Wood products maker Western Forest misses Q3 revenue expectations, net loss widens

Western Forest Products

05/11/2025 14:10

Overview

Western Forest Q3 revenue missed analyst expectations, declining from the previous year

Adjusted EBITDA was negative C$65.9 mln, impacted by non-cash export duty expense

Net loss widened to C$61.3 mln, compared to C$19.6 mln in Q3 2024

Outlook

Company expects North American markets to remain weak due to high interest rates

Incremental 10% US tariff complicates market dynamics amid weak demand

Markets may improve by end of Q4 2025 or early 2026 as supply decreases

Result Drivers

EXPORT DUTY EXPENSE - Adjusted EBITDA negatively impacted by non-cash export duty expense of C$59.5 mln from sixth Administrative Review

LUMBER PRODUCTION CURTAILMENTS - Co took 30 mln board feet in lumber production curtailments in Q3 2025, plans for 35 mln in Q4 2025

US TARIFF IMPACT - Recent 10% US tariff on imported lumber products complicates market dynamics amid weak demand

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
C$233 mln
C$249 mln (1 Analyst)
Q3 EPS
-C$5.71
Q3 Net Income
-C$61.30 mln
Q3 Adjusted EBITDA
-C$65.90 mln
Q3 Adjusted EBITDA Margin
-28%


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$12.75, about 9.3% above its November 4 closing price of C$11.56

Press Release: ID:nGNX7bv4Xq

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(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.)