West Fraser Reports Q3 Loss, Announces Indefinite Mill Curtailments
Rubber and Wood | 2026-10-29 03:20:30
The company posted sales of $1.363 billion for the quarter, compared with $1.434 billion in the second quarter.
By Paul Ploumis
SEATTLE (Scrap Monster): West Fraser Timber Co. Ltd. reported a third-quarter net loss of $80 million, or $1.03 per diluted share. Weak demand and elevated operating costs continued to impact its lumber and engineered wood products businesses. Higher energy and other input costs also weighed on performance.
The company posted sales of $1.363 billion for the quarter, compared with $1.434 billion in the second quarter. Adjusted EBITDA totalled $38 million, representing 3% of sales, down from $59 million in the preceding quarter. Despite market headwinds, the company reported liquidity of $1.2 billion.
West Fraser announced plans to indefinitely curtail operations at its Huguley oriented strand board (OSB) mill in Lanett, Alabama, and its lumber mill in Leola, Arkansas. The curtailments are scheduled to take effect in the fourth quarter of 2026.
The moves will reduce the company's annual OSB capacity by approximately 500 million square feet on a 3/8-inch basis and Southern Yellow Pine lumber capacity by 225 million board feet. West Fraser expects to record an impairment charge of $200 million to $220 million in the fourth quarter of 2026.
Commenting on the outlook, West Fraser stated that it expects shipments of Southern Yellow Pine, Spruce-Pine-Fir lumber and North American OSB to reach the lower end of its previously announced guidance ranges. North American wood product demand faces near-term pressure but may deliver long-term growth. European demand is expected to remain stable near term.
POLL
Which two West Fraser facilities are scheduled for indefinite curtailment in Q4 2026?
Frequently Asked Questions
- How much did West Fraser lose in the third quarter of 2026?
West Fraser reported a net loss of $80 million, equivalent to $1.03 per diluted share. Weak demand and higher energy and other input costs affected its lumber and engineered wood products businesses.
- Which mills will West Fraser indefinitely curtail?
The company plans to indefinitely curtail its Huguley oriented strand board (OSB) mill in Lanett, Alabama, and its lumber mill in Leola, Arkansas. The curtailments are scheduled to take effect in the fourth quarter of 2026.
- How will the curtailments affect West Fraser’s production capacity?
The measures will reduce annual OSB capacity by approximately 500 million square feet on a 3/8-inch basis and Southern Yellow Pine lumber capacity by 225 million board feet. West Fraser also expects to record a fourth-quarter impairment charge of $200 million to $220 million.