Canada's West Fraser Timber Q3 sales fall sequentially on weak demand
WFG•West Fraser Timber reported third-quarter sales of $1.36 billion, below the $1.41 billion consensus, as weak demand continued. Adjusted EBITDA was $38 million, and the company said it will indefinitely curtail two U.S. mills.
1. Quarterly results
West Fraser Timber's third-quarter sales fell sequentially to $1.36 billion, missing the $1.41 billion consensus estimate from two analysts. Adjusted EBITDA fell sequentially to $38 million, while the company reported a loss per share of $1.03. Higher energy-related input costs weighed on results.
2. Demand and outlook
CEO Sean McLaren said housing affordability continued to constrain demand, which remains soft. The company expects 2026 SPF and SYP shipments and North American OSB shipments to be at the low ends of their respective guidance ranges of 2.4 billion to 2.7 billion board feet and 5.9 billion to 6.3 billion square feet. It expects 2026 capital expenditures of $300 million to $350 million and said demand for wood building products may decline over the near term.
3. Mill curtailments
West Fraser said it will indefinitely curtail two U.S. mills because of continued weak demand. It also said it reduced inventory and controlled costs by running mills to demand.
