Canfor Pulp reports results for the fourth quarter of 2025

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• Should tariffs be applied to US pulp and paper shipments, the Company has mitigation strategies in place that are projected to partially offset potential impacts

  80% confidence

• Market conditions are typically considered balanced when inventories fall within the 39-47 days of supply

  80% confidence

• It is highly probable that CPPI will not comply with its financial covenants at March 31, 2026 due to global pulp market conditions remaining weak, ongoing macroeconomic headwinds and continued challenges accessing economic fibre in British Columbia

  80% confidence

• Global softwood kraft pulp market conditions are anticipated to remain weak into 2026 as ongoing economic uncertainty, particularly between China and the US, continues to weigh on market demand despite some cautious optimism seen late in 2025

  80% confidence

• The Company faced another extremely challenging quarter, as ongoing global economic uncertainty weighed heavily on softwood pulp market conditions

  80% confidence

• We remain cautious heading into 2026 as we continue to navigate significant external pressures on our business, including the prolonged downturn in softwood pulp markets and the ongoing constraints in securing economically viable fibre

  80% confidence

• Lower global pulp prices prompted a modest uptick in purchasing activity, particularly in China, as producers worked to draw down higher-than-average inventory levels

  80% confidence

• Demand for bleached kraft paper, both globally and within North America, is anticipated to remain subdued throughout the first half of 2026

  80% confidence

• Should the Proposed Transaction not close, the Company would re-engage with its lenders for further temporary relief while it works to undertake a restructuring process

  80% confidence