GreenFirst Reports Financial Results for the Third Quarter of 2026

TORONTO--(BUSINESS WIRE)--GreenFirst Forest Products Inc. (TSX: GFP) (“GreenFirst” or the “Company”) announced results for the third quarter and three quarters ended September 26, 2026. The Company’s unaudited condensed consolidated financial statements ("Financial Statements") and related Management's Discussion and Analysis ("MD&A") for the third quarter and three quarters ended September 26, 2026 are available on GreenFirst’s website at www.greenfirst.ca and on SEDAR+ at www.sedarplus.ca. Highlights Q3 2026 net loss was $7.0 million or $0.30 loss per share (diluted), compared to net income of $5.5 million or $0.24 earnings per share (diluted) in Q2 2026. Adjusted EBITDA for Q3 2026 was negative $1.3 million compared to positive $11.8 million in Q2 2026. Average realized lumber prices increased to $850/mfbm in Q3 2026, compared to $765/mfbm in Q2 2026, reflecting tighter North American supply driven by production curtailments and mill closures, combined with lean channel inventories and stable underlying demand for the first half of the quarter. On October 19, 2026, the US DOC released the final results of the Seventh Administrative Review with respect to imports of softwood lumber products from Canada for the 2024 period of inquiry. The final duty rate of 24.75% was higher that the Company’s prior assessment for 2024 of 10.41%. The Company has estimated a duties liability of $25.7 million ($US18.2 million), plus accrued interest of $4.5 million ($US3.2 million). The Company expects to record the estimated additional duties expense and related accrued interest in the consolidated statement of loss and comprehensive loss during the fourth fiscal quarter of 2026. The board of directors will cease to receive cash compensation moving forward. GreenFirst Reports Q3 2026 Results Amid Challenging Market Conditions “The third quarter reflected the continued challenges facing the Canadian lumber industry, with weaker demand, volatile lumber prices and significant U.S. duties and tariffs putting pressure on our financial results. While overall results remained below expectations, we continued to advance key operational initiatives, particularly through the ongoing optimization of our Chapleau large log line. At the same time, recently announced additional federal support programs may provide opportunities to support future investments in mill modernization, improve competitiveness and explore new value-added uses for our wood fibre and residuals. We will continue to evaluate these opportunities in the context of our operational priorities and financial capacity as we work to strengthen GreenFirst’s long-term performance,” said Michel Lessard, President and Acting Chief Executive Officer 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) September 26, June 27, September 27, For the quarter ended 2026 2026 2025 Net sales $ 87,646 $ 96,099 $ 70,230 Operating income (loss) (4,302 ) 7,917 (50,905 ) Net income (loss) (7,032 ) 5,503 (57,383 ) Basic earnings (loss) per share (0.30 ) 0.24 (2.54 ) Diluted earnings (loss) per share (0.30 ) 0.24 (2.54 ) Adjusted EBITDA(1)(2) $ (1,269 ) $ 11,791 $ (47,193 ) (In thousands of CAD) September 26, December 31, As at 2026 2025 Total assets $ 212,073 $ 189,825 Total liabilities 172,666 129,204 Total shareholders' equity $ 39,407 $ 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. 2Non-GAAP Adjusted EBITDA before the duties expenses related to the US DOC's Sixth Administrative Review AR6 ("AR6") for the third quarter and three quarters ended September 26, 2026 was negative $1.3 million and negative $4.6 million respectively, compared to negative $13.4 million and negative $13.5 million respectively, for the third quarter and three quarters ended September 27, 2025. Net sales were $87.6 million in Q3 2026, a decrease of approximately 9% compared to Q2 2026. The decrease in net sales was primarily driven by lower shipments offset by higher realized pricing during the quarter, as a result of continued pressure from elevated duties and tariffs applicable to Canadian softwood lumber exports. Cost of sales were $68.4 million in Q3 2026, an increase of approximately 10% compared to Q2 2026. Cost of sales increased despite a significant decrease in shipment volumes, primarily due to a $1.0 million reversal of the net realizable value inventory provision, compared to a $16.2 million reversal recorded in the second quarter of 2026. The $15.2 million difference more than offset the favourable impact of lower shipment volumes on cost of sales. The current quarter reversal reflected stronger lumber prices and a more favorable inventory mix at quarter end. Other Expenses Duties and tariffs expense of $19.9 million in the third quarter of 2026 was lower than the second quarter of 2026 of $21.1 million. The decrease primarily reflected lower shipment volumes, partially offset by higher lumber selling prices. During the third quarter of 2026, the Company was subject to a combined ADD and CVD rate of 35.16%, plus a 10.0% tariff under Section 232, resulting in a combined rate of 45.16%. SG&A expenses were $3.7 million in the third quarter of 2026, a decrease of approximately 14% compared to Q2 2026. The decrease primarily reflected reduced corporate, administrative and IT-related costs during the period. Liquidity and Borrowings At September 26, 2026, the Company had $3.1 million in cash on hand (December 31, 2025 - $3.5 million). In addition, the Company had $12.9 million of excess availability under the revolving credit facility (net of $35.5 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 $16.2 million under its equipment financing agreement (December 31, 2025 - $14.1 million) and $8.8 million drawn as at September 26, 2026 (December 31, 2025 - $10.9 million). The Company continues to actively manage working capital, capital expenditures and available borrowing capacity to support operations, fund priority capital expenditures and preserve liquidity. OutlookRead the full story here

GreenFirst Reports Financial Results for the Third Quarter of 2026

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