Interfor Corporation (IFP) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning. My name is Anas and I'll be your conference staff right here today. At this time, I'd like to welcome everyone to the Interfore Analyst Conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you'd like to ask a question during this time, simply press star then the number one on your telephone keypad. If you'd like to withdraw your question, please press star then the number two. Thank you. Mr. Fillinger, you may begin your conference. Thank you, Operator, and thank you everyone for joining us this morning. With me on the call, I have Rick Posbon, Executive Vice President and Chief Financial Officer, and Bart Bender, Senior Vice President of Sales and Marketing. I'll start off by providing a brief recap of our second quarter before passing the call to Rick and Bart. Positive EBITDA was generated, with Q2 adjusted EBITDA at $17 million, down from the previous quarter. The quarter-over-quarter decline was driven by a combination of lower sales prices, foreign exchange impacts, and inventory adjustments. Conversion costs were lower in several regions, production improved by 4%, and shipment volumes improved when compared to Q1. Despite a decline in lumber prices, cash flows were positive in the quarter due to working capital release and proceeds from the continued sale of B.C. Coast tenures. Although the pace of housing starts has remained somewhat resilient year to date in the context of interest rate environment and the associated affordability challenges, the political and trade situations in both the US and Canada remain uncertain. And until we know the impacts to the economy, we will continue to be very careful managing our inventories and order f...