Conifex narrows loss to $7.9 million in third quarter
Key Facts
Conifex Timber reported third-quarter 2026 results on November 11, posting a net loss of $7.9 million, or $0.19 per share, according to the company’s statement. The loss narrowed from $9.5 million, or $0.23 per share, in the second quarter and from $16.6 million, or $0.41 per share, in the third quarter of 2025. The EBITDA loss narrowed to $5.7 million, compared with a loss of $6.3 million in the previous quarter and $16.6 million a year earlier. The comparison shows an improvement in the accounting loss on both a quarterly and annual basis. But the results came as the company recorded no lumber production during the quarter, placing the narrower losses alongside the continued shutdown of its core activity.
The Mackenzie sawmill produced no lumber during the third quarter, compared with 14.1 million board feet in the second quarter and 38.5 million in the corresponding period of 2025. The shutdown was reflected in lumber product revenue, which was zero, compared with $19 million in the previous quarter and $26.4 million a year earlier. Revenue from by-products and other sources was $0.6 million, down from $1.2 million in the second quarter and $4.9 million in the third quarter of 2025. Power plant operations resumed on November 10, the company said. Conifex expects Mackenzie sawmill operations to resume around December 2026, subject to the availability of start-up conditions, including financing and an adequate log inventory.
Available liquidity was $7.4 million on September 30, 2026, up from $1.3 million on June 30 and $1.7 million on September 30, 2025. The company said $10.2 million remained undrawn under the LETL loan, but was subject to the fulfillment of drawdown conditions. Over the same period, net operating cash outflow after working capital adjustments was $8.8 million for the three months ended September 30. Total debt rose to about $122.5 million at the end of September, from $101.8 million at the end of June and $82.6 million a year earlier. The company said its cash flow forecast indicates that liquidity will not be sufficient to fund operations beyond December 2026 if it does not receive the remaining financing or obtain other financing.
On trade duties, the seventh administrative review lowered the combined antidumping and countervailing duty cash deposit rate on the company’s shipments to 24.75% from 35.16%, for shipments entered on or after October 19, 2026. The company said the 10% tariff on Canadian lumber exported to the United States remained in place. As a result of the review’s final rates, Conifex expects to record a non-cash export duty expense of about C$8.1 million, along with accrued interest of C$1.3 million, in the fourth quarter. On the market, it said conditions for Canadian softwood lumber producers could remain challenging through the end of 2026 and into 2027 amid economic uncertainty, volatility in U.S. housing demand and trade. It added that lumber prices fell during the third quarter.
Conifex scheduled a call to discuss its third-quarter results on November 11, 2026, at 9 a.m. Pacific time and noon Eastern time, according to its announcement. The call follows the results announcement and the resumption of power plant operations the previous day. The December resumption of the sawmill remains an approximate date tied to the availability of financing and the logs needed for operations. The company also said continued operations beyond December require it to obtain the remaining financing or arrange other financing. The available evidence did not include reliable confirmation that the stock rose 19% in the November 11 session or that a reduction in losses caused the share move.