West Fraser reports Q2 loss, cuts shipment targets

West Fraser Timber Co

23/07/2025 22:13

Overview

West Fraser Q2 sales miss analysts' expectations, totaling $1.532 bln

Company reports Q2 loss of $24 mln, and loss per share of $0.38

Adjusted EBITDA for Q2 at $84 mln, reflecting demand slowdown

Outlook

West Fraser reduces 2025 lumber shipment targets due to demand uncertainty

Company lowers 2025 OSB shipment target to 6.3-6.5 bln sq ft

West Fraser expects stable input costs in H2 2025

Capital expenditures for 2025 projected at $400 mln to $450 mln

Result Drivers

DEMAND SLOWDOWN - Spring building activity fell short of expectations, impacting wood-based building products demand, particularly in NA EWP segment

HOUSING AFFORDABILITY - Ongoing housing affordability challenges and potential higher lumber duties contribute to demand uncertainty

TRANSPORTATION DISRUPTIONS - Lumber segment faced slower demand due to transportation and weather disruptions earlier in the year

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Miss
$1.53 bln
$1.59 bln (3 Analysts)
Q2 EPS
-$0.38
Q2 Adjusted EBITDA
$84 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the forest & wood products peer group is "buy"

The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release: ID:nCNWgY4Ta

(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.)