West Fraser records $409 million goodwill impairment in Q4 2025 lumber segment

SEATTLE (Scrap Monster): West Fraser Timber Co. Ltd. will record a $409 million non-cash impairment of goodwill in its lumber segment for the fourth quarter of 2025, reflecting sustained economic challenges and revised assumptions in its annual impairment test, according to the company.

The impairment covers the full goodwill associated with the company’s U.S. lumber operations. Adjustments to the valuation include weaker product pricing, lower wood chip demand, and a slower recovery in market conditions.

For 2026, the company targets SPF and SYP lumber shipments of 2.4 to 2.7 billion board feet each. North American oriented strand board (OSB) shipments are projected at 5.9 to 6.3 billion square feet on a 3/8-inch basis. European and U.K. OSB shipments are expected to reach 1.0 to 1.25 billion square feet on the same basis.

Input costs for resins and chemicals are expected to remain stable. Contractor availability and equipment lead times are expected to improve.

Capital expenditures are projected at $300 to $350 million, including projects for plant optimization and maintenance.

West Fraser operates over 50 facilities in Canada, the United States, the United Kingdom, and Europe, producing lumber, engineered wood products, and pulp. The information is based on figures released by West Fraser Timber Co. Ltd.

Courtesy: www.lesprom.com