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WFG — West Fraser Timber News Story

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Canada's West Fraser Timber Q2 sales rise sequentially, output at Henderson sawmill more than double

Canada's West Fraser Timber Q2 sales rise sequentially, output at Henderson sawmill more than double


Overview

  • Canada wood products maker's Q2 sales rose sequentially

  • Adjusted EBITDA turned positive at $59 mln after a loss in Q1

  • Company ramped up Henderson, Texas sawmill and wound down High Level, Alberta OSB mill


Outlook

  • West Fraser reiterates 2026 SPF and SYP lumber shipment targets of 2.4-2.7 bln board feet

  • Company maintains 2026 North American OSB shipment target of 5.9-6.3 bln square feet

  • West Fraser expects 2026 capital expenditures to remain within $300 mln to $350 mln range


Result Drivers

  • HENDERSON SAWMILL RAMP-UP - Output at the new Henderson, Texas sawmill more than doubled versus Q1 and is now operating at levels equivalent to the mill it replaced

  • CANADIAN LUMBER PRODUCTION - Lumber production in Canada rose 13% as the Blue Ridge facility returned to normal operating rates

  • HIGHER INPUT COSTS - Resin and wax costs increased by $13 mln in Q2 versus Q1 due to higher oil prices, with transportation costs also rising, especially in the U.S. South


Company press release: ID:nPnxKzZna


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Sales

$1.43 bln

$1.50 bln (2 Analysts)

Q2 Adjusted EBITDA

$59 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the forest & wood products peer group is "hold."


Reuters Recommended Reads

  • July 29 - UFP Industries Q2 sales beat estimates on acquisitions, new products sales

  • July 28 - Clearwater Paper Q2 net loss widens as facility outage weighed on results

  • July 29 - Homebuilder Green Brick's Q2 revenue beats amid strong Texas demand


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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