WFG · West Fraser Timber Co. Ltd.

West Fraser's first quarter 2026 results were significantly impacted by non-cash duty adjustments totaling $114 million, which swung the lumber segment to negative Adjusted EBITDA and drove a net loss of $188 million. Excluding these adjustments, the company's core segments—lumber, NA EWP, and Europe EWP—all reported positive Adjusted EBITDA, indicating underlying operational resilience. Sales declined 8.6% year-over-year to $1.334 billion, reflecting softer demand and pricing headwinds in commodity wood products. The company maintained a strong balance sheet with $81 million cash and $503 million total debt, and drew $203 million on its revolving credit facility. Management reiterated 2026 shipment guidance for lumber, NA OSB, and Europe OSB, and expects capital expenditures of $300-$350 million. The Blue Ridge lumber mill resumed operations after a January fire, and the High Level OSB mill wind-down was completed. The company paid a $0.32 per share dividend and repurchased no shares under its NCIB. The duty adjustments relate to prior periods and include a $73 million charge from preliminary CVD results and a $41 million charge from changes in estimates. The IEEPA tariff refund process is ongoing following a Supreme Court ruling. Overall, the quarter highlights the impact of trade policy uncertainty on earnings, while the diversified portfolio and cost discipline provide a buffer.