Canada's West Fraser Timber Q3 sales fall sequentially on weak demand

West Fraser Timber

28/10/2026 21:44

Overview
Canada wood products maker's Q3 sales declined sequentially amid ongoing weak demand
Q3 adjusted EBITDA fell sequentially as higher input costs weighed on margins
Company to indefinitely curtail two U.S. mills due to continued weak demand

Outlook
Company expects 2026 SPF and SYP shipments at low end of 2.4-2.7 bln board feet range
2026 North American OSB shipments seen at low end of 5.9-6.3 bln sq ft range
Company expects 2026 capital expenditures of $300 mln-$350 mln
Demand for wood building products will continue to be challenged and may decline over the near term 

Result Drivers
WEAK DEMAND - Housing affordability continued to be a key constraint for wood products demand, which remains soft, per CEO Sean McLaren 
HIGHER INPUT COSTS - Co said increased energy-related input costs weighed on results
INVENTORY REDUCTION - Co said it reduced inventory and controlled costs by running mills to demand

Company press release: ID:nPn5K6TtHa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Miss
$1.36 bln
$1.41 bln (2 Analysts)
Q3 Adjusted EBITDA
 
$38 mln
 
Q3 Loss Per Share
 
$1.03
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the forest & wood products peer group is "buy"

Reuters Recommended Reads
Oct 28 - Canada's Acadian Timber Q3 profit rises on higher pricing, Maine improvements
Oct 28 - International Paper Q3 sales miss on softer 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.)