Interfor Corp. recorded a net loss in the fourth quarter of 2024 of $49.9 million, or $0.97 per share, compared to a net loss of $105.7 million, or $2.05 per share in the third quarter of 2024 and a net loss of $169.0 million, or $3.29 per share in the fourth quarter of 2023.
Overall, Interfor reports $304 million net loss in 2024 as lumber production dropped 5% per cent to 4 billion board feet. The net loss was a 14 per cent increase from the $267 million net loss in 2023. Total sales fell 9 per cent to $3 billion, down from $3.3 billion in the previous year.
Interfor records ninth straight quarter of net losses. In November 2024, Interfor recorded a third quarter of 2024 net loss of $105.7 million. The forest products company last reported a net profit – $3.5 million – for the third quarter of 2022.
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.
Near-term volatility could be further impacted by a potential tariff on Canadian lumber exports to the U.S. Overall, the company is well positioned with a diversified product mix in Canada and the U.S., with approximately 60 per cent of its total lumber produced and sold within the U.S. Ultimately, only about 26 per cent of the Company’s total lumber production is exported from Canada to the U.S. and exposed to a potential tariff. Over the mid-term, Canadian lumber is expected to remain a key source of supply to meet U.S. needs, as growth in U.S. lumber manufacturing capacity will likely be limited by labour constraints, lengthy equipment lead-times and extended project ramp-up schedules.
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.
