West Fraser Sees Stable Lumber Demand, Softer OSB in 2026

Rubber and Wood  |  2026-07-30 06:07:32   |   By

Adjusted EBITDA improved to $59 million, compared with a negative $66 million in the first quarter. The lumber business generated $41 million in adjusted EBITDA.

Summary
  • Sales and earnings improved, with revenue rising to $1.434 billion, adjusted EBITDA turning positive at $59 million, and net loss narrowing sharply from the previous quarter.
  • Lumber and EWP businesses drove performance, while maintenance work at the Cariboo pulp facility weighed on other operating segments.
  • West Fraser reaffirmed its 2026 shipment guidance, citing strong long-term lumber demand linked to U.S. housing, while expecting softer OSB demand in the near term.

SEATTLE (Scrap Monster): West Fraser Timber Co. Ltd. reported stronger second-quarter 2026 results, mainly driven by higher sales. The company narrowed its losses significantly, supported by improved market conditions across its lumber and engineered wood products (EWP) businesses.

The company posted sales of $1.434 billion for the quarter, up from $1.334 billion in the first quarter of 2026. Net loss narrowed to $61 million, or $0.78 per diluted share, compared with a loss of $188 million, or $2.40 per diluted share, in the previous quarter.

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Adjusted EBITDA improved to $59 million, compared with a negative $66 million in the first quarter. The lumber business generated $41 million in adjusted EBITDA. North American and European EWP businesses each contributed $13 million in adjusted EBITDA, while other operating segments posted an $8 million adjusted EBITDA loss due mainly to maintenance work at the Cariboo pulp facility.

During the quarter, West Fraser generated $192 million in cash from operating activities. The company also declared a $0.32 per share dividend payable in the third quarter.

The company kept its 2026 shipment forecasts unchanged for its lumber and EWP operations, citing positive long-term prospects for lumber driven by U.S. housing demand, while expecting weaker OSB demand in the near term.