Canfor Corporation reported improved financial performance in the first quarter of 2026, posting an operating loss of US$73 million, compared to a loss of US$415.9 million recorded in the fourth quarter of 2025.
According to the company, the improved result was driven by tighter supply conditions, higher production volumes and modest price increases across both its lumber and pulp and paper segments. On an adjusted basis, the operating loss totaled US$92.5 million, compared to US$145 million in the previous quarter.
Susan Yurkovich, the company’s president and chief executive officer, stated that despite the improvement in results, global demand remained relatively subdued during the period.
In the lumber segment, losses narrowed to US$43.7 million, supported by stronger North American benchmark prices and increased production of Southern Yellow Pine and Western SPF. However, lower shipment volumes across several regions, particularly in Europe, along with foreign exchange impacts and ongoing trade pressures, limited further recovery.
Canfor also noted that geopolitical uncertainty continued to affect market conditions. According to the company, the conflict in Iran contributed to higher freight costs, disruptions in trade flows and lower buyer confidence, further weakening already fragile demand conditions.
In the pulp and paper segment, the operating loss decreased to US$16.2 million, compared to US$85.6 million in the previous quarter. The improvement was supported by a 30% increase in shipments and modest pricing gains, although the global softwood pulp market remained under pressure due to elevated inventory levels.
During the quarter, the company also completed the acquisition of the remaining shares of Canfor Pulp Products Inc., securing full ownership of the business.
Looking ahead to the second quarter, Canfor said volatility is expected to continue affecting global markets. While recent price improvements provided short-term support, the company anticipates softer lumber demand in North America amid increasing supply, macroeconomic uncertainty and ongoing geopolitical and trade-related pressures.
