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Acadian Timber (TSE:ADN)
TSX:ADN
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Acadian Timber
(TSX:ADN)
Rating:68Neutral
Price Target:
C$19.50
▲(9.24% Upside)
Acadian Timber (ADN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$323.50M
Dividend Yield8.29%
Average Volume (3M)8.27K
Price to Earnings (P/E)22.4
Beta (1Y)0.44
Revenue Growth-26.79%
EPS Growth-57.05%
CountryCA
Employees195
SectorBasic Materials
Sector Strength66
IndustryPaper, Lumber & Forest Products
Share Statistics
EPS (TTM)0.15
Shares Outstanding18,123,201
10 Day Avg. Volume8,417
30 Day Avg. Volume8,271
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$19.25Price Target Upside7.84% Upside
Rating ConsensusHold
Number of Analyst Covering2
Acadian Timber Business Overview & Revenue Model
Company DescriptionAcadian Timber Corp. supplies primary forest products in Eastern Canada and the Northeastern United States. The company operates through two segments, NB Timberlands and Maine Timberlands. Its products include softwood and hardwood sawlogs, pulpwood, and biomass by-products. The company owns and manages approximately 1.1 million acres of freehold timberlands in New Brunswick and Maine; and provides timber services relating to approximately 1.3 million acres of Crown licensed timberlands in New Brunswick. Acadian Timber Corp. is headquartered in New Brunswick, Canada.
How the Company Makes MoneyAcadian Timber makes money by harvesting and selling timber products from its managed timberlands. Its primary revenue streams include the sale of sawlogs, which are used in the production of lumber, and pulpwood, which is utilized in the paper and pulp industry. Additionally, the company generates income from biomass, which is used as a renewable energy source. Acadian Timber's earnings are influenced by factors such as timber pricing, demand in the construction and paper industries, and sustainable forest management practices. The company may also engage in partnerships or long-term contracts with industrial and institutional customers to ensure steady revenue streams.
Acadian Timber Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: -0.67%|
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Negative
The earnings call highlighted strong performance in New Brunswick, solid safety records, and a strong liquidity position. However, these were overshadowed by significant challenges in Maine operations, a substantial drop in adjusted EBITDA, and declining timber sales and services revenue. Uncertainty in hardwood markets and delays in carbon credit issuance further contributed to a challenging quarter.Q2-2025 Updates
Positive Updates
Strong Performance in New Brunswick
New Brunswick operations delivered solid results with favorable weather conditions and increased contractor availability, resulting in strong timber sales volumes. Sales volume, excluding biomass, increased 4% compared to the prior year period.
Increase in Biomass Volumes and Pricing
Biomass volumes doubled and pricing increased 68% due to changes in product mix.
Solid Safety Record
Acadian remains committed to health and safety, with only two minor recordable incidents among employees and one among contractors during the quarter.
Strong Liquidity Position
Acadian maintained a strong net liquidity position of $15.1 million, including cash balances and undrawn revolving credit facilities.
Negative Updates
Decline in Timber Sales and Services Revenue
Timber sales and services revenue decreased to $17.1 million from $21.5 million in the prior year period, with a 13% decrease in timber sales volume excluding biomass.
Significant Drop in Adjusted EBITDA
Adjusted EBITDA for the second quarter was $2.4 million compared to $20.6 million in the prior year period, with a margin decrease from 50% to 14%.
Challenges in Maine Operations
Maine operations faced unfavorable weather conditions and a challenging transition to internal logging operations, resulting in a 59% decrease in timber sales volume excluding biomass.
Decrease in Hardwood and Softwood Pulpwood Pricing
Hardwood pulpwood pricing decreased 8% and softwood pulpwood pricing decreased 2% due to lower demand and shorter hauling distances.
Uncertainty in Hardwood Markets
Potential tariffs caused uncertainty in hardwood pulpwood markets, impacting the amount of hardwood sawlogs harvested with a 33% decrease in hardwood sawlog volumes.
Delay in Carbon Credit Issuance
Issuance of the next tranches of carbon credits has been delayed due to the transition to ACR's updated improved forest management protocol.
Company Guidance
During the Acadian Timber Second Quarter 2025 Analyst Conference Call, CFO Susan Wood and CEO Adam Sheparski provided an overview of the company's financial and operational performance. Acadian reported timber sales and services of $17.1 million, a decrease from $21.5 million in the previous year, with a 13% drop in timber sales volume excluding biomass. The weighted average selling price, excluding biomass, decreased by 4% compared to the same quarter last year. New Brunswick operations saw a 4% increase in sales volume excluding biomass and an adjusted EBITDA of $4 million with a 27% margin. In contrast, Maine faced challenges with a 59% decrease in timber sales volume and a negative adjusted EBITDA of $900,000, attributed to unfavorable weather and a transition to internal logging operations. The company reported a net income of $2.7 million, or $0.15 per share, compared to $7.9 million, or $0.46 per share, in Q2 2024. Acadian's quarterly free cash flow was $800,000, and dividends declared amounted to $5.2 million. Looking forward, the company anticipates improving production in Maine and stable demand for sawlogs, while pricing for pulpwood remains under pressure. Additionally, the transition to ACR's updated forest management protocol may impact carbon credit issuance and pricing, with registration expected in the second half of 2025.Acadian Timber Financial Statement Overview
Summary
Acadian Timber demonstrates strong financial performance with robust profitability and cash flow generation. While revenue growth is a challenge, the company maintains a strong balance sheet with effective cost management, positioning it well to manage operations and leverage growth opportunities.Income Statement
Acadian Timber's income statement reflects a stable financial performance. The gross profit margin is consistently healthy, and the TTM (Trailing-Twelve-Months) shows a slight decline in total revenue compared to the previous annual period, indicating a revenue growth challenge. However, the company maintains a strong net profit margin, demonstrating effective cost management.78
Positive
Balance Sheet
The balance sheet of Acadian Timber is robust with a solid equity base, indicated by a favorable equity ratio. The debt-to-equity ratio is manageable, reflecting moderate leverage levels which suggest financial stability. The return on equity is commendable, showcasing effective utilization of shareholders' funds.75
Positive
Cash Flow
Acadian Timber exhibits a strong cash flow position with positive operating and free cash flows, which are critical for sustaining operations and funding future investments. The TTM data indicates consistent cash flow generation, supporting the company's liquidity and operational efficiency.82
Very Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 116.19M | 93.48M | 90.47M | 95.73M | 91.03M |
| Gross Profit | 38.27M | 29.22M | 27.58M | 30.80M | 30.13M |
| EBITDA | 34.63M | 43.56M | 52.51M | 29.69M | 35.86M |
| Net Income | 21.74M | 29.43M | 35.51M | 18.68M | 22.08M |
Balance Sheet | |||||
| Total Assets | 608.02M | 567.95M | 547.84M | 516.64M | 513.40M |
| Cash, Cash Equivalents and Short-Term Investments | 15.25M | 1.83M | 6.23M | 7.32M | 10.26M |
| Total Debt | 114.94M | 105.52M | 107.94M | 100.89M | 101.19M |
| Total Liabilities | 268.99M | 248.97M | 244.11M | 225.16M | 220.16M |
| Stockholders Equity | 339.03M | 318.98M | 303.72M | 291.49M | 293.24M |
Cash Flow | |||||
| Free Cash Flow | 34.05M | 9.79M | 14.86M | 15.90M | 20.27M |
| Operating Cash Flow | 34.05M | 10.41M | 15.23M | 16.23M | 20.62M |
| Investing Cash Flow | -9.14M | 56.00K | -319.00K | 186.00K | 32.00K |
| Financing Cash Flow | -11.49M | -14.87M | -16.00M | -19.36M | -17.99M |
Acadian Timber Technical Analysis
Neutral
17.85
Price Trends
17.87
Negative
17.48
Positive
17.19
Positive
Market Momentum
>-0.01
Positive
44.85
Neutral
12.62
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ADN, the sentiment is Neutral. The current price of 17.85 is below the 20-day moving average (MA) of 18.01, below the 50-day MA of 17.87, and above the 200-day MA of 17.19, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.85 is Neutral, neither overbought nor oversold. The STOCH value of 12.62 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:ADN.
Acadian Timber Peers Comparison
Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | C$323.50M | 22.40 | 4.24% | 8.29% | -26.79% | -57.05% | |
44 Neutral | C$925.20M | -8.84 | -0.23% | 2.69% | 24.65% | -41.54% | |
| ― | $49.92M | ― | -13.50% | ― | ― | ― | |
53 Neutral | C$131.45M | ― | -3.84% | ― | 3.89% | 49.05% | |
44 Neutral | C$12.84M | ― | -24.89% | ― | -7.32% | 10.08% | |
| ― | $484.37M | ― | -11.53% | ― | ― | ― | |
| ― | $1.12B | ― | -19.38% | ― | ― | ― |
* Basic Materials Sector Average
Performance Comparison
TSE:ADN
Acadian Timber
17.85
1.42
8.64%
ICLTF
GreenFirst Forest Products
2.25
-0.18
-7.41%
TSE:CFF
Conifex Timber
0.32
-0.11
-25.58%
TSE:WEF
Western Forest Prod
12.45
-1.20
-8.79%
IFSPF
Interfor
9.31
-2.75
-22.80%
CFPZF
Canfor
9.54
-1.19
-11.09%
Acadian Timber Corporate Events
DividendsBusiness Operations and StrategyFinancial Disclosures
Acadian Timber Reports Mixed Q2 2025 Results Amid Operational Shifts
Neutral
Aug 6, 2025
Acadian Timber Corp. reported mixed results for the second quarter of 2025, with steady operations in New Brunswick but lower production in Maine due to ongoing development of new internal logging operations. The company’s sales decreased significantly to $17.1 million from $41.2 million the previous year, primarily due to the absence of carbon credit sales. Despite this, Acadian maintained a solid balance sheet with $15.1 million in net liquidity and declared dividends of $5.2 million, indicating confidence in its long-term operational strategy.
The most recent analyst rating on (TSE:ADN) stock is a Hold with a C$20.00 price target. To see the full list of analyst forecasts on Acadian Timber stock, see the TSE:ADN Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.