Company Website: https://greenfirst.ca
TORONTO -- (Business Wire)

GreenFirst Forest Products Inc. (TSX: GFP) (“GreenFirst” or the “Company”) announced results for the year ended December 31, 2025. The Company’s audited financial statements ("Financial Statements") and related Management's Discussion and Analysis ("MD&A") for the year ended December 31, 2025 are available on GreenFirst’s website at www.greenfirst.ca and on SEDAR+ at www.sedarplus.ca.

Highlights

• Q4 2025 net loss from continuing operations was $32.8 million or $1.43 loss per share (diluted), compared to net loss of $57.4 million or $2.54 loss per share (diluted) in Q3 2025. Adjusted EBITDA from continuing operations for Q4 2025 was negative $21.7 million (or negative $21.7 million excluding the impact of the duty liability resulting from adjustments to finalized duty rates under AR6) compared to negative $47.2 million in Q3 2025.
• Benchmark prices saw decreases during the quarter which resulted in an average realized lumber prices of $654/mfbm for Q4 2025 which was lower than the $695/mfbm pricing realized in Q3 2025.
• During the fourth quarter ended December 31, 2025, the Company identified that certain costs previously capitalized to inventory and subsequently expensed as cost of sales was more appropriately categorized as selling, general and administrative expenses during the year ended December 31, 2024. The impact on the December 31, 2024 inventory balance was not material and has not been adjusted in the Financial Statements. The Company has recorded a reclassification $4.8 million to reduce cost of sales and increase selling, general and administrative expenses in the 2024 financial statements. This adjustment has no impact on net loss, the statement of cash flows or the statement of changes in shareholders’ equity. (Please see Note 5 - Selling, General and Administration Expenses in the Company's Financial Statements for further information).
• On September 30, 2025, the U.S. Government issued a final proclamation under Section 232 of the Trade Expansion Act of 1962, introducing new tariffs on imports of timber, lumber, and certain derivative wood products from Canada and other countries. Effective October 14, 2025, softwood lumber products became subject to a 10% tariff. GreenFirst continues to pay this tariff on its shipments, while monitoring any opportunities for relief or exemption under Section 122 of the Trade Act.
• On December 18, 2025, the Company received regulatory approval from the Financial Services Regulatory Authority of Ontario to distribute surplus assets from its closed defined benefit pension plan for Kapuskasing Organized Employees of GreenFirst Forest Products (QC) Inc. The surplus assets were distributed to eligible members, with GreenFirst retaining $10.7 million in surplus in December 2025.
• On December 18, 2025, the Company secured a $19 million backstop on its existing standby letters of credit from Export Development Canada (“EDC”) under the EDC Account Performance Security Guarantee program.
• On January 21, 2026, the Company entered into a $30 million term loan under the Softwood Lumber Program announced by the Government of Canada. The financing, arranged with the Company’s banking partner BMO, is intended to support liquidity and ongoing operations amid continued market volatility in the North American lumber sector.

GreenFirst Reports Q4 Results Amid Market Uncertainty
"Q4 2025 was a challenging quarter for GreenFirst, as market prices declined to their lowest levels of the year in early December, with the Western Benchmark reaching $380 per Mfbm. In response, we implemented approximately two weeks of downtime across most mills to mitigate losses. At the same time, a 10% increase in tariffs, on top of existing duties, contributed to an increase in our net realizable value provision of approximately $10.2 million for the quarter.

During the period, we completed the installation of the new large log line at our Chapleau mill and began commissioning activities. As expected, this process temporarily impacted production volumes. Despite these headwinds, sales volumes increased compared to both the prior quarter and the same period last year, and production improved relative to the third quarter.

We continue to focus on stabilizing operations and optimizing performance on the Chapleau line and anticipate beginning to realize operational benefits later in 2026. While market conditions remained challenging, we concentrated on managing what we could control, adjusting production levels and advancing key operational initiatives, to position the Company for stronger performance as we move into 2026,” said Joel Fournier, CEO of GreenFirst.

Financial Highlights

The following selected financial information is from the Company’s financial statements and MD&A:

Net sales were $76.9 million in Q4 2025, an increase of approximately 10% compared to Q3 2025. The increase in net sales was primarily driven by higher shipments, partially offset by lower realized pricing during the quarter.

Cost of sales were $86.0 million in Q4 2025, an increase of approximately 16% compared to Q3 2025. The increase was primarily due to higher shipment volumes, partially offset by downtime associated with the installation of the Chapleau large log line and other maintenance projects. The quarter also included a $10.2 million provision for the net realized value on inventory, reflecting decreases in benchmark prices compared to $8.6 million in the previous quarter. During December 2025, U.S. benchmark lumber prices for delivery to Great Lakes region for 2x4 2&better random length and studs were US$522/mfbm and $US440/mfbm, respectively.

Other Expenses

Duties expense of $15.1 million in the fourth quarter of 2025 was lower than the third quarter of 2025 of $42.7 million. During the third quarter of 2025, duties expensed consisted of $8.9 million in relation to shipments sold and $33.8 million resulting from adjustments to finalized duties rates from AR6 in relation to 2023 duties paid. The Company was subject to a combined duty rate of 35.16% during the third quarter, which increased to 45.16% starting October 14, 2025 as a results of Section 232 tariffs.

SG&A expenses were $1.5 million in the fourth quarter of 2025, a decrease of 63% compared to the third quarter of 2025, which was primarily due to reversal of accruals no longer required on sale of assets and higher non-cash stock-based compensation expenses in the comparative period.

For the fourth quarter December 31, 2025, the Company recorded impairment charges of $9.0 million and $9.0 million, respectively. These charges were primarily driven by continued weakness in market prices for lumber, macro-economic conditions and elevated duties and tariff rates, which resulted in the carrying value of the cash-generating unit exceeding it's estimated recoverable amount.

Liquidity and Borrowings

At December 31, 2025, the Company had $3.5 million in cash on hand (December 31, 2024 - $27.8 million). In addition, the Company had $27.0 million of excess availability under the revolving credit facility (net of $18.0 million drawn and $3.9 million for standby letters of credit) compared to $39.3 million as at December 31, 2024 (net of $8.3 million for standby letters of credit). The Company also had access to $14.1 million under its equipment financing agreement (December 31, 2024 - $11.3 million) of which $10.9 million was drawn as at December 31, 2025 (December 31, 2024 - $13.7 million).

Outlook

The outlook for the North American lumber industry reflects ongoing macroeconomic uncertainty, but long-term demand fundamentals remain supportive. Lumber demand is closely tied to residential construction activity in the United States, the primary end market for Canadian softwood lumber producers. Inflationary pressures have moderated, and interest rates may gradually ease. However, housing affordability challenges and broader economic uncertainty continue to weigh on near-term activity. As a result, demand for lumber products may remain below mid-cycle levels. Still, improving financial conditions could support a gradual recovery in residential construction, repair, and renovation activity over time.

U.S. housing starts are widely viewed as a key indicator of lumber demand. Industry participants generally consider annual housing starts of approximately 1.4 to 1.6 million units to represent normalized long-term demand levels. Recently, housing starts have remained below these levels due to higher mortgage rates and affordability constraints. In addition to new construction, repair and renovation activity represents a significant portion of lumber demand. Historically, it has accounted for around 40–45% of total wood products consumption. Demand in this segment tends to be more stable than new construction and can help partially offset cyclical fluctuations in housing starts.

Despite near-term uncertainties, the longer-term demand outlook for lumber remains supported by structural housing market dynamics. The United States continues to face a significant housing supply deficit. Combined with an aging housing stock and demographic-driven household formation, these factors are expected to support demand for wood products over the longer term. Nonetheless, housing activity and lumber demand are likely to remain sensitive to changes in mortgage rates, employment levels, and overall economic conditions.

On the supply side, the North American lumber industry faces structural pressures related to timber availability, regulatory harvest limits, and wildfire impacts, particularly in Western Canada and in the Province of Quebec. These factors have contributed to permanent mill closures, production curtailments, and reduced harvesting levels across parts of the industry. Several producers have adjusted operating plans and curtailed production in response to weak market conditions and ongoing economic uncertainty. This reflects a disciplined approach to balancing supply with demand. While many supply constraints are concentrated in Western provinces, broader fibre availability and transportation dynamics can mainly influence the Canadian lumber supply chain more broadly. Fibre supply conditions vary by region. Certain jurisdictions, including Ontario where GreenFirst operates, continue to maintain relatively stable timber availability. This supports operational continuity and supply reliability.

Labour availability, transportation constraints, energy costs, and inflationary pressures continue to influence operating costs across the forestry sector. These factors, combined with tight fibre supply in certain regions, may affect production levels and margins. At the same time, ongoing investments in mill modernization, automation, and process optimization are enabling producers to improve operating efficiency and enhance long-term competitiveness.

Canadian softwood lumber exports to the United States continue to be subject to anti-dumping and countervailing duties under the longstanding Canada–U.S. softwood lumber trade dispute. These duties, together with other potential trade measures and currency fluctuations, influence the competitive dynamics and profitability of Canadian lumber producers. The magnitude and timing of future duty rate adjustments or additional trade actions remain uncertain.

Environmental sustainability and responsible forest management remain important considerations for the industry. Wood products are increasingly recognized as a renewable building material that stores carbon and supports lower-emission construction. Companies that maintain strong environmental practices and sustainable forest management certifications are increasingly well positioned to meet evolving regulatory, investor, and customer expectations.

Lumber markets have historically been characterized by significant price volatility. This reflects the cyclical nature of residential construction activity, changing economic conditions, and shifts in supply and demand across the global wood products industry. Lumber prices can fluctuate materially over short periods in response to housing starts, interest rates, industry production levels, inventory levels throughout the supply chain, and broader macroeconomic developments. As a result, producers often adjust production levels and operating plans to manage inventories and maintain operational efficiency.

Overall, the industry continues to face cyclical and macroeconomic challenges, including housing affordability pressures, trade policy uncertainty, and supply constraints. However, the long-term outlook for lumber demand remains supported by structural housing needs, population growth, and the increasing use of wood as a sustainable building material. GreenFirst’s stable Ontario fibre supply, strategic mill locations, sustainable operations, and ongoing investments in operational efficiency position the Company to navigate cyclical market conditions, enhance resilience, and create long-term value for stakeholders.

Actual market conditions may differ materially from current expectations due to changes in economic conditions, housing demand, trade policies, or other factors affecting the global wood products industry.

Reconciliation of Adjusted EBITDA

References to EBITDA in this document are measures of earnings (loss) before interest and finance costs, income taxes, depreciation and amortization, while references to Adjusted EBITDA reflect EBITDA plus other non-operating costs such as impact of valuation changes on the Company's investments, loss on sale of assets and other non-operating losses. Management believes that certain lenders, investors, and analysts use EBITDA and Adjusted EBITDA as a common valuation measurement and to measure the Company’s ability to service debt and meet other payment obligations. EBITDA and Adjusted EBITDA are not intended to replace net earnings (loss), or other measures of financial performance and liquidity reported in accordance with GAAP. For more information on non-GAAP measures, please see the Company's MD&A.

Earnings Conference Call

GreenFirst will host a conference call to review the Q4 2025 financial results on Thursday, March 26, 2026 at 9:00am (Eastern). The live webcast of the earnings conference call can be accessed via web: http://momentum.adobeconnect.com/greenfirstq42025/ and via phone: (+1) 289 514 5100 or (+1) 888 886 7786. A replay of the webcast and presentation slides will be available on GreenFirst’s website following the conference call.

About GreenFirst

GreenFirst Forest Products is a forest-first business, focused on sustainable forest management and lumber production. The Company owns four sawmills located in rich wood baskets proudly operating over six million hectares of FSC® certified public Ontario forest lands (FSC®-C167905). The Company believes that responsible forest practices, coupled with the long-term green advantage of lumber, provide GreenFirst with significant cyclical and secular advantages in building products.

Forward Looking Information

Certain information in this news release constitutes forward-looking statements under applicable securities laws. Any statements that are contained in this news release that are not statements of historical fact are forward-looking statements. Forward looking statements are often identified by terms such as “may”, “should”, “anticipate”, “expect”, “potential”, “believe”, “intend”, “estimate” or the negative of these terms and similar expressions. Forward-looking statements are based on certain assumptions and, while GreenFirst considers these assumptions to be reasonable, based on information currently available, they may prove to be incorrect. In addition, forward-looking statements necessarily involve known and unknown risks, including those set out in GreenFirst’s public disclosure record filed under its profile on www.sedarplus.ca. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement and reflect our expectations as of the date hereof, and thus are subject to change thereafter. GreenFirst disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

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Contacts:

For more information, please visit: www.greenfirst.ca or contact Investor Relations (416) 775 2821

Source: GreenFirst Forest Products Inc.