West Fraser Flags $409M Goodwill Write-Down in Fourth Quarter 2025
Rubber and Wood | 2026-01-13 11:17:53
Management said the charge stems from a prolonged industry downturn that required revisions to assumptions used in the annual goodwill impairment test.
By Paul Ploumis
SEATTLE (Scrap Monster): West Fraser Timber Co. Ltd. announced it will record an approximately $409 million non-cash goodwill impairment in its Lumber segment during the fourth quarter of 2025, reflecting persistently challenging economic conditions across global lumber markets. The impairment represents the full amount of goodwill associated with U.S. lumber operations.
Management said the charge stems from a prolonged industry downturn that required revisions to assumptions used in the annual goodwill impairment test. Key changes include species-specific lumber pricing expectations, reduced demand and pricing for wood chip residuals, and reassessments of the depth, duration, and timing of market recovery.
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Alongside the impairment disclosure, West Fraser issued initial 2026 operational guidance. Spruce-pine-fir (SPF) shipments and Southern Yellow Pine (SYP) shipments are each projected at 2.4 to 2.7 billion board feet. North American OSB shipments are expected to range from 5.9 to 6.3 billion square feet, while European and U.K. OSB shipments are forecast at 1.0 to 1.25 billion square feet.
Input costs are expected to remain stable, while capital expenditures for 2026 are forecast at $300–$350 million.
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Frequently Asked Questions
- How much is West Fraser recording for goodwill impairment?
Approximately $409 million for its U.S. lumber operations in Q4 2025.
- What drove the impairment?
Prolonged global lumber market downturn, lower species-specific lumber prices, reduced wood chip demand, and delayed market recovery.
- What are West Fraser’s 2026 shipment expectations?
SPF and SYP: 2.4–2.7B board feet; North American OSB: 5.9–6.3B sq. ft.; European/UK OSB: 1.0–1.25B sq. ft.
