Acadian Timber Corp.

For Q2 2026, Acadian Timber reported revenue of $14.6 million, adjusted EBITDA of $1.3 million, net income of $1.3 million, and net income per share of $0.07. In the same quarter last year, revenue was $17.1 million, adjusted EBITDA was $2.4 million, net income was $2.7 million, and net income per share was $0.15. Susan Wood said revenue was down because of lower volumes, partly offset by a 19% increase in weighted average selling price, driven by stronger softwood lumber markets, higher fuel surcharges, and longer hauling distances. For the segments, New Brunswick total sales were $12 million versus $14.4 million last year and adjusted EBITDA was $2.1 million versus $4 million; Maine total sales were $2.6 million versus $2.7 million and adjusted EBITDA was negative $400 thousand versus negative $900 thousand. The company ended the quarter with $15 million of net liquidity and has $45 million of long-term debt scheduled to mature in March 2027, which it intends to refinance prior to maturity.

Malcolm Cockwell emphasized that Maine remains both a challenge and an opportunity, saying the company made significant changes during Q2 to reduce cost per cubic meter rather than simply chase volume. He described the Maine changes as already producing “boots-on-the-ground results” and said the company is “laser focused” on further improvement, with stronger results expected for the rest of 2026 versus 2025. He also sounded constructive on longer-term optionality from renewable energy and real estate development, while framing those as more gradual value drivers.

Susan Wood highlighted that the quarter is typically Acadian’s lowest production period and said Q2 was further affected by elevated customer inventories in New Brunswick. She pointed to the 19% increase in weighted average selling price, lower operating costs and expenses by $1.7 million year over year, and the improvement in Maine operations as key offsets to lower volumes. On liquidity, she said the company had $15 million of net liquidity at quarter-end and noted the $45 million of debt due in March 2027 and the plan to refinance it ahead of maturity.

Analysts focused on renewable energy and real estate optionality. In response, management said a new renewable option/lease is modest near term but could become much more meaningful over time, describing potential economics as several times timber income in the next few years and far greater if projects are developed. On the New Brunswick meteorological data, Malcolm Cockwell said it is useful and that the company is actively engaged with potential project proponents, with a more specific update possible in a couple of months. He also said the Maine residential development project is on track to be shovel ready by year-end and revenue generating in 2027, with local and regulatory support.