West Fraser Q1 Sales Hit $1.334 Billion, Adjusted EBITDA Loss Narrows to $66 M
West Fraser reported Q1 2026 sales of $1.334 billion and a net loss of $188 million ($2.40 per share), narrowing from a $751 million loss in Q4 2025. Adjusted EBITDA loss improved to $66 million (including a $114 million prior-duty charge), while cash fell to $81 million and borrowings rose to $203 million.
1. Q1 Financial Results
West Fraser posted Q1 2026 sales of $1.334 billion, up from $1.165 billion in Q4 2025, and reported a net loss of $188 million ($2.40 per diluted share) compared to a $751 million loss ($9.63 per share) in the prior quarter.
2. Adjusted EBITDA and Segment Performance
Adjusted EBITDA loss improved to $66 million, or 5% of sales, which included a $114 million non-cash duty adjustment related to prior periods. The Lumber segment recorded an $84 million EBITDA loss (including the duty charge), while North America EWP delivered $11 million and Europe EWP $10 million of positive EBITDA.
3. Liquidity and Capital Allocation
Cash and short-term investments declined to $81 million from $202 million at year-end 2025, while borrowings on the $1 billion credit facility increased to $203 million. Capital expenditures were $94 million, dividends of $0.32 per share were paid, and no shares were repurchased under the 2026 NCIB.
4. Operational Developments and Outlook
The Blue Ridge lumber mill fully restored operations after a January fire with no recordable injuries, and the High Level OSB mill wind-down is complete. Management warns that 30-year mortgage rates above 6% and housing affordability constraints may pose near-term headwinds, even as medium- and long-term demand drivers for wood building products remain supportive.