Itasca Cap Stock Earnings Reports

GreenFirst reported Q1 2026 results with a negative EBITDA of $15.1 million driven by weaker market conditions, lower sales volumes (83 million board feet vs. 108 million in Q4 2025), weather-related logistics disruptions, and ramp-up effects from the new Chapleau saw line. Revenue was $60.6 million (lumber $55.4M; byproducts $5.2M). Cost of sales decreased vs. Q4 largely from lower shipments and reduced NRV adjustments, but duties and tariffs remained a significant headwind ($12.1M in Q1 at currently high duty rates including a 35% AD/CVD rate and a 10% Section 232 tariff). Production was roughly stable (~90.6 million board feet), causing an inventory build from timing mismatches. Management completed major Chapleau projects (planer and cogeneration) and reports the new saw line is ~90% of target capacity with quality and recovery improvements; full integration expected in Q2. Capital spending remains selective — Phase 1 ($50M) only partially advanced. On liquidity, the company drew a $30 million loan from BDC and received ~ $2.4 million provincial CHIP support, ending the quarter with $6.5 million cash and reduced revolver availability (~$19.6M). Management expects only modest lumber price gains for the remainder of 2026, remains cautious about housing-driven demand recovery while noting potential relief if U.S. duties fall (rumored reduction to ~25% by October). Management emphasizes disciplined cash management and operational improvement to navigate the downcycle.