| Segment Information |
Note 12. Segment Information The Company is managed based on the primary products it manufactures: pulp and solid wood, whose operating results are regularly reviewed by the Company’s chief operating decision maker (the “CODM”) to assess segment performance and to make decisions about resource allocation. The Company’s CODM is the Chief Executive Officer. Accordingly, the Company’s four pulp mills are aggregated into the pulp segment. The Friesau sawmill, the Torgau facility and the mass timber facilities are aggregated into the solid wood segment. Revenues between segments are accounted for at prices that approximate fair value. These include revenues from the sale of residual fiber from the solid wood segment to the pulp segment for use in the pulp production process and from the sale of residual fuel from the pulp segment to the solid wood segment for use in energy production. The CODM uses net income (loss) before interest, tax, depreciation and amortization and impairments of long-lived assets (“Segment Operating EBITDA”) as the primary measure in its review of segment operating performance, using the measure to assess segment trends and identify strategies to improve the allocation of resources among the reportable segments. Total assets and the income or loss items following Segment Operating EBITDA, other than depreciation, amortization and impairment of long-lived assets, are not allocated to the segments, as those items are reviewed separately by management. Information about certain segment data for the three and six months ended June 30, 2026 and 2025 was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2026 |
|
Pulp |
|
|
Solid Wood |
|
|
Total of Segments (a) |
|
Revenues from external customers |
|
$ |
325,074 |
|
|
$ |
134,203 |
|
|
$ |
459,277 |
|
Intersegment revenues |
|
|
527 |
|
|
|
13,865 |
|
|
|
14,392 |
|
|
|
|
325,601 |
|
|
|
148,068 |
|
|
|
473,669 |
|
Less segment expenses: |
|
|
|
|
|
|
|
|
|
Fiber |
|
|
178,249 |
|
|
|
90,741 |
|
|
|
|
Maintenance (b) |
|
|
24,468 |
|
|
|
9,946 |
|
|
|
|
Freight |
|
|
37,434 |
|
|
|
16,215 |
|
|
|
|
Labor (c) |
|
|
23,513 |
|
|
|
16,854 |
|
|
|
|
Chemicals |
|
|
34,330 |
|
|
|
— |
|
|
|
|
Energy |
|
|
12,955 |
|
|
|
8,494 |
|
|
|
|
Other (d) |
|
|
27,303 |
|
|
|
14,056 |
|
|
|
|
Segment Operating EBITDA |
|
$ |
(12,651 |
) |
|
$ |
(8,238 |
) |
|
$ |
(20,889 |
) |
|
|
|
|
|
|
|
|
|
|
Purchase of property, plant and equipment |
|
$ |
10,457 |
|
|
$ |
1,697 |
|
|
$ |
12,154 |
|
(a)The total of segments’ Segment Operating EBITDA is reconciled to “Loss before income taxes” in the Interim Consolidated Statements of Operations as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2026 |
|
Pulp |
|
|
Solid Wood |
|
|
Total |
|
Reconciliation to loss before income taxes |
|
|
|
|
|
|
|
|
|
Total of segments’ Segment Operating EBITDA |
|
|
|
|
|
|
|
$ |
(20,889 |
) |
Segment depreciation and amortization |
|
|
(22,624 |
) |
|
|
(15,279 |
) |
|
|
(37,903 |
) |
Interest expense |
|
|
|
|
|
|
|
|
(30,920 |
) |
Other income |
|
|
|
|
|
|
|
|
503 |
|
Corporate items and eliminations |
|
|
|
|
|
|
|
|
(182 |
) |
Loss before income taxes |
|
|
|
|
|
|
|
$ |
(89,391 |
) |
(b)Maintenance expense for the pulp segment includes expenditures for planned annual maintenance downtime at our pulp mills. (c)Labor expense excludes maintenance and indirect labor costs. (d)Other expenses primarily include selling, general and administrative expenses, the net change in finished goods inventories and foreign exchange gains or losses on the revaluation of dollar denominated receivable balances.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2026 |
|
Pulp |
|
|
Solid Wood |
|
|
Corporate
and Other |
|
|
Consolidated |
|
Revenues from external customers by major products |
|
|
|
|
|
|
|
|
|
|
|
|
Pulp |
|
$ |
303,340 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
303,340 |
|
Lumber |
|
|
— |
|
|
|
56,643 |
|
|
|
— |
|
|
|
56,643 |
|
Energy and chemicals |
|
|
21,734 |
|
|
|
6,296 |
|
|
|
— |
|
|
|
28,030 |
|
Manufactured products (a) |
|
|
— |
|
|
|
25,821 |
|
|
|
— |
|
|
|
25,821 |
|
Pallets |
|
|
— |
|
|
|
31,908 |
|
|
|
— |
|
|
|
31,908 |
|
Biofuels (b) |
|
|
— |
|
|
|
10,724 |
|
|
|
— |
|
|
|
10,724 |
|
Wood residuals |
|
|
— |
|
|
|
2,811 |
|
|
|
1,001 |
|
|
|
3,812 |
|
Total revenues from external customers |
|
$ |
325,074 |
|
|
$ |
134,203 |
|
|
$ |
1,001 |
|
|
$ |
460,278 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from external customers by geography (c) |
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
|
$ |
31,872 |
|
|
$ |
44,294 |
|
|
$ |
— |
|
|
$ |
76,166 |
|
Foreign countries |
|
|
|
|
|
|
|
|
|
|
|
|
Germany |
|
|
70,173 |
|
|
|
57,885 |
|
|
|
— |
|
|
|
128,058 |
|
China |
|
|
114,884 |
|
|
|
106 |
|
|
|
— |
|
|
|
114,990 |
|
Other countries |
|
|
108,145 |
|
|
|
31,918 |
|
|
|
1,001 |
|
|
|
141,064 |
|
|
|
|
293,202 |
|
|
|
89,909 |
|
|
|
1,001 |
|
|
|
384,112 |
|
Total revenues from external customers |
|
$ |
325,074 |
|
|
$ |
134,203 |
|
|
$ |
1,001 |
|
|
$ |
460,278 |
|
(a)Manufactured products primarily include cross-laminated timber and glue-laminated timber. (b)Biofuels include pellets and briquettes. (c)Sales are attributed to countries based on the ship-to location provided by the customer.
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2025 |
|
Pulp |
|
|
Solid Wood |
|
|
Total of Segments (a) |
|
Revenues from external customers |
|
$ |
332,308 |
|
|
$ |
117,268 |
|
|
$ |
449,576 |
|
Intersegment revenues |
|
|
165 |
|
|
|
11,548 |
|
|
|
11,713 |
|
|
|
|
332,473 |
|
|
|
128,816 |
|
|
|
461,289 |
|
Less segment expenses: |
|
|
|
|
|
|
|
|
|
Fiber |
|
|
167,000 |
|
|
|
69,975 |
|
|
|
|
Maintenance (b) |
|
|
47,097 |
|
|
|
12,140 |
|
|
|
|
Freight |
|
|
32,907 |
|
|
|
13,364 |
|
|
|
|
Labor (c) |
|
|
24,947 |
|
|
|
15,038 |
|
|
|
|
Chemicals |
|
|
32,044 |
|
|
|
— |
|
|
|
|
Energy |
|
|
11,828 |
|
|
|
4,771 |
|
|
|
|
Other (d) |
|
|
26,912 |
|
|
|
18,389 |
|
|
|
|
Segment Operating EBITDA |
|
$ |
(10,262 |
) |
|
$ |
(4,861 |
) |
|
$ |
(15,123 |
) |
|
|
|
|
|
|
|
|
|
|
Purchase of property, plant and equipment |
|
$ |
15,802 |
|
|
$ |
8,549 |
|
|
$ |
24,351 |
|
(a)The total of segments’ Segment Operating EBITDA is reconciled to “Loss before income taxes” in the Interim Consolidated Statements of Operations as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2025 |
|
Pulp |
|
|
Solid Wood |
|
|
Total |
|
Reconciliation to loss before income taxes |
|
|
|
|
|
|
|
|
|
Total of segments’ Segment Operating EBITDA |
|
|
|
|
|
|
|
$ |
(15,123 |
) |
Segment depreciation and amortization |
|
|
(24,689 |
) |
|
|
(12,664 |
) |
|
|
(37,353 |
) |
Interest expense |
|
|
|
|
|
|
|
|
(28,411 |
) |
Other expenses |
|
|
|
|
|
|
|
|
(1,120 |
) |
Corporate items and eliminations |
|
|
|
|
|
|
|
|
(5,928 |
) |
Loss before income taxes |
|
|
|
|
|
|
|
$ |
(87,935 |
) |
(b)Maintenance expense for the pulp segment includes expenditures for planned annual maintenance downtime at our pulp mills. (c)Labor expense excludes maintenance and indirect labor costs. (d)Other expenses primarily include selling, general and administrative expenses, the net change in finished goods inventories and foreign exchange gains or losses on the revaluation of dollar denominated receivable balances.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2025 |
|
Pulp |
|
|
Solid Wood |
|
|
Corporate
and Other |
|
|
Consolidated |
|
Revenues from external customers by major products |
|
|
|
|
|
|
|
|
|
|
|
|
Pulp |
|
$ |
313,705 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
313,705 |
|
Lumber |
|
|
— |
|
|
|
66,332 |
|
|
|
— |
|
|
|
66,332 |
|
Energy and chemicals |
|
|
18,603 |
|
|
|
4,242 |
|
|
|
1,823 |
|
|
|
24,668 |
|
Manufactured products (a) |
|
|
— |
|
|
|
12,418 |
|
|
|
— |
|
|
|
12,418 |
|
Pallets |
|
|
— |
|
|
|
26,586 |
|
|
|
— |
|
|
|
26,586 |
|
Biofuels (b) |
|
|
— |
|
|
|
5,095 |
|
|
|
— |
|
|
|
5,095 |
|
Wood residuals |
|
|
— |
|
|
|
2,595 |
|
|
|
2,125 |
|
|
|
4,720 |
|
Total revenues from external customers |
|
$ |
332,308 |
|
|
$ |
117,268 |
|
|
$ |
3,948 |
|
|
$ |
453,524 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from external customers by geography (c) |
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
|
$ |
32,179 |
|
|
$ |
40,275 |
|
|
$ |
607 |
|
|
$ |
73,061 |
|
Foreign countries |
|
|
|
|
|
|
|
|
|
|
|
|
Germany |
|
|
67,531 |
|
|
|
47,028 |
|
|
|
220 |
|
|
|
114,779 |
|
China |
|
|
130,411 |
|
|
|
113 |
|
|
|
— |
|
|
|
130,524 |
|
Other countries |
|
|
102,187 |
|
|
|
29,852 |
|
|
|
3,121 |
|
|
|
135,160 |
|
|
|
|
300,129 |
|
|
|
76,993 |
|
|
|
3,341 |
|
|
|
380,463 |
|
Total revenues from external customers |
|
$ |
332,308 |
|
|
$ |
117,268 |
|
|
$ |
3,948 |
|
|
$ |
453,524 |
|
(a)Manufactured products primarily include cross-laminated timber and glue-laminated timber. (b)Biofuels include pellets and briquettes. (c)Sales are attributed to countries based on the ship-to location provided by the customer.
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2026 |
|
Pulp |
|
|
Solid Wood |
|
|
Total of Segments (a) |
|
Revenues from external customers |
|
$ |
670,057 |
|
|
$ |
265,945 |
|
|
$ |
936,002 |
|
Intersegment revenues |
|
|
1,289 |
|
|
|
26,571 |
|
|
|
27,860 |
|
|
|
|
671,346 |
|
|
|
292,516 |
|
|
|
963,862 |
|
Less segment expenses: |
|
|
|
|
|
|
|
|
|
Fiber |
|
|
351,343 |
|
|
|
170,785 |
|
|
|
|
Maintenance (b) |
|
|
47,949 |
|
|
|
19,181 |
|
|
|
|
Freight |
|
|
74,261 |
|
|
|
31,145 |
|
|
|
|
Labor (c) |
|
|
48,351 |
|
|
|
33,511 |
|
|
|
|
Chemicals |
|
|
66,133 |
|
|
|
— |
|
|
|
|
Energy |
|
|
27,211 |
|
|
|
16,905 |
|
|
|
|
Other (d) |
|
|
61,852 |
|
|
|
34,858 |
|
|
|
|
Segment Operating EBITDA |
|
$ |
(5,754 |
) |
|
$ |
(13,869 |
) |
|
$ |
(19,623 |
) |
|
|
|
|
|
|
|
|
|
|
Purchase of property, plant and equipment |
|
$ |
22,198 |
|
|
$ |
3,119 |
|
|
$ |
25,317 |
|
(a)The total of segments’ Segment Operating EBITDA is reconciled to “Loss before income taxes” in the Interim Consolidated Statements of Operations as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2026 |
|
Pulp |
|
|
Solid Wood |
|
|
Total |
|
Reconciliation to loss before income taxes |
|
|
|
|
|
|
|
|
|
Total of segments’ Segment Operating EBITDA |
|
|
|
|
|
|
|
$ |
(19,623 |
) |
Segment depreciation and amortization |
|
|
(48,462 |
) |
|
|
(30,069 |
) |
|
|
(78,531 |
) |
Interest expense |
|
|
|
|
|
|
|
|
(60,021 |
) |
Other income |
|
|
|
|
|
|
|
|
2,323 |
|
Corporate items and eliminations |
|
|
|
|
|
|
|
|
6,288 |
|
Loss before income taxes |
|
|
|
|
|
|
|
$ |
(149,564 |
) |
(b)Maintenance expense for the pulp segment includes expenditures for planned annual maintenance downtime at our pulp mills. (c)Labor expense excludes maintenance and indirect labor costs. (d)Other expenses primarily include selling, general and administrative expenses, the net change in finished goods inventories and foreign exchange gains or losses on the revaluation of dollar denominated receivable balances.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2026 |
|
Pulp |
|
|
Solid Wood |
|
|
Corporate
and Other |
|
|
Consolidated |
|
Revenues from external customers by major products |
|
|
|
|
|
|
|
|
|
|
|
|
Pulp |
|
$ |
622,510 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
622,510 |
|
Lumber |
|
|
— |
|
|
|
116,734 |
|
|
|
— |
|
|
|
116,734 |
|
Energy and chemicals |
|
|
47,547 |
|
|
|
11,894 |
|
|
|
525 |
|
|
|
59,966 |
|
Manufactured products (a) |
|
|
— |
|
|
|
46,862 |
|
|
|
— |
|
|
|
46,862 |
|
Pallets |
|
|
— |
|
|
|
61,768 |
|
|
|
— |
|
|
|
61,768 |
|
Biofuels (b) |
|
|
— |
|
|
|
22,904 |
|
|
|
— |
|
|
|
22,904 |
|
Wood residuals |
|
|
— |
|
|
|
5,783 |
|
|
|
13,055 |
|
|
|
18,838 |
|
Total revenues from external customers |
|
$ |
670,057 |
|
|
$ |
265,945 |
|
|
$ |
13,580 |
|
|
$ |
949,582 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from external customers by geography (c) |
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
|
$ |
67,866 |
|
|
$ |
86,336 |
|
|
$ |
— |
|
|
$ |
154,202 |
|
Foreign countries |
|
|
|
|
|
|
|
|
|
|
|
|
Germany |
|
|
141,340 |
|
|
|
115,991 |
|
|
|
— |
|
|
|
257,331 |
|
China |
|
|
270,487 |
|
|
|
510 |
|
|
|
— |
|
|
|
270,997 |
|
Other countries |
|
|
190,364 |
|
|
|
63,108 |
|
|
|
13,580 |
|
|
|
267,052 |
|
|
|
|
602,191 |
|
|
|
179,609 |
|
|
|
13,580 |
|
|
|
795,380 |
|
Total revenues from external customers |
|
$ |
670,057 |
|
|
$ |
265,945 |
|
|
$ |
13,580 |
|
|
$ |
949,582 |
|
(a)Manufactured products primarily include cross-laminated timber and glue-laminated timber. (b)Biofuels include pellets and briquettes. (c)Sales are attributed to countries based on the ship-to location provided by the customer.
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2025 |
|
Pulp |
|
|
Solid Wood |
|
|
Total of Segments (a) |
|
Revenues from external customers |
|
$ |
713,388 |
|
|
$ |
239,988 |
|
|
$ |
953,376 |
|
Intersegment revenues |
|
|
509 |
|
|
|
21,569 |
|
|
|
22,078 |
|
|
|
|
713,897 |
|
|
|
261,557 |
|
|
|
975,454 |
|
Less segment expenses: |
|
|
|
|
|
|
|
|
|
Fiber |
|
|
305,284 |
|
|
|
136,343 |
|
|
|
|
Maintenance (b) |
|
|
89,063 |
|
|
|
21,333 |
|
|
|
|
Freight |
|
|
68,339 |
|
|
|
26,688 |
|
|
|
|
Labor (c) |
|
|
49,140 |
|
|
|
29,685 |
|
|
|
|
Chemicals |
|
|
60,105 |
|
|
|
— |
|
|
|
|
Energy |
|
|
26,235 |
|
|
|
13,195 |
|
|
|
|
Other (d) |
|
|
76,121 |
|
|
|
39,466 |
|
|
|
|
Segment Operating EBITDA |
|
$ |
39,610 |
|
|
$ |
(5,153 |
) |
|
$ |
34,457 |
|
|
|
|
|
|
|
|
|
|
|
Purchase of property, plant and equipment |
|
$ |
29,562 |
|
|
$ |
14,830 |
|
|
$ |
44,392 |
|
(a)The total of segments’ Segment Operating EBITDA is reconciled to “Loss before income taxes” in the Interim Consolidated Statements of Operations as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2025 |
|
Pulp |
|
|
Solid Wood |
|
|
Total |
|
Reconciliation to loss before income taxes |
|
|
|
|
|
|
|
|
|
Total of segments’ Segment Operating EBITDA |
|
|
|
|
|
|
|
$ |
34,457 |
|
Segment depreciation and amortization |
|
|
(52,911 |
) |
|
|
(24,624 |
) |
|
|
(77,535 |
) |
Interest expense |
|
|
|
|
|
|
|
|
(56,566 |
) |
Other expenses |
|
|
|
|
|
|
|
|
(1,305 |
) |
Corporate items and eliminations |
|
|
|
|
|
|
|
|
(8,593 |
) |
Loss before income taxes |
|
|
|
|
|
|
|
$ |
(109,542 |
) |
(b)Maintenance expense for the pulp segment includes expenditures for planned annual maintenance downtime at our pulp mills. (c)Labor expense excludes maintenance and indirect labor costs. (d)Other expenses primarily include selling, general and administrative expenses, the net change in finished goods inventories and foreign exchange gains or losses on the revaluation of dollar denominated receivable balances.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2025 |
|
Pulp |
|
|
Solid Wood |
|
|
Corporate
and Other |
|
|
Consolidated |
|
Revenues from external customers by major products |
|
|
|
|
|
|
|
|
|
|
|
|
Pulp |
|
$ |
670,669 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
670,669 |
|
Lumber |
|
|
— |
|
|
|
131,718 |
|
|
|
— |
|
|
|
131,718 |
|
Energy and chemicals |
|
|
42,719 |
|
|
|
9,108 |
|
|
|
4,997 |
|
|
|
56,824 |
|
Manufactured products (a) |
|
|
— |
|
|
|
31,242 |
|
|
|
— |
|
|
|
31,242 |
|
Pallets |
|
|
— |
|
|
|
49,763 |
|
|
|
— |
|
|
|
49,763 |
|
Biofuels (b) |
|
|
— |
|
|
|
14,319 |
|
|
|
— |
|
|
|
14,319 |
|
Wood residuals |
|
|
— |
|
|
|
3,838 |
|
|
|
2,125 |
|
|
|
5,963 |
|
Total revenues from external customers |
|
$ |
713,388 |
|
|
$ |
239,988 |
|
|
$ |
7,122 |
|
|
$ |
960,498 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from external customers by geography (c) |
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
|
$ |
71,027 |
|
|
$ |
87,585 |
|
|
$ |
1,249 |
|
|
$ |
159,861 |
|
Foreign countries |
|
|
|
|
|
|
|
|
|
|
|
|
Germany |
|
|
144,589 |
|
|
|
93,657 |
|
|
|
381 |
|
|
|
238,627 |
|
China |
|
|
267,981 |
|
|
|
506 |
|
|
|
— |
|
|
|
268,487 |
|
Other countries |
|
|
229,791 |
|
|
|
58,240 |
|
|
|
5,492 |
|
|
|
293,523 |
|
|
|
|
642,361 |
|
|
|
152,403 |
|
|
|
5,873 |
|
|
|
800,637 |
|
Total revenues from external customers |
|
$ |
713,388 |
|
|
$ |
239,988 |
|
|
$ |
7,122 |
|
|
$ |
960,498 |
|
(a)Manufactured products primarily include cross-laminated timber and glue-laminated timber. (b)Biofuels include pellets and briquettes. (c)Sales are attributed to countries based on the ship-to location provided by the customer.
|