Acadian Timber reported Q2 net income of $1.3 million, down from $2.7 million a year earlier, as elevated customer roundwood inventories weighed on New Brunswick sales. The Maine segment narrowed its loss.
Acadian Timber Corp. reported second-quarter net income of $1.3 million, or $0.07 a share, down from $2.7 million, or $0.15, a year earlier. Sales fell to $14.6 million from $17.1 million.
The company's New Brunswick operations faced elevated customer roundwood inventories that cut into sales volumes, while its Maine business continued to narrow losses after a shift to internal harvesting.
"Our results reflect two trends: ongoing progress towards sustained profitability in Maine due to changes that were made during the quarter, and reduced sales volumes in New Brunswick due to elevated customer roundwood inventories," said Malcolm Cockwell, interim president and chief executive officer. He expects Maine to deliver stronger results in 2026 compared with last year, and New Brunswick to return to normal harvesting levels over the rest of the year.
Adjusted EBITDA came in at $1.3 million for the quarter, matching net income. Free cash flow was $0.2 million. The board declared dividends of $5.4 million, or $0.29 a share.
Acadian held $15 million in net liquidity as of June 27, including undrawn credit facilities.
New Brunswick Timberlands
The company's largest segment, which owns or manages about 2 million acres of timberlands in New Brunswick, saw freehold sales drop to $9.2 million from $12.3 million. Lower volumes from elevated customer inventories and abundant sawmill residuals were partly offset by a 19% rise in the weighted average selling price, excluding biomass, driven by stronger softwood lumber markets, higher fuel surcharges, and longer hauling distances. Freehold variable costs per cubic meter jumped 22% on fuel costs and longer hauls. Adjusted EBITDA for the segment slid to $2.1 million from $4.0 million.
For the first six months, New Brunswick freehold sales totaled $27 million, down from $30.1 million. Adjusted EBITDA was $7.9 million, compared with $9.9 million a year earlier.
Maine Timberlands
The Maine segment, which moved to internal harvesting in early 2025, reported a narrower loss. Freehold sales fell to $1.9 million from $2.3 million as the company scaled down harvesting to focus on efficiency. The weighted average selling price, excluding biomass, rose 16% in U.S. dollar terms on a better product mix. Freehold cost of sales per cubic meter fell 7%, with operational efficiencies partly offset by higher fuel costs and longer hauls. Adjusted EBITDA was negative $0.4 million, improving from negative $0.9 million in last year's second quarter.
For the first half, Maine freehold sales rose to $5.1 million from $4.8 million, and adjusted EBITDA turned positive at $0.1 million, compared with a negative $1.6 million a year earlier.
Acadian is also developing an environmental solutions business, registering additional carbon credits expected to be sold in the second half of 2026. A real estate segment, which includes recreational leases and land sales, is still too small to report separately.
Operating costs across the company fell $1.7 million in the quarter, reflecting lower sales volumes, Maine efficiencies, and lower selling and administrative costs, partially offset by higher fuel costs.
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