind and leverage to improve as capital spending falls and divestiture proceeds come in later this year. Interfor (TSE:IFP) reported a sharp sequential improvement in first-quarter 2026 results, with management pointing to higher lumber prices, lower conversion costs and early benefits from a company-wide cost reduction program.
President and CEO Ian Fillinger said the lumber producer generated EBITDA of CAD 31 million in the quarter, up CAD 60 million from the fourth quarter of 2025. He said the improvement was driven by lumber price gains across all five regions, ranging from 5% to 20%, as well as lower conversion costs despite winter weather. “Q1 delivered a meaningful improvement compared to the back half of 2025,” Fillinger said, while noting that duties, tariffs and logistics constraints, particularly in the U.S. South, remained elevated.