Q1 2025 sales were $24.8M, down from $28.8M in the prior year, primarily due to no carbon credit sales this quarter (vs. $4.9M in Q1 2024); timber sales and services revenue increased by $1M YoY with a 3% increase in timber sales volume (excluding biomass).
Adjusted EBITDA was $4.7M (19% margin), down from $10.6M (37% margin) in Q1 2024; prior year included $4.1M from carbon credit sales; net income was $3.7M ($0.21/share) vs. $6.0M ($0.35/share) last year.
New Brunswick operations saw sales rise to $22.1M (from $19.1M), with a 15% increase in timber sales volume (excluding biomass); adjusted EBITDA margin was 27% (down from 31%); weighted average selling price (excluding biomass) decreased 3% YoY.
Maine operations were impacted by unfavorable weather and limited contractor capacity: sales fell to $2.8M (from $4.8M), timber sales volume (excluding biomass) dropped 44%, and adjusted EBITDA was negative $0.7M (margin -24%); transition to internal logging operations is expected to improve margins and reduce costs over time.
Outlook: Near-term market pressures and potential tariffs create uncertainty, but internal logging operations in Maine are expected to alleviate capacity constraints and lower costs; registration of ~350,000 carbon credits expected in Q2 2025, with additional credits by year-end; demand for softwood sawlogs expected to remain stable, hardwood sawlog pricing may increase, and pulpwood demand/pricing may improve as inventories normalize through 2025.