Investors, analysts and other interested parties may access Acadian Timber Corp.'s 2025 Fourth Quarter and Year End Results conference call and webcast on Thursday, February 12, 2026 at 1:00PM ET. Please register here or follow the link on our website at www.acadiantimber.com/presentations-webcasts, to receive your unique PIN. For those unable to participate, a recorded rebroadcast will be available until 4:00PM ET February 12, 2027.
EDMUNDSTON, New Brunswick, Feb. 11, 2026 (GLOBE NEWSWIRE) -- Acadian Timber Corp. ("Acadian" or the "Company") (TSX:ADN) today reported financial and operating results1 for the three months ended December 31, 2025 (the "fourth quarter") as well as for the full 2025 fiscal year.
"While 2025 brought a multitude of challenges, Acadian delivered steady operational performance in New Brunswick, helping to offset weather-related challenges, trucking constraints, and productivity issues in Maine," said Adam Sheparski, President and Chief Executive Officer. "Amid global and regional uncertainty, our team remained disciplined and focused on strengthening the business for the years ahead."
During the fourth quarter, Acadian generated sales of $22.0 million compared to $20.2 million in the fourth quarter of 2024. Acadian generated $5.2 million of Adjusted EBITDA and $1.9 million of Free Cash Flow during the fourth quarter and declared dividends of $5.3 million or $0.29 per share to our shareholders.
During 2025, Acadian generated revenue from timber sales and services of $87.0 million, compared to $91.6 million in the prior year. The sale of 752,100 voluntary carbon credits contributed an additional $24.6 million to total sales in 2024 while no sales of carbon credits occurred in 2025. Acadian generated $15.8 million of Adjusted EBITDA and $6.6 million of Free Cash Flow during the year, and declared dividends of $20.9 million or $1.16 per share to our shareholders.
Acadian's balance sheet remains solid with $17.4 million of net liquidity as at December 31, 2025, which includes funds available under our credit facilities.
________________________1 This news release makes reference to "Adjusted EBITDA", which Acadian's management defines as net income before interest, income taxes, fair value adjustments, non-cash cost of sales related to carbon credits, recovery of or impairment of land and roads and depreciation and amortization, and to "Adjusted EBITDA margin", which is Adjusted EBITDA as a percentage of sales. Reference is also made to "Free Cash Flow", which Acadian's management defines as Adjusted EBITDA less interest paid, current income tax expense, capital expenditures excluding acquisitions of timberlands and non-cash expenditures, and mandatory debt repayments, plus net proceeds from the sale of timberlands and other fixed assets (proceeds less gains or losses). Reference made to "Payout Ratio" is defined as dividends declared divided by Free Cash Flow and "Payout Ratio with DRIP" is defined as dividends paid in cash divided by Free Cash Flow. Management believes that Adjusted EBITDA, Adjusted EBITDA margin, Free Cash Flow and Payout Ratios are key performance measures in evaluating Acadian's operations and are important in enhancing investors' understanding of the Company's operating performance. Adjusted EBITDA and Adjusted EBITDA margin are indicative of the underlying profitability of Acadian's operating segments and are used to evaluate operational performance. Free Cash Flow is used to evaluate Acadian's ability to generate sustainable cash flows from our operations that are available for dividends, repurchases of common shares, debt reduction, acquisitions, and other capital allocation activities. Reference is also made to "net liquidity" which includes cash and cash equivalents and funds available under credit facilities less amounts reserved to support the minimum cash balance related to long‐term debt. Please refer to the section entitled "Non-IFRS Measures" in Management's Discussion and Analysis for further details.
Review of Operations
Financial and Operating Highlights
Three Months Ended
Year Ended
(CAD thousands, except volume and per share information)
December 31,2025
December 31,2024
December 31,2025
December 31,2024
Timber sales volume (000s m3)
277.5
232.3
996.2
977.2
Carbon credit sales volume (000s credits)
—
—
—
752.1
Timber sales and services
$
21,976
$
20,226
$
86,956
$
91,597
Carbon credit sales
—
—
—
24,588
Operating income
4,241
3,215
13,316
23,659
Net income
39,720
5,585
48,973
21,738
Adjusted EBITDA
$
5,164
$
3,698
$
15,766
$
38,893
Adjusted EBITDA margin
23
%
18
%
18
%
33
%
Free Cash Flow
$
1,860
$
3,051
$
6,635
$
29,733
Dividends declared
5,303
5,126
20,942
20,259
Dividends paid in cash
2,589
2,588
10,363
11,488
Payout Ratio
316
%
68
%
Payout Ratio with DRIP
156
%
39
%
Per share, basic and diluted
Net income
$
2.18
$
0.32
$
2.70
$
1.24
Free Cash Flow
0.10
0.17
0.37
1.69
Dividends declared per share
0.29
0.29
1.16
1.16
Three Months Ended December 31, 2025
During the fourth quarter, Acadian generated sales of $22.0 million compared to $20.2 million in the fourth quarter of 2024. Sales volume, excluding biomass, was 21% higher than the same period of 2024, supported by more favourable weather conditions across both operating regions. New Brunswick also experienced improved contractor availability and a favourable change in customer mix which shifted harvesting volumes from Crown licensed timberlands to our freehold timberlands, increasing freehold sales and decreasing timber services revenue. Harvested volumes increased in Maine, as compared to the same period in the prior year, but deliveries were hindered by limited trucking capacity.
The weighted average selling price, excluding biomass, decreased 6% year-over-year. Softwood sawlog pricing was 2% lower than the prior year period, with a higher value product mix offset by shorter hauling distances. Hardwood sawlog pricing decreased 10% primarily due to a lower value product mix and continued weakness in lumber markets. Softwood pulpwood pricing was consistent with the prior year period, while hardwood pulpwood pricing decreased 12% due to shorter hauling distances and lower fuel adjustment surcharges.
Operating costs and expenses were $17.7 million during the fourth quarter, compared to $17.0 million during the fourth quarter of 2024. Increased operating costs and expenses were due primarily to higher sales volumes and higher land management costs, partially offset by lower timber services activity. Weighted average variable costs per m3 produced In New Brunswick decreased compared to the fourth quarter of 2024 due to a higher proportion of softwood products which carry lower variable costs, lower harvesting costs associated with the harvesting method applied, short hauling distances and lower fuel adjustment costs. Cost of sales per m3 produced in Maine increased, as compared to the prior year period, as a result of lower production levels.
Adjusted EBITDA was $5.2 million during the fourth quarter, compared to $3.7 million in the prior year period and Adjusted EBITDA margin for the quarter was 24% compared to 18% in the prior year period. Free Cash Flow was $1.9 million compared to $3.1 million in the same period of 2024 as a result of higher interest expense, debt repayments and current income tax expense combined with lower proceeds from sales of assets.
Net income for the fourth quarter totaled $39.7 million, or $2.18 per share, compared to $5.6 million, or $0.32 per share in the same period of 2024. The increase in net income was largely due to the impact of higher gains on non-cash fair value adjustments in 2025 compared to 2024 partially offset by lower operating income and higher income tax expense.
Year Ended December 31, 2025
Acadian generated revenue from timber sales and services of $87.0 million, compared to $91.6 million in the prior year. Consistent year-over-year sales volumes, excluding biomass, from our freehold timberlands were offset by a decrease in the weighted average selling price, and lower timber services activity. The sale of 752,100 voluntary carbon credits contributed an additional $24.6 million to total sales in 2024 while no sales of carbon credits occurred in 2025.
Freehold timber sales volume, excluding biomass, of 908,500 m3 was consistent with 2024, with increased freehold sales volumes in New Brunswick offset by decreased sales volumes in Maine. New Brunswick freehold sales volume, excluding biomass, increased primarily due to increased contractor availability and a favourable change in customer mix which shifted harvesting volumes from Crown licensed timberlands to our freehold timberlands, increasing our freehold sales and decreasing our timber services revenue, as compared to 2024. Decreased sales volumes in Maine were reflective of unfavourable weather conditions in the first half of the year and limited trucking capacity, combined with short-term harvesting productivity constraints.
Acadian's weighted average selling price, excluding biomass, of $78.51 decreased 4% from the prior year. Softwood sawlog pricing was consistent with the prior year period. Longer hauling distances for delivered sales and modest improvements in end use markets were partially offset by higher volumes of roadside sales and a greater proportion of sales occurring in New Brunswick, where pricing is generally lower than Maine. Hardwood sawlog pricing decreased 7% primarily due to a lower value product mix and continued weakness in lumber markets. Softwood pulpwood pricing decreased 5% year-over-year due to lower demand early in the year. Hardwood pulpwood pricing decreased 3% as compared to the prior year as a result of shorter hauling distances and lower demand. Lower fuel adjustment surcharges, resulting from lower fuel prices also impacted pricing, particularly in New Brunswick.
Operating costs and expenses were $73.6 million during 2025, compared to $92.5 million in the prior year. Included in operating costs and expenses in the prior year were $18.9 million related to carbon credit sales. Operating costs and expenses related to timber sales and services were relatively consistent with 2024. Lower weighted average variable costs, excluding biomass, in New Brunswick were partially offset by higher average operating costs and expenses per m3 produced in Maine.
Adjusted EBITDA for the year ended December 31, 2025 was $15.8 million, compared to $38.9 million in the prior year, with $19.8 million of the change being attributable to Adjusted EBITDA related to the sale of carbon credits in 2024. The remaining decrease in Adjusted EBITDA, as compared to 2024, is primarily a result of lower operating income for the reasons discussed above. Adjusted EBITDA margin was 18% compared to 33% in the prior year. Free Cash Flow was $6.6 million compared to $29.7 million in 2024 due to lower Adjusted EBITDA, higher interest expense and higher mandatory debt repayments, partially offset by lower current income tax expense.
Net income for the year ended December 31, 2025 totaled $49.0 million, or $2.70 per share, compared to net income of $21.7 million, or $1.24 per share, in the prior year with higher non-cash fair value adjustments in 2025 compared to 2024 offset by lower operating income, higher interest expense and higher income tax expense.
Segment Performance
New Brunswick Timberlands
The table below summarizes operating and financial results for New Brunswick Timberlands:
Three Months Ended
Year Ended
(CAD thousands, except volume)
December 31, 2025
December 31, 2024
December 31, 2025
December 31, 2024
Sales (000s m3)
Softwood
160.5
108.7
548.5
463.1
Hardwood
51.0
62.7
255.3
270.4
Biomass
33.7
28.4
81.9
60.7
Total
245.2
199.8
885.7
794.2
Sales ($000s)
Softwood
$
11,701
$
7,777
$
40,160
$
33,705
Hardwood
4,046
5,739
21,844
24,242
Biomass
399
359
1,156
1,305
Total
$
16,146
$
13,875
$
63,160
$
59,252
Timber services and other
2,874
3,347
12,875
15,062
Total Sales ($000s)
$
19,020
$
17,222
$
76,035
$
74,314
Adjusted EBITDA ($000s)
$
5,487
$
4,168
$
19,705
$
19,471
Adjusted EBITDA margin
29
%
24
%
26
%
26
%
Three Months Ended December 31, 2025
Sales for New Brunswick Timberlands were $19.0 million compared to $17.2 million during the prior year period. Freehold sales volume, excluding biomass, increased 23% compared to the prior year period primarily due to increased contractor availability and a favourable change in customer mix which shifted harvesting volumes from Crown licensed timberlands to our freehold timberlands, increasing our freehold sales and decreasing our timber services revenue. Favourable weather conditions further supported sales volumes.
The weighted average selling price, excluding biomass, for the fourth quarter was $74.48 per m3, or 6% lower than the prior year period. Softwood sawlog pricing was consistent with the prior year period, with a higher value product mix offset by shorter hauling distances. Hardwood sawlog pricing decreased 12% primarily due to a lower value product mix and continued weakness in lumber markets. Softwood pulpwood pricing was consistent with the prior year period, while hardwood pulpwood pricing decreased 13% due to shorter hauling distances and lower fuel adjustment surcharges.
Operating costs and expenses were $13.6 million during the fourth quarter, compared to $13.4 million in the prior year period. Additional costs related to increased freehold harvesting activity were offset by lower timber services activity and decreased weighted average variable costs, as compared to the fourth quarter of 2024. Weighted average variable costs, excluding biomass, decreased 15% compared to the fourth quarter of 2024 due to a higher proportion of softwood products which carry lower variable costs, lower harvesting costs associated with harvesting method applied, short hauling distances and lower fuel adjustment costs.
Adjusted EBITDA for the quarter was $5.5 million compared to $4.2 million during the prior year period and Adjusted EBITDA margin was 29% compared to 24% as a result of higher operating income for the reasons discussed above.
Year Ended December 31, 2025
Sales for New Brunswick Timberlands totaled $76.0 million, compared to $74.3 million in 2024 reflecting increased freehold sales volumes offset by a lower weighted average selling price and decreased timber services activity. Freehold sales volume, excluding biomass, increased 10% compared to the prior year primarily due to increased contractor availability and a favourable change in customer mix which shifted harvesting volumes from Crown licensed timberlands to our freehold timberlands, increasing our freehold sales and decreasing our timber services revenue. Biomass sales volume was higher compared to the prior year due to increased processing capacity.
The weighted average selling price, excluding biomass, for the year was $77.14 per m3, or 2% lower year-over-year. Softwood sawlog pricing increased 3% compared to the prior year period, due to a higher value product mix, longer hauling distances and modest improvements in end use markets. Hardwood sawlog pricing decreased 6% primarily due to a lower value product mix and continued weakness in lumber markets. Softwood pulpwood pricing decreased 3% year-over-year due to lower demand early in the year. Hardwood pulpwood pricing also decreased 3% as compared to the prior year period as a result of shorter hauling distances and lower demand. Lower fuel adjustment surcharges, resulting from lower fuel prices also impacted pricing.
Operating costs and expenses were $56.8 million during 2025, compared to $55.5 million in the prior year. Increased freehold harvesting activity was partially offset by decreased weighted average variable costs and lower timber services activity. Weighted average variable costs, excluding biomass, decreased 5% as a result of a higher proportion of softwood products which carry lower variable costs, lower harvesting costs associated with the harvesting treatment applied, and lower fuel adjustment costs.
Adjusted EBITDA for the year ended December 31, 2025 was $19.7 million, compared to $19.5 million in the prior year, while Adjusted EBITDA margin was 26%, consistent with the prior year.
Maine Timberlands
Internal Logging Operations
Prior to January 1, 2025, all harvesting operations in Maine were performed by third-party contractors. During the first quarter of 2025, Acadian established its own internal logging operations. This occurred through two initiatives.
In January 2025, Acadian purchased several pieces of harvesting equipment for $2.4 million and hired equipment operators to conduct harvesting operations on Acadian's Maine Timberlands.
On February 28, 2025, Acadian acquired certain logging and related assets of A & A Brochu, LLC ("A & A Brochu") and its affiliates for total cash consideration of $6.9 million. The assets include harvesting, trucking and road working equipment and related real estate which, combined with an established workforce, constitute a portion of A & A Brochu's logging operation in Maine.
Recognized amounts of assets acquired from A & A Brochu are as follows:
(CAD thousands)
Equipment
$
5,271
Land and buildings
1,477
Intangible assets
182
Total identifiable assets acquired
$
6,930
No liabilities were assumed.
Although some operations will continue to be performed by external contractors in Maine, these initiatives represent a significant transition away from contracted logging operations in Maine. During 2025, production volumes were below anticipated long-term levels, and operating costs per m3 of timber produced were elevated by approximately 30% relative to long-term targets in the fourth quarter of 2025. Additionally, the transition to a more fixed cost structure has resulted in changes from historical cost patterns, with costs less directly tied to revenue generated. During the third quarter of 2025, we expanded the workforce within our internal harvesting operations and production levels notably improved in the fourth quarter.
Acadian is actively investing in operator training programs and optimizing equipment utilization to support this strategic shift. These efforts are designed to enhance efficiency, build long-term capabilities, and ensure sustained cost improvements. As internal operations continue to scale, Acadian expects to increase production capacity and drive greater cost efficiency in Maine.
The table below summarizes operating and financial results for Maine Timberlands:
Three Months Ended
Year Ended
(CAD thousands, except volume)
December 31, 2025
December 31, 2024
