Western Forest's Q2 net loss widens

Western Forest Products

07/08/2025 21:49

Overview

Western Forest Q2 revenue beats analyst expectations, per LSEG data

Adjusted EBITDA drops sharply due to inventory provision expense

Company faces operational challenges including strike and sawmill fire

Outlook

Company expects North American markets to remain volatile through Q3 2025

Western anticipates weak demand and pricing for lumber in Q3 2025

Demand strong for specialty products in export markets, price increases expected

Western plans to reduce 2025 capital expenditure to $35-$40 mln

Result Drivers

INVENTORY PROVISION - Adjusted EBITDA impacted by $3.6 mln inventory provision expense due to price declines in lumber products

OPERATIONAL CHALLENGES - Fire at Columbia Vista Sawmill and strike at LFLP affecting operations

CAPITAL EXPENDITURE CUTS - Reduced planned 2025 capital spending to maintain strong balance sheet

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
C$289.10 mln
C$267 mln (1 Analyst)
Q2 EPS
-C$1.62
Q2 Net Income
-C$17.40 mln
Q2 Adjusted EBITDA
C$500,000
Q2 Adjusted EBITDA Margin


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$14.00, about 5.4% above its August 6 closing price of C$13.25

Press Release: ID:nGNXbLl0w4

(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.)