Interfor Corporation (TSE:IFP)
TSX:IFP
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Interfor
(TSX:IFP)
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Rating:47Neutral
Price Target:
C$8.50
▼(-16.91% Downside)
Action:Reiterated
Date:05/16/26
The score is held down primarily by weak financial performance (ongoing losses, negative margins, and negative free cash flow) and bearish technicals (price below major moving averages with negative MACD). Offsetting these, the earnings call highlighted meaningfully improved liquidity/maturity runway and tighter capital allocation with incremental operating cost progress, but near-term fundamentals remain challenged.
Positive Factors
Improved liquidity & maturity runway
A pro‑forma liquidity pool of ~$482M and cleared 2026–2027 maturities materially reduce near‑term refinancing risk. This durable funding cushion gives management time to execute cost, working‑capital and portfolio actions to restore profitability without urgent capital markets pressure.
Negative Factors
Sustained negative profitability
Persistently negative gross and net margins indicate the core lumber business is not covering manufacturing costs at current prices. This erodes equity, constrains retained earnings, and lengthens the time required to rebuild sustainable profitability even if markets slowly recover.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved liquidity & maturity runway
A pro‑forma liquidity pool of ~$482M and cleared 2026–2027 maturities materially reduce near‑term refinancing risk. This durable funding cushion gives management time to execute cost, working‑capital and portfolio actions to restore profitability without urgent capital markets pressure.
Read all positive factors
Interfor (IFP) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$563.62M
Dividend YieldN/A
Average Volume (3M)513.27K
Price to Earnings (P/E)―
Beta (1Y)1.31
Revenue Growth-7.89%
EPS Growth-26.09%
CountryCA
Employees4,419
SectorBasic Materials
Sector Strength58
IndustryPaper, Lumber & Forest Products
Share Statistics
EPS (TTM)-6.52
Shares Outstanding65,766,950
10 Day Avg. Volume356,202
30 Day Avg. Volume513,268
Financial Highlights & Ratios
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 CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$12.30Price Target Upside20.23% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)-1.04
Revenue Forecast (FY)C$2.90B
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, ...
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 a...
Interfor Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Neutral
The call reflected a cautious but constructive tone: the company continues to face significant market and trade headwinds—manifested in a negative adjusted EBITDA and constrained pricing—but has taken decisive balance sheet, working capital and portfolio actions that materially improve liquidity and operational flexibility. Cost per unit improved (4%), working capital efforts produced breakeven operating cash flow in Q4 and multi-year positive operating cash flows (~$300M over 2023–2025). Management expects further benefit from supply reductions (Canadian shipments down materially) and the commissioning of a top‑decile Thomaston mill, while capital discipline and divestiture plans support debt reduction priorities. Given the mix of persistent near-term performance challenges and meaningful strategic/financial mitigants, the overall tone is balanced.Positive Updates
Improved Sequential EBITDA Performance
Adjusted EBITDA improved to negative $29 million in Q4 from negative $36 million in Q3 (normalized), an improvement of $7 million (≈19% sequential improvement), driven by cost reductions and inventory valuation benefits.
Negative Updates
Negative Adjusted EBITDA and Weak Lumber Prices
Company still reported negative adjusted EBITDA of $29 million in Q4; lumber market conditions remain historically weak and volatile, pressuring realized selling prices.
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Q4-2025 Updates
Positive
Negative
Improved Sequential EBITDA Performance
Adjusted EBITDA improved to negative $29 million in Q4 from negative $36 million in Q3 (normalized), an improvement of $7 million (≈19% sequential improvement), driven by cost reductions and inventory valuation benefits.
Read all positive updates
Company Guidance
Management guided 2026 capital spending of $75–80 million (with preliminary 2027 spend around $60 million, largely maintenance) and said all free cash flow will be directed to leverage reduction while maintaining balance‑sheet guardrails; year‑end net debt to capitalization was 36.5% with pro‑forma available liquidity of $482 million after an equity raise and net‑debt‑neutral refinancings that clear the 2026–2027 maturity runway. Operational metrics included Q4 adjusted EBITDA of negative $29 million (improving from negative $36 million in Q3 after normalization), Q4 cash flow from operations breakeven (and positive operating cash flow in 2023–2025 totaling just over $300 million), a 4% improvement in production cost per unit in Q4, industry shipments annualized at ~8.5 billion board feet over the last six months versus just over 10 billion in 2025 and 11.5 billion in 2024 (with roughly 250 million board feet of curtailments previously referenced), and a full quarter of higher countervailing duties plus a 10% Section 232 tariff from October; management also noted interest costs around 6.5% (with modest incremental borrowing cost of a few million on new debt), expected divestiture proceeds of ~$30–35 million for the B.C. Coast tenures (and a similar order of magnitude from real‑estate sales) over the next 12–18 months, Thomaston commissioning expected in early March, inventories deliberately very lean, U.S. South turnover improving roughly 3% (double‑digit improvements at focus mills), and short logistics delays from winter weather expected to clear in 2–3 weeks.Interfor Financial Statement Overview
Summary
Income Statement
24
Negative
Balance Sheet
53
Neutral
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.71B | 2.81B | 3.02B | 3.32B | 4.58B | 3.29B |
| Gross Profit | -43.50M | 1.80M | 112.20M | 156.80M | 1.20B | 1.34B |
| EBITDA | -143.50M | -176.60M | -62.00M | -72.50M | 1.03B | 1.23B |
| Net Income | -372.60M | -344.40M | -304.30M | -266.80M | 598.20M | 819.01M |
Balance Sheet | ||||||
| Total Assets | 2.78B | 2.72B | 3.08B | 3.40B | 3.62B | 2.60B |
| Cash, Cash Equivalents and Short-Term Investments | 38.10M | 32.20M | 43.40M | 55.00M | 77.61M | 538.56M |
| Total Debt | 943.00M | 873.50M | 950.80M | 938.00M | 833.22M | 414.76M |
| Total Liabilities | 1.56B | 1.45B | 1.55B | 1.67B | 1.59B | 967.54M |
| Stockholders Equity | 1.22B | 1.27B | 1.53B | 1.73B | 2.03B | 1.64B |
Cash Flow | ||||||
| Free Cash Flow | -64.60M | -45.70M | 70.20M | -79.60M | 426.91M | 875.61M |
| Operating Cash Flow | 44.10M | 44.60M | 144.30M | 119.80M | 732.36M | 1.05B |
| Investing Cash Flow | -105.10M | -77.80M | -9.90M | -189.80M | -1.24B | -656.49M |
| Financing Cash Flow | 84.80M | 24.10M | -149.50M | 49.70M | 31.06M | -316.25M |
Interfor Technical Analysis
Negative
10.23
Price Trends
9.62
Negative
9.81
Negative
9.95
Negative
Market Momentum
-0.31
Positive
32.55
Neutral
25.20
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 10.23 is above the 20-day moving average (MA) of 9.68, above the 50-day MA of 9.62, and above the 200-day MA of 9.95, indicating a bearish trend. The MACD of -0.31 indicates Positive momentum. The RSI at 32.55 is Neutral, neither overbought nor oversold. The STOCH value of 25.20 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | C$320.76M | 22.72 | 14.25% | 7.35% | -23.77% | 142.01% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
55 Neutral | C$96.81M | -8.27 | 3.05% | 5.01% | 4.88% | -43.36% | |
49 Neutral | C$145.60M | -2.02 | -12.20% | ― | -15.14% | -1199.88% | |
47 Neutral | C$563.62M | -2.64 | -28.72% | ― | -7.89% | -26.09% | |
47 Neutral | C$6.39B | -9.62 | -23.07% | 2.21% | -11.68% | -64044.58% | |
47 Neutral | C$1.42B | -5.55 | -27.04% | ― | -0.13% | -33.42% |
* Basic Materials Sector Average
TSE:IFP
Interfor
8.57
-4.36
-33.72%
TSE:WFG
West Fraser Timber Co
81.57
-21.29
-20.70%
TSE:ADN
Acadian Timber
17.38
0.75
4.48%
TSE:GDL
Goodfellow
11.64
0.02
0.15%
TSE:WEF
Western Forest Prod
13.79
1.34
10.76%
TSE:CFP
Canfor
11.94
-1.35
-10.16%
Interfor Corporate Events
Business Operations and StrategyFinancial Disclosures
Interfor Sets Date for First-Quarter Results and Analyst Call
Neutral
Apr 15, 2026
Interfor will release its first-quarter financial results on May 14, 2026, as the company continues to operate large-scale lumber production facilities across Canada and the United States. Management will discuss the results with analysts during a...
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.