Interfor (IFP) AI Stock Analysis

• Market Cap: C$577.41M
• Dividend Yield: N/A
• Average Volume (3M): 513.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.22
• Revenue Growth: -3.63%
• EPS Growth: 31.61%
• Country: CA
• Employees: 4,419
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): -0.33
• Shares Outstanding: 65,764,100
• 10 Day Avg. Volume: 356,202
• 30 Day Avg. Volume: 513,268
• PEG Ratio: -0.23
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 0.17
• P/FCF Ratio: -10.31
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$13.18
• Price Target Upside: 50.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): -1.45
• Revenue Forecast (FY): C$2.93B

• Rating: 44 Neutral
• Price Target: C$8.50 ▼(-3.19% Downside)
• Action: Reiterated Date: 03/14/26
• Date: Action: Reiterated 03/14/26

The score is held down primarily by deteriorating financial performance (multi-year revenue decline, sustained losses, and inconsistent free cash flow). Technicals add downside pressure with a clear downtrend despite oversold readings. Valuation provides limited signal due to the negative P/E and missing dividend yield.

Positive Factors

Integrated manufacturing and by‑products revenue

Interfor’s vertically integrated sawmill model and incremental revenue from residuals and by-products create durable margin offsets to log and mill cost volatility. Over a multi-month horizon this structural diversification supports gross margin stability when lumber prices or input costs swing.

Positive operating cash flow

Sustained positive operating cash flow through 2023–2025 indicates the core lumber operations still generate cash despite profitability headwinds. This persistent cash generation provides near-term liquidity for working capital and essential maintenance capex, reducing immediate refinancing pressure.

Moderate leverage with slight debt reduction

Leverage that remains moderate for a cyclical lumber producer, together with a slight decline in total debt since 2024, preserves some financial flexibility. Structurally, a modestly reduced debt stock improves the company’s ability to withstand extended cycles and support operational resets over months.

Negative Factors

Multi-year revenue decline and sustained losses

A three‑year revenue decline and consecutive multi‑year losses signal structural demand or pricing challenges that have eroded earnings power. Over a 2–6 month horizon this persistent weakness constrains reinvestment, undermines margin recovery potential, and limits ability to rebuild retained equity.

Intermittent negative free cash flow

Repeated negative free cash flow reduces internally available capital for maintenance capex, deleveraging, or strategic initiatives. For a capital‑intensive lumber operator, this pattern increases reliance on external funding and heightens execution risk across the next several months if cash generation does not normalize.

Rising debt-to-equity as equity declined

A rising debt‑to‑equity ratio driven by shrinking equity reduces the cushion against cyclical shocks and raises margin calls on financing. Structurally this weaker capital base limits strategic optionality and amplifies downside risk over the medium term if profitability and retained earnings do not recover.

Interfor Business Overview & Revenue Model

Company Description

Interfor Corporation, together with its subsidiaries, produces and sells wood products in Canada, the United States, Japan, China, Taiwan, and internationally. The company offers lumber products for decking, fascia and trims, framings, furniture, industrial packaging, Japan Zairai, millworks, paneling, sidings, trusses, and windows and doors. It also provides logs, wood chips, and other residuals. The company was formerly known as International Forest Products Limited and changed its name to Interfor Corporation in May 2014. Interfor Corporation was incorporated in 1963 and is headquartered in Burnaby, Canada.

How the Company Makes Money

Interfor makes money primarily by manufacturing lumber and selling it to wholesale and industrial customers. Its core revenue stream is the sale of commodity and specialty lumber products (e.g., dimension lumber and other wood products) produced at its sawmills; sales are typically priced off prevailing lumber market benchmarks, with realized pricing influenced by product mix, grade, species, regional demand, and contract terms. The company’s earnings are driven by the spread between (1) realized lumber selling prices and (2) its cash manufacturing costs, which include log costs (procured through third-party purchases and other supply arrangements where applicable), labor, energy, transportation, and mill operating expenses. Interfor also generates revenue from the sale of residuals and by-products created during lumber production (such as wood chips, sawdust, and bark) that are sold into downstream markets (e.g., pulp/panel, bioenergy, landscaping), providing an additional stream that can offset manufacturing costs. Key factors affecting profitability include lumber price cycles, log and fiber availability and cost, mill productivity and uptime, freight rates and logistics efficiency, foreign exchange (for exports and cross-border operations), and trade policy (including duties or tariffs where applicable). Specific partnership arrangements, customer concentrations, or contract structures are not available: null.

Interfor Financial Statement Overview

Summary

Income statement weakness drives the score: revenue has fallen three straight years (2023–2025) and losses persisted in 2023–2025 with gross margin near break-even in 2025. Balance sheet is only moderate (rising debt-to-equity as equity shrank), and cash flow is less reliable with negative free cash flow in 2023 and 2025.

Income Statement

Operating performance has deteriorated meaningfully from the 2021–2022 peak. Revenue has declined for three consecutive years (2023–2025), and profitability has flipped to sustained losses: negative net income in 2023–2025 with sharply compressed gross margin in 2025 (near break-even). While the business demonstrated strong earnings power in 2020–2022, the current margin profile and multi-year loss run-rate are the key weakness.

Balance Sheet

Leverage is moderate for a cyclical lumber producer, but balance-sheet strength is weakening. Debt-to-equity rose from ~0.41 (2022) to ~0.69 (2025) as equity declined materially, reflecting recent losses. Total debt has trended slightly down since 2024, which is a positive, but negative returns on equity in 2023–2025 highlight pressured capital efficiency and reduce financial flexibility if the downturn persists.

Cash Flow

Cash generation has become less reliable versus the 2020–2022 period. Operating cash flow remains positive in 2023–2025, but it has stepped down sharply by 2025 and free cash flow turned negative in 2023 and again in 2025 after a positive 2024. The company’s cash flow has historically covered earnings well in strong years, but recent negative free cash flow and weaker operating cash flow coverage point to tighter internally funded capacity.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.81B	3.02B	3.32B	4.58B	3.29B
Gross Profit	1.80M	112.20M	156.80M	1.20B	1.34B
EBITDA	-176.60M	-62.00M	-72.50M	1.03B	1.23B
Net Income	-344.40M	-304.30M	-266.80M	598.20M	819.01M
Balance Sheet
Total Assets	2.72B	3.08B	3.40B	3.62B	2.60B
Cash, Cash Equivalents and Short-Term Investments	32.20M	43.40M	55.00M	77.61M	538.56M
Total Debt	873.50M	950.80M	938.00M	833.22M	414.76M
Total Liabilities	1.45B	1.55B	1.67B	1.59B	967.54M
Stockholders Equity	1.27B	1.53B	1.73B	2.03B	1.64B
Cash Flow
Free Cash Flow	-45.70M	70.20M	-79.60M	426.91M	875.61M
Operating Cash Flow	44.60M	144.30M	119.80M	732.36M	1.05B
Investing Cash Flow	-77.80M	-9.90M	-189.80M	-1.24B	-656.49M
Financing Cash Flow	24.10M	-149.50M	49.70M	31.06M	-316.25M

Interfor Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.78
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:IFP, the sentiment is Negative. The current price of 8.78 is below the 20-day moving average (MA) of 9.23, below the 50-day MA of 10.06, and below the 200-day MA of 10.57, indicating a bearish trend. The MACD of -0.42 indicates Positive momentum. The RSI at 38.14 is Neutral, neither overbought nor oversold. The STOCH value of 29.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:IFP.

Interfor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ADN	66 Neutral	C$311.17M	5.90	14.25%	7.35%	-28.86%	-48.20%
GDL	63 Neutral	C$98.72M	13.97	3.49%	5.01%	3.81%	-50.79%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
WFG	51 Neutral	$6.45B	-7.08	-18.45%	2.21%	-6.67%	-168.27%
WEF	46 Neutral	C$131.66M	-1.45	-12.20%	―	2.06%	-46.23%
IFP	44 Neutral	C$577.41M	-1.37	-25.24%	―	-3.63%	31.61%
CFP	44 Neutral	C$1.48B	-1.73	-27.04%	―	1.76%	34.61%

Interfor Corporate Events

Interfor Deepens Q4 Loss but Bolsters Liquidity Amid Prolonged Lumber Slump

Interfor reported a net loss of $104.6 million and an adjusted EBITDA loss of $29.2 million in the fourth quarter of 2025, reflecting weak lumber prices, higher duties and tariffs, and production curtailments. Revenue fell to $600.6 million, as average selling prices declined and the company booked a $69.1 million impairment against Eastern Canadian assets, while also reducing lumber inventories by shipping more than it produced.

To shore up its balance sheet, Interfor executed a series of financing measures including a $143.8 million equity raise, new credit facilities, amendments to its revolving term line and note covenants, and commitments for US$75 million in new senior secured notes maturing in 2034. These steps boost liquidity to about $482 million, extend debt maturities, and provide added flexibility as Interfor navigates prolonged market weakness, while it continues to streamline operations with measures such as monetizing certain Coastal B.C. forest tenures.

The most recent analyst rating on (TSE:IFP) stock is a Hold with a C$11.00 price target. To see the full list of analyst forecasts on Interfor stock, see the TSE:IFP Stock Forecast page.

Interfor Sets February Dates to Unveil Q4 and Fiscal 2025 Results

Interfor Corporation has announced it will release its fourth quarter and full-year 2025 financial results on February 12, 2026, followed by an analyst conference call on February 13, 2026 at 8:00 a.m. Pacific Time. The call will include a summary of the company’s financial performance by management and a Q&A session with analysts, and both live and recorded access will be provided, underscoring Interfor’s ongoing efforts to maintain transparency and engagement with the investment community as it navigates market conditions in the forest products sector.

The most recent analyst rating on (TSE:IFP) stock is a Buy with a C$13.00 price target. To see the full list of analyst forecasts on Interfor stock, see the TSE:IFP Stock Forecast page.