Thank you, Sylvie. Good morning, everyone, and welcome to our second quarter 2026 earning call.

I'm Joel Fournier, the Chief Executive Officer of GreenFirst. Today, I'm joined by Peter Ferrante, our CFO, and Michel Lessard, our President.

I'm pleased to announce that during the second quarter, our production and shipment volume increased by over 20% and 40%, respectively. Additionally, our net sales saw a significant increase of approximately 60% as a result of increase in the benchmark lumber price and strong sales volume.

This helped us deliver positive operating income and EBITDA during the quarter. Compared to the previous quarter, we ended Q2 generating approximately $96 million in net sales.

This performance was primarily driven by our strongest shipment quarter over the past 2 years of approximately 120 million MFBM. This was combined with a higher realized selling price and an improved grade mix.

During the quarter, our average lumber selling price increased by approximately $60 per 1,000 MFBM compared to previous quarter Q1. Overall, our mills finished Q2 with stronger production and lower costs compared with Q1 2026.

The increased production volume allowed the company to leverage its fixed manufacturing costs, which in turn reduced our cost of sales despite energy and fuel cost headwinds. This resulted in an overall cost and ceiling reduction of approximately $70 per 1,000 during the quarter.

Despite this positive operational results, our business continue to face significant pressure from duty and tariffs. During Q2 alone, we incurred approximately $21 million in duty and tariffs, an increase of $13 million compared to last year in Q2.

We are closely following the ongoing negotiations between the Canadian federal government and the US administration. During the quarter, we received approximately $3.2 million from the provincial government through the Ontario Sawmill Chip Support Program.

We will continue to work closely with both the federal and provincial governments to take advantage of recently announced programs available to our industry to support our strategic initiatives. These measures will help strengthen both our current and future liquidity position.

Now, I'm going to discuss a little bit about the market. Q2 lumber market update.

Overall, lumber market condition improved in Q2 compared with Q1, supported primarily by positive development on the supply side. On the demand side, US housing starts reached approximately 1.4 million units in June 2026, representing an increase of 3.5% compared with June 2025 and approximately 19% compared with May 2026.

In the repair and remodeling segment, we continue to see strong demand from our key home center partners. During the quarter, we further expanded our business with this segment by adding 2 additional locations.

On the supply side, it's also worth noting that a number of mill curtailment were announced during Q2 across Canada. This capacity reduction, combined with modest improved market condition, provides support for steadily increased lumber price during the quarter.

Home affordability remained a challenge with mortgage rates presently at 6.58% in July. The industry will need to continue to see decline in the federal interest rate in order to support stronger demand moving forward.

While we are encouraged by the improvement we saw in Q2, we remain cautious about the outlook for lumber pricing in the coming quarters. Market conditions remain uncertain and we will continue to closely monitor both demand and industry capacity as we move through the second half of the year.

I will pass it over to Peter for the financial section. Thank you.

Good morning, everyone, and thank you for joining our call. Today, I will review our second quarter financial performance, liquidity position, and key financial highlights.

Revenue for the second quarter totaled $96.1 million compared to $60.6 million in the first quarter and $84.5 million in the second quarter of last year. Lumber sales totaled $91 million with byproduct revenue of $5.1 million.

The sequential increase was primarily driven by higher shipment volumes and stronger realized lumber prices. Average gross selling prices increased to $765 per 1,000 board feet, while average net selling prices increased to $486 per 1,000 board feet after duties and tariffs.

Overall, the quarter reflects a significant improvement in both revenue and operating momentum compared to the first quarter. A key feature of the quarter was that cost of sales totaled $62.1 million, essentially unchanged from the first quarter despite shipments increasing by more than 40%.

This reflects the benefit of higher production volumes, improved manufacturing efficiency, and better fixed cost absorption. While inventory costs increased in absolute dollars as higher volumes move through the business, manufacturing costs declined on a per-unit basis as production increased and fixed costs were absorbed over a larger production base.

The quarter also benefited from the reversal of previously recognized inventory valuation reserves, primarily reflecting the stronger lumber prices, lower manufacturing costs, and improved inventory mix compared to prior period. In addition, results benefited approximately from $3 million of previously approved Ontario Sawmill Chip Support Program funding recognized during this quarter.

Freight costs increased with higher shipment volumes, while depreciation remained relatively stable. Export duties and tariffs totaled $21.1 million compared to $12.1 million in the first quarter, primarily reflecting higher export volumes under elevated duty and tariff rates.

Selling, general, and administration expense remained well controlled at $4.3 million, consistent with the first quarter. Foreign exchange losses were $600,000 and there were no impairment charges during the quarter.

Finance costs increased modestly to $2.4 million, reflecting the additional borrowings completed during the first quarter of the year. Operating income improved to $7.9 million compared to an operating loss of $19 million in the first quarter.

EBITDA from continuing operations turned positive to $11.8 million compared to a negative $15.1 million in Q1. Reported EBITDA benefited from the reversal of previously recognized inventory valuation reserves and government support byproducts.

Importantly, however, the quarter also reflected a meaningful improvement in underlying operating performance, driven by higher production and shipments, stronger realized pricing, and improved manufacturing efficiency. While year-to-date results continue to reflect the challenging first quarter, the second quarter demonstrates meaningful progress across our operations.

Production increased 22% sequentially to 110 million—111 million almost board million board feet, while shipments increased 43% to 119 million board feet. Shipments, therefore, exceeded production during the quarter, resulting in a reduction in inventory and helping to reverse the seasonal inventory build experienced in the first quarter.

This also provided a positive contribution to working capital during the quarter. Turning to working capital and cash, the company ended the quarter with $2.8 million of cash compared to $6.5 million at the end of the first quarter.

The company also continues to have access to its revolving credit facility and other financing arrangements to support its liquidity requirements. Operating activities generated $2.4 million of cash during the quarter, reflecting the improvement in operating performance.

This was partially offset by working capital movements, primarily the settlement of trade payables that had accumulated during the first quarter. While operating cash flows returned to positive territory, improving the conversion of earnings into sustainable cash flow remains an important management priority.

Investing activities remained modest, with capital expenditures of approximately $900,000, reflecting our continued disciplined approach to capital spending. Financing activities used $5.1 million of cash, primarily reflecting the scheduled repayments of lease obligations and equipment financing, together with repayments on the revolving credit facility.

Liquidity management remains a key priority. At the same time, the second quarter demonstrates that improvements in operating performance are beginning to translate into stronger financial results and cash generation.

Management remains focused on disciplined working capital management, prudent capital allocation, and improving the conversion of operating performance into sustainable cash flow. We will also continue to actively manage the impacts of duties and tariffs.

Overall, the second quarter represents a good progress from both an operating and financial perspective. We increased production and shipments, improving manufacturing efficiency, strengthened our realized pricing, and returned to a positive operating income and EBITDA.

While challenges remain, particularly around duties, tariffs, and liquidity, the second quarter provides a strong foundation as we move through the balance of the year. This concludes my remarks and I will pass it back to Joel.

Thank you, Peter. Looking ahead, GreenFirst will continue to pursue its objective of becoming top-quartile operator and the largest producer in Ontario by maximizing the use of its available wood supply.

This continues to position the company uniquely from a log supply perspective compared to its competitors. As mentioned in the previous quarter, we continue to make progress with the commissioning of the new large-log line at our Chapleau mill.

We expect the ramp-up to continue through Q3. While the commissioning process is taking somewhat longer than originally anticipated, we are making steady progress and are now beginning to see the benefit of the investment.

This remains one of our key operational priorities going forward. Our objective is to continue increasing throughput at the mill, which should help reduce our manufacturing costs while maintaining a strong grade mix to support mill net realization.

Looking ahead, we will also evaluate the reintroduction of smaller strategic capital expenditure that can generate improvement in productivity and operating performance. We will also continue to execute necessary maintenance of business capital expenditures across operations.

We remain prudent with cash and disciplined in our approach to capital allocation. At the same time, we will evaluate potential larger strategic investment where the economic are compelling, particularly where we may be able to take advantage of recently announced federal government support programs.

No decisions have been made at this time regarding larger CapEx projects and we will communicate further development to our shareholders as appropriate. Turning to our wood residual strategy, we continue to work with Tembec to explore a potential partnership for the development of a torrefied pellet facility in Chapleau.

We believe there's an opportunity to better utilize sawmill residuals in the region while potentially creating additional value for GreenFirst. The proposed project could support efforts to replace coal with lower carbon energy sources for power generation.

We are currently progressing through the feasibility stage and expect this work to be completed during Q3. Subject to the results of the feasibility study, required approval, financing, and final investment decision, construction could potentially begin in late 2027.

We believe this type of project is well aligned with the federal government recent commitment to support the Canadian forest product industry and investment and strengthen the long-term competitiveness of the sector. Finally, we continue to closely follow development involving one of our major chip customer, Kap Paper.

Kap Paper is currently working with the government and a potential third-party partners on the development of an MDF facility in Kapuskasing. Should this project receive the necessary approval and proceed, it could create an important new market for wood residual and support more stable long-term demand for sawmill residuals in northern Ontario.

We are encouraged by the positive results achieved during the second quarter and by the improvement we saw in both our operation and the lumber market. However, we remain prudent as we look ahead given the continue uncertainty around lumber pricing, duties, and broader market conditions.

I would like to highlight that we continue to maintain an excellent safety performance during the second quarter. Both of our key safety indicators, recordable rate and severity rate, remain among the best in our sector in relation to our North American peers.

This performance reflects the continue commitments of our employees to choosing safety in their day-to-day work and demonstrates the strength of the safety culture across our company. GreenFirst remain committed to continuous improvement as a core strategy to enhance business performance.

At the same time, we will maintain a disciplined approach to cash management and capital allocation to ensure the company remain well positioned to navigate potential economic headwinds and market uncertainty. I would like to also take this opportunity to announce that I will be formally resigning from my position as CEO of GreenFirst effective October 31st, 2026.

I'm proud of what we accomplished together during my time at GreenFirst and of the progress the organization has made through a challenging period for our industry. These accomplishment reflect the commitment and dedication of our people and it has been a privilege to work alongside such a strong team.

I would also like to thank the board for the opportunity to lead GreenFirst and their support during my tenure. I remain confident in GreenFirst people, asset, long-term potential, and I'm committed to supporting a smooth transition and ensuring continuity.

I wish the entire GreenFirst team continue success. I would like to thank everyone for joining the call today and with your continue interest with GreenFirst.

We will now answer any question that have come through.

This is Joel. We do have a question around Chapleau.

Now that the Chapleau large-log line is ramping up, could you provide an update on how volume and product quality are tracking against expectations and when we'll see the line full financial contribution? I will answer this one.

The Chapleau line continue to make progress month after month. Overall, the monthly performance remain short of pro forma expectation for now.

The project is taking a little bit longer than initially expected, but the forecast ramp-up remain in line with comparable project in the industry. We expect the line to continue ramping up through the remainder of the year and to realize its full financial contribution by year-end.

We continue to work actively with the vendor support in order to bring the line to expected level of production. Our overall manufacturing performance in Q2 versus Q1 was positively impacted by Chapleau line as productive volume increase by over 35%.

Along with that question, people are asking: What other improvement or efficiency are you working at the mill? Like I mentioned briefly earlier, we're going to reintroduce small strategic capital expenditure that will help to push throughput in our mill to further reduce our cost.

Such project could be speed control system on actual saw line. Those projects are generally quick payback.

We do have another question here. As a result of the recent regional forest fire in northern of Ontario, do you foresee any issue with short-term or long-term fiber basket availability and quality for the company?

I will let Michel, our President, to answer the question.

Thanks, Joel. We're not impacted by the recent forest fires in Ontario.

The most significant fire that we got occurred in the northwestern on the province, while our operations are located in the northeastern. As a result, we did not experience any material disruptions to our operations, fiber supply, or projection.

Now as it relates to our long-term fiber basket, availability is currently not a limiting factor for GreenFirst. We have sufficient government-allocated fiber and harvesting capacity to support continued production growth well beyond our current operating level.

We do have another question here. The US Department of Commerce recently announced that the preliminary duty rates are expected to drop.

Are you expecting that lumber price to fall dollar-for-dollar or is there an opportunity for producer to capture margin? I will let Michel, our President, to answer the question.

Thanks Joel again. We'll not necessarily expect lumber prices to move dollars-for-dollars within a reduction in duties.

Pricing will continue to be driven primarily by market fundamentals, including supply and demand. If duties are reduced, we believe that there's an opportunity for producer to capture at least part of the benefits through improved margins, although the ultimate outcomes will depend also on market conditions.

Just to note also, as we saw in 2025, when the duties rate increased, we didn't see a corresponding increase in selling prices. Market conditions continued to be the main factor.

We do have another question here. Congratulations.

Nice to see you delivered positive results in Q2. What was the main driver for those results and do you think it could be repeatable?

I will answer this one. As mentioned in our discussion, Q2 benefited from a stronger sales volume combined with solid operational performance.

Both higher shipment volume and lower manufacturing cost contributed to the results, and our sales and logistic team did an excellent job moving this volume during the quarter. Operationally, two of our mill achieved their lowest processing cost in recent years despite the headwind from higher energy cost.

The mill of Hearst also achieved a Q2 production record, while continue progress on the Chapleau line contributed to further cost improvement. Overall, our total cost improved by approximately $70 per 1,000 MFBM produced.

In terms of repeatability, market condition and sales volume can vary from quarter to quarter, we remain prudent in our outlook. What we can control is our operational execution and we will continue to focus on improving productivity, leveraging manufacturing cost structure, and maximizing the performance of our assets.

We do have another question. To what extent are the recent energy price increase impacting the company cost structure?

I will answer this one. Energy prices impacted us at multiple level, including fuel surcharge associated with harvesting and hauling cost at our mill.

Mill consumable and mobile equipment operating cost are impacted. However, it is not a material component of our manufacturing unit cost.

As such, the company was able to reduce overall manufacturing cost in Q2 by approximately $70 per 1,000 compared with Q1. This demonstrates the progress we continue to make on operational efficiency and cost reduction across our operation.

We do have another question here. Can you give us some insights into the reversal of the inventory provision taken this quarter?

What's driving the significant decrease this quarter specifically? I will let Peter Ferrante, our CFO, to answer the question.

At the end of the first quarter, a portion of our inventory was carried at net realizable value because market prices had declined below our internal manufacturing costs. As we mentioned earlier and discussed in our MD&A disclosure, realized lumber prices increased approximately $80 to $100 per 1,000 board feet during the quarter, which was the primary driver of the reversal.

We also benefited from lower manufacturing costs on a per-unit basis as production volumes increased, helping reduce our fixed cost absorption. In addition, our shipment volumes exceeded production during the quarter, reducing our inventory levels, while the inventory we produced had a higher value product mix than the first quarter.

In summary, when we put this all together, stronger lumber prices were the single largest driver. The reversal also reflected improved manufacturing costs, lower inventory levels, and a higher value inventory mix.

Moving forward, as future reversals or write-downs, they will all depend on the same factors, which are lumber prices, manufacturing costs, and the composition of our inventory at any specific month end.

We do have another question here. Could you share the company's perspective on the recent US-Canada trade negotiation?

I will let Michel, our President, to answer the question.

Thanks, Joel. I will say at the beginning that we're still encouraged to see that the governments of Canada and the government of US also have re-engaged in discussion aimed at resolving the broader bilateral trade issues, including the softwood lumber.

It's still early in the process and we don't want to speculate on the outcome, but we believe that constructive dialogue is a positive development for the industry. Our understanding also is that the initial focus is on establishing a broader trade framework before addressing the long-term resolution on the softwood lumber dispute.

GreenFirst, through the Canadian Lumber Trade Alliance and the provincial industry associations, continues to monitor developments closely and remains also engaged through the appropriate industry channels. I would add also that on a year-to-date basis, GreenFirst has paid $33 million consisting of $26 million of duties and $7 million in tariffs.

As such, any future reduction in duties or broader trade agreement would obviously be a positive outcome for both GreenFirst, but also for the Canadian forest products industry.

There's no more questions, I would like to thank everyone for your continue interest in GreenFirst and thank you for your participation.