GreenFirst Reports Financial Results for the Third Quarter of 2026

TORONTO--(BUSINESS WIRE)--GreenFirst Forest Products Inc. (TSX: GFP) (“GreenFirst” or the “Company”) announced results for the third quarter and three quarters ended September 26, 2026. The Company’s unaudited condensed consolidated financial statements ("Financial Statements") and related Management's Discussion and Analysis ("MD&A") for the third quarter and three quarters ended September 26, 2026 are available on GreenFirst’s website at www.greenfirst.ca and on SEDAR+ at www.sedarplus.ca.

Highlights

• Q3 2026 net loss was $7.0 million or $0.30 loss per share (diluted), compared to net income of $5.5 million or $0.24 earnings per share (diluted) in Q2 2026. Adjusted EBITDA for Q3 2026 was negative $1.3 million compared to positive $11.8 million in Q2 2026.
• Average realized lumber prices increased to $850/mfbm in Q3 2026, compared to $765/mfbm in Q2 2026, reflecting tighter North American supply driven by production curtailments and mill closures, combined with lean channel inventories and stable underlying demand for the first half of the quarter.
• On October 19, 2026, the US DOC released the final results of the Seventh Administrative Review with respect to imports of softwood lumber products from Canada for the 2024 period of inquiry. The final duty rate of 24.75% was higher that the Company’s prior assessment for 2024 of 10.41%. The Company has estimated a duties liability of $25.7 million ($US18.2 million), plus accrued interest of $4.5 million ($US3.2 million). The Company expects to record the estimated additional duties expense and related accrued interest in the consolidated statement of loss and comprehensive loss during the fourth fiscal quarter of 2026.
• The board of directors will cease to receive cash compensation moving forward.

GreenFirst Reports Q3 2026 Results Amid Challenging Market Conditions

“The third quarter reflected the continued challenges facing the Canadian lumber industry, with weaker demand, volatile lumber prices and significant U.S. duties and tariffs putting pressure on our financial results. While overall results remained below expectations, we continued to advance key operational initiatives, particularly through the ongoing optimization of our Chapleau large log line.

At the same time, recently announced additional federal support programs may provide opportunities to support future investments in mill modernization, improve competitiveness and explore new value-added uses for our wood fibre and residuals. We will continue to evaluate these opportunities in the context of our operational priorities and financial capacity as we work to strengthen GreenFirst’s long-term performance,” said Michel Lessard, President and Acting Chief Executive Officer of GreenFirst.

Financial Highlights

The following selected financial information is from the Company’s financial statements and MD&A:

(In thousands of CAD, except per share amounts)	September 26,			June 27,		September 27,
For the quarter ended		2026			2026		2025
Net sales	$	87,646		$	96,099	$	70,230
Operating income (loss)		(4,302	)		7,917		(50,905	)
Net income (loss)		(7,032	)		5,503		(57,383	)
Basic earnings (loss) per share		(0.30	)		0.24		(2.54	)
Diluted earnings (loss) per share		(0.30	)		0.24		(2.54	)
Adjusted EBITDA^(1)(2)	$	(1,269	)	$	11,791	$	(47,193	)

(In thousands of CAD)	September 26,		December 31,
As at		2026		2025
Total assets	$	212,073	$	189,825
Total liabilities		172,666		129,204
Total shareholders' equity	$	39,407	$	60,621

^1Adjusted EBITDA is a Non‐GAAP measure and does not have standardized meaning under GAAP or IFRS. As a result, it may not be comparable to information presented by other companies. For an explanation and reconciliation of Adjusted EBITDA to related comparable financial information presented in the Financial Statements prepared in accordance with IFRS, refer to the Non-GAAP Measures section in the Company's MD&A.

^2Non-GAAP Adjusted EBITDA before the duties expenses related to the US DOC's Sixth Administrative Review AR6 ("AR6") for the third quarter and three quarters ended September 26, 2026 was negative $1.3 million and negative $4.6 million respectively, compared to negative $13.4 million and negative $13.5 million respectively, for the third quarter and three quarters ended September 27, 2025.

Net sales were $87.6 million in Q3 2026, a decrease of approximately 9% compared to Q2 2026. The decrease in net sales was primarily driven by lower shipments offset by higher realized pricing during the quarter, as a result of continued pressure from elevated duties and tariffs applicable to Canadian softwood lumber exports.

Cost of sales were $68.4 million in Q3 2026, an increase of approximately 10% compared to Q2 2026. Cost of sales increased despite a significant decrease in shipment volumes, primarily due to a $1.0 million reversal of the net realizable value inventory provision, compared to a $16.2 million reversal recorded in the second quarter of 2026. The $15.2 million difference more than offset the favourable impact of lower shipment volumes on cost of sales. The current quarter reversal reflected stronger lumber prices and a more favorable inventory mix at quarter end.

Other Expenses

Duties and tariffs expense of $19.9 million in the third quarter of 2026 was lower than the second quarter of 2026 of $21.1 million. The decrease primarily reflected lower shipment volumes, partially offset by higher lumber selling prices. During the third quarter of 2026, the Company was subject to a combined ADD and CVD rate of 35.16%, plus a 10.0% tariff under Section 232, resulting in a combined rate of 45.16%.

SG&A expenses were $3.7 million in the third quarter of 2026, a decrease of approximately 14% compared to Q2 2026. The decrease primarily reflected reduced corporate, administrative and IT-related costs during the period.

Liquidity and Borrowings

At September 26, 2026, the Company had $3.1 million in cash on hand (December 31, 2025 - $3.5 million). In addition, the Company had $12.9 million of excess availability under the revolving credit facility (net of $35.5 million drawn and $3.9 million for standby letters of credit) compared to $23.1 million as at December 31, 2025 (net of $18.0 million drawn and $3.9 million for standby letters of credit). The Company also had access to $16.2 million under its equipment financing agreement (December 31, 2025 - $14.1 million) and $8.8 million drawn as at September 26, 2026 (December 31, 2025 - $10.9 million). The Company continues to actively manage working capital, capital expenditures and available borrowing capacity to support operations, fund priority capital expenditures and preserve liquidity.

Outlook

The North American lumber industry continues to face challenging market conditions, reflecting elevated mortgage rates, housing affordability constraints and subdued residential construction activity. While multifamily housing starts have declined significantly year over year, single-family construction has demonstrated greater resilience. Renovation and remodelling activity also remains an important source of lumber demand, particularly through home improvement and building material retailers. Longer-term demand fundamentals remain supported by housing supply shortages, demographic trends and the ongoing need for residential construction and renovation across North America.

Lumber prices continue to experience volatility amid subdued demand and ongoing adjustments to industry production capacity. Sawmill curtailments and permanent closures across North America have contributed to a reduction in available supply, which may support improved market balance as demand stabilizes. While near-term market conditions remain uncertain, the combination of reduced industry capacity and longer-term housing demand fundamentals provides opportunities for improvement as market conditions recover.

Canadian Spruce-Pine-Fir (SPF) lumber remains an important product in the North American residential construction market, valued for its strength-to-weight ratio, workability and dimensional stability. Although Southern Yellow Pine (SYP) competes in several construction applications and benefits from proximity to certain U.S. markets, SPF continues to offer advantages in conventional framing and other residential applications. GreenFirst's Ontario operations provide access to a renewable fibre resource and established North American markets, positioning the Company to participate in future improvements in lumber demand.

Canadian softwood lumber producers continue to face trade-related challenges, including U.S. anti-dumping and countervailing duties and Section 232 tariffs. These measures affect profitability and cash flows and contribute to uncertainty surrounding future trade conditions. GreenFirst continues to monitor developments in U.S. trade policy and assess their implications for its operations and financial performance.

Against this backdrop, GreenFirst remains focused on initiatives within its control, including improving production reliability, increasing throughput and lumber recovery, optimizing manufacturing costs and aligning production with market demand. GreenFirst believes its existing asset base, access to renewable fibre and ongoing focus on operational improvements provide opportunities to strengthen its competitive position and improve financial performance as market conditions stabilize.

Reconciliation of Adjusted EBITDA

References to EBITDA in this document are measures of earnings (loss) before interest and finance costs, income taxes, depreciation and amortization, while references to Adjusted EBITDA reflect EBITDA plus other non-operating costs such as impact of valuation changes on the Company's investments, loss on sale of assets and other non-operating losses. Management believes that certain lenders, investors, and analysts use EBITDA and Adjusted EBITDA as a common valuation measurement and to measure the Company’s ability to service debt and meet other payment obligations. EBITDA and Adjusted EBITDA are not intended to replace net earnings (loss), or other measures of financial performance and liquidity reported in accordance with GAAP. For more information on non-GAAP measures, please see the Company's MD&A.

(In thousands of CAD)	September 26,			June 27,		September 27,
For the quarter ended		2026			2026		2025
Net income (loss)	$	(7,032	)	$	5,503	$	(57,383	)
Adjustments:
Finance costs, net		2,726			2,373		6,543
Income taxes		4			41		10
Depreciation and amortization		3,033			3,874		3,712
EBITDA		(1,269	)		11,791		(47,118	)
Impairment		—			—		—
Gain on sale of assets		—			—		(75	)
Adjusted EBITDA^(1)(2)	$	(1,269	)	$	11,791	$	(47,193	)

^1Adjusted EBITDA is a Non‐GAAP measure and does not have standardized meaning under GAAP or IFRS. As a result, it may not be comparable to information presented by other companies. For an explanation and reconciliation of Adjusted EBITDA to related comparable financial information presented in the Financial Statements prepared in accordance with IFRS, refer to the Non-GAAP Measures section in the Company's MD&A.

^2Non-GAAP Adjusted EBITDA before the duties expenses related to the US DOC's Sixth Administrative Review AR6 ("AR6") for the third quarter and three quarters ended September 26, 2026 was negative $1.3 million and negative $4.6 million respectively, compared to negative $13.4 million and negative $13.5 million respectively, for the third quarter and three quarters ended September 27, 2025.

About GreenFirst

GreenFirst Forest Products is a forest-first business, focused on sustainable forest management and lumber production. The Company owns four sawmills located in rich wood baskets proudly operating over six million hectares of FSC® certified public Ontario forest lands (FSC®-C167905). The Company believes that responsible forest practices, coupled with the long-term green advantage of lumber, provide GreenFirst with significant cyclical and secular advantages in building products.

Forward Looking Information

Certain information in this news release constitutes forward-looking statements under applicable securities laws. Any statements that are contained in this news release that are not statements of historical fact are forward-looking statements. Forward looking statements are often identified by terms such as “may”, “should”, “anticipate”, “expect”, “potential”, “believe”, “intend”, “estimate” or the negative of these terms and similar expressions. Forward-looking statements are based on certain assumptions and, while GreenFirst considers these assumptions to be reasonable, based on information currently available, they may prove to be incorrect. In addition, forward-looking statements necessarily involve known and unknown risks, including those set out in GreenFirst’s public disclosure record filed under its profile on www.sedarplus.ca. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement and reflect our expectations as of the date hereof, and thus are subject to change thereafter. GreenFirst disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.