Thank you, operator, and thank you, everyone, for joining us this morning. With me on the call I have Mike MacKay, our Executive Vice President and Chief Financial Officer, and Bart Bender, our Senior Vice President of Sales and Marketing.

I'll start off by providing a brief recap of 2025 and then pass the call to Mike and Bart to cover off Q4 and the outlook. 2025 was another year marked by historically weak lumber prices and significant market volatility.

Yet, we continued to execute with discipline and strengthen the company in several important ways. I thought a few notables were worth mentioning.

We took steps to reinforce liquidity and extend our financial runway, which Mike will speak more to. We also took decisive portfolio actions, adjusting operating postures at several mills and permanently closing two high-cost facilities in the US South, which were indefinitely curtailed in 2024, ensuring our production profile is better aligned with demand.

Across the platform, working capital performance remained a highlight. Log and lumber inventories were reduced significantly, a meaningful achievement in a down cycle.

We advanced the final phase of our Thomaston mill in Georgia, with commissioning of the new sawmill expected in early March. We anticipate this asset will be a top-decile performer and a key contributor to our long-term cost structure.

Importantly, employee turnover continued to improve, reflecting the work our teams are doing on engagement and retention. 2026 will be hard to predict; however, we're well positioned to deal with uncertainty.

We've implemented clear, measurable balance sheet guardrails to ensure resilience through the cycle and a commitment to directing free cash flow toward debt reduction targets. We've also defined cost structure targets benchmarked to trough-cycle pricing, ensuring that further price weakness can be absorbed without eroding liquidity and that we can continue to create long-term value even in constrained markets.

Until we have more clarity on the economic impacts of political developments in both the US and Canada, we will remain prudent in our approach to capital allocation. Our foundations are strong, our footprint is diversified, and we continue to see opportunities to improve the business without large capital commitments.

With that, I'll now turn the call over to Mike to walk through the quarter in more detail.

Thanks, Ian, and good morning, everyone. I'll begin by providing comments on the fourth quarter earnings, followed by an overview of our recent balance sheet initiatives, and then end with some guidance on go-forward capital allocation priorities.

From an earnings standpoint, Interfor posted -$29 million of adjusted EBITDA in the fourth quarter. These results reflected weak lumber market conditions, ongoing trade measures, and production curtailments across the platform.

Nevertheless, our results in the fourth quarter were an improvement compared to the -$36 million of adjusted EBITDA we posted in the third quarter after normalizing for the large non-cash duty expenses that impacted that period. The sequential improvement was driven by several offsetting factors.

From a sales perspective, realized selling prices were weaker on average due to slightly lower market pricing in most regions, as well as a full quarter of higher countervailing antidumping duties, as well as the introduction of a 10% Section 232 tariff in October. From a cost perspective, however, production costs per unit improved by 4% as higher conversion costs as a result of our downtime were more than offset by positive inventory valuation adjustments as lumber prices began to improve towards the end of the year.

Despite the negative adjusted EBITDA, cash flow from operations was break-even for the quarter due to a notable recovery of working capital driven by reduced inventories and lower receivables. Notably, looking back over the last three years of this prolonged market downturn, cash flow from operations has been positive in each of 2023, 2024, and 2025, totaling just over $300 million over that three-year period, even amidst the very weak lumber market conditions.

This reflects focused efforts on working capital management, as Ian alluded to, tax recoveries, and ongoing initiatives to improve our cost structure and optimize the operating platform. Turning now to the balance sheet, while admittedly our leverage is not where we'd like it to be at this point in the cycle, we continue to take proactive actions to help us weather the storm of the current volatile markets.

During and subsequent to the quarter, we completed a series of complementary financing transactions, including our previously announced equity raise, as well as several new net-debt-neutral refinancing initiatives. Taken together, these initiatives bolster our liquidity, effectively clear out our debt maturity runway for 2026 and 2027, and provide us both the time and flexibility to make the appropriate operating decisions if necessary.

At the end of the year, our net-debt-to-capitalization ratio was 36.5% and we had pro forma available liquidity of $482 million. This level, combined with anticipated divestiture proceeds over the next year or so, will provide significant financial flexibility to navigate ongoing volatility.

These divestitures include the ongoing sale of our BC Coast forest tenures, as well as anticipated sale of real estate at our former Summerville and Meldrim facilities in the US South. Turning lastly to capital allocation, following the completion of several major capital investments in recent years, culminating with the completion of our Thomaston project in Q1, we're continuing to anticipate lower spending going forward.

Total capital spend for 2026 is expected to be between $75 to $80 million and preliminary estimates for 2027 are expected to be in the range of around $60 million, focused almost entirely on maintenance. In terms of capital allocation, as Ian alluded to, any free cash flow will be directed solely towards leverage reduction.

The timing to reduce this leverage will ultimately depend on lumber prices and market conditions; however, our priority in the near term remains simple and clear. We're encouraged by some early signs of improvement in the lumber markets in recent weeks, though our planning assumptions remain conservative.

With that, I'll now turn the call to Bart to provide some commentary on the markets.

Thanks, Mike. Good morning, everyone.

As we look ahead to 2026, the economic environment remains uncertain. Trade and geopolitical developments continue to introduce incremental risk, which could slow both interest rate easing and broader economic activity.

That said, the US economy continues to show resilience around growth and employment. Current expectations suggest that meaningful interest rate easing could shift to later in 2026.

From a housing perspective, affordability continues to be challenged. Mortgage rates are expected to remain at or near levels at least in the first part of 2026.

Repair and remodel, largely influenced by home purchases, is expected to remain relatively flat at the current levels. Turning to supply, we're beginning to see the impact of production curtailments across the industry.

Some curtailments are formally announced, many are not. One useful indicator is shipments of Canadian lumber into the US markets.

Over the last six months, shipments annualized to approximately 8.5 billion board feet compared to just over 10 billion in 2025 and 11.5 billion board feet in 2024. That's a material drop in supply, and that, when you couple that with the curtailments in the US, altogether these reductions are starting to balance the lumber markets.

Market activity suggested destocking was taking place with our customers for the back half of 2025, as really there was no incentive to carry any extra inventory in the marketplace. This would mean that mills were not seeing true levels of demand, which, given supply reductions, should be interesting as we enter the seasonally higher lumber consumption months of spring.

Logistics has been relatively stable; however, the recent winter is impacting service levels and causing some delay in shipments. We expect that demand for lumber was also impacted during these weather events.

As always, Interfor will continue to monitor our customers' needs and adjust our production levels accordingly. With that, I'll turn it back over to you, Ian.

Thanks, Bart. Operator, we're ready to take any questions.

Hi, good morning. Thanks very much for taking my questions.

Just want to follow up on Bart's comments about some delays in shipments. Sounds like logistics were kind of stable before that.

How significant is the disruption you're seeing today, and give a sense if things can normalize fairly quickly or do you expect some tightness there for some time to come? Thank you.

It's not a prolonged situation. I think the winter weather that you saw kick in into some unusual places and also the usual places in the North have caused some rail car delays and some truck delays, which will impact shipments, but those will clear out in a couple weeks, three weeks.

I'm not expecting anything prolonged.

Thanks very much. Then you seemed to take quite a bit of downtime in the Pacific Northwest in Q4.

Have you been able to restore your operating stance in that region to start 2026 with how prices have trended? Thanks.

Matt, Ian here. Thanks for the question.

We are adding incremental hours in the Pacific Northwest right now, and the way we do that is obviously we look at the pricing that's available to those operations, build an order file that's cash positive over a multi-week period, and then slowly bring hours into the operations. I would say it's a very conservative, risk-adverse adding of hours that really depends on pricing, demand, and order file.

There are hours that are increasing slightly, but not at a rapid pace at this point.

Thanks very much for the help. I'll turn it back.

Okay. Thanks, Matt.

Hi, good morning. Morning, Ian, Mike, and Bart.

Bart, maybe to start with, can you give us some perspective of what your channel inventories are at the moment and what is your sense of inventories in the channel at the moment?

Thanks, Ketan. As far as our view of the dealer and distribution channels across our lines, they appear to be on the lean side with some recent volatility making it a bit harder to decipher.

There seems to be little willingness to build any inventory, as Bart had alluded to, just given market uncertainty at this time. That would be our best view at this point, Ketan.

Got it. Then your inventories, Ian?

We're comfortable with our inventories. We've got them very lean, and we're running the operations relative to the sales price and the demand on the order file, yeah, very good and comfortable position in the inventory.

There's no excess around of any kind of materiality in any one of our regions across the company, very very tight at this point, but appropriate given where the market's at.

Got it. Then as we think about the first quarter, Ian, how should we think about your production in the first quarter?

I know in Q4 you all had talked about 250 million board feet of sort of curtailments. Is there a way to think about Q1?

I would guide to the early part of Q1 here as some small incremental hours, particularly in the South and the Pacific Northwest that are happening now, but Ketan, going out further, we're just reviewing it on a week-to-week basis and just making sure that we're not adding hours and building inventory, it's really got to have the right price and the right order file in front of it. Incrementally, the hours are up a bit for the first part of Q1 to be determined for the last part here.

Still very cautious.

Very cautious right now.

Understood. That's helpful.

Then just last one from me. On the balance sheet side, do you think everything that you had to do kind of to get into a position where you think that's comfortable for you, you think that's behind you, or are there other options that you all are considering, you've got duty deposits, is that an option to kind of monetize?

Hi, Ketan. Mike here.

I think the moves we made here in the last quarter, including the equity raise, have been very meaningful, is how we think about them. Really cleared out the maturity runway the next few years in our view in terms of flexibility and in terms of whatever market conditions come our way.

I think in large part it's been completed. I would say they were proactive moves on our part to get ahead of it and anticipate the downside scenarios.

Duty-wise, I think with all the ongoing uncertainty around this file and moving pieces politically, it's probably lower down the list of things to consider, but do feel the other moves we made have really moved the dial substantially here. Fair

enough. That's very helpful.

I'll jump back in the queue. Good luck.

Thanks, Ketan.

Thanks. Good morning, everyone.

Mike, I want to follow up on the balance sheet, on the debt side. You made a lot of progress this quarter.

You're getting amendments from creditors on the covenant calculations. I guess what I'm trying to square up here is beyond the minimum liquidity requirement, can you give some context on concessions you guys are giving to get those amendments?

I'm thinking in terms of any incremental increase to your overall borrowing costs, are there any sensitivities around that you can give us?

Hey, Sean. Good question.

I would say, as I've addressed in the last question, this was really proactive measures on our side. Our new notes are obviously priced a little higher than our existing structure, but overall, if you look at our interest costs, they're in the 6.5% range.

There would be some incremental borrowing costs that come with this, but nothing too meaningful in the couple million dollar range type of thing, Sean. I wouldn't say there's concessions.

The equity raise, I would say, went a long way for our lenders in terms of showing what we're willing to do to help ourselves, and so I think that was all part and parcel with this package. Our new issuance on debt is really looking at funding some maturities that are coming our way, we'll have some of it fall off as we go ahead here under the normal course.

Got it. Okay.

That's encouraging to see that progress. Can you give us a sense, Mike or Ian, the cadence of the asset sales, both the tenures and the idled sawmill sites, the cadence of those proceeds and overall magnitude that you're targeting?

I'll take that one, Sean. For the BC Coast, I think our guidance previously was in around $30 to $35 million.

That still stands. I think we've always said on this file it's timing that's a little more uncertain, but I think for planning purposes that's probably a fair number to look at over the next 12 to 18 months.

The asset sales, a little more hesitant to give some guidance there. We're in an active marketing process right now.

I would say it's meaningful though, order of magnitude in and around the same as the BC Coast, but don't want to get too much more specific. Those properties are in attractive geographic areas, in growing cities, and so pretty meaningful real estate divestiture proceeds.

Also 12-18 months probably be decent guidance for that, Sean.

Okay. One last question, Ian.

You touched on the lower labor turnover, presumably you're referring to the US South there. Can you put some numbers around that?

I know that's been a challenge for the industry the last several years, but any numbers you can put around changes in that turnover rate?

Sean, it has been, and it's been two years in a row where we've reduced our turnover rate, particularly in the South at the focus mills that we've identified as the mills that needed the most help to make progress on that. Overall in the South, I believe it's around 3% or something improvement, but in some of the focus mills where there were higher turnover rates, those are in double-digit percentage improvements through the retentionary initiatives that we've put in place.

Really good progress by our operating and HR teams to address that. Obviously lots of work still to do, but two years of trending in the right way has been encouraging.

Got it. That's all I have for right now.

Thanks, everyone.

Great. Thanks, Sean.

Okay. Thank you, operator.

As always, Mike, Bart, and I are available to respond to any further questions, as is Brian Fast, our Director of Investor Relations. Thank you, everybody, for attending and look forward to talking to you next quarter.

Have a great day.