Acadian Timber TSE: ADN reported higher third-quarter earnings as improved harvesting operations in Maine and stronger product pricing offset lower sales volumes in New Brunswick, where weak softwood pulpwood demand and elevated customer inventories constrained deliveries.
The company generated adjusted EBITDA of $5 million and net income of $4.4 million, or $0.23 per share, for the quarter ended Sept. 26, 2026. That compared with adjusted EBITDA of $3.5 million, net income of $2.9 million and earnings of $0.16 per share in the prior-year period. Revenue increased to $24 million from $23 million.
Chief Financial Officer Susan Wood said timber sales were relatively unchanged from a year earlier. A 17% increase in weighted-average selling prices, excluding biomass, was offset by a 14% decrease in sales volumes. Higher prices reflected stronger end-use markets and increased fuel surcharges, she said.
Timber services revenue rose by $800,000, driven by increased activity for neighboring landowners in Maine. Operating costs and expenses increased by $200,000 year over year, reflecting higher New Brunswick cost of sales per cubic meter, land management costs and silviculture spending, partly offset by lower total volumes and lower per-unit costs in Maine.
Maine Operations Return to Positive EBITDA
Acadian’s Maine segment showed a substantial improvement from the prior year after the company restructured its internal harvesting operations beginning in the second quarter. Freehold sales volumes in Maine, excluding biomass, rose 54% from the third quarter of 2025, while cost of sales per cubic meter fell 39%.
Maine total sales increased to CAD 4.6 million from CAD 2.5 million, and the segment generated adjusted EBITDA of CAD 1.3 million, compared with a CAD 500,000 loss a year earlier. The weighted-average selling price rose 2% in U.S. dollar terms, supported by customer mix and fuel surcharges, though this was partly offset by a higher proportion of roadside sales.
Chair, Interim President and CEO Malcolm Cockwell said the company had brought harvesting in-house in early 2025 to address limited regional harvesting and trucking capacity, rising costs and the suitability of its forest profile for cut-to-length equipment. While the initial results were poor, he said the company’s changes this year shifted the focus from maximizing output to lowering production costs.
“Today, the operation is leaner and more efficient,” Cockwell said. He added that a CAD 600,000 year-over-year increase in real estate EBITDA contributed to Maine’s improvement, though most of the progress resulted from operational changes in the harvesting business.
The company plans further work to increase capacity from its existing equipment, develop markets for certain products and optimize harvesting-block selection. Cockwell said Acadian expects Maine to produce stronger results in 2026 than in 2025, and stronger results in 2027 than it has delivered so far this year.
New Brunswick Volumes Decline as Pulpwood Demand Weakens
In New Brunswick, freehold sales volumes excluding biomass fell 21% from the third quarter of 2025. The decline primarily reflected lower softwood sales volumes amid elevated customer roundwood inventories and abundant sawmill residuals, partially offset by higher hardwood sales.
Weighted-average selling prices excluding biomass rose 19%, driven by stronger softwood lumber markets and fuel surcharges. Variable costs per cubic meter increased 16%, however, because of higher fuel adjustment costs.
New Brunswick total sales declined to CAD 19.4 million from CAD 20.5 million, while adjusted EBITDA decreased to CAD 3.9 million from CAD 4.4 million.
In response to an analyst question, Cockwell said the company expects customer inventory levels, demand and its ability to deliver harvested wood in New Brunswick to normalize in the fourth quarter. He said delivery restrictions had persisted longer than expected after a productive winter, spring and summer left some customers with full inventories. Some customers also have not been operating at full capacity, he said.
Market Outlook and Newer Business Initiatives
Acadian said it expects sufficient contractor capacity in New Brunswick through the remainder of 2026 and into the 2027 winter season. The company anticipates steady volumes in the coming quarters, while continuing to improve production and costs in Maine.
Softwood pulpwood demand remains weak in both New Brunswick and Maine, while hardwood pulpwood demand is expected to remain steady in the short term. The company expects demand for softwood and hardwood sawtimber to remain steady in both regions and does not anticipate significant near-term changes in markets or pricing.
Cockwell said tariffs and duties affecting certain customer products, along with elevated fuel costs, have created uncertainty for customers’ end markets. Acadian’s products are not currently subject to tariffs or duties, he said, and the company has not observed curtailments explicitly tied to those measures. However, he said the uncertainty may be discouraging full operating schedules at some facilities.
A major New Brunswick consumer of hardwood pulpwood curtailed operations during the quarter without providing a restart date. Acadian expects limited immediate impact because it has multiple customers for each product, though Cockwell said broader regional supply-and-demand effects could be significant in coming months.
The company also said its environmental solutions business is progressing, with the next tranche of carbon credits for its Maine project moving through the transition to the American Carbon Registry’s updated Improved Forest Management protocol. Acadian continues to expect registration in the near future.
Its real estate business sold 19 acres of non-core Maine land during the quarter, producing an approximately CAD 800,000 gain on the sale of timberlands. Cockwell said related real estate activity is expected to continue in the fourth quarter and over the longer term as the company seeks to build a steady, non-depleting contribution from the business.
Acadian ended the quarter with CAD 16.4 million of net liquidity. CAD 45.3 million of long-term debt is scheduled to mature in March 2027, and Wood said the company intends to refinance the debt before its maturity date.
About Acadian Timber (TSE:ADN)
Acadian Timber Corp. ('Acadian') is one of the largest timberland owners in Eastern Canada and the Northeastern U.S. We own and manage 775,000 acres of freehold timberlands in New Brunswick and approximately 300,000 acres of freehold timberlands in Maine. Acadian also provides timber services relating to 1.3 million acres of Crown licensed timberlands in New Brunswick. Our primary business is the production of softwood and hardwood sawlogs, pulpwood, and biomass by-products, sold to approximately 85 regional customers.
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