Canada's Acadian Timber Q3 profit rises on higher pricing, Maine improvements

Overview

• Canada timberland owner's Q3 revenue rose yr/yr, with higher volumes in Maine and lower in New Brunswick

• Adjusted EBITDA increased, driven by operational improvements and higher pricing

• Net income rose yr/yr, supported by higher operating income, fair-value adjustments and gains on asset sales

Outlook

• Company expects contractor availability in New Brunswick to remain sufficient through the 2027 winter season

• Acadian expects to progress toward targeted production levels and cost structure in Maine in 2026

• Company expects near-term sawlog demand and pricing to remain stable until end-use markets improve

Result Drivers

• MAINE OPERATIONS - Co said operational improvements in Maine led to higher volumes and lower costs

• HIGHER PRICING - Co said stronger end-use markets and higher fuel surcharges lifted average selling prices

• NEW BRUNSWICK DEMAND - Co said lower volumes in New Brunswick were due to weaker softwood pulpwood demand

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the forest & wood products peer group is "buy"

• Wall Street's median 12-month price target for Acadian Timber Corp is C$18.25, about 5.7% above its October 27 closing price of C$17.27

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 21 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)