Canfor Pulp reports Q2 2025 loss amid global market uncertainty

Canfor Pulp Products Inc. (CPPI) released its financial results for the second quarter of 2025 on Thursday, July 31, reporting a $5 million operating loss and a net loss of $7 million, or $0.10 per share.

The quarter was marked by weakened global pulp market fundamentals, with persistent trade uncertainty in China pushing global inventories well above balanced levels. North American kraft paper markets also felt the impact of economic pressure, while a 4% appreciation of the Canadian dollar against the U.S. dollar negatively affected sales.

Commenting on the Company’s second quarter results, Canfor’s President and Chief Executive Officer, Susan Yurkovich, stated: “While our European operations produced solid earnings this quarter, the North American market continued to experience significant challenges reflecting the impact of sluggish demand and a persistent weak pricing environment. During the second quarter, we made the difficult decision to permanently close our Estill and Darlington sawmills in South Carolina following an extended period of sustained financial losses. With punitive US softwood lumber duties combining with ongoing global economic and trade uncertainty, we remain focused on what we can control and will continue to leverage our globally diversified operating platform to combat these headwinds.”

“For our pulp business” Yurkovich added, “our second quarter results were impacted by trade policy uncertainty between China and the US, which slowed pulp purchasing activity and gave rise to climbing pulp producer inventory levels and a declining US-dollar pulp pricing environment. We anticipate that these challenging conditions will persist well into the third quarter. Consistent with our approach in the lumber business, we are maintaining our focus on safety, reliability, productivity and disciplined cost management.”