West Fraser Foresees Stable Lumber Demand, Softer OSB in 2026
Rubber and Wood | 2026-07-30 10:36:50
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
West Fraser Narrows Second-Quarter Loss as Sales Rise on Improved Lumber and EWP Conditions
West Fraser Timber Co. Ltd. reported stronger second-quarter 2026 results, with higher sales helping the company narrow its loss significantly. The improvement was supported by better market conditions across its lumber and engineered wood products businesses.
What Readers Should Know
- West Fraser reported sales of $1.434 billion in the second quarter.
- Net loss narrowed to $61 million, or $0.78 per diluted share.
- Adjusted EBITDA improved to $59 million from 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.
- The company kept its 2026 shipment forecasts unchanged.
Quarterly Results Improve
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.
Adjusted EBITDA Turns Positive
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.
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Cash Flow and Dividend
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.
Outlook Remains Unchanged
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.
Frequently Asked Questions
How did West Fraser perform in the second quarter of 2026?
West Fraser reported stronger results, with higher sales and a significantly smaller net loss.
What were West Fraser’s second-quarter sales?
The company reported sales of $1.434 billion.
What was the company’s net loss?
Net loss was $61 million, or $0.78 per diluted share.
How did adjusted EBITDA change?
Adjusted EBITDA improved to $59 million from a negative $66 million in the first quarter.
Did West Fraser change its shipment forecast?
No. The company kept its 2026 shipment forecasts unchanged.
POLL
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.
