West Fraser Timber Co. Ltd. reported significant losses for its fourth quarter results of 2025.
All dollar amounts in this news release are expressed in U.S. dollars unless noted otherwise.
"The fourth quarter of 2025 was another challenging period for West Fraser, marked by elevated softwood lumber duties and tariffs, southern yellow pine lumber and OSB oversupply, and tempered demand for many of our wood-based building products, much of which can be attributed to housing affordability constraints that have continued into early 2026.
“Notwithstanding this environment, we made great advances with some of our major capital investments that will improve both our cost profile and our operating flexibility, completing construction and starting-up our modernized lumber mill in Henderson, Texas, and effectively completing the ramp-up of our large-scale OSB mill in Allendale, South Carolina. We did have to make some difficult decisions late in the year with announced closures or curtailments of uneconomic lumber and OSB mills, but these decisions were made to size our portfolio to our customers' demand and with a view to make the Company stronger and better positioned for the future," said Sean McLaren, West Fraser's president and CEO.
"We are steadfast in our strategy and will continue to take the necessary steps to ensure our operations remain safe places to work, flexible, and able to effectively serve our customers while controlling costs. We will continue to evaluate strategic investments and follow a balanced capital allocation strategy that allows us to grow while maintaining robust liquidity, increasing through-cycle resilience and creating long-term shareholder value."
Results Summary
Fourth quarter sales were $1.165 billion, compared to $1.307 billion in the third quarter of 2025. Fourth quarter earnings were $(751) million, or $(9.63) per diluted share, compared to earnings of $(204) million, or $(2.63) per diluted share in the third quarter of 2025. Fourth quarter Adjusted EBITDA was $(79) million compared to $(144) million in the third quarter of 2025.
Full year sales were $5.462 billion, compared to $6.174 billion in 2024. Full year earnings were $(937) million, or $(12.08) per diluted share, compared to earnings of $(5) million, or $(0.07) per diluted share in 2024. Full year Adjusted EBITDA was $56 million compared to $673 million in 2024.
Tariffs
Canadian softwood lumber exports to the U.S. have been the subject of trade disputes and managed trade arrangements for several decades. The current round of countervailing and antidumping duties have been in place since April 2017.
On March 4, 2025, the U.S. administration, under the International Emergency Economic Powers Act ("IEEPA"), implemented an additive 25% tariff on all goods imported into the U.S. Our wood products were subject to the IEEPA tariffs for a two-day period from March 4, 2025 to March 6, 2025. The legality of the IEEPA tariffs is currently under review by the Supreme Court of the United States as of February 10, 2026.
On Sept. 29, 2025, the U.S. administration issued a proclamation that imposed a tariff of 10% under Section 232 of the Trade Expansion Act of 1962 on imported softwood timber and lumber into the U.S., effective Oct. 14, 2025. This tariff is in addition to the existing softwood lumber duties applied to U.S. imports of Canadian lumber. The tariffs implemented under Section 232 of the Trade Expansion Act of 1962 are still in effect as of Feb. 10, 2026.
