GreenFirst Reports Financial Results for the Second Quarter of 2026 and CEO Transition Plan

NORTH BAY, Ontario--(BUSINESS WIRE)--GreenFirst Forest Products Inc. (TSX: GFP) (“GreenFirst” or the “Company”) announced results for the second quarter and two quarters ended June 27, 2026. The Company’s unaudited condensed consolidated financial statements ("Financial Statements") and related Management's Discussion and Analysis ("MD&A") for the second quarter and two quarters ended June 27, 2026 are available on GreenFirst’s website at www.greenfirst.ca and on SEDAR+ at www.sedarplus.ca. Highlights Q2 2026 net income was $5.5 million or $0.24 earning per share (diluted), compared to net loss of $20.7 million or $0.89 loss per share (diluted) in Q1 2026. Adjusted EBITDA for Q2 2026 was positive $11.8 million compared to negative $15.1 million in Q1 2026. Average realized lumber prices increased to $764/mfbm in Q2 2026, compared to $666/mfbm in Q1 2026, reflecting stronger benchmark lumber markets and improved pricing conditions during the quarter. GreenFirst announces the resignation of CEO, Joel Fournier effective October 31, 2026. GreenFirst Reported Positive EBITDA of $11.8 Million and Net Earnings of $5.5 Million “The second quarter represents an important step forward for GreenFirst. We delivered positive EBITDA and earnings while significantly increasing sales volumes and lowering manufacturing costs. These results reflect increases in our realized average selling price to $764/mfbm as a result of improved market conditions and improved lumber grade mix. At the same time, total manufacturing costs improved by 10% compared with the previous quarter, reflecting increased production volumes and stronger operational performance across our operations, particularly the ongoing optimization of the Chapleau large log line. Additionally, the quarter also benefitted from significant inventory valuation reversal reflecting stronger lumber prices, lower inventory levels and more favorable inventory mix consisting of a higher proportion of premium products at quarter-end. Looking ahead, our priorities remain clear: continue improving operational reliability, lower manufacturing costs through increased production and productivity, strengthen free cash flow, and position GreenFirst to generate sustainable earnings throughout the lumber cycle,” said Joel Fournier, CEO of GreenFirst. Financial Highlights The following selected financial information is from the Company’s financial statements and MD&A: (In thousands of CAD, except per share amounts) June 27, March 28, June 28, For the quarter ended 2026 2026 2025 Net sales(2) $ 96,099 $ 60,621 $ 84,538 Operating income (loss) 7,917 (18,999 ) (8,828 ) Net income (loss) 5,503 (20,678 ) (9,593 ) Basic earnings (loss) per share 0.24 (0.89 ) (0.42 ) Diluted earnings (loss) per share 0.24 (0.89 ) (0.41 ) Adjusted EBITDA(1) $ 11,791 $ (15,140 ) $ (5,161 ) (In thousands of CAD) June 27, December 31, As at 2026 2025 Total assets $ 209,638 $ 189,825 Total liabilities 163,514 129,204 Total shareholders' equity $ 46,124 $ 60,621 1Adjusted EBITDA is a Non‐GAAP measure and does not have standardized meaning under GAAP or IFRS. As a result, it may not be comparable to information presented by other companies. For an explanation and reconciliation of Adjusted EBITDA to related comparable financial information presented in the Financial Statements prepared in accordance with IFRS, refer to the Non-GAAP Measures section in the Company's MD&A. 2Includes net sales to external parties. Net sales were $96.1 million in Q2 2026, an increase of approximately 59% compared to Q1 2026. The increase in net sales was primarily driven by higher shipments and higher realized pricing during the quarter, despite continued pressure from elevated duties and tariffs applicable to Canadian softwood lumber exports. The increase in realized pricing reflects stronger market conditions during the quarter, due to tighter North American supply resulting from production curtailments and mill closures, combined with lean channel inventories and stable underlying demand. Cost of sales were $62.1 million in Q2 2026, a decrease of approximately 1% compared to Q1 2026. Cost of sales remained relatively consistent despite a significant increase in shipment volumes, primarily due to a $16.2 million reversal of the net realizable value inventory provision, compared to a $1.8 million provision recorded in the first quarter of 2026. The reversal reflected stronger lumber prices, lower inventory levels and more favorable inventory mix at quarter-end. At Chapleau, the Company continued commissioning and optimization activities associated with the new large log line with production levels improving during the quarter. Other Expenses Duties and tariffs expense of $21.1 million in the second quarter of 2026 was higher than the first quarter of 2026 of $12.1 million. The increase primarily reflected higher shipment volumes and higher lumber selling prices during the quarter. The Company was subject to a combined duty rate of 35.16%, which increased to 45.16% effective October 14, 2025 following the implementation of Section 232 tariffs. SG&A expenses were $4.3 million in the second quarter of 2026 which remained relatively flat to the first quarter of 2026 of $4.4 million. Liquidity and Borrowings At June 27, 2026, the Company had $2.8 million in cash on hand (December 31, 2025 - $3.5 million). In addition, the Company had 24.4 million of excess availability under the revolving credit facility (net of $24.0 million drawn and $3.9 million for standby letters of credit) compared to $23.1 million as at December 31, 2025 (net of $18.0 million drawn and $3.9 million for standby letters of credit). The Company also had access to $15.6 million under its equipment financing agreement (December 31, 2025 - $14.1 million) of which $9.4 million was drawn as at June 27, 2026 (December 31, 2025 - $10.9 million). OutlookRead the full story here

GreenFirst Reports Financial Results for the Second Quarter of 2026 and CEO Transition Plan

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