Canfor's Q2 2026 Rebound: Lumber Profit Jumped, but Pulp Still Drags on the Turnaround

Canfor improved in Q2, but the turnaround still hinges on pulp

Canfor's second quarter was clearly better than the first, but it was not a clean reset.

Canfor reported adjusted operating income of $24 million in Q2, after an adjusted operating loss of $93 million in Q1. Shareholders still saw a net loss of $19 million, or $0.16 per share, and the $19 million in adjusting and one-time items added back means the headline improvement is more useful for direction than for precision.

The bigger issue is that pulp remains a drag. Lumber benefited from improved North American pricing, higher volumes, and cost improvements. Pulp, though, posted a CAD 12 million adjusted EBITDA loss as weak global pulp pricing and elevated inventories weighed on the segment. That keeps the central question intact: is this the start of a durable turnaround, or just a stronger quarter?

Lumber drove the improvement across all regions

The second-quarter rebound was broad, not a one-mill anomaly. Lumber produced CAD 145 million of EBITDA, a CAD 116 million sequential improvement. Canfor also said it delivered solid results across all lumber operating regions, which suggests the upturn was not limited to a single corner of the business.

Pricing, volumes, and costs all helped

According to the results, the lumber recovery was supported by improved North American pricing, higher volumes, cost improvements, and Europe contributing CAD 37 million of EBITDA. That mix matters because it points to a broader operating improvement rather than a rebound driven by pricing alone.

Lumber did not fully offset the pulp and paper adjusted EBITDA loss, and the closures of the Urshult and Orrefors sawmills show that this phase of the turnaround still comes with disruption. Still, the core sawtimber operation clearly put more value through in the quarter.