Interfor Reports Q2'25 Results

Adjusted EBITDA of $17 million and Net Earnings of $11 million

BURNABY, British Columbia, Aug. 07, 2025 (GLOBE NEWSWIRE) -- INTERFOR CORPORATION ("Interfor" or the "Company") (TSX:IFP) recorded net earnings in Q2'25 of $11.1 million, or $0.22 per share, compared to a net loss of $35.1 million, or $0.68 per share in Q1'25 and a net loss of $75.8 million, or $1.47 per share in Q2'24.

Adjusted EBITDA was $17.2 million on sales of $780.5 million in Q2'25 versus Adjusted EBITDA of $48.6 million on sales of $735.5 million in Q1'25 and an Adjusted EBITDA loss of $16.7 million on sales of $771.2 million in Q2'24.

Notable items:

• Robust Lumber Shipments and Reduced Inventory
  • Lumber shipments of 978 million board feet exceeded production by approximately 5%, resulting in a 37 million board foot reduction in inventory volume during the quarter.
• Lumber Pricing Volatility
  • Lumber prices were volatile on a species-by-species basis throughout the quarter. Interfor's average selling price of $684 per mfbm was down $28 per mfbm versus Q1'25, primarily due to the 3.5% strengthening of the Canadian Dollar against the U.S. Dollar quarter-over-quarter.
• Improved Financial Position
  • Net debt at quarter-end was $798.0 million, or 35.6% of invested capital compared to net debt at Q1'25 of $886.3 million, or 37.3% of invested capital.
  • The Company's financial position benefited from $84.9 million of positive operating cash flow, including a $60.5 million reduction in working capital. This reduction was due in part to seasonal factors and a focused effort to reduce log and lumber inventories.  
  • On July 25, 2025, the Company completed an early renewal and extension of its Revolving Term Line ("Term Line") with several provisions that enhance its financial flexibility. The commitment under the Term Line totals $562.5 million and the maturity was extended from December 17, 2026 to July 25, 2029. At June 30, 2025, Interfor had just over $330.0 million of available liquidity on a pro forma basis.
• Monetization of Coastal B.C. Operations
  • The Company sold Coastal B.C. forest tenures totalling approximately 81,000 cubic metres of allowable annual cut ("AAC") and related assets and liabilities for gross proceeds of $8.2 million and a gain of $8.4 million.
  • Interfor held approximately 736,000 cubic metres of AAC for disposition at June 30, 2025, subject to approvals from the Ministry of Forests.
    
    
• Capital Investments
  • Capital spending was $23.6 million, including $12.3 million of discretionary investment primarily focused on the multi-year rebuild of the Thomaston, GA sawmill.
  • Total capital expenditures for 2025 are expected to be in the range of $85.0 million to $95.0 million.
• Softwood Lumber Duties
  • On July 29, 2025, the U.S. Department of Commerce ("DoC") published the "All Others" final anti-dumping ("AD") duty rate of 20.56%, based on the results of its sixth administrative review ("AR6") covering shipments for the year ended December 31, 2023. The final "All Others" countervailing ("CV") duty rate for AR6 is expected to be published by mid-August 2025, unless the DoC extends this deadline. Based on the final AD duty rate and preliminary CV duty rate for AR6, an incremental expense of approximately US$100.0 million is expected to be recorded in the third quarter of 2025.
  • Interfor recorded $36.2 million of duties expense in the quarter. This represents the full amount of CV and AD duties incurred on shipments of softwood lumber from its Canadian operations to the U.S. at a combined rate of 14.40%, inclusive of a $12.2 million foreign exchange loss from revaluation of U.S. Dollar denominated duty deposits.
  • Interfor has paid cumulative duties of US$621.5 million, or approximately $12.06 per share on an after-tax basis, as at June 30, 2025. Except for a US$165.0 million net receivable recorded in respect of net overpayments arising from duty rate adjustments and the fair value of rights to duties acquired, Interfor has recorded the duty deposits as an expense.
• Tariffs
  • On April 2, 2025, the U.S. administration issued an executive order to impose reciprocal tariffs on all countries, however goods compliant with the United States-Mexico-Canada Agreement ("USMCA") including lumber were exempted. Effective August 1, 2025, the reciprocal tariff on Canadian goods of 25% was increased to 35%, however goods compliant with the USMCA remain exempted. At present, there are no tariffs on the Company's Canadian lumber exports to the U.S.
  • On March 1, 2025, the U.S. President issued an executive order requiring the U.S. Secretary of Commerce to conduct a Section 232 investigation to determine the effects on national security of imports of timber, lumber and their derivative products from all countries, including Canada. This investigation is expected to conclude within 270 days and aims to determine whether additional measures are necessary to protect national security, including potential tariffs, export controls such as quotas, or incentives to increase domestic production. Currently, the results and potential impacts of the Section 232 investigation are unknown.
    
    
    
    

Outlook

North American lumber markets over the near term are expected to remain volatile as the economy continues to adjust to changing monetary policies, tariffs, labour shortages and geo-political uncertainty, and as industry-wide lumber production continues to adjust to match demand.

Near-term volatility is likely to be amplified by the significantly higher duty rates on Canadian lumber exports to the U.S., and by any tariffs or other trade restrictions if imposed. Overall, the Company is well positioned to navigate this volatility with a diversified product mix in Canada and the U.S., with approximately 60% of its total lumber produced and sold within the U.S. Ultimately, only about 25% of the Company's total lumber production is exported from Canada to the U.S. and exposed to duties and any potential tariff.

Over the mid-term, Canadian lumber is expected to remain a key source of supply to meet U.S. needs, as growth in U.S. lumber manufacturing capacity will likely be limited by labour constraints, lengthy equipment lead-times, residual offtake constraints and extended project ramp-up schedules. Over the same period, the North American lumber market will continue to benefit from favourable underlying demand fundamentals, including the advanced age of the U.S. housing stock, a shortage of available housing and various demographic factors.

Interfor's strategy of maintaining a diversified portfolio of operations in multiple regions allows the Company to both reduce risk and maximize returns on capital over the business cycle. In the event of a sustained lumber market downturn, Interfor maintains flexibility to significantly reduce capital expenditures and working capital levels, and to proactively adjust its lumber production to match demand.

Financial and Operating Highlights¹  

			For the three months ended				For the six months ended
			June 30	June 30	March 31		June 30	June 30
		Unit	2025	2024	2025		2025	2024
Financial Highlights2
Total sales		$MM	780.5	771.2	735.5		1,516.0	1,584.4
Lumber		$MM	669.0	634.8	615.0		1,284.0	1,305.5
Logs, residual products and other		$MM	111.5	136.4	120.5		232.0	278.9
Operating earnings (loss)		$MM	(28.4)	(63.3)	0.1		(28.3)	(144.2)
Net earnings (loss)		$MM	11.1	(75.8)	(35.1)		(24.0)	(148.7)
Net earnings (loss) per share, basic		$/share	0.22	(1.47)	(0.68)		(0.47)	(2.89)
Adjusted EBITDA3		$MM	17.2	(16.7)	48.6		65.8	(39.0)
Adjusted EBITDA margin3		%	2.2%	(2.2%)	6.6%		4.3%	(2.5%)
Total assets		$MM	2,892.9	3,300.0	3,042.9		2,892.9	3,300.0
Total debt		$MM	814.3	970.0	901.9		814.3	970.0
Net debt3		$MM	798.0	876.9	886.3		798.0	876.9
Net debt to invested capital3		%	35.6%	35.0%	37.3%		35.6%	35.0%
Annualized return on capital employed3		%	1.5%	(11.1%)	(3.1%)		(0.9%)	(10.2%)
Operating Highlights
Lumber production		million fbm	935	1,034	901		1,836	2,104
U.S. South		million fbm	424	476	402		826	956
U.S. Northwest		million fbm	129	124	124		253	265
Eastern Canada		million fbm	215	276	194		409	565
B.C.		million fbm	167	158	181		348	318
Lumber sales		million fbm	978	1,055	863		1,841	2,155
Lumber - average selling price4		$/thousand fbm	684	602	712		697	606
Key Statistics
Benchmark lumber prices5
SYP Composite		US$ per mfbm	420	356	407		413	370
KD H-F Stud 2x4 9'		US$ per mfbm	475	424	471		473	440
Eastern SPF Composite		US$ per mfbm	527	469	536		532	479
Western SPF Composite		US$ per mfbm	441	385	484		462	401
USD/CAD exchange rate6
Average		1 USD in CAD	1.3852	1.3683	1.4352		1.4098	1.3586
Closing		1 USD in CAD	1.3676	1.3687	1.4307		1.3676	1.3687
Notes:
1	Figures in this table may not equal or sum to figures presented elsewhere due to rounding.
2	Financial information presented for interim periods in this release is prepared in accordance with IFRS Accounting Standards ("IFRS") and is unaudited.
3	Refer to the Non-GAAP Measures section of this release for definitions and reconciliations of these measures to figures reported in the Company's unaudited condensed consolidated interim financial statements.
4	Gross sales including duties and freight.
5	Based on Random Lengths Benchmark Lumber Pricing.
6	Based on Bank of Canada foreign exchange rates.

Liquidity

Balance Sheet

Interfor's net debt at June 30, 2025 was $798.0 million, or 35.6% of invested capital, representing a decrease of $63.3 million from December 31, 2024.

As at June 30, 2025, the Company had net working capital of $130.4 million and available liquidity of $369.7 million, based on the available borrowing capacity under its $600.0 million Term Line.

The Term Line and Senior Secured Notes are subject to financial covenants, including a maximum net debt to total capitalization ratio of 50.0% and a minimum EBITDA interest coverage ratio of two times, which becomes effective if the net debt to total capitalization ratio exceeds certain thresholds. As at June 30, 2025, Interfor was fully in compliance with all covenants relating to the Term Line and Senior Secured Notes.

Management believes, based on circumstances known today, that Interfor has sufficient working capital and liquidity to fund operating and capital requirements for the foreseeable future.

	For the three months ended June 30,			For the six months ended June 30,
Millions of Dollars	2025	2024		2025	2024
Net debt
Net debt, period opening	$886.3	$897.4		$861.3	$842.7
Additions to Senior Secured Notes	-	-		-	45.3
Repayments of Senior Secured Notes	-	-		(47.7)	(45.3)
Term Line net drawings (repayments)	(48.7)	(20.5)		1.4	40.4
Decrease (increase) in cash and cash equivalents	(1.8)	(9.1)		25.7	(36.7)
Foreign currency translation impact on U.S. Dollar denominated cash and cash equivalents and debt	(37.8)	9.1		(42.7)	30.5
Net debt, period ending	$798.0	$876.9		$798.0	$876.9

On March 26, 2025, the Company paid US$33.3 million of principal that was due on the Company's existing Series C Senior Secured Notes.

On March 26, 2024, the Company issued US$33.3 million of Series I Senior Secured Notes, bearing interest at 6.37% with principal repayment due at final maturity on March 26, 2030. The proceeds were used to settle US$33.3 million of principal under the Company's existing Series C Senior Secured Notes due on March 26, 2024.

Capital Resources

The following table summarizes Interfor's credit facilities and availability as of June 30, 2025:

	Revolving	Senior
	Term	Secured
Millions of Dollars	Line	Notes	Total
Available line of credit and maximum borrowing available	$600.0	$616.0	$1,216.0
Less:
Drawings	198.3	616.0	814.3
Outstanding letters of credit included in line utilization	48.3	-	48.3
Unused portion of facility	$353.4	$       -	353.4
Add:
Cash and cash equivalents			16.3
Available liquidity at June 30, 2025			$369.7

Interfor's Senior Secured Notes have maturities in the years 2026-2033.

On July 25, 2025, the Company completed an early renewal and extension of its Term Line at a committed facility size of $562.5 million and extended the maturity from December 17, 2026 to July 25, 2029.

As of June 30, 2025, the Company had commitments for capital expenditures totalling $55.8 million for both maintenance and discretionary capital projects.

Non-GAAP Measures

This MD&A makes reference to the following non-GAAP measures: Adjusted EBITDA, Adjusted EBITDA margin, Net debt to invested capital and Annualized return on capital employed which are used by the Company and certain investors to evaluate operating performance and financial position. These non-GAAP measures do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers.

The following table provides a reconciliation of these non-GAAP measures to figures as reported in the Company's audited consolidated financial statements (unaudited for interim periods) prepared in accordance with IFRS:

		For the three months ended			For the six months ended
		June 30	June 30	March 31	June 30	June 30
Millions of Dollars except number of shares and per share amounts1		2025	2024	2025	2025	2024
Adjusted EBITDA
Net earnings (loss)		$11.1	$(75.8)	$(35.1)	$(24.0)	$(148.7)
Add:
Depreciation of plant and equipment		38.3	46.7	40.0	78.3	93.4
Depletion and amortization of timber, roads and other		8.3	11.4	8.3	16.6	22.3
Finance costs		10.3	11.8	11.0	21.3	23.7
Income tax expense (recovery)		(11.0)	(22.3)	1.9	(9.1)	(33.1)
EBITDA		57.0	(28.2)	26.1	83.1	(42.4)
Add:
Long-term incentive compensation expense (recovery)		(1.1)	(2.4)	0.1	(1.0)	(4.1)
Other foreign exchange loss (gain)		(31.3)	6.2	(4.1)	(35.4)	22.8
Other expense (income)		(7.5)	16.8	26.4	18.9	(8.9)
Asset write-downs (recoveries) and restructuring costs		0.1	(9.1)	0.1	0.2	(6.4)
Adjusted EBITDA		$17.2	$(16.7)	$48.6	$65.8	$(39.0)
Sales		$780.5	$771.2	$735.5	$1,516.0	$1,584.4
Adjusted EBITDA margin		2.2%	(2.2%)	6.6%	4.3%	(2.5%)
Net debt to invested capital
Net debt
Total debt		$814.3	$970.0	$901.9	$814.3	$970.0
Cash and cash equivalents		(16.3)	(93.1)	(15.6)	(16.3)	(93.1)
Total net debt		$798.0	$876.9	$886.3	$798.0	$876.9
Invested capital
Net debt		$798.0	$876.9	$886.3	$798.0	$876.9
Shareholders' equity		1,445.3	1,626.1	1,490.1	1,445.3	1,626.1
Total invested capital		$2,243.3	$2,503.0	$2,376.4	$2,243.3	$2,503.0
Net debt to invested capital2		35.6%	35.0%	37.3%	35.6%	35.0%
Annualized return on capital employed
Net earnings (loss)		$11.1	$(75.8)	$(35.1)	$(24.0)	$(148.7)
Add:
Finance costs		10.3	11.8	11.0	21.3	23.7
Income tax expense (recovery)		(11.0)	(22.3)	1.9	(9.1)	(33.1)
Earnings (loss) before income taxes and finance costs		$10.4	$(86.3)	$(22.2)	$(11.8)	$(158.1)
Capital employed
Total assets		$2,892.9	$3,300.0	$3,042.9	$2,892.9	$3,300.0
Current liabilities		(320.2)	(307.4)	(314.7)	(320.2)	(307.4)
Less:
Current portion of long-term debt		45.6	45.6	47.7	45.6	45.6
Current portion of lease liabilities		18.2	21.7	19.4	18.2	21.7
Capital employed, end of period		$2,636.5	$3,059.9	$2,795.3	$2,636.5	$3,059.9
Capital employed, beginning of period		2,795.3	3,154.0	2,844.8	2,844.8	3,120.8
Average capital employed		$2,715.9	$3,107.0	$2,820.1	$2,740.7	$3,090.4
Earnings (loss) before income taxes and finance costs divided by average capital employed		0.4%	(2.8%)	(0.8%)	(0.4%)	(5.1%)
Annualization factor		4.0	4.0	4.0	2.0	2.0
Annualized return on capital employed		1.5%	(11.1%)	(3.1%)	(0.9%)	(10.2%)
Notes:
1	Figures in this table may not equal or sum to figures presented elsewhere due to rounding.
2	Net debt to invested capital as of the period end.

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
For the three and six months ended June 30, 2025 and 2024 (unaudited)
(millions of Canadian Dollars except per share amounts)	Three Months	Three Months	Six Months	Six Months
	June 30, 2025	June 30, 2024	June 30, 2025	June 30, 2024
Sales	$780.5	$771.2	$1,516.0	$1,584.4
Costs and expenses:
Production	710.4	763.5	1,358.5	1,571.7
Selling and administration	16.7	13.6	33.2	33.4
Long-term incentive compensation recovery	(1.1)	(2.4)	(1.0)	(4.1)
U.S. countervailing and anti-dumping duty deposits	36.2	10.8	58.5	18.3
Depreciation of plant and equipment	38.3	46.7	78.3	93.4
Depletion and amortization of timber, roads and other	8.3	11.4	16.6	22.3
	808.8	843.6	1,544.1	1,735.0
Operating loss before asset write-downs (recoveries) and
restructuring costs	(28.3)	(72.4)	(28.1)	(150.6)
Asset write-downs (recoveries) and restructuring costs	0.1	(9.1)	0.2	(6.4)
Operating loss	(28.4)	(63.3)	(28.3)	(144.2)
Finance costs	(10.3)	(11.8)	(21.3)	(23.7)
Other foreign exchange gain (loss)	31.3	(6.2)	35.4	(22.8)
Other income (expense)	7.5	(16.8)	(18.9)	8.9
	28.5	(34.8)	(4.8)	(37.6)
Earnings (loss) before income taxes	0.1	(98.1)	(33.1)	(181.8)
Income tax expense (recovery):
Current	4.8	(3.6)	11.4	(1.0)
Deferred	(15.8)	(18.7)	(20.5)	(32.1)
	(11.0)	(22.3)	(9.1)	(33.1)
Net earnings (loss)	$11.1	$(75.8)	$(24.0)	$(148.7)
Net earnings (loss) per share
Basic	$0.22	$(1.47)	$(0.47)	$(2.89)
Diluted	$0.22	$(1.47)	$(0.47)	$(2.89)

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the three and six months ended June 30, 2025 and 2024 (unaudited)
(millions of Canadian Dollars)	Three Months	Three Months	Six Months	Six Months
	June 30, 2025	June 30, 2024	June 30, 2025	June 30, 2024
Net earnings (loss)	$11.1	$(75.8)	$(24.0)	$(148.7)
Other comprehensive income (loss):
Items that will not be recycled to Net earnings (loss):
Defined benefit plan actuarial gain (loss), net of tax	-	0.4	(0.1)	3.0
Items that may be recycled to Net earnings (loss):
Foreign currency translation differences for foreign operations,
net of tax	(55.9)	11.6	(63.1)	41.1
Total other comprehensive income (loss), net of tax	(55.9)	12.0	(63.2)	44.1
Comprehensive loss	$(44.8)	$(63.8)	$(87.2)	$(104.6)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three and six months ended June 30, 2025 and 2024 (unaudited)
(millions of Canadian Dollars)	Three Months	Three Months	Six Months	Six Months
	June 30, 2025	June 30, 2024	June 30, 2025	June 30, 2024
Cash provided by (used in):
Operating activities:
Net earnings (loss)	$11.1	$(75.8)	$(24.0)	$(148.7)
Items not involving cash:
Depreciation of plant and equipment	38.3	46.7	78.3	93.4
Depletion and amortization of timber, roads and other	8.3	11.4	16.6	22.3
Deferred income tax recovery	(15.8)	(18.7)	(20.5)	(32.1)
Current income tax expense (recovery)	4.8	(3.6)	11.4	(1.0)
Finance costs	10.3	11.8	21.3	23.7
Other assets	0.2	-	0.1	(0.4)
Reforestation liability	(4.0)	(2.6)	(0.5)	0.5
Provisions and other liabilities	(1.6)	(3.2)	(2.8)	(4.4)
Stock option vesting	-	0.2	-	0.3
Net write-down (recovery) of plant, equipment, roads and other	-	(10.0)	0.1	(8.9)
Unrealized foreign exchange loss (gain)	(19.0)	3.8	(21.5)	14.5
Gain on lease modification	(0.2)	(0.7)	(0.2)	(0.7)
Other expense (income)	(7.5)	16.8	18.9	(8.9)
Income taxes received (paid), net	(0.5)	(0.1)	(12.4)	1.5
	24.4	(24.0)	64.8	(48.9)
Cash generated from (used in) operating working capital:
Trade accounts receivable and other	17.6	35.2	(22.4)	37.0
Inventories	45.3	56.4	1.7	68.2
Prepayments	(13.1)	(8.2)	(6.4)	(4.7)
Trade accounts payable and provisions	10.7	(11.4)	34.0	(20.2)
	84.9	48.0	71.7	31.4
Investing activities:
Additions to property, plant and equipment	(22.2)	(16.0)	(38.0)	(42.5)
Additions to roads and bridges	(1.4)	(1.9)	(2.8)	(1.4)
Proceeds on disposal of property, plant, equipment and other	0.5	21.0	16.2	22.1
Net proceeds (payments) related to B.C. Coast monetization	6.1	(2.1)	9.4	26.9
Net proceeds from deposits and other assets	1.2	1.6	2.2	0.6
	(15.8)	2.6	(13.0)	5.7
Financing activities:
Interest payments	(12.9)	(15.2)	(26.6)	(29.1)
Lease liability payments	(5.7)	(5.8)	(11.5)	(11.7)
Revolving Term Line net drawings (repayments)	(48.7)	(20.5)	1.4	40.4
Additions to Senior Secured Notes	-	-	-	45.3
Repayments of Senior Secured Notes	-	-	(47.7)	(45.3)
	(67.3)	(41.5)	(84.4)	(0.4)
Foreign exchange gain (loss) on cash and cash equivalents held in a foreign
currency	(1.1)	0.7	(1.4)	1.4
Increase (decrease) in cash	0.7	9.8	(27.1)	38.1
Cash and cash equivalents, beginning of period	15.6	83.3	43.4	55.0
Cash and cash equivalents, end of period	$16.3	$93.1	$16.3	$93.1

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
June 30, 2025 and December 31, 2024 (unaudited)
(millions of Canadian Dollars)	June 30, 2025	Dec. 31, 2024
Assets
Current assets:
Cash and cash equivalents	$16.3	$43.4
Trade accounts receivable and other	128.1	109.5
Inventories	278.2	283.5
Prepayments	28.0	21.9
Assets held for sale	-	18.4
	450.6	476.7
Employee future benefits	14.8	16.8
Deposits and other assets	291.5	304.4
Right of use assets	40.5	44.8
Property, plant and equipment	1,376.1	1,465.7
Roads and bridges	22.2	21.3
Timber licences	155.9	158.9
Goodwill and other intangible assets	539.5	589.2
Deferred income taxes	1.8	0.9
	$2,892.9	$3,078.7
Liabilities and Shareholders' Equity
Current liabilities:
Trade accounts payable and provisions	$230.0	$203.1
Current portion of long-term debt	45.6	48.0
Reforestation liability	14.7	16.5
Lease liabilities	18.2	20.3
Income taxes payable	11.7	12.9
Liabilities held for sale	-	1.4
	320.2	302.2
Reforestation liability	29.1	27.8
Lease liabilities	23.2	25.8
Long-term debt	768.7	856.7
Employee future benefits	11.8	11.8
Provisions and other liabilities	13.8	16.8
Deferred income taxes	280.8	305.1
Equity:
Share capital	409.0	409.0
Contributed surplus	6.6	6.6
Translation reserve	183.8	246.9
Retained earnings	845.9	870.0
	1,445.3	1,532.5
	$2,892.9	$3,078.7

Approved on behalf of the Board of Directors:
"L. Sauder" Director		"T.V. Milroy"  Director

FORWARD-LOOKING STATEMENTS

This release contains forward-looking information about the Company's business outlook, objectives, plans, strategic priorities and other information that is not historical fact. A statement contains forward-looking information when the Company uses what it knows and expects today, to make a statement about the future. Statements containing forward-looking information may include words such as: will, could, should, believe, expect, anticipate, intend, forecast, projection, target, outlook, opportunity, risk, plan or strategy. Readers are cautioned that actual results may vary from the forward-looking information in this release, and undue reliance should not be placed on such forward-looking information. Risk factors that could cause actual results to differ materially from the forward-looking information in this release are described in Interfor's second quarter and annual Management's Discussion and Analysis under the heading "Risks and Uncertainties", which are available on www.interfor.com and under Interfor's profile on www.sedarplus.ca. Material factors and assumptions used to develop the forward-looking information in this release include the timing and value of proceeds received from the disposition of Coastal B.C. forest tenures; impact of tariffs on Canadian lumber imports to the U.S.; availability and cost of logs; competition; currency exchange sensitivity; environment; government regulation; health and safety; Indigenous reconciliation; information technology and cyber security; labour availability; logistics availability and cost; natural and man-made disasters and climate change; price volatility; residual fibre revenue; softwood lumber trade; and tax exposures. Unless otherwise indicated, the forward-looking statements in this release are based on the Company's expectations at the date of this release. Interfor undertakes no obligation to update such forward-looking information or statements, except as required by law.

ABOUT INTERFOR

Interfor is a growth-oriented forest products company with operations in Canada and the United States. The Company has annual lumber production capacity of approximately 4.7 billion board feet and offers a diverse line of lumber products to customers around the world. For more information about Interfor, visit our website at www.interfor.com.

The Company's unaudited condensed consolidated interim financial statements and Management's Discussion and Analysis for Q2'25 are available at www.sedarplus.ca and www.interfor.com.

There will be a conference call on Friday, August 8, 2025 at 8:00 a.m. (Pacific Time) hosted by INTERFOR CORPORATION for the purpose of reviewing the Company's release of its second quarter 2025 financial results.

The dial-in number is 1-888-510-2154 or webcast URL: https://app.webinar.net/8zYQ5mM5oAK. The conference call will also be recorded for those unable to join in for the live discussion and will be available until September 8, 2025. The number to call is 1-888-660-6345, Passcode 13226#.

For further information:

Richard Pozzebon, Executive Vice President and Chief Financial Officer

(604) 422-3400