WFG · West Fraser Timber Co. Ltd.

West Fraser's pre-announcement highlights significant non-cash impacts on Q1 2026 financials from USDOC softwood lumber duty reviews, with a combined $114 million charge to export duty expense split between $73 million for AR7 preliminary CVD rate adjustments on 2024 shipments and $41 million from revised recoverability estimates across multiple periods. This reduces the effective cash deposit rate to 20.70% from 26.47%, providing future cash flow relief upon finalization, while a $15 million refund is expected from AR1 liquidation. Incremental interest expense on deposits will also hit Q1. Operationally, recovery from disruptions includes full resumption at Blue Ridge lumber mill after a January fire and startup at the new Henderson Texas facility, signaling capacity expansion. However, the High Level OSB mill winds down by April end, potentially streamlining focus amid rebounding lumber prices—Western SPF up 9% and Westside SYP up 35% from Q4 2025. Investors should note Q1 results release on April 29 and call on April 30, chaired by CEO Sean McLaren, for full details amid forward-looking uncertainties in trade litigation and duty outcomes.