Domtar Corporation reported a decline in financial performance for the third quarter and first nine months of 2025, as detailed in its latest 10-Q filing. For the three months ended September 30, 2025, the company generated sales of $1.682 billion, a decrease of 5% from $1.771 billion in the same period of 2024. The net loss for the quarter was $315 million, compared to a loss of $57 million in the prior year. For the nine-month period, sales remained relatively stable at $5.305 billion, slightly down from $5.307 billion, but the net loss widened to $385 million from $65 million.
The company's operating income also saw a significant decline, falling to $40 million in the third quarter of 2025 from $120 million in the same quarter of 2024. This decrease was attributed to higher closure and restructuring costs, lower product volumes, and increased input costs, which were partially offset by higher average selling prices for paper and wood products. The company recognized $11 million in impairment costs related to the sale of its Espanola pulp and paper mill and the transfer of power generation assets during the quarter.
Domtar has undertaken several strategic actions, including the sale of its Espanola facility and the transfer of power generation assets to Paper Excellence Canada Holdings Corporation for $62 million. The company also completed the sale of the Forest Products Mauricie sawmill for $16 million, resulting in a net gain of $9 million. Additionally, Domtar acquired Iconex Paper in November 2024, which is expected to contribute approximately $300 million in annual sales.
Operationally, Domtar's total assets decreased to $7.075 billion as of September 30, 2025, down from $7.316 billion at the end of 2024. The company reported a total long-term debt of $2.753 billion, reflecting an increase from $2.630 billion. The company’s workforce has also been impacted, with the indefinite idling of the Grenada, Mississippi newsprint mill and the closure of the Addison, Illinois, and Nogales, Mexico facilities as part of its cost reduction measures.
Looking ahead, Domtar anticipates stable demand and pricing for paper products, with modest improvements in pulp demand, although it expects downward pressure on pulp prices. The company is focused on controlling costs and generating cash flow while navigating a challenging market environment influenced by tariffs and macroeconomic conditions.
About Domtar CORP
Domtar Corporation designs, manufactures, markets, and distributes fiber-based products including paper, pulp, tissue, and wood products. Serving global markets, it offers office, printing, packaging, and specialty papers, as well as market pulp and wood products. The company emphasizes sustainability, renewable energy, and responsible forestry, competing on quality and price in highly cyclical, commodity-driven markets with a focus on innovation, diversification, and environmental compliance.
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