Canfor Corporation reported an improved first-quarter 2026 performance, with an operating loss of $73 million, a sharp improvement from the $415.9 million loss recorded in Q4 2025. The better result was driven by tighter supply conditions, higher production volumes, and modest price gains across both its lumber and pulp segments. On an adjusted basis, the operating loss stood at $92.5 million, compared to $145 million in the prior quarter. 

 

“While we saw an improvement in results… demand remained relatively subdued,” said President and CEO Susan Yurkovich.

 

The lumber segment saw a significant reduction in losses to $43.7 million, supported by stronger North American benchmark pricing and increased output of Southern Yellow Pine and Western SPF. However, weaker shipments across regions—particularly in Europe—along with currency impacts and continued trade pressures limited the upside. 

 

Geopolitical uncertainty also weighed on market conditions. Canfor highlighted that the conflict in Iran contributed to higher freight costs, disrupted trade flows, and reduced buyer confidence, further compounding already fragile demand conditions. 

 

The company noted that:“Geopolitical uncertainty, particularly stemming from the conflict in Iran, further dampened already weak demand late in the current quarter.” 

 

In the pulp and paper segment, losses narrowed to $16.2 million, compared to $85.6 million in the previous quarter. The improvement was supported by a 30% increase in shipments and modest pricing gains, although global softwood pulp markets remained under pressure with inventories still elevated. 
 

During the quarter, Canfor also completed the acquisition of the remaining shares of Canfor Pulp Products Inc., securing full ownership of the business. 
 

Looking ahead, the company expects continued volatility in global markets. While recent price improvements provided short-term support, Canfor anticipates softer North American lumber demand in Q2 as supply increases and macroeconomic uncertainty persists, alongside ongoing geopolitical and trade-related headwinds.