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Interfor
(TSX:IFP)
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Rating:58Neutral
Price Target:
C$13.50
▼(-5.73% Downside)
Action:Reiterated
Date:08/10/26
The score is held back primarily by weak financial performance (ongoing losses and negative free cash flow), despite a constructive technical uptrend and an earnings-call backdrop showing meaningful operational improvement, cost reductions, and balance-sheet focus. Valuation is constrained by loss-making results (negative P/E), while momentum and improving fundamentals provide partial offset.
Positive Factors
Operational cost reduction
The combination of stronger adjusted EBITDA and measurable manufacturing cost reductions indicates improving operating execution. If these savings persist, they can provide greater resilience when lumber pricing is weaker, support cash generation, and improve the earnings contribution from existing mills.
Negative Factors
Deep unprofitability
Persistent net losses and weak gross profitability show that current revenue is not consistently covering the company's cost base. This limits internally funded investment, weakens returns on capital, and leaves earnings highly dependent on a sustained improvement in lumber pricing or operating spreads.
Read all positive and negative factors
Positive Factors
Negative Factors
Operational cost reduction
The combination of stronger adjusted EBITDA and measurable manufacturing cost reductions indicates improving operating execution. If these savings persist, they can provide greater resilience when lumber pricing is weaker, support cash generation, and improve the earnings contribution from existing mills.
Read all positive factors
Interfor (IFP) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$899.03M
Dividend Yield6.38%
Average Volume (3M)179.91K
Price to Earnings (P/E)―
Beta (1Y)1.56
Revenue Growth-7.37%
EPS Growth-92.84%
CountryCA
Employees4,235
SectorBasic Materials
Sector Strength58
IndustryPaper, Lumber & Forest Products
Share Statistics
EPS (TTM)-6.72
Shares Outstanding65,766,950
10 Day Avg. Volume201,476
30 Day Avg. Volume179,913
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$17.50Price Target Upside22.21% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)-0.66
Revenue Forecast (FY)C$2.97B
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. It offers decking, fascia and board, v-joint paneling, fineline paneling, siding produc...
How the Company Makes Money
Interfor makes money primarily by manufacturing and selling softwood lumber. Its core revenue stream is the sale of commodity and specialty lumber products produced at its sawmills, with realized revenue largely driven by shipment volumes and prev...
Interfor Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call highlighted strong operational and financial improvement in Q2 — notably $92M of adjusted EBITDA, double-digit realized price improvement Q/Q (~11%), an ~8% increase in production volumes, meaningful manufacturing cost reductions (down ~$41/Mfbm or ~6% vs 2025), improved leverage metrics (net debt-to-invested-capital improved to 36.7%), solid liquidity (> $440M), and a successful Thomaston ramp-up. These positives are tempered by persistent external risks and operational challenges: softwood trade dispute uncertainty, transportation/logistics constraints (especially in the U.S. South), indefinite curtailment of two Ontario mills, recent softening in futures and potential seasonal demand volatility, and timing uncertainty for divestiture proceeds. Management’s conservative stance on discretionary capital and continued focus on cost control and balance sheet repair reflect prudence. Overall, the favorable operating and financial momentum outweighs the manageable headwinds discussed on the call.Positive Updates
Strong Adjusted EBITDA
Generated $92 million of adjusted EBITDA in Q2, described as one of the best quarterly results in nearly four years and a significant improvement sequentially.
Negative Updates
Ongoing Trade Uncertainty (Softwood Lumber Dispute)
Persistent uncertainty around the softwood lumber trade dispute was highlighted as an ongoing risk that could affect market access, pricing, and planning.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Adjusted EBITDA
Generated $92 million of adjusted EBITDA in Q2, described as one of the best quarterly results in nearly four years and a significant improvement sequentially.
Read all positive updates
Company Guidance
The company reiterated clear near-term guidance focused on strengthening the balance sheet and anchoring cost savings, quantifying many metrics: Q2 adjusted EBITDA was $92 million; realized selling prices rose ~11% quarter‑over‑quarter; production volumes increased just over 70 million board feet (+8% QoQ); production cost per unit improved ~1% QoQ and manufacturing costs are down about $41/MBF (≈6%) versus full‑year 2025. Management is tracking a 2‑year cost reduction program targeting $80 million (management suggested a roughly 50/50 split across the two years), Thomaston is operating at ~97% of pro‑forma and expected to be fully ramped by year‑end, net debt-to-invested-capital improved to 36.7% from 38.3% in Q1, available liquidity ended the quarter just over $440 million, and 2026 capex is guided to ≈$90 million (mostly maintenance, implying a ~$60–65 million annual maintenance run‑rate or ~$15–16 million/quarter); expected divestiture proceeds include ~$20–25 million from B.C. tenures and ≈$40 million of U.S. real estate (timing over the back half/next 12 months).Interfor Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
47
Neutral
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.74B | 2.81B | 3.02B | 3.32B | 4.58B | 3.29B |
| Gross Profit | -3.10M | 1.80M | 112.20M | 156.80M | 1.20B | 1.34B |
| EBITDA | -74.40M | -176.60M | -62.00M | -72.50M | 1.03B | 1.23B |
| Net Income | -382.70M | -344.40M | -304.30M | -266.80M | 598.20M | 819.01M |
Balance Sheet | ||||||
| Total Assets | 2.81B | 2.72B | 3.08B | 3.40B | 3.62B | 2.60B |
| Cash, Cash Equivalents and Short-Term Investments | 32.80M | 32.20M | 43.40M | 55.00M | 77.61M | 538.56M |
| Total Debt | 894.60M | 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 | 1.25B | 1.27B | 1.53B | 1.73B | 2.03B | 1.64B |
Cash Flow | ||||||
| Free Cash Flow | -62.60M | -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 | -111.40M | -77.80M | -9.90M | -189.80M | -1.24B | -656.49M |
| Financing Cash Flow | 83.10M | 24.10M | -149.50M | 49.70M | 31.06M | -316.25M |
Interfor Technical Analysis
Neutral
14.32
Price Trends
14.03
Negative
13.41
Positive
11.71
Positive
Market Momentum
0.03
Negative
48.41
Neutral
58.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:IFP, the sentiment is Neutral. The current price of 14.32 is above the 20-day moving average (MA) of 13.47, above the 50-day MA of 14.03, and above the 200-day MA of 11.71, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 48.41 is Neutral, neither overbought nor oversold. The STOCH value of 58.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | C$317.65M | 6.41 | 13.52% | 6.80% | -1.45% | 220.30% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
58 Neutral | C$899.03M | -2.03 | -30.64% | 6.38% | -7.37% | -92.84% | |
56 Neutral | C$163.02M | -1.93 | -17.78% | 5.53% | -18.00% | -290.71% | |
55 Neutral | C$90.71M | 21.06 | 2.12% | 2.28% | 0.73% | -30.61% | |
53 Neutral | C$7.34B | -3.83 | -24.07% | 1.91% | -7.92% | -344.24% | |
50 Neutral | C$1.75B | -2.66 | -25.37% | ― | 2.69% | -2.51% |
* Basic Materials Sector Average
TSE:IFP
Interfor
13.67
5.76
72.82%
TSE:WFG
West Fraser Timber Co
93.70
9.75
11.62%
TSE:ADN
Acadian Timber
17.06
3.67
27.41%
TSE:GDL
Goodfellow
10.95
-0.80
-6.81%
TSE:WEF
Western Forest Prod
15.44
3.51
29.42%
TSE:CFP
Canfor
14.95
2.72
22.24%
Interfor Corporate Events
Business Operations and StrategyFinancial Disclosures
Interfor Sets November Date to Release Q3 2026 Results and Host Analyst Call
Neutral
Oct 5, 2026
Interfor Corporation plans to release its third quarter financial results on November 5, 2026, and will host an analyst conference call the following day at 8:00 a.m. Pacific to review the performance. The call, which will include a management sum...
Business Operations and StrategyFinancial Disclosures
Interfor Swings Back to Profit as Costs Fall and Thomaston Mill Ramps Up
Positive
Aug 6, 2026
Interfor reported a sharp turnaround in the second quarter of 2026, posting net earnings of $1 million and adjusted EBITDA of $92.3 million on sales of $804.4 million, versus a significant loss in the prior quarter. Higher lumber prices, improved ...
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.