West Fraser Posts Q3 Loss, Pauses Operations Across Multiple Mills

Rubber and Wood  |  2026-10-29 06:14:57   |   By

The company posted sales of $1.363 billion for the quarter, compared with $1.434 billion in the second quarter.

Summary

  • West Fraser Reports Quarterly Losses

    West Fraser Timber Co. reported an $80 million net loss, or $1.03 per diluted share, in Q3 2026. Sales fell to $1.363 billion from $1.434 billion in Q2, while adjusted EBITDA declined to $38 million.

  • Two U.S. Mills Face Indefinite Curtailments

    The company plans to indefinitely curtail its Huguley OSB mill in Alabama and lumber mill in Leola, Arkansas, during Q4 2026. The moves will reduce annual OSB capacity by 500 million square feet and Southern Yellow Pine lumber capacity by 225 million board feet.

  • Weak Demand Weighs on the Outlook

    West Fraser expects a fourth-quarter impairment charge of $200 million to $220 million and anticipates shipments of Southern Yellow Pine, Spruce-Pine-Fir lumber and North American OSB at the lower end of previous guidance. North American demand remains under pressure, while European demand is expected to remain broadly stable in the near term.

SEATTLE (Scrap Monster): West Fraser Timber Co. Ltd. reported a third-quarter net loss of $80 million, or $1.03 per diluted share. Weak demand and elevated operating costs continued to impact its lumber and engineered wood products businesses. Higher energy and other input costs also weighed on performance.

The company posted sales of $1.363 billion for the quarter, compared with $1.434 billion in the second quarter. Adjusted EBITDA totalled $38 million, representing 3% of sales, down from $59 million in the preceding quarter. Despite market headwinds, the company reported liquidity of $1.2 billion.

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West Fraser announced plans to indefinitely curtail operations at its Huguley oriented strand board (OSB) mill in Lanett, Alabama, and its lumber mill in Leola, Arkansas. The curtailments are scheduled to take effect in the fourth quarter of 2026.

The moves will reduce the company's annual OSB capacity by approximately 500 million square feet on a 3/8-inch basis and Southern Yellow Pine lumber capacity by 225 million board feet. West Fraser expects to record an impairment charge of $200 million to $220 million in the fourth quarter of 2026.

Commenting on the outlook, West Fraser stated that it expects shipments of Southern Yellow Pine, Spruce-Pine-Fir lumber and North American OSB to reach the lower end of its previously announced guidance ranges. North American wood product demand faces near-term pressure but may deliver long-term growth. European demand is expected to remain stable near term.