West Fraser Reports Q4 Earnings Decline, Keeps 2026 Outlook Intact

Rubber and Wood | 2026-02-12 10:57:00 | By Paul Ploumis

Adjusted EBITDA totaled $(79) million, representing negative 7% of sales, compared to $(144) million in the prior quarter.

Summary

Heavy Restructuring Impact: Q4 2025 net loss widened to $751 million, primarily due to $712 million in restructuring and impairment charges.
Market Pressure Across Segments: Lumber and NA EWP posted negative Adjusted EBITDA amid softwood lumber duties, Section 232 tariffs, and oversupply, while Europe EWP delivered modest positive results.
Weaker Full-Year Performance: FY2025 sales fell to $5.462 billion with Adjusted EBITDA dropping sharply to $56 million, though the company maintained shareholder returns and reaffirmed 2026 shipment guidance.

SEATTLE (Scrap Monster): West Fraser Timber Co. Ltd. (TSX, NYSE: WFG) reported fourth quarter 2025 sales of $1.165 billion and a net loss of $751 million, or $(9.63) per diluted share, largely driven by $712 million in restructuring and impairment charges. Adjusted EBITDA totaled $(79) million, representing negative 7% of sales, compared to $(144) million in the prior quarter.

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Segment performance reflected continued market pressure. The Lumber segment posted Adjusted EBITDA of $(57) million, excluding $473 million in restructuring charges, as elevated softwood lumber duties, Section 232 tariffs and oversupply weighed on pricing. North America Engineered Wood Products (NA EWP) generated $(24) million in Adjusted EBITDA, excluding charges, while Europe EWP delivered a modest $4 million contribution. Pulp & Paper remained near breakeven.

For full year 2025, sales declined to $5.462 billion from $6.174 billion in 2024, with a net loss of $937 million. Adjusted EBITDA fell to $56 million from $673 million a year earlier.

West Fraser repurchased 1.64 million shares for $124 million in 2025 and declared a $0.32 per share dividend payable April 2, 2026. The company reaffirmed 2026 shipment targets, citing stable input costs but continued near-term housing and trade uncertainty.