Canada's Western Forest Products Q1 revenue falls 23% yr/yr, posts net loss

Western Forest Products

06/05/2026 21:35

Overview

Canada lumber producer's Q1 revenue fell 23% yr/yr to C$201.5 mln

Adjusted EBITDA turned negative, impacted by one-time inventory and share-based compensation expenses

Company agreed to sell Stillwater Forest Operation for C$80 mln; finalized insurance claim for CVD sawmill fire

Outlook

Company expects North American lumber pricing to rise in Q2 2026 before stabilizing

Persistently high interest rates and oil prices may curb short-term lumber demand

Lumber demand in Japan is expected to recover in Q2 2026, partly offset by higher costs

Result Drivers

ONE-TIME EXPENSES - Negative adjusted EBITDA included a C$2.8 mln inventory accounting charge and C$1.9 mln in share-based compensation due to a 34% share price increase

LOWER PRODUCTION AND SHIPMENTS - Lumber production and shipments fell to 118 mln and 113 mln board feet, respectively, from 154 mln and 156 mln board feet in Q1 2025

HIGHER LUMBER PRICES - Average lumber selling price rose to C$1,422 per mfbm from C$1,348 per mfbm in Q1 2025

Company press release: ID:nGNX7JT74M

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Slight Miss*
C$201.50 mln
C$202 mln (1 Analyst)
Q1 EPS
-C$1.83
Q1 Net Income
-C$19.90 mln
Q1 Adjusted EBITDA
-C$13.60 mln
Q1 Adjusted EBITDA Margin
-7.00%


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

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

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

Wall Street's median 12-month price target for Western Forest Products Inc is C$15.50, about 11.1% above its May 5 closing price of C$13.95

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.)