Interfor Q1 2026 Earnings Call Transcript

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Provided by Quartr
May 15, 2026

Key Takeaways

  • Positive Sentiment: Interfor reported CAD 31 million of adjusted EBITDA in Q1, a strong sequential improvement from the prior two negative quarters, helped by higher lumber prices across all regions and lower conversion costs.
  • Positive Sentiment: The company said its Thomaston, Georgia mill is complete, ramping ahead of expectations, and is on track to reach full pro forma performance within the next four months. Management expects it to be a top performer in the portfolio and a key support for Southern margins.
  • Positive Sentiment: Interfor outlined a CAD 80 million manufacturing cost reduction program over the next two years, targeting about a 5% reduction in total manufacturing costs versus 2025. Management said the initiative is largely capital-light and already showing early progress through productivity gains and tighter performance management.
  • Neutral Sentiment: Working capital use in Q1 was about CAD 23 million due to seasonal build, higher lumber prices, and logistics constraints, which also held shipments below production. Management expects a release in working capital and lower capex in Q2, which should help reduce leverage.
  • Neutral Sentiment: Interfor remains cautious on the market outlook, citing volatile demand, tariff and trade uncertainty, and softening Southern prices, but management noted that industry curtailments and higher import landed costs are keeping supply tight. The company plans to keep adjusting operating rates and preserve liquidity while pursuing divestiture proceeds later in the year.
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Earnings Conference Call
Interfor Q1 2026
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Operator

Good morning. My name is Joanna, and I will be your conference operator today. Welcome to Interfor Corporation's first quarter 2026 results conference call. As a reminder, all participants are in listen-only mode today, and the conference is being recorded. Following prepared remarks, there will be an opportunity for analysts to ask questions. During this conference call, Interfor's representatives may make forward-looking statements within the meaning of applicable securities laws. Additional information regarding the risks, uncertainties, and assumptions of such statements can be found in Interfor's most recent press release and MD&A. I would now like to turn the call over to Mr. Ian Fillinger, Interfor's President and CEO. Mr. Fillinger, please go ahead.

Ian Fillinger
Ian Fillinger
President and CEO at Interfor Corporation

Thank you, operator. Good morning, everyone. Joining me today is Mike Mackay, our Executive Vice President and Chief Financial Officer. We're both calling in from our Peachtree City office in Georgia, where earlier this week we toured our completed strategic project, the fully operational Thomaston mill. I'll begin with an overview of the quarter, provide an update on Thomaston, outline our cost reduction and operational priorities, and share our near-term and medium-term outlook. Mike will talk you through the quarter in more detail, including segment performance, working capital, and capital allocation. Turning to our quarterly overview, Q1 delivered a meaningful improvement compared to the back half of 2025.

Ian Fillinger
Ian Fillinger
President and CEO at Interfor Corporation

We reported EBITDA of CAD 31 million, up CAD 60 million from Q4, driven by higher lumber prices across all five regions, up 5%-20%, and lower conversion costs despite winter weather conditions. This performance came even as duties, tariffs, and logistical constraints, particularly in the U.S. South, remained elevated. Seasonal tightening and industry rationalization has helped rebalance supply and demand to start the year. Turning to Thomaston, our Thomaston, Georgia project was completed in Q1, and the mill started up this quarter. The ramp-up is ahead of expectations, reflecting excellent execution by the team. We expect Thomaston to be a top performer in our portfolio and remain on track to achieve full pro forma performance across all KPIs within the next four months. Strategically, Thomaston strengthens our U.S. footprint and enhances our cost position in key markets.

Ian Fillinger
Ian Fillinger
President and CEO at Interfor Corporation

As we entered 2026, we set company-wide manufacturing cost reduction targets aimed at materially improving our cost position without significant capital requirements. These initiatives represent a CAD 80 million earnings improvement over the next two years, roughly a 5% reduction in total manufacturing costs versus 2025. This program builds on our ongoing productivity and portfolio optimization efforts and will enhance operating leverage as markets recover. Importantly, these benefits are cost-driven and not dependent on market conditions. While still early, we've made good progress. Operationally, we continue to optimize working capital in Canada, with log inventory carrying values down 36% year-over-year at a time when inventories typically rise. Despite winter conditions, conversion costs improved, and we continue to adjust mill operating schedules in real time to respond to cost movements and broader macro inputs. Turning to our market outlook, near-term markets remain volatile.

Ian Fillinger
Ian Fillinger
President and CEO at Interfor Corporation

We are closely monitoring elevated interest rates, trade uncertainty, fuel price volatility, and geopolitical developments, all of which can influence pricing. Single-family construction and repair remodel demand remain challenged, but we saw a seasonal price improvement through Q1 that has continued into early Q2. While pricing in the South has softened somewhat in recent weeks, we remain profitable. On the supply side, industry curtailments this year have been significant, roughly four times the pace of 2025. At the same time, landed costs for third-country imports into the U.S. have risen materially. Combined with the industry's willingness to curtail production, these dynamics create the potential for a constructive setup once housing and R&R activity stabilize. For Interfor, the implications are clear.

Ian Fillinger
Ian Fillinger
President and CEO at Interfor Corporation

Our proactive portfolio management, adjusting operating rates at higher cost mills, and our relative margin performance positions us to remain cash positive even during deep pricing downturns. Our balance sheet and priorities. Our recent balance sheet actions, combined with strong liquidity position, allows us to navigate the potential pricing and demand risks. We remain disciplined in our capital allocation, completing high-return projects while preserving flexibility to respond to market conditions. Our near-term priorities are clear: deliver the Thomaston ramp-up to full pro forma performance, execute the CAD 80 million manufacturing cost reduction program, maintain operating flexibility and adjust production to market signals, protect the balance sheet, and preserve liquidity for volatility and value creation opportunities. With that, I'll turn the call over to Mike for a deeper review of the quarter.

Mike Mackay
Mike Mackay
EVP and CFO at Interfor Corporation

Thanks, Ian, and good morning, all. From an earnings standpoint, Interfor posted positive CAD 31 million of adjusted EBITDA in the first quarter, a significant improvement over the past two negative EBITDA quarters. The notable sequential improvement in our results was driven by several factors. From a sales perspective, Interfor's realized selling prices after paying duties and tariffs were approximately 8% higher. Higher selling prices in all regions were partially offset by the full quarter of Section 232 tariffs that came into effect last October. From a cost perspective, production cost per unit improved by about 2.5% quarter-over-quarter, continuing the trend in cost improvements that we achieved in Q4.

Mike Mackay
Mike Mackay
EVP and CFO at Interfor Corporation

These improvements were driven by higher production volumes due to less market downtime, but also from significant improvements in productivity, driven by the company-wide manufacturing cost reduction initiatives that Ian alluded to earlier. As a result, production volumes increased by just over 100 million board feet or 14% over Q4. A large portion of the increase came from our U.S. Northwest operations, which had taken considerable market downtime in Q4. Inventory valuation adjustments did not have a meaningful impact on our change in cost this quarter. Despite the increase in production, shipments were essentially unchanged from the fourth quarter as logistics constraints, particularly trucking availability in the U.S. South, drove higher lumber inventory levels compared to year-end. The logistics constraints have not been unique to Interfor and have impacted most industrial activities across this region.

Mike Mackay
Mike Mackay
EVP and CFO at Interfor Corporation

In recent weeks, our teams have been making good progress with our strategic trucking partners while also utilizing our flexibility for increased rail shipments. The situation has stabilized today. We're making slow but steady progress towards reducing inventory levels. Based on current conditions, we'd expect the catch-up in shipments could take the balance of Q2 and possibly into early Q3 to fully unwind. Turning to fuel costs, we've seen relatively small impacts to the bottom line despite the dramatic rise in oil prices. Inflationary pressure in this area for us is driven mostly by fuel surcharges from log hauling activities in Canada, as well as minimal amounts of direct consumption at our facilities. From a cost perspective, we estimate the run rate impact of current oil prices to be approximately CAD 6 per thousand board feet of production impact.

Mike Mackay
Mike Mackay
EVP and CFO at Interfor Corporation

Despite these cost headwinds, we were able to reduce our production costs in the quarter, as I mentioned earlier. From a sales perspective, fuel surcharges are incorporated into our daily and weekly price quotes to our customers and have not and are not expected to going forward to have any meaningful impact to the bottom line. Turning to cash flows and our balance sheet, the first quarter almost always sees a notable build in working capital in our business, and this year was no different. The combination of seasonal logging activities, rising lumber prices, and the logistics constraints I spoke to earlier all contributed to a working capital usage of about CAD 23 million in the quarter. This temporary working cap build combined with the heightened CapEx spend to complete the Thomaston project resulted in a modest increase in net debt.

Mike Mackay
Mike Mackay
EVP and CFO at Interfor Corporation

At the end of the quarter, our net debt to capitalization ratio was 38.3%, up slightly from 36.5% at year-end, and we had available liquidity of CAD 386 million. This takes into account several previously announced financing transactions that we completed this quarter, all of which have bolstered liquidity and added flexibility. Looking ahead to Q2 and beyond, we anticipate a release in working capital and a notable wind down in CapEx spending. At the same time, we've seen good market momentum and strong order files extending through April and into May. Based on our current outlook and market conditions, we would expect to see a reduction in both our leverage and our net debt to invested capital ratio in the coming months.

Mike Mackay
Mike Mackay
EVP and CFO at Interfor Corporation

In addition to these near-term improvements, we continue to anticipate divestiture proceeds over the remainder of the year that will further support the balance sheet irrespective of market conditions. These divestitures include the ongoing sale of our B.C. coast forest tenures, as well as sales of real estate at our former Summerville and Meldrim facilities in the U.S. South. Turning lastly to capital allocation. Following the completion of several major investments in recent years, including the completion of the Thomaston project this quarter, we are continuing to anticipate lower spending going forward. Total capital spend for full year 2026 remains at approximately CAD 80 million estimate, and preliminary estimates for 2027 remain at approximately CAD 60 million, focused almost entirely on maintenance projects.

Mike Mackay
Mike Mackay
EVP and CFO at Interfor Corporation

In terms of capital allocation going forward, as I alluded to last quarter, any free cash flow will be directed solely towards leverage reduction with a target net debt to invested capital ratio of 20% or below. Obviously, the timing to achieve this targeted level will depend on the market, but our priorities continue to remain simple and clear in that respect. With that, I'll now turn the call back over to you, Ian.

Ian Fillinger
Ian Fillinger
President and CEO at Interfor Corporation

Okay. Thanks, Mike. operator, we're ready to take any questions now.

Operator

Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. The first question comes from Matthew McKellar with RBC Capital Markets. Please go ahead.

Matthew McKellar
Matthew McKellar
Analyst at RBC Capital Markets

Good morning. Thanks for taking my questions. First, I'd just like to ask a little bit about the manufacturing cost reduction targets. Sounds like your plans are pretty capital light. Is there any more detail you can share around the key levers for getting your conversion costs down to your targets? Any color on in what regions you'd expect the most meaningful improvements? Should we think of the Thomaston ramp as part of this program? Thank you.

Ian Fillinger
Ian Fillinger
President and CEO at Interfor Corporation

Yeah. Hey, Matt. Ian here. Great questions. Yeah, to put a little bit of color behind the cost reduction and operational actions in Thomaston. We're using a discipline performance management program. We're targeting the cost reductions across the entire business. Some of the key components are aligning the incoming log profiles, fine-tuning those with some of the optimization and data that we have available to us to make sure we got that right log dialed in for the right line. We also set really clear and achievable targets based on that data right down to, you know, the mill and shift level. We're leveraging our scale and best practices across the regions. We've made some management changes during the quarter that really enhanced communication on benchmarking and KPI.

Ian Fillinger
Ian Fillinger
President and CEO at Interfor Corporation

We've got a initiative around eliminating non-productive work, which is moving forward. These actions, we think, well, we know are already paying dividends and improving our cost position. There's a lot to it, but it's a very sophisticated, clear, transparent within our company to all of our employees on how they can contribute and where we see those opportunities. It's things like right down to, you know, KPIs in the mill on log gaps on machine centers and those type of things. We have very good visibility on data. We've got very good visibility on, you know, which mills are performing well and where other mills can learn from. All of that tied into our targets.

Ian Fillinger
Ian Fillinger
President and CEO at Interfor Corporation

As far as Thomaston, absolutely, that's also, you know, been under construction for a while, which obviously, you know, has a cost attached to that. It's up and running like a rocket ship right now. It will definitely help us achieve those cost targets for the company, but particularly in the South.

Matthew McKellar
Matthew McKellar
Analyst at RBC Capital Markets

Great. Thanks very much for all the detail. Just one more from me, on Ontario. With Gogama and Nairn Centre indefinitely curtailed, has there been any change to how, I guess, the I-joist business in Sault Ste. Marie operates or any change in views around how that fits into the portfolio? Thanks.

Ian Fillinger
Ian Fillinger
President and CEO at Interfor Corporation

It, it fits in very well, Matt, right to the bottom line. Yeah, we're very careful when we're making any kind of operating adjustments on any of the feedstock that we use for the I-joist plant. At this point, no impacts on the hours that we've reduced. You know, on our portfolio management, again, you know, sort of data-driven, prioritizing the mills that are, you know, running well and generate the highest profitability. You know, sometimes we add hours on those mills. You know, putting the supply, you know, check into Sault Ste. Marie and our I-joist plant, I mean, we're very careful of making sure that we've got, you know, a good, steady business there right now.

Matthew McKellar
Matthew McKellar
Analyst at RBC Capital Markets

Great. Thanks very much. I'll turn it back.

Operator

Thank you. Next question comes from Sean Steuart with TD Cowen. Please go ahead.

Sean Steuart
Sean Steuart
Analyst at TD Cowen

Thanks. Good morning, everyone. Ian, I wanna follow up on the Ontario indefinite closures. I guess the decision to focus on indefinite versus permanent potentially there and, you know, what beyond just a market recovery might be needed to position those sawmills better over the long run to be a part of the plan going forward?

Ian Fillinger
Ian Fillinger
President and CEO at Interfor Corporation

Yeah. Sean, thanks. You know, kind of following up on the previous questions also. We prioritize running and supporting the mills in regions that generate the highest profitability, and we work closely with the teams at the challenge sites, for lack of a better term, to improve performance. We do have plans and ideas for those operations on how to turn those around. Sometimes it's a timing, other times it's, you know, some capital investments that we put under evaluation.

Ian Fillinger
Ian Fillinger
President and CEO at Interfor Corporation

When market conditions are just too challenging, you know, we scale back the hours, you know, to protect, you know, value and stay disciplined and allocate the resources to, you know, the mills that are running and then, you know, try to figure out a path for the ones that might be challenged given the market. Market improvement would help, but we do have plans for those operations on how to improve those going forward. At this time, the best option for us is to indefinitely curtail and take the volume out, and that gives us time to continue to evaluate, you know, the go-forward plans.

Sean Steuart
Sean Steuart
Analyst at TD Cowen

Then following on that, Ian, I guess for the second quarter production profile across the fleet, you know, obviously more pronounced curtailments in Eastern Canada, but any thoughts on operating rate profile in the second quarter across your other regions? It sounds like U.S. will be good with Thomaston ramping well, but broader perspective on operating rates.

Ian Fillinger
Ian Fillinger
President and CEO at Interfor Corporation

Yeah, Sean, there are improved operating rates both on a productivity per hour, which is, you know, really great to see, but also some added hours in the South at a few of our mills. The Pacific Northwest, you know, is also running at full capacity right now, whereas in, you know, Q4 and earlier in the fall, you know, that region was pretty limited on any hours. You will see production in the South and the Pacific Northwest improving in Q2 with, like you say, some hours coming out of Ontario.

Sean Steuart
Sean Steuart
Analyst at TD Cowen

Okay. One last one, Ian, for me, as you're close to it. As we get closer to the CUSMA/USMCA renegotiation, any perspective on lumber potentially fitting into this? I know it's been a priority for the federal government. Are you optimistic that it can be addressed specifically in a broader renegotiation?

Ian Fillinger
Ian Fillinger
President and CEO at Interfor Corporation

Yeah. Sean, I mean, the trade file obviously an important issue for Interfor, even with our limited exposure to tariffs and our scale and geographic footprint. Because we're in B.C., Ontario, and New Brunswick, we do have to stay in a leadership position on this and stay fully engaged with both Canada and the U.S. governments, as they work towards, you know, an industry-wide, you know, agreement. You know, in broad terms, you know, I believe and we believe that there will be a negotiated agreement between Prime Minister Carney and President Trump. We think that's achievable. We're hopeful that this will come sooner than later, I don't have any specific insights to share that, you know, is this gonna be part of CUSMA or will it be negotiated separately?

Ian Fillinger
Ian Fillinger
President and CEO at Interfor Corporation

I can just let you know that there's a constant communication from both sides that we're involved in Ottawa or Washington. We're pushing, like many others in our industry on both sides of the border to have the two governments come together and get softwood on the table.

Sean Steuart
Sean Steuart
Analyst at TD Cowen

Got it. Okay. Thanks very much, Ian. That's all I have.

Ian Fillinger
Ian Fillinger
President and CEO at Interfor Corporation

Thank you.

Operator

Thank you. The next question comes from Ben Isaacson with Scotiabank. Please go ahead.

Ben Isaacson
Ben Isaacson
Analyst at Scotiabank

Thank you very much, good morning, everyone. Ian, you said that Thomaston you expect to be a top performer in your portfolio. Can you define what that means? How is that measured? Is that based on cash cost? Is that overall margin expectation? Is that like, how do you measure that it's a top performer, number 1? Number 2, how much of an outlier is it from the rest of your fleet?

Ian Fillinger
Ian Fillinger
President and CEO at Interfor Corporation

Yeah. Ben, defining the top performer really does come down to the margin side of it. In the, in the South, log costs are fairly, you know, stable. It does come down to the operating performance and conversion costs at Thomaston. The other unique thing about Thomaston is it's close to, you know, the Atlanta market. It's the closest mill that we have there. There's an advantage there to the metro area of Atlanta. The log quality is outstanding. The product quality and the ability to pull high quality grades from Thomaston, given the size and quality of the log really puts it in a very good position.

Ian Fillinger
Ian Fillinger
President and CEO at Interfor Corporation

To answer your, you know, your question, mill performance, manufacturing quality, the high quality fiber, and also the strong residual market that we have being close to Atlanta does put this mill, you know, near the top of the pack, and I expect it'll be top decile in the industry, no doubt.

Ben Isaacson
Ben Isaacson
Analyst at Scotiabank

That's really helpful. Thank you for that. Next question is just, maybe some clarification. I think Ian, or maybe it was Mike, said that you expect net debt to invested capital to come down over the coming months. Was that based on operations only, or does that include asset divestitures duty refunds as well?

Mike Mackay
Mike Mackay
EVP and CFO at Interfor Corporation

Yeah. Hi, Ben. Mike here. Yeah, I was referring to kind of the near term, let's say, Q2 is the perspective, and it's based on what we're seeing today. I'd say it does not include any assumed divestitures. I think it's really based on the order files we're seeing today, the working capital release, and some of the momentum that's in play already. The divestitures would be, in my mind, over and above that and more geared towards, say, the latter half of the year.

Ben Isaacson
Ben Isaacson
Analyst at Scotiabank

Perfect. Just one last one for me, if I may. I think you said, Ian, that you guys have picked up a couple hours and shifts down in the South. Can you just describe the magnitude of that? And then maybe just more broadly, have you seen a supply response in general in the South as a response to higher SYP prices last month?

Ian Fillinger
Ian Fillinger
President and CEO at Interfor Corporation

Ben, the hours in the South, there's really four mills that were on more of a reduced hour schedule. In addition to Thomaston being down, you know, for the majority of Q4. Thomaston coming up, it's on two shifts right now, so that's fairly significant. The other four operations I would say are minimal hours being added. We're cautious with those mills. Those mills are, you know, tend to be, you know, a slightly higher cost than our average mills, so we're being careful not to, you know, add hours or more product to the market where, you know, demand may not, you know, be there. I would say the other four mills are, you know, fairly minimal hours being added and being revisited, you know, every week. Those, three of those mills would be on the west side of the southeast, so closer to the Texas market.

Ben Isaacson
Ben Isaacson
Analyst at Scotiabank

Got it. Are you seeing a general response by the industry in the South?

Ian Fillinger
Ian Fillinger
President and CEO at Interfor Corporation

No, I have not. I haven't seen, you know, ramp up of mills that, you know, are adding hours or supply. It, I think it's been very minimal. You know, I know our numbers, but I'm not sure of our competitors, and I haven't heard of anything significant.

Operator

Thank you. Ladies and gentlemen, as a reminder, if you have any questions, please press star one. Next question comes from Ketan Mamtora with BMO. Please go ahead.

Ketan Mamtora
Ketan Mamtora
Analyst at BMO

Good morning, and thanks for taking my question. Maybe first one, Mike, can you just remind us in terms of both the B.C. forest tenure, whatever is remaining by way of monetization, and then, the real estate divestitures that you talked about for the back half, what is left in terms of, you know, both of these, and how much should we expect in the back half?

Mike Mackay
Mike Mackay
EVP and CFO at Interfor Corporation

Hi, Ketan. Good question. If you noted in Q1, we completed around CAD 10 million of proceeds that were received for the coast. For the rest of that file, you know, between, say, CAD 20 million-CAD 25 million over the next 12-18 months. Timing's always a little harder on that file to predict. As you can see, we've been fairly consistent in bringing those volumes in, so that's in that magnitude. The real estate piece I would guide around in the CAD 40 million range, back-weighted of the year as those real estate processes take a little bit longer sometimes. Two notable pieces there.

Ketan Mamtora
Ketan Mamtora
Analyst at BMO

Yes. On real estate, Mike, is that the net proceeds, or should we expect any tax leakage or anything of that type that we should be mindful of?

Mike Mackay
Mike Mackay
EVP and CFO at Interfor Corporation

Nothing meaningful I would consider there, Ketan. I think that's a fair number to go with as a net number.

Ketan Mamtora
Ketan Mamtora
Analyst at BMO

Got it. Okay. Then just switching to the U.S. South, we saw a pretty nice uptick in southern lumber prices in terms of the March timeframe. Then over the last few weeks, we've given up quite a bit. Can you talk about sort of what is driving that? How much was the initial rally just restocking, and now the channel pulling back? Perhaps how do you see channel inventories for this time of the year, particularly in the U.S. South? Thank you.

Ian Fillinger
Ian Fillinger
President and CEO at Interfor Corporation

Yeah, Ketan, Ian here. I would say supply conditions remain tight across North America. You know, there's been weather issues in Q1 and what have you. Particularly in the South, seeing stabilization of prices. You know, our trading floor over the last week has had some really strong days, which is great to see. I think the permanent, you know, closures and ongoing curtailments of which we're participating and others are, continue to limit available production. I think the landed cost from third country imports and some of the logistical friction and freight costs that might be coming on that end of the supply, we'll see how that plays out.

Ian Fillinger
Ian Fillinger
President and CEO at Interfor Corporation

Inventory levels, we think, you know, through the value chain have normalized, and so leaving, you know, kind of little buffer against any kind of disruption. Overall, supply backdrop, you know, it's constrained and I think supporting pricing once demand, you know, stabilizes with some of the macro, you know, things that are happening, today.

Ketan Mamtora
Ketan Mamtora
Analyst at BMO

Okay. That's helpful. Just coming back to the cost reduction, I thought if I heard you correctly, you said CAD 80 million over the next couple of years. What are you targeting for this year? If you can give us maybe one or two key buckets, you know, that you are really focused on, and I'm just curious sort of how you are tracking it on an ongoing basis.

Ian Fillinger
Ian Fillinger
President and CEO at Interfor Corporation

Yeah. I mean, it's on total manufacturing cost. The big buckets there are really the log cost and then the conversion cost. Those are where we're targeting the improvements. We're tracking it right down to a mill level, up to the executive level. And we're tracking it on a weekly basis, monthly and quarterly basis with scorecards that are visible and, you know, very transparent across the organization. It's a heavy performance management drive that we've implemented at the very beginning of the year. We've made actually really good progress on that in the first quarter, and it's early, but it's encouraging.

Ian Fillinger
Ian Fillinger
President and CEO at Interfor Corporation

You know, as I, as I spoke to it really, you know, given our size and scale and available insights and data around, you know, what mills may be outperforming other mills or in certain performance areas, we're able to quickly look at that and then and then help teams see that and then provide the support to those teams to hit their goals. You know, we're pretty excited about it. We're seeing that it's working, and the whole organization is clear on their targets and goals and stay tuned. We, we think that this is gonna be great and we'll report on it as we go.

Ketan Mamtora
Ketan Mamtora
Analyst at BMO

That's helpful perspective. Do you have an estimate on how much out of the CAD 80 million you expect to realize this year?

Ian Fillinger
Ian Fillinger
President and CEO at Interfor Corporation

Well, it's hard to say for sure. You know, given Q1, that run rate, you know, it could be, you know, significant. I'd rather not provide that guidance just because it's an ongoing program, and we're four months into it now. Yeah, we'll update you in Q2, but I'm hopeful that the trend that we're on now will continue at the same rate that we're seeing in Q1, which has been fairly impressive.

Ketan Mamtora
Ketan Mamtora
Analyst at BMO

Okay. Enough. This is helpful. I'll jump back in the queue. Good luck.

Ian Fillinger
Ian Fillinger
President and CEO at Interfor Corporation

Thank you.

Operator

Thank you. We have no further questions. I will turn the call back over to Ian Fillinger for closing remarks.

Ian Fillinger
Ian Fillinger
President and CEO at Interfor Corporation

Okay. Well, thank you everybody for dialing into the call. We hope you have a great day and great weekend. Look forward to talking to you on our next quarter. On behalf of Mike and I, thanks again.

Operator

Ladies and gentlemen, this concludes your conference call for today. We thank you for participating, and we ask that you please disconnect your lines.

Executives
    • Ian Fillinger
      Ian Fillinger
      President and CEO
    • Mike Mackay
      Mike Mackay
      EVP and CFO
Analysts
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