MERCER INTERNATIONAL INC.
For the period ended Mar 31, 2026. Filed May 7, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 7, 2026
MERC$0.26+4.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-06.
0001193125-25-269753
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-07.
0001193125-26-212136
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 230 previous paragraphs and 183 current paragraphs.
101 unchanged; 49 reworded; 30 added; 73 removed; 7 previous and 3 current paragraphs rearranged.
Tables are not compared: 10 previous and 8 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (30)
Current report
In the first quarter of 2026, our NBSK pulp sales realization was relatively steady compared to the fourth quarter of 2025. While European third-party published list prices increased, this was offset by higher discounts. The Chinese market continued to be pressured by an oversupplied paper sector and weak demand linked to economic and trade uncertainties. Similarly, North American prices were tempered by excess regional inventory. Conversely, our NBHK pulp sales realizations increased as a result of higher prices driven by stronger demand and lower inventory levels.
Current report
Manufactured products primarily include CLT and glulam.
Current report
Costs and expenses in the first quarter of 2026 increased by approximately 4% to $522.2 million from $500.2 million in the same period of 2025. This increase was primarily due to the negative foreign exchange impact from a weaker dollar on our euro and Canadian dollar denominated costs and expenses and higher per unit fiber costs partially offset by lower maintenance costs. In the first quarter of 2026, costs and expenses included a non-cash inventory impairment charge of $22.0 million against pulp and fiber inventory as a result of low pulp prices and high fiber costs.
Current report
Interest expense in the first quarter of 2026 was relatively steady at $29.1 million compared to $28.2 million in the same period of 2025.
Current report
Selected Financial Information
Current report
Energy and chemical revenues in the first quarter of 2026 were relatively stable at $25.8 million compared to $24.1 million in the same period of 2025.
Current report
Total pulp production in the first quarter of 2026 was relatively flat at 465,717 ADMTs compared to 458,909 ADMTs in the same period of 2025. There was no planned maintenance downtime in the first quarter of 2026, compared to 22 days (approximately 29,700 ADMTs) at our Celgar mill in the same period of 2025. This benefit was mostly offset by the impact of reduced production at our German mills due to fiber supply constraints in Europe.
Current report
There is currently no annual maintenance downtime planned for our pulp mills in the second quarter of 2026.
Current report
Pulp sales volumes in the first quarter of 2026 were relatively steady at 470,700 ADMTs compared to 477,879 ADMTs in the same period of 2025, consistent with the relatively flat production.
Current report
In the first quarter of 2026, the third-party industry quoted average list price for NBHK pulp in North America and the third-party industry quoted average net price for NBHK pulp in China modestly increased from the same period of 2025 primarily due to global supply constraints. The third-party industry quoted average list price for NBHK pulp in North America was approximately $1,338 per ADMT in the first quarter of 2026 compared to approximately $1,268 per ADMT in the same period of 2025. The third-party industry quoted average net price for NBHK pulp in China was approximately $595 per ADMT in the first quarter of 2026 compared to approximately $578 per ADMT in the same period of 2025.
Current report
Costs and expenses in the first quarter of 2026 remained stable at $366.9 million compared to $360.9 million in the same period of 2025 as higher per unit fiber costs and the negative foreign exchange impact from a weaker dollar on our euro and Canadian dollar denominated costs and expenses were partially offset by lower maintenance costs. In the first quarter of 2026, costs and expenses included a non-cash inventory impairment charge of $22.0 million against inventory as a result of low pulp prices and high fiber costs.
Current report
Selected Financial Information
Current report
Manufactured products primarily include CLT and glulam.
Current report
Solid wood segment revenues in the first quarter of 2026 increased by approximately 7% to $131.7 million from $122.7 million in the same period of 2025 as a result of higher revenue from all product categories except for lumber.
Current report
Lumber revenues in the first quarter of 2026 decreased by approximately 8% to $60.1 million from $65.4 million in the same period of 2025 primarily due to lower sales volumes.
Current report
In the first quarter of 2026, manufactured products revenues increased by approximately 12% to $21.0 million from $18.8 million in the same period of 2025 primarily due to higher sales volumes partially offset by lower sales realizations.
Current report
Pallet revenues in the first quarter of 2026 increased by approximately 29% to $29.9 million from $23.2 million in the
Current report
QUARTERLY REPORT - PAGE 26 same period of 2025 primarily due to higher sales volumes.
Current report
Biofuels, energy and wood residuals revenues in the first quarter of 2026 increased by approximately 36% to $20.8 million from $15.3 million in the same period of 2025 primarily as a result of higher sales realizations for wood residuals and biofuels.
Current report
Lumber production in the first quarter of 2026 decreased by approximately 9% to 115.9 MMfbm from 128.0 MMfbm in the same period of 2025 due to fiber supply constraints.
Current report
Lumber sales volumes in the first quarter of 2026 decreased by approximately 14% to 112.1 MMfbm from 130.9 MMfbm in the same period of 2025 as a result of lower production.
Current report
The Canadian joint revolving credit facility matures in January 2027 and is, therefore, classified as a current liability. Refinancing negotiations have begun for this facility and are expected to be completed before maturity. However, there can be no assurance such existing maturity will be extended, or other refinancings or related initiatives will be completed on acceptable terms, or at all. Alternatively, management currently believes that the Company maintains sufficient global liquidity to settle the obligation, if necessary. Management’s forecasts for its ability to maintain access to capital distributions rely on various factors, including underlying market and operational estimates and assumptions. As actual results may vary, there can be no assurance that these forecasted outcomes will be realized, and it is possible a change in these estimates and assumptions could materially impact our liquidity.
Current report
In the future we may make commitments to additional capital projects or make acquisitions to achieve our long-term goals, including expanding our assets and earnings, which may require capital resources. Capital resources may also be required to repay or refinance our maturing debt over the longer term. Such capital resources may be substantial. The necessary capital resources are expected to be generated from cash flow from operations, cash on hand, borrowings against assets, asset dispositions, the issuance of securities or other financing arrangements. We continually monitor potential capital sources, including debt and equity financings, to, among other things, meet our targeted liquidity requirements and balance sheet goals. Our future success and ability to meet our business goals will be highly dependent on our ability to continue to access outside sources of capital.
Current report
As of March 31, 2026, our leverage ratio exceeded the 3.50:1.00 maximum permitted under our German joint revolving credit facility, under which $201.2 million was drawn. We secured a waiver dated May 4, 2026 with respect to this covenant for the first three quarters of 2026 (the “Waiver”). Based on our current forecasts, we anticipate
Current report
QUARTERLY REPORT - PAGE 29 returning to compliance by the fourth quarter of 2026, driven by targeted cost reductions, cyclical cash flow improvements, and stabilizing market conditions. In accordance with the Waiver and our assessment of the probability of meeting the required leverage ratio and complying with other covenants at subsequent compliance dates within the next year, the amount due under this facility remains classified as a non-current liability as of March 31, 2026.
Current report
Pursuant to the Waiver, the lenders waived the requirement to comply with the leverage ratio financial covenant for the first three fiscal quarters of 2026. The Waiver also modified certain covenants, including limiting utilization of the German joint revolving credit facility to €300 million while the leverage ratio exceeds 2.00:1.00, limiting drawdown requests for incremental borrowings to €20 million (until certain liquidity forecasts are provided), requiring average liquidity of the Company and its subsidiaries of US$30 million (tested monthly and measured over a rolling 13-week period), restricting capital expenditures of the German borrowers and their subsidiaries to €60 million for fiscal year 2026 without agent consent, and restricting distributions by the German borrowers to the Company until September 30, 2026 (subject to limited exceptions). The interest rate margin under the facility was modified to a range of 2.50% to 4.25% based on specified leverage ratio levels. The Waiver also provides, among other things, for a grant of security over certain assets of the German borrowers and guarantors, includes certain reporting requirements and creates additional events of default such as cross-defaults to certain of our other indebtedness, including our outstanding Senior Notes and Canadian joint revolving credit facility. Further information regarding the Waiver is set forth in our Current Report on Form 8-K dated May 7, 2026.
Current report
The Waiver gives us the opportunity to pursue and implement measures and solutions to enhance our liquidity and financial condition in the current economic environment and to assist our positioning for an eventual market recovery. To this end, we are also evaluating strategic alternatives and financing options to address our liquidity needs and goals. Our board of directors has appointed a special committee of independent directors to oversee, review and evaluate the development and implementation of potential liquidity management strategies and other transactions to improve our capital structure.
Current report
Any further covenant waivers may lead to increased costs, increased interest rates, additional restrictive covenants and other available lender protections as may be agreed with our lenders. There can be no assurance that we would be able to obtain additional waivers in a timely manner, or on acceptable terms. Any inability to secure additional relief could lead to an event of default and the acceleration of amounts due. We intend to meet any resulting liquidity needs through a combination of internal cash generation and continued access to the debt and equity capital markets. See “Sources and Uses of Funds”.
Current report
Our other debt agreements remain in compliance and this Waiver does not trigger any cross-default provisions under those agreements.
Current report
we have obtained a temporary Waiver under our German joint revolving credit facility, and any failure to comply with the terms of the Waiver, return to compliance by the end of the waiver period or obtain additional relief could materially adversely affect our liquidity and financial condition;
Removed paragraphs (73)
Previous report
In the third quarter of 2025, both our NBSK and NBHK pulp sales realizations decreased compared to the second quarter of 2025 as a result of lower prices across all markets. Pulp prices decreased in Europe and China, driven by weaker demand, stemming from the current economic climate and continuing global trade policy uncertainty, and increased substitution of softwood pulp for lower-cost hardwood pulp. The price decline in China was further impacted by an oversupplied paper market. In North America, pulp prices decreased in the third quarter of 2025 compared to the second quarter of 2025 as a result of downward price pressure from other markets.
Previous report
Demand and pricing for our products may be further impacted by ongoing developments in international trade policies, including tariffs proposed or imposed by the United States on goods originating from Canada, the European Union and other countries, and related countermeasures. As these developments are ongoing and subject to change, it is difficult to predict such impact at this time. See Item 1A. Risk Factors in our annual report on Form 10-K for the fiscal year ended December 31, 2024 for further information.
Previous report
Does not include our 50% joint venture interest in the Cariboo Pulp & Paper Company mill (“CPP”), which was accounted for using the equity method. In the first quarter of 2024, we disposed of this interest.
Previous report
Costs and expenses in the third quarter of 2025 increased by approximately 7% to $525.7 million from $493.3 million in the same quarter of 2024. This was primarily due to higher per unit fiber costs and the negative foreign exchange impact from a weaker dollar on our euro denominated costs and expenses compared to the same quarter of 2024. In the third quarter of 2025, costs and expenses included a non-cash impairment of $20.4 million primarily against pulp inventory as a result of lower prices.
Previous report
Interest expense increased by approximately 8% to $28.5 million in the third quarter of 2025 from $26.4 million in the same quarter of 2024. This increase was primarily driven by debt refinancing activities in October 2024, which replaced maturing senior notes with new senior notes carrying extended maturities and a higher interest rate.
Previous report
Pulp revenues in the third quarter of 2025 decreased by approximately 10% to $318.6 million from $354.2 million in the same quarter of 2024 as a result of lower sales realizations.
Previous report
Energy and chemical revenues in the third quarter of 2025 were relatively steady at $20.4 million compared to $19.1 million in the same quarter of 2024.
Previous report
Total pulp production in the third quarter of 2025 increased by approximately 10% to 458,708 ADMTs from 415,837 ADMTs in the same quarter of 2024 primarily as a result of improved production reliability in the third quarter of 2025. In the third quarter of 2025, our pulp mills had 32 days of downtime (approximately 35,700 ADMTs) which included 20 days of planned annual maintenance and 12 days of unplanned downtime at the Celgar mill due to a mechanical failure. In the same quarter of 2024, our pulp mills had 43 days of downtime (approximately 57,600 ADMTs) which included 20 days of planned annual maintenance and 23 days of unplanned downtime at the Peace River mill due to a mechanical failure.
Previous report
We estimate that planned annual maintenance downtime in the third quarter of 2025 adversely impacted our Segment Operating EBITDA by approximately $26.3 million, comprised of approximately $17.3 million in direct out-of-pocket expenses and the balance in reduced production. Many of our competitors that report their financial results using International Financial Reporting Standards, referred to as “IFRS”, capitalize their direct costs of maintenance downtime.
Previous report
In the fourth quarter of 2025, we currently expect a total of 18 days of planned annual maintenance downtime (approximately 35,600 ADMTs) at our Stendal mill.
Previous report
Total pulp sales volumes in the third quarter of 2025 were relatively flat at 452,840 ADMTs compared to 448,856 ADMTs in the same quarter of 2024.
Previous report
In the third quarter of 2025, the third-party industry quoted average list price for NBSK pulp in Europe and the third-party industry quoted average net price for NBSK pulp in China decreased from the same quarter of 2024. These decreases stemmed from weaker demand driven by the current economic climate, global trade policy uncertainty, and increased substitution of softwood pulp for lower-cost hardwood pulp. Oversupply in the paper market also contributed to the pricing decrease in China. In the third quarter of 2025, the third-party industry quoted average list price for NBSK pulp in North America decreased from the same quarter of 2024 driven by downward price pressure from other markets. Third-party industry quoted average list prices for NBSK pulp in Europe and North America were approximately $1,497 per ADMT and $1,700 per ADMT, respectively, in the third quarter of 2025 compared to approximately $1,573 per ADMT and $1,762 per ADMT, respectively, in the same quarter of 2024. The third-party industry quoted average net price for NBSK pulp in China was approximately $690 per ADMT in the third quarter of 2025 compared to approximately $771 per ADMT in the same quarter of 2024. Prices quoted for China are net of discounts, allowances and rebates whereas quoted prices for Europe and North America are before applicable discounts, allowances and rebates.
Previous report
In the third quarter of 2025, the third-party industry quoted average list price for NBHK pulp in North America decreased from the same quarter of 2024 due to downward price pressure from other markets. The third-party industry quoted average net price for NBHK pulp in China decreased in the third quarter of 2025 from the same quarter of 2024 due to an oversupplied paper market and weak demand driven by the current economic climate and global trade policy uncertainty. The third-party industry quoted average list price for NBHK pulp in North America was approximately $1,203 per ADMT in the third quarter of 2025 compared to approximately $1,467 per ADMT in the same quarter of 2024. The third-party industry quoted average net price for NBHK pulp in China was approximately $503 per ADMT in the third quarter of 2025 compared to approximately $635 per ADMT in the same quarter of 2024.
Previous report
Costs and expenses in the third quarter of 2025 increased by approximately 9% to $378.6 million from $348.6 million in the same quarter of 2024 due to higher per unit fiber costs, the negative foreign exchange impact of a weaker dollar and the non-cash inventory impairment.
Previous report
Transportation costs for our pulp segment in the third quarter of 2025 decreased by approximately 7% to $33.8 million from $36.5 million in the same quarter of 2024 driven by lower freight rates.
Previous report
Solid wood segment revenues in the third quarter of 2025 decreased by approximately 6% to $117.2 million from $125.1 million in the same quarter of 2024 primarily due to lower manufactured products revenues partially offset by higher lumber revenues.
Previous report
In the third quarter of 2025, lumber revenues increased by approximately 24% to $61.0 million from $49.1 million in the same quarter of 2024 primarily as a result of higher sales realizations.
Previous report
Energy, biofuels and wood residuals revenues in the third quarter of 2025 increased by approximately 27% to $17.4 million from $13.7 million in the same quarter of 2024 primarily due to higher sales realizations and energy sales volumes.
Previous report
In the third quarter of 2025, manufactured products revenues decreased by approximately 66% to $12.2 million from $35.8 million in the same quarter of 2024 driven by lower sales realizations and volumes as the ongoing elevated interest rate environment in the U.S. negatively impacted demand.
Previous report
Pallet revenues in the third quarter of 2025 were flat at $26.7 million compared to $26.5 million in the same quarter of 2024 due to continued weak economic conditions in Europe.
Previous report
Lumber production in the third quarter of 2025 decreased by approximately 6% to 115.4 MMfbm from 122.5 MMfbm in the same quarter of 2024 driven by the timing of planned maintenance downtime.
Previous report
Lumber sales volumes in the third quarter of 2025 were flat at 110.2 MMfbm compared to 108.8 MMfbm in the same quarter of 2024.
Previous report
QUARTERLY REPORT - PAGE 33 per unit fiber costs due to continued supply constraints and strong demand.
Previous report
Consolidated – Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024
Previous report
Total revenues for the nine months ended September 30, 2025 decreased by approximately 9% to $1,418.6 million from $1,555.0 million in the same period of 2024. This was primarily due to lower pulp and manufactured products sales volumes and realizations partially offset by higher lumber sales realizations.
Previous report
Costs and expenses in the nine months ended September 30, 2025 modestly decreased to $1,537.8 million from $1,590.3 million in the same period of 2024 primarily as a result of lower pulp and pallet sales volumes. This was partially offset by higher per unit fiber costs, negative foreign exchange impacts from a weaker dollar and inventory impairment charges of $31.4 million recorded in 2025 which were primarily non-cash and against pulp inventory. In the nine months ended September 30, 2024, costs and expenses included a non-cash goodwill impairment of $34.3 million related to the Torgau facility, which was recognized as a result of ongoing weakness in lumber, pallet and biofuels markets in Europe stemming from high interest rates and other economic conditions, and a non-cash loss of $23.6 million in connection with the dissolution of the CPP joint venture.
Previous report
In the nine months ended September 30, 2025, cost of sales depreciation and amortization was relatively steady at $117.2 million compared to $121.8 million in the same period of 2024.
Previous report
Selling, general and administrative expenses were flat at $89.0 million in the nine months ended September 30, 2025 compared to $90.6 million in the same period of 2024.
Previous report
In the nine months ended September 30, 2025, we had a negative foreign exchange impact of approximately $19.7 million on our operating loss compared to the same period of 2024. This negative impact was primarily due to the effect of a weaker dollar compared to the euro on the revaluation of dollar denominated accounts receivables held at our operations and on our euro denominated costs and expenses.
Previous report
Interest expense in the nine months ended September 30, 2025 increased by approximately 5% to $85.1 million from $80.8 million in the same period of 2024. This increase was primarily driven by debt refinancing activities in October 2024, which replaced maturing senior notes with new senior notes carrying extended maturities and a higher interest rate.
Previous report
In the nine months ended September 30, 2025, our net loss was $189.2 million, or $2.83 per share, compared to $101.8 million, or $1.53 per share in the same period of 2024. The net loss in the nine months ended September 30, 2024 included the non-cash goodwill impairment of $34.3 million, or $0.51 per share, and the non-cash loss of $23.6 million, or $0.35 per share, recognized in connection with the dissolution of the CPP joint venture.
Previous report
In the nine months ended September 30, 2025, Operating EBITDA decreased to negative $1.9 million from positive $144.5 million in the same period of 2024. This primarily resulted from higher per unit fiber costs, lower pulp sales realizations, lower manufactured products sales realizations and volumes, negative foreign exchange impacts from a weaker dollar and the inventory impairment. These adverse impacts were partially offset by higher lumber sales realizations.
Previous report
Pulp Segment– Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024
Previous report
Pulp segment revenues, comprised of pulp, energy and chemical revenues, in the nine months ended September 30, 2025 decreased by approximately 10% to $1,052.4 million from $1,173.0 million in the same period of 2024 driven by lower pulp revenues.
Previous report
Energy and chemical revenues in the nine months ended September 30, 2025 were relatively flat at $63.1 million compared to $63.8 million in the same period of 2024.
Previous report
Total pulp production in the nine months ended September 30, 2025 was relatively flat at 1,374,734 ADMTs compared to 1,376,436 ADMTs in the same period of 2024 as improved production reliability was offset by the dissolution of the CPP joint venture in March 2024. In the nine months ended September 30, 2025, our pulp mills had 91 days of downtime (approximately 117,900 ADMTs) which included 65 days of planned annual maintenance, 20 days of unplanned downtime at our Celgar mill due to mechanical failures and six additional days due to slower than expected start-up after the planned downtime. In the nine months ended September 30, 2024, our pulp mills had 87 days of downtime (approximately 135,100 ADMTs) which included 57 days of planned annual maintenance, 23 days of unplanned downtime at our Peace River mill due to a mechanical failure and seven additional days due to slower than expected start-up after the planned downtime.
Previous report
We estimate that planned annual maintenance downtime in the nine months ended September 30, 2025 adversely impacted our Segment Operating EBITDA by approximately $82.2 million, comprised of approximately $57.9 million in direct out-of-pocket expenses and the balance in reduced production. Many of our competitors that report their financial results using International Financial Reporting Standards, referred to as “IFRS”, capitalize their direct costs of maintenance downtime.
Previous report
Total pulp sales volumes in the nine months ended September 30, 2025 decreased by approximately 6% to 1,357,450
Previous report
ADMTs from 1,447,840 ADMTs in the same period of 2024 driven by weaker demand and the timing of sales.
Previous report
In the nine months ended September 30, 2025, the third-party industry quoted average list price for NBHK pulp in North America decreased from the same period of 2024 as a result of downward price pressure from other markets. The third-party industry quoted average net price for NBHK pulp in China decreased from the same period of 2024 due to weaker demand driven by the current economic climate and global trade policy uncertainty and the market absorbing increased hardwood capacity, which came online in 2024. The third-party industry quoted average list price for NBHK pulp in North America was approximately $1,261 per ADMT in the nine months ended September 30, 2025 compared to approximately $1,376 per ADMT in the same period of 2024. The third-party industry quoted average net price for NBHK pulp in China was approximately $538 per ADMT in the nine months ended September 30, 2025 compared to approximately $677 per ADMT in the same period of 2024.
Showing the first 40 of 73 passages. Open the source sections for the rest.
Reworded paragraphs (49)
Previous wording
The following discussion and analysis of our results of operations and financial condition for the three and nine months ended September 30, 2025 should be read in conjunction with our Interim Consolidated Financial Statements and related notes included in this quarterly report, as well as our most recent annual report on Form 10-K for the fiscal year ended December 31, 2024 filed with the Securities and Exchange Commission, referred to as the “SEC”.
Current wording
The following discussion and analysis of our results of operations and financial condition for the three months ended March 31, 2026 should be read in conjunction with our Interim Consolidated Financial Statements and related notes included in this quarterly report, as well as our most recent annual report on Form 10-K for the fiscal year ended December 31, 2025 filed with the Securities and Exchange Commission, referred to as the “SEC”.
Previous wording
In the third quarter of 2025, our lumber sales realizations were relatively stable in both the U.S. and Europe compared to the second quarter of 2025.
Current wording
In the first quarter of 2026, our lumber sales realizations were relatively stable in both the U.S. and Europe compared to the fourth quarter of 2025.
Previous wording
As of September 30, 2025, the third-party industry quoted NBSK pulp list prices in Europe and North America were approximately $1,495 per ADMT and $1,660 per ADMT, respectively, and the third-party industry quoted NBSK pulp net price in China was approximately $690 per ADMT. Prices for China are net of discounts, allowances and rebates.
Current wording
As of March 31, 2026, the third-party industry quoted NBSK pulp list prices in Europe and North America were approximately $1,655 per ADMT and $1,590 per ADMT, respectively, and the third-party industry quoted NBSK pulp net price in China was approximately $675 per ADMT. Prices for China are net of discounts, allowances and rebates.
Previous wording
In the fourth quarter of 2025, we currently expect both NBSK and NBHK pulp prices to remain weak.
Current wording
In the second quarter of 2026, we currently expect NBSK pulp prices to modestly increase in all our markets and NBHK pulp prices to be relatively steady.
Previous wording
In the fourth quarter of 2025, we currently expect lumber prices to modestly increase in Europe primarily due to higher fiber costs. In the U.S., we currently expect slightly higher prices in the latter part of the fourth quarter of 2025 driven by the combined impact of duties and tariffs imposed on producers reducing supply and supporting higher prices. In the fourth quarter of 2025, we currently expect pallet prices to remain flat due to continued weak economic conditions in Europe and mass timber prices to remain relatively steady.
Current wording
In the second quarter of 2026, we currently expect lumber prices to remain stable in Europe and modestly increase in the U.S. due to lower supply. In the second quarter of 2026, we anticipate pallet prices to remain flat due to continued weak economic conditions in Europe and mass timber prices to remain relatively steady.
Previous wording
Per unit fiber costs for the pulp and solid wood segments were relatively steady in the third quarter of 2025 compared to the second quarter of 2025. For the fourth quarter of 2025, we currently expect per unit fiber costs to increase for all our mills due to supply constraints and, in Germany, strong competing demand for pellets.
Current wording
Per unit fiber costs for the pulp and solid wood segments increased in the first quarter of 2026 compared to the fourth quarter of 2025 driven by supply constraints and strong demand. For the second quarter of 2026, we currently expect per unit fiber costs to stabilize as improved availability is offset by strong demand.
Previous wording
Total revenues for the third quarter of 2025 decreased by approximately 9% to $458.1 million from $502.1 million in the same quarter of 2024. This was primarily due to lower pulp and manufactured products sales realizations partially offset by higher lumber sales realizations.
Current wording
Total revenues for the first quarter of 2026 decreased by approximately 3% to $489.3 million from $507.0 million in the same period of 2025. This decrease was primarily due to lower pulp sales realizations partially offset by modestly higher sales realizations from our other products.
Previous wording
In the third quarter of 2025, cost of sales depreciation and amortization was relatively flat at $39.4 million compared to $41.5 million in the same quarter of 2024.
Current wording
In the first quarter of 2026, cost of sales depreciation and amortization was relatively steady at $40.7 million compared to $40.3 million in the same period of 2025.
Previous wording
Selling, general and administrative expenses were relatively steady at $28.8 million in the third quarter of 2025 compared to $29.2 million in the same quarter of 2024.
Current wording
Selling, general and administrative expenses were relatively flat at $28.5 million in the first quarter of 2026 compared to $29.7 million in the same period of 2025.
Previous wording
In the third quarter of 2025, we had a negative foreign exchange impact of approximately $8.6 million on our operating loss compared to the same quarter of 2024. This negative impact was primarily due to the effect of a weaker dollar on our euro denominated costs and expenses compared to the same quarter of 2024.
Current wording
In the first quarter of 2026, we had a negative foreign exchange impact of approximately $21.5 million on our operating loss compared to the same period of 2025. This negative impact was primarily due to the effect of a weaker dollar on our euro and Canadian dollar denominated costs and expenses.
Previous wording
In the third quarter of 2025, our operating loss was $67.6 million compared to operating income of $8.8 million in the same quarter of 2024 primarily due to lower pulp and manufactured products sales realizations, higher per unit fiber costs, the negative foreign exchange impact from a weaker dollar and the non-cash inventory impairment. These adverse impacts were partially offset by higher lumber sales realizations.
Current wording
In the first quarter of 2026, our operating loss was $32.9 million compared to an operating income of $6.7 million in the same period of 2025. This decrease was primarily due to lower pulp sales realizations, higher per unit fiber costs and the negative foreign exchange impact from a weaker dollar partially offset by lower maintenance costs. In the first quarter of 2026, our operating loss also included a non-cash inventory impairment charge of $22.0 million.
Previous wording
In the nine months ended September 30, 2025, other expenses were $0.8 million compared to other income of $9.1 million in the same period of 2024. Other expenses in the nine months ended September 30, 2025 primarily consisted of foreign exchange losses on the revaluation of dollar denominated cash held at our operations due to the weakening dollar mostly offset by interest earned on cash. In the nine months ended September 30, 2024, other income primarily consisted of interest earned on cash.
Current wording
In the first quarter of 2026, other income was $1.8 million compared to other expenses of $0.2 million in the same period of 2025. Other income in the first quarter of 2026 primarily consisted of interest earned on cash. In the same period of 2025, other expenses primarily consisted of foreign exchange losses on dollar denominated cash held at our operations as the dollar weakened against the euro at the end of the period mostly offset by interest earned on cash in the quarter.
Previous wording
In the third quarter of 2025, we had an income tax recovery of $14.8 million, or an effective tax rate of 15%, and in the same quarter of 2024, we had an income tax recovery of $0.1 million, or an effective tax rate of 1%. Our effective tax rates were different from the statutory rates of the jurisdictions in which we operate as we do not recognize tax recoveries for certain entities which we do not expect to realize a tax benefit.
Current wording
During the first quarter of 2026, we had an income tax recovery of $8.2 million, or an effective tax rate of 14%, and in the same period of 2025, we had an income tax provision of $0.7 million on a loss before income tax of $21.6 million. Our effective tax rates were different from the statutory rates of the jurisdictions in which we operate as we do not recognize tax recoveries for certain entities which we do not expect to realize a tax benefit.
Previous wording
In the third quarter of 2025, our net loss was $80.8 million, or $1.21 per share, compared to $17.6 million, or $0.26 per share, in the same quarter of 2024.
Current wording
In the first quarter of 2026, our net loss was $52.0 million, or $0.78 per share, compared to $22.3 million, or $0.33 per share in the same period of 2025.
Previous wording
In the third quarter of 2025, Operating EBITDA decreased to negative $28.1 million from positive $50.5 million in the same quarter of 2024. This primarily resulted from lower pulp and manufactured products sales realizations, higher per unit fiber costs, the negative foreign exchange impact from a weaker dollar and the non-cash inventory impairment. These adverse impacts were partially offset by higher lumber sales realizations.
Current wording
In the first quarter of 2026, Operating EBITDA decreased to $7.8 million from $47.1 million in the same period of 2025. This decrease primarily resulted from lower pulp sales realizations, higher per unit fiber costs, and the negative foreign exchange impact from a weaker dollar partially offset by lower maintenance costs. In the first quarter of 2026, our Operating EBITDA also included a non-cash inventory impairment charge of $22.0 million.
Previous wording
Pulp segment revenues, comprised of pulp, energy and chemical revenues, in the third quarter of 2025 decreased by approximately 9% to $339.0 million from $373.3 million in the same quarter of 2024 due to lower pulp revenues.
Current wording
Pulp segment revenues, comprised of pulp, energy and chemical revenues, in the first quarter of 2026 decreased by approximately 9% to $345.0 million from $381.1 million in the same period of 2025 driven by lower pulp revenues.
Previous wording
Pulp revenues in the nine months ended September 30, 2025 decreased by approximately 11% to $989.3 million from $1,109.3 million in the same period of 2024 as a result of lower sales volumes and realizations.
Current wording
Pulp revenues in the first quarter of 2026 decreased by approximately 11% to $319.2 million from $357.0 million in the same period of 2025 primarily as a result of lower sales realizations.
Previous wording
In the nine months ended September 30, 2025, the third-party industry quoted average list price for NBSK pulp in Europe was relatively stable, while North America increased compared to the same period of 2024. The price increase in North America was primarily due to stable demand and supply constraints. In the nine months ended September 30, 2025, the third-party industry quoted average net price for NBSK pulp in China decreased from the same period of 2024 as a result of an oversupplied paper market and weaker demand driven by the current economic climate and global trade policy uncertainty. Third-party industry quoted average list prices for NBSK pulp in Europe and North America were approximately $1,533 per ADMT and $1,758 per ADMT, respectively, in the nine months ended September 30, 2025 compared to approximately $1,525 per ADMT and $1,633 per ADMT, respectively, in the same period of 2024. The third-party industry quoted average net price for NBSK pulp in China was approximately $739 per ADMT in the nine months ended September 30, 2025 compared to approximately $776 per ADMT in the same period of 2024. Prices quoted for China are net of discounts, allowances and rebates whereas quoted prices for Europe and North America are before applicable discounts, allowances and rebates.
Current wording
In the first quarter of 2026, the third-party industry quoted average list price for NBSK pulp in Europe modestly increased compared to the same period of 2025 primarily due to supply constraints. In the first quarter of 2026, the third-party industry quoted average list price for NBSK pulp in North America and the third-party industry quoted average net price for NBSK pulp in China decreased compared to the same period of 2025. The decrease was primarily due to weak demand driven by the current economic climate and, in China, an oversupplied paper market. Third-party industry quoted average list prices for NBSK pulp in Europe and North America were approximately $1,618 per ADMT and $1,563 per ADMT, respectively, in the first quarter of 2026 compared to approximately $1,550 per ADMT and $1,753 per ADMT, respectively, in the same period of 2025. The third-party industry quoted average net price for NBSK pulp in China was approximately $685 per ADMT in the first quarter of 2026 compared to approximately $793 per ADMT in the same period of 2025. Prices quoted for China are net of discounts, allowances and rebates whereas quoted prices for Europe and North America are before applicable discounts, allowances and rebates.
Previous wording
Our average NBSK pulp sales realizations in the third quarter of 2025 decreased by approximately 11% to $728 per ADMT from $814 per ADMT in the same quarter of 2024. In the third quarter of 2025, average NBHK pulp sales realizations decreased by approximately 16% to $528 per ADMT from $632 per ADMT in the same quarter of 2024. The lower sales realizations are due to lower prices in all our markets.
Current wording
Our average NBSK pulp sales realizations in the first quarter of 2026 decreased by approximately 11% to $696 per ADMT from $783 per ADMT in the same period of 2025 due to lower prices in North America and China. In the first quarter of 2026, average NBHK pulp sales realizations remained flat at $564 per ADMT compared to $570 per ADMT in the same period of 2025.
Previous wording
In the third quarter of 2025, we had a negative foreign exchange impact of approximately $5.3 million on Segment Operating EBITDA compared to the same quarter of 2024. This negative impact was primarily due to the effect of a weaker dollar on our euro denominated costs and expenses compared to the same quarter of 2024.
Current wording
In the first quarter of 2026, we had a negative foreign exchange impact of approximately $15.7 million on Segment Operating EBITDA compared to the same period of 2025 primarily due to the effect of a weaker dollar on our euro and Canadian dollar denominated costs and expenses.
Previous wording
In the third quarter of 2025, we recorded a non-cash inventory impairment of $18.9 million as a result of low pulp prices.
Current wording
In the first quarter of 2026, we recorded a non-cash inventory impairment of $22.0 million as a result of low pulp prices and high fiber costs.
Previous wording
Overall average per unit fiber costs in the third quarter of 2025 increased by approximately 14% compared to the same quarter of 2024 primarily due to reduced supply in Germany and Canada. For the fourth quarter of 2025, we currently expect per unit fiber costs to increase due to continued supply constraints and, in Germany, strong competing demand for pellets.
Current wording
Overall average per unit fiber costs in the first quarter of 2026 increased by approximately 22% compared to the same period of 2025 primarily as a result of reduced supply in Germany and Canada. For the second quarter of 2026, we currently expect per unit fiber costs to stabilize as improved availability is offset by strong demand.
Previous wording
In the nine months ended September 30, 2025, our operating loss was $119.3 million compared to $35.4 million in the same period of 2024. This was primarily due to higher per unit fiber costs, lower pulp sales realizations, lower manufactured products sales realizations and volumes, negative foreign exchange impacts from a weaker dollar and the inventory impairment. These adverse impacts were partially offset by higher lumber sales realizations. In the nine months ended September 30, 2024, our operating loss included a non-cash goodwill impairment of $34.3 million related to the Torgau facility and a non-cash loss of $23.6 million recognized in connection with the dissolution of the CPP joint venture.
Current wording
Transportation costs for our pulp segment in the first quarter of 2026 were relatively flat at $36.8 million compared to $35.4 million in the same period of 2025.
Previous wording
In the third quarter of 2025, Segment Operating EBITDA for our pulp segment decreased to negative $12.7 million from positive $54.6 million in the same quarter of 2024. This primarily resulted from lower pulp sales realizations, higher per unit fiber costs, the negative foreign exchange impact from a weaker dollar and the non-cash inventory impairment.
Current wording
In the first quarter of 2026, Segment Operating EBITDA for the pulp segment decreased to $6.9 million from $49.9 million in the same period of 2025. This decrease primarily resulted from lower pulp sales realizations, higher per unit fiber costs, and the negative foreign exchange impact from a weaker dollar partially offset by lower maintenance costs. In the first quarter of 2026, Segment Operating EBITDA also included a non-cash inventory impairment of $22.0 million.
Previous wording
Average lumber sales realizations in the third quarter of 2025 increased by approximately 23% to $553 per Mfbm from $451 per Mfbm in the same quarter of 2024 due to lower supply and improved demand in both the U.S. and European markets. The U.S. market accounted for approximately 48% of our lumber revenues and approximately 44% of our lumber sales volumes in the third quarter of 2025. The balance of our lumber sales were mainly to Europe.
Current wording
Average lumber sales realizations in the first quarter of 2026 increased by approximately 7% to $536 per Mfbm from $499 per Mfbm in the same period of 2025 primarily as a result of lower supply and higher fiber costs in the European market. This increase was partially offset by lower average sales realization in the U.S. market due to weak demand. The U.S. market accounted for approximately 46% of our lumber revenues and approximately 42% of our lumber sales volumes in the first quarter of 2026. The balance of our lumber sales was mainly to Europe.
Previous wording
Manufactured products sales realizations decreased to $1,615 per m 3 in the third quarter of 2025 from $3,463 per m 3 in the same quarter of 2024 as the ongoing elevated interest rate environment in the U.S. negatively impacted demand.
Current wording
Manufactured products sales realizations decreased by approximately 36% to $1,801 per m 3 in the first quarter of 2026 from $2,832 per m 3 in the same period of 2025 as construction activity was weighted toward modest-scale projects amid an elevated interest rate environment in the U.S.
Previous wording
Fiber costs were approximately 75% of our lumber cash production costs in the third quarter of 2025. In the third quarter of 2025, per unit fiber costs for lumber production increased by approximately 35% compared to the same quarter of 2024 due to reduced supply and strong demand. For the fourth quarter of 2025, we currently expect higher
Current wording
Fiber costs were approximately 85% of our lumber cash production costs in the first quarter of 2026. In the first quarter of 2026, per unit fiber costs for lumber production increased by approximately 36% compared to the same period of 2025 due to reduced supply and strong demand. For the second quarter of 2026, we currently expect per unit fiber costs to be flat as the positive impact of improved supply will be offset by strong demand.
Previous wording
Transportation costs for our solid wood segment in the third quarter of 2025 increased by approximately 4% to $13.1 million from $12.6 million in the same quarter of 2024 primarily as a result of higher freight rates.
Current wording
Transportation costs for our solid wood segment in the first quarter of 2026 increased by approximately 12% to $14.9 million from $13.3 million in the same period of 2025 as a result of higher freight rates.
Previous wording
In the third quarter of 2025, Segment Operating EBITDA for the solid wood segment decreased to negative $9.3 million from negative $1.9 million in the same quarter of 2024. This primarily resulted from lower manufactured products sales realizations and higher per unit fiber costs. These adverse impacts were partially offset by higher lumber sales realizations.
Current wording
In the first quarter of 2026, Segment Operating EBITDA for the solid wood segment was negative $5.6 million compared to negative $0.3 million in the same period of 2025. This primarily resulted from higher per unit fiber costs partially offset by modestly higher sales realizations for most of our products.
Previous wording
We operate in a cyclical industry and our operating cash flows vary accordingly. Our principal operating cash expenditures are for production costs, such as fiber, chemicals and energy costs, and other material operating costs for maintenance, freight and labor. Working capital levels fluctuate throughout the year and are affected by maintenance downtime, changing sales patterns, seasonality and the timing of receivables and sales and the payment of payables and expenses.
Current wording
Working capital levels fluctuate throughout the year and are affected by maintenance downtime, changing sales patterns, seasonality and the timing of receivables and sales and the payment of payables and expenses.
Previous wording
Cash Flows from (used in) Operating Activities. In the nine months ended September 30, 2025, cash used in operating activities was $37.6 million compared to cash provided from operating activities of $19.0 million in the same period of 2024. A decrease in accounts receivable provided cash of $25.0 million in the nine months ended September 30, 2025 and an increase in accounts receivable used cash of $40.9 million in the same period of 2024. Adjusting for inventory impairments of $31.4 million, an increase in inventories used cash of $4.0 million in the nine months ended September 30, 2025 and adjusting for inventory impairments of $4.0 million, a decrease in inventories provided cash of $25.2 million in the same period of 2024. An increase in accounts payable and accrued expenses provided cash of $13.2 million in the nine months ended September 30, 2025 and a decrease in accounts payable and accrued expenses used cash of $25.4 million in the same period of 2024. An increase in prepaid expenses and other used cash of $34.1 million in the nine months ended September 30, 2025, primarily related to prepaid interest payments on our senior notes due 2028, and $8.5 million in the same period of 2024.
Current wording
Cash Flows from (used in) Operating Activities. In the three months ended March 31, 2026, cash used in operating activities was $85.7 million compared to $3.0 million in the same period of 2025. An increase in accounts receivable used cash of $32.0 million in the three months ended March 31, 2026 and $16.8 million in the same period of 2025. Adjusting for inventory impairments of $22.0 million, an increase in inventories used cash of $35.1 million in the three months ended March 31, 2026 and $6.9 million in the same period of 2025. An increase in accounts payable and accrued expenses provided cash of $12.7 million in the three months ended March 31, 2026 and $28.4 million in the same period of 2025. An increase in prepaid expenses and other used cash of $29.8 million in the three months ended March 31, 2026, primarily related to prepaid interest payments on our senior notes due 2028, and $27.5 million in the same period of 2025.
Previous wording
Cash Flows from (used in) Investing Activities. In the nine months ended September 30, 2025, investing activities used cash of $70.2 million. In the nine months ended September 30, 2025, we incurred $74.4 million of capital expenditures primarily related to completion of the wood room project at our Celgar mill, log yard upgrades at our Torgau facility and Friesau mill, lime kiln improvement at our Stendal mill, sorting line upgrades and other strategic projects at our mass timber facilities, and maintenance projects across our operating segments. In the nine months ended September 30, 2025, we received $5.0 million in government grants for capital projects at our Celgar mill and mass timber facilities.
Current wording
Cash Flows from (used in) Investing Activities. In the three months ended March 31, 2026, investing activities used cash of $12.8 million. In the three months ended March 31, 2026, we incurred $13.2 million of capital expenditures primarily related to lime kiln improvement and other strategic projects at our Stendal mill and maintenance projects across all mills and facilities.
Previous wording
In the nine months ended September 30, 2024, investing activities used cash of $60.5 million. In the nine months ended September 30, 2024, we incurred $63.6 million of capital expenditures primarily related to log yard upgrades and other strategic projects at our Torgau facility, equipment enhancements at our Peace River mill, optimization projects at our mass timber facilities and maintenance projects across all mills and facilities. In the nine months ended September 30, 2024, we received proceeds from the sale of property, plant and equipment of $5.2 million primarily related to the sale of land from our sandalwood business.
Current wording
In the three months ended March 31, 2025, investing activities used cash of $19.9 million. In the three months ended March 31, 2025, we incurred $20.1 million of capital expenditures primarily related to completion of the wood room project at our Celgar mill, log yard upgrades and other strategic projects at our Torgau facility and maintenance projects across all mills and facilities.
Previous wording
Cash Flows from (used in) Financing Activities. In the nine months ended September 30, 2025, financing activities provided cash of $26.9 million. In the nine months ended September 30, 2025, we borrowed approximately $46.6 million under our revolving credit facilities and we paid dividends of $10.0 million.
Current wording
Cash Flows from (used in) Financing Activities. In the three months ended March 31, 2026, financing activities provided cash of $1.8 million. In the three months ended March 31, 2026, we borrowed approximately $5.8 million under our revolving credit facilities.
Previous wording
In the nine months ended September 30, 2024, financing activities used cash of $33.7 million. In the nine months ended September 30, 2024, we repaid approximately $15.5 million under our revolving credit facilities and we paid dividends of $10.0 million.
Current wording
In the three months ended March 31, 2025, financing activities provided cash of $19.2 million. In the three months ended March 31, 2025, we borrowed approximately $21.8 million under our revolving credit facilities.
Previous wording
Interest on our senior notes due 2028 is paid semi-annually in April and October of each year. Interest on our senior notes due 2029 is paid semi-annually in February and August of each year. Prior to their redemption in October 2024, interest on our senior notes due 2026 was paid semi-annually in January and July of each year.
Current wording
Interest on our senior notes due 2028 is paid semi-annually in April and October of each year. Interest on our senior notes due 2029 is paid semi-annually in February and August of each year.
Previous wording
As of September 30, 2025, we had cash and cash equivalents of $98.1 million, approximately $278.0 million available under our revolving credit facilities and aggregate liquidity of about $376.1 million.
Current wording
As of March 31, 2026, we had cash and cash equivalents of $84.5 million. After taking into account the Waiver and the €70 million reduction in borrowing capacity thereunder (see “Debt Covenants”), we had approximately $144.5 million available under our revolving credit facilities, bringing aggregate liquidity to about $229.0 million as of March 31, 2026.
Previous wording
Based upon the current level of operations and our current expectations for future periods in light of the current economic environment, and in particular, current and expected pulp and lumber pricing and foreign exchange rates, we believe that cash flow from operations and available cash, together with available borrowings under our revolving credit facilities, will be adequate to finance the capital requirements for our business for the next 12 months.
Current wording
Based upon the current level of operations and our current expectations for future periods in light of the current economic environment, and in particular, current and expected pulp and lumber pricing, foreign exchange rates and our ability to complete refinancings of existing indebtedness, we believe that cash flow from operations and available cash, together with available borrowings under our revolving credit facilities and access to capital markets, will be adequate to finance the capital requirements for our business for the next 12 months.
Previous wording
There were no material changes outside the ordinary course to any of our material contractual obligations during the nine months ended September 30, 2025.
Current wording
There were no material changes outside the ordinary course to any of our material contractual obligations during the three months ended March 31, 2026.
Previous wording
As a majority of our assets, liabilities and expenditures are held or denominated in euros or Canadian dollars, our consolidated financial results are subject to foreign currency exchange rate fluctuations.
Current wording
Our reporting currency is the dollar. However, we hold certain assets and liabilities in euros and Canadian dollars and the majority of our expenditures are denominated in euros or Canadian dollars. Accordingly, our consolidated financial results are subject to foreign currency exchange rate fluctuations.
Showing the first 40 of 49 pairs. Open the source sections for the rest.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
We operate in a cyclical industry and our operating cash flows vary accordingly. Our principal operating cash expenditures are for production costs, such as fiber, chemicals and energy costs, and other material operating costs for maintenance, freight and labor. Historically, we have met our liquidity needs principally from cash on hand, cash flow from operations, and, if needed, external borrowings, including borrowings under revolving credit facilities and issuances of debt securities.
Current report — wording carried from elsewhere
QUARTERLY REPORT - PAGE 33 time but generally reflect changes in macroeconomic conditions and levels of industry capacity. Pulp and lumber are commodities that are generally available from other producers. Because commodity products have few distinguishing qualities from producer to producer, competition is generally based upon price, which is primarily determined by supply relative to demand.
Current report — wording carried from elsewhere
We have manufacturing operations in Germany, Canada and the U.S. Most of the operating costs and expenses of our German mills are incurred in euros and those of our Canadian mills in Canadian dollars. However, the majority of our sales are in products quoted in dollars. Our results of operations and financial condition are reported in dollars. As a
Rearranged previous paragraphs (7)
Previous report — wording carried elsewhere
During the nine months ended September 30, 2025, we had an income tax recovery of $15.9 million, or an effective tax rate of 8%, and in the same period of 2024, we had an income tax recovery of $5.2 million, or an effective tax rate
Previous report — wording carried elsewhere
QUARTERLY REPORT - PAGE 34 of 5%. Our effective tax rates were different from the statutory rates of the jurisdictions in which we operate as we do not recognize tax recoveries for certain entities which we do not expect to realize a tax benefit. In the nine months ended September 30, 2024, the effective tax rate was also impacted by the non-deductibility of the non-cash goodwill impairment.
Previous report — wording carried elsewhere
Segment Operating EBITDA is a measure of segment profit or loss presented in our financial statements under GAAP. Refer to the segment information note in our consolidated financial statements for more information.
Previous report — wording carried elsewhere
Overall average per unit fiber costs increased by approximately 8% in the nine months ended September 30, 2025 compared to the same period of 2024 primarily as a result of reduced supply in Germany and Canada.
Previous report — wording carried elsewhere
Segment Operating EBITDA is a measure of segment profit or loss presented in our financial statements under GAAP. Refer to the segment information note in our consolidated financial statements for more information.
Previous report — wording carried elsewhere
Fiber costs were approximately 75% of our lumber cash production costs in the nine months ended September 30, 2025. In the nine months ended September 30, 2025, per unit fiber costs for lumber production increased by approximately 24% compared to the same period of 2024 due to reduced supply and strong demand.
Previous report — wording carried elsewhere
QUARTERLY REPORT - PAGE 41 costs which could reduce our margins;