Persistent Negative ProfitabilitySustained negative EBITDA and loss-making operations indicate structural profitability challenges. Until operating margins recover, the company will struggle to generate retained earnings, limiting capacity to self-fund investments and leaving performance sensitive to volume recoveries and margin pressure.
Ongoing Negative Free Cash FlowPersistent free cash flow deficits mean the business cannot fully convert operations into excess cash after capex. This forces reliance on asset sales and credit facilities to fund growth or repay debt, constraining strategic optionality and raising execution risk if market recovery slips.
Elevated Duties, Curtailments And Log Supply RiskA structural tariff increase to 45% materially undermines export competitiveness and compresses margins long-term. Coupled with curtailments and strike-driven log constraints, the company faces sustained capacity underutilization and higher per-unit costs, which impede recovery of normalized profitability.