Interfor Corporation recorded a net loss of $105.7 million, or $2.05 per share in the third quarter of 2024, compared to a net loss of $75.8 million, or $1.47 per share in the second quarter and a net loss of $42.4 million, or $0.82 per share in the third quarter last year.
Adjusted EBITDA was a loss of $22.0 million on sales of $692.7 million in Q3 ’24 versus a loss of $16.7 million on sales of $771.2 million in Q2 ’24 and Adjusted EBITDA of $31.9 million on sales of $828.1 million in Q3 ’23.
Outlook
North American lumber markets over the near term are expected to be volatile as the economy continues to adjust to changing monetary policies, labour shortages and geo-political uncertainty, and as industry-wide lumber production continues to adjust to match demand.
Interfor expects that over the mid-term, lumber markets will continue to benefit from favourable underlying supply and demand fundamentals. Positive demand factors include the advanced age of the U.S. housing stock, a shortage of available housing and various demographic factors, while growth in lumber supply is expected to be limited by extended capital project completion and ramp-up timelines, labour availability and constrained global fibre availability.
Interfor’s strategy of maintaining a diversified portfolio of operations in multiple regions allows the company to both reduce risk and maximize returns on capital over the business cycle. In the event of a sustained lumber market downturn, Interfor maintains flexibility to significantly reduce capital expenditures and working capital levels, and to proactively adjust its lumber production to match demand.
