West Fraser Sees Stable Lumber Demand, Softer OSB in 2026
Rubber and Wood | 2026-07-30 06:07:32
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.
By Paul Ploumis
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.
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What was the biggest highlight of West Fraser's Q2 2026 results?
Frequently Asked Questions
- What drove West Fraser's stronger Q2 2026 performance?
Higher sales and improved market conditions across its lumber and engineered wood products (EWP) businesses boosted earnings and significantly reduced losses.
- How did adjusted EBITDA change from the previous quarter?
Adjusted EBITDA improved to $59 million, compared with a negative $66 million in the first quarter.
- Which business segments contributed most to earnings?
The lumber business led with $41 million in adjusted EBITDA, while the North American and European EWP businesses each contributed $13 million.
