Q1 Results Represent Positive Step; Trends Consistent with Peers

Research evidence excerpt

Q1 Results Represent Positive Step; Trends Consistent with Peers

Paper & Forest Products

Interfor Corp.

TD SECURITIES INC. - CANADA QUICK TAKE: EARNINGS UPDATE

May 14, 2026

Price: C$8.92 (05/14/2026) Q1 Results Represent Positive Step; Trends

Price Target: C$12.00 Consistent with Peers

HOLD (2)

ESG SCORE: 54/100

Sean Steuart, CFA^ THE TD COWEN INSIGHT

416 308 3399

IFP's Q1 results benefited from a sharp lumber price recovery and a favorable inventory

sean.steuart@tdsecurities.com

revaluation. With recent credit facility amendments, IFP has augmented balance sheet

Kasia Trzaski Kopytek, CFA, CPA, CA^ flexibility, but, with high leverage ratios, we expect a mid-term focus on strengthening the

416 983 4058 balance sheet. The recent pullback in lumber prices - especially in the U.S. South - suggests

kasia.trzaski@tdsecurities.com

the cyclical recovery will be bumpy.

Key Data

Symbol TSX: IFP-T Event

Market Cap C$586.6MM IFP reported Q1/26 results yesterday after market close. Adjusted EBITDA of $30.7 million

exceeded our estimate of $23.5 million and the consensus forecast of $22.9 million. The

reported figure included a non-cash $12.9 million inventory provision reversal that was a

larger than expected support. Underlying trends were consistent with most peers this earnings

season — price realization gains that led to sequential earnings improvement.

Conference call at 11:00 a.m. ET this morning: 1-888-510-2154 or webcast.

Impact: SLIGHTLY POSITIVE

The headline result should be well received, but we do not expect a linear earnings recovery.

Following a strong recovery from October through April, lumber prices have moderated as

logistics constraints have eased, and seasonal order activity has moderated.

Details

■IFP's Q1 results benefited from the company's U.S.