Interfor (IFP) AI Stock Analysis

• Market Cap: C$616.21M
• Dividend Yield: N/A
• Average Volume (3M): 513.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.25
• 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$13.20
• Price Target Upside: 40.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): -1.45
• Revenue Forecast (FY): C$2.93B

• Rating: 47 Neutral
• Price Target: C$9.00 ▼(-4.15% Downside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is primarily held back by deteriorated fundamentals (multi-year revenue decline, sustained losses, and weaker free cash flow) and a negative P/E. Technicals are moderately supportive with improving short-term momentum, while the latest earnings call was mixed—strong liquidity actions offset by weak lumber prices, higher duties, and ongoing EBITDA losses.

Positive Factors

Integrated operations & by‑product revenue

Interfor’s vertical integration—owning log procurement, sawmills and downstream sale channels—creates durable cost and supply advantages. By-product sales provide a recurring offset to manufacturing costs, helping margins and cash generation across lumber cycles when primary prices are weak.

Cost discipline and top‑quartile margins

Sustained operational focus on cost control and portfolio optimization supports above-average margins when markets recover. This structural advantage improves resilience through cycles by preserving cash flow and competitiveness versus peers with weaker manufacturing efficiency.

Strengthened liquidity via equity raise

The $144M equity raise materially increased liquidity and reduced near-term refinancing pressure, providing a multi-month runway to manage curtailments and trade headwinds. Improved balance sheet flexibility is a durable buffer against cyclical downturns and regulatory shocks.

Negative Factors

Multi‑year revenue decline & sustained losses

A multi-year revenue contraction and persistent losses indicate structural demand or competitive pressure, eroding scale benefits and equity base. Continued negative earnings reduce reinvestment capacity and raise the risk of recurring capital raises if recovery in demand or pricing is delayed.

Weakened cash generation and negative FCF

Intermittent negative free cash flow undermines the company’s ability to self-fund maintenance and growth capex, deleverage, or absorb shocks. Over multiple quarters this forces reliance on external capital and constrains strategic flexibility, a durable headwind if margins remain depressed.

Significantly higher U.S. duties on exports

A structural increase in duties to over 35% materially raises export costs and restricts access to the large U.S. market for a meaningful share of volumes. This regulatory shift can permanently compress realized pricing and force longer-term asset or market strategy changes.

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 generates revenue primarily through the production and sale of lumber and related wood products. The company's main revenue streams include the sale of dimensional lumber to wholesalers, retailers, and construction companies, as well as specialty products that cater to specific market needs. Interfor benefits from economies of scale, operating multiple sawmills to maximize production efficiency and reduce costs. Additionally, the company engages in exporting its products to international markets, which further diversifies its revenue sources. Significant partnerships with suppliers and distributors enhance its market reach and contribute to its earnings. Factors such as timber prices, housing market dynamics, and construction industry trends also play a crucial role in influencing Interfor's revenue performance.

Interfor Financial Statement Overview

Summary

Income statement weakness is the main drag: revenue has declined for three straight years (2023–2025) and results have been sustained losses with severely compressed margins in 2025. The balance sheet is moderate but weakening as debt-to-equity rose with shrinking equity, and cash flow reliability has deteriorated 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: 9.39
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 9.39 is below the 20-day moving average (MA) of 10.64, below the 50-day MA of 9.97, and below the 200-day MA of 10.80, indicating a bearish trend. The MACD of -0.20 indicates Positive momentum. The RSI at 37.07 is Neutral, neither overbought nor oversold. The STOCH value of 14.30 is Positive, 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$315.23M	5.90	4.46%	7.35%	-28.86%	-48.20%
GDL	63 Neutral	C$104.97M	13.97	3.12%	5.01%	3.81%	-50.79%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
WFG	56 Neutral	C$7.04B	-7.08	-14.64%	2.21%	-6.67%	-168.27%
CFP	54 Neutral	C$1.58B	-2.07	-15.06%	―	1.76%	34.61%
IFP	47 Neutral	C$616.21M	-1.37	-20.72%	―	-3.63%	31.61%
WEF	46 Neutral	C$151.30M	-1.45	-12.20%	―	2.06%	-46.23%

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.