Latest news with #WestFraser
Edmonton Journal
6 days ago
- General
- Edmonton Journal
Conservation group warns against West Fraser Timber's push for higher logging limits in southern Alberta
Article content 'In Alberta, we don't actually implement any of that science in our planning processes,' he said. 'We use a very simplistic and basic assessment in the forest management planning process, which doesn't effectively reflect the real risks that actually occur on the ground.' Article content West Fraser disagreed with that notion, saying its plans are 'informed by science to support forest health, clean water, wildlife habitats, recreation, and a range of social and environmental priorities.' Article content 'Each plan is developed based on current forest inventory data — including the available land base, age of stands and growth rate. Plans are made available for public review and input prior to being reviewed and approved by government,' the company said in a statement. Article content Killeen said another major concern is the effect of additional logging on biodiversity. He highlighted high-risk species such as the Westslope cutthroat trout — listed as threatened under the provincial Wildlife Act — as being 'particularly vulnerable' to the effects of logging. About one-third of Alberta's remaining Westslope cutthroat trout habitat is within the plan area, the group says. Article content Article content 'If we have even more logging on the landscape, then that means that those impacts are likely to increase and those species are gonna continue to decrease in abundance,' he said. 'The more those impacts continue to increase, the bigger the risks and the impacts we see on biodiversity, on ecosystem function (and) on watersheds.' Article content The group is calling for 'the strongest possible protections' for biodiversity and watershed management in the area, and for the province to implement 'modern, precautionary assessments and approaches to protect watersheds from the risks associated with clear-cutting.' Article content Since the last plan was developed, West Fraser said available land base inventories provide precise and up to date data to support future harvest planning. Article content West Fraser said public input plays an important role in shaping its forest management plans. Article content Article content 'We are committed to listening and meaningful engagement,' the statement continued. 'Our work with stakeholders and Indigenous communities continues as we develop the Crowsnest Forest Management Plan.'
Calgary Herald
14-08-2025
- General
- Calgary Herald
Conservation group warns against West Fraser Timber's push for higher logging limits in southern Alberta
Article content 'In Alberta, we don't actually implement any of that science in our planning processes,' he said. 'We use a very simplistic and basic assessment in the forest management planning process, which doesn't effectively reflect the real risks that actually occur on the ground.' Article content West Fraser disagreed with that notion, saying its plans are 'informed by science to support forest health, clean water, wildlife habitats, recreation, and a range of social and environmental priorities.' Article content 'Each plan is developed based on current forest inventory data — including the available land base, age of stands and growth rate. Plans are made available for public review and input prior to being reviewed and approved by government,' the company said in a statement. Article content Killeen said another major concern is the effect of additional logging on biodiversity. He highlighted high-risk species such as the Westslope cutthroat trout — listed as threatened under the provincial Wildlife Act — as being 'particularly vulnerable' to the effects of logging. About one-third of Alberta's remaining Westslope cutthroat trout habitat is within the plan area, the group says. Article content Article content 'If we have even more logging on the landscape, then that means that those impacts are likely to increase and those species are gonna continue to decrease in abundance,' he said. 'The more those impacts continue to increase, the bigger the risks and the impacts we see on biodiversity, on ecosystem function (and) on watersheds.' Article content The group is calling for 'the strongest possible protections' for biodiversity and watershed management in the area, and for the province to implement 'modern, precautionary assessments and approaches to protect watersheds from the risks associated with clearcutting.' Article content Since the last plan was developed, West Fraser said available land base inventories provide precise and up to date data to support future harvest planning. Article content West Fraser said public input plays an important role in shaping its forest management plans. Article content Article content 'We are committed to listening and meaningful engagement,' the statement continued. 'Our work with stakeholders and Indigenous communities continues as we develop the Crowsnest Forest Management Plan.'
Cision Canada
24-07-2025
- Business
- Cision Canada
LAKE BABINE NATION AND WEST FRASER PARTNERSHIP STRENGTHENS B.C.'S FOREST SECTOR
Innovative collaboration supports long-term fibre security and economic development VANCOUVER, BC, July 24, 2025 /CNW/ - West Fraser Timber Co. Ltd. ("West Fraser" or the "Company") (TSX and NYSE: WFG) and the Lake Babine Nation Forestry Limited Partnership (LBN Forestry) welcomed today's announcement by the Government of British Columbia approving the creation of a new First Nations Woodland Licence in the Smithers area. The licence, created from timber tenures contributed by West Fraser and LBN Forestry, will be held by LBN Forestry which is owned by the Lake Babine Nation. The creation of the new licence announced today by the Government of British Columbia marks a key milestone in the growing partnership between West Fraser and LBN Forestry, and reflects a new model for timber tenures and collaboration in B.C.'s forest sector. "As stewards of our lands since time immemorial, Lake Babine Nation has always recognized the deep responsibility we hold in ensuring our forests are managed with respect and sustainably. For Lake Babine Nation, forestry is not just an industry; it is woven into our identity, our traditions, and our vision for the future. We take another important step forward by formalizing our partnership with West Fraser—a collaboration that will bring broader economic opportunities to our people and region, while protecting the integrity of our lands for future generations," said Chief Wilf Adam, Lake Babine Nation. "This partnership embodies what is possible when Indigenous knowledge and modern forestry practices unite—ensuring that our resources are used wisely, our community's benefit, and our environment remains intact. Our Nation has long advocated for meaningful participation in resource management in our territory. With this partnership, we are ensuring that our voices, expertise, and priorities are central to decision-making. By working alongside West Fraser, we are fostering a relationship built on mutual respect and shared goals—one that will strengthen our economic opportunities and secure a sustainable future for Lake Babine and the region as a whole," Adam added. To enable the creation of the new tenure, West Fraser contributed portions of its licence volume held in the Bulkley and Morice Timber Supply Areas, to help create a meaningful area-based licence. Additional volume was made available through the Government-held, BC Timber Sales, helping enhance the licence's scope and potential impact. "I want to congratulate the Lake Babine Nation on what we have been able to build together," said Sean McLaren, President and CEO of West Fraser. "This milestone recognizes Lake Babine Nation's role as the resource steward in its traditional territory and reflects our shared commitment to sustainable forestry. By working together, we are helping bring greater stability to the forest sector — for our and Lake Babine Nation's employees, contractors and businesses throughout the region." "This achievement would not have been possible without the leadership and the support of government," McLaren added. "By recognizing the importance of fibre security and Indigenous Partnerships, the Province is helping secure the future of B.C.'s forest sector." West Fraser will provide forest stewardship services to LBN Forestry to support the management of the new area-based licence, in alignment with the Nation's stewardship values and vision for its traditional territory. The licence announced today builds on two previous agreements: a Joint Development Agreement (JDA) signed in April 2024, and a Log Supply and Forest Management Agreement (LSFMA) signed in January 2025. "This is a significant forestry partnership in British Columbia," said Ravi Parmar, Minister of Forests. "This on-the-ground collaboration between Lake Babine Nation, West Fraser, and the Province is an opportunity to create jobs and strengthen our forest economy to deliver for people and communities here in B.C." About West Fraser West Fraser is a diversified wood products company with more than 50 facilities in Canada, the United States, the United Kingdom, and Europe, which promotes sustainable forest practices in its operations. The Company produces lumber, engineered wood products (OSB, LVL, MDF, plywood, and particleboard), pulp, newsprint, wood chips, and other residuals. West Fraser's products are used in home construction, repair and remodelling, industrial applications, papers and tissue. For more information about West Fraser, visit About Lake Babine Nation Lake Babine Nation is one of the largest Indigenous nations in B.C., with over 2,500 members. Its Territory is centred around Babine Lake, the Province's longest natural lake. Lake Babine has five communities: Wit'at (Fort Babine), Nedo'ats (Old Fort), Tachet, Donald's Landing/Pinkut and Woyenne. The Lake Babine Nation Foundation Agreement provides a shared vision and high-level roadmap for implementing Lake Babine's existing rights, including self-government, Aboriginal title and harvesting rights. Growing Lake Babine's role in forestry and forest management is a priority under the Foundation Agreement, and Lake Babine established its company, Lake Babine Nation Forestry, in 2016 to pursue that objective. The company now has about 27 employees and is managed by Lake Babine member Duane Crouse. Forward-Looking Statements This news release contains statements and information that constitute "forward-looking information" or "forward-looking statements" (collectively, "forward‑looking statements") within the meaning of applicable Canadian and United States securities laws. Forward-looking statements include statements that are forward-looking or predictive in nature and are dependent upon or refer to future events or conditions. We use words such as "expects", "anticipates", "plans", "believes", "estimates", "seeks", "intends", or negative versions thereof and other similar expressions, or future or conditional verbs such as "may", "will", "should", "would", and "could", to identify these forward-looking statements. These forward-looking statements include, among other things, the ability to bring greater stability to the forest sector for our and Lake Babine Nation's employees, contractors and businesses throughout the region and expectations as to long-term fibre security and Indigenous Partnerships as a path to securing the future of the forest sector. Any such forward-looking statements are based on information currently available to us and are based on assumptions and analyses made by us considering our experience and our perception of historical trends and current conditions and are subject to inherent risks and uncertainties including the expectations and assumptions concerning the laws and regulations which will apply to our business, our ability to attract and retain skilled employees to implement our plans, changes in laws and governmental regulations, including the evolution of forest policy and stewardship, general business and economic conditions and the future operation and financial performance of the Company generally. Readers should also refer to the risk factors set forth in the Company's annual information form and management's discussion and analysis for the year ended December 31, 2024, each dated February 12, 2025, as updated in our quarterly reports from time to time and other documents, available at SEDAR+ ( and EDGAR ( There can be no assurance that the plans, intentions, or expectations upon which forward-looking statements are based will be realized. Actual results may differ, and the difference may be material and adverse to the Company and its shareholders. Except as may be required by law, the Company undertakes no obligation to publicly update or revise any forward-looking statements. SOURCE West Fraser Timber Co. Ltd.
Cision Canada
23-07-2025
- Business
- Cision Canada
West Fraser Announces Second Quarter 2025 Results
VANCOUVER, BC, /CNW/ - West Fraser Timber Co. Ltd. ("West Fraser" or the "Company") (TSX and NYSE: WFG) reported today the second quarter results of 2025 ("Q2-25"). All dollar amounts in this news release are expressed in U.S. dollars unless noted otherwise. Sales of $1.532 billion and earnings of $(24) million, or $(0.38) per diluted share Adjusted EBITDA 1 of $84 million, representing 6% of sales Lumber segment Adjusted EBITDA 1 of $15 million North America Engineered Wood Products ("NA EWP") segment Adjusted EBITDA 1 of $68 million Pulp & Paper segment Adjusted EBITDA 1 of $(1) million Europe Engineered Wood Products ("Europe EWP") segment Adjusted EBITDA 1 of $2 million Renewed and extended $1 billion credit facility and increased and extended $300 million term loan Repurchased 448,001 shares for aggregate consideration of $33 million Released 2024 Sustainability Report "Demand for many of our wood-based building products slowed in the second quarter as spring building activity fell short of our expectations. This was more acute in our NA EWP segment, which experienced further easing of demand as the quarter progressed, consistent with government data pointing to softer U.S. new home construction," said Sean McLaren, West Fraser's President and CEO. "However, while uncertainty for wood building products demand persists given ongoing housing affordability challenges and the lingering prospects of higher lumber duties and tariffs on many of our products, it is important to note that we are taking action to ensure our operations are flexible, sized to meet the needs of our customers, and that they continue to be managed with a strong focus on controlling costs. Further, we continue to evaluate mill investments that upgrade our portfolio and generate returns above our cost of capital, all while maintaining strong liquidity and a balance sheet that allows us to pursue a balanced capital allocation strategy and opportunistic growth objectives should they meet our long-term strategy." Results Summary Second quarter sales were $1.532 billion, compared to $1.459 billion in the first quarter of 2025. Second quarter earnings were $(24) million, or $(0.38) per diluted share, compared to earnings of $42 million, or $0.46 per diluted share in the first quarter of 2025. Second quarter Adjusted EBITDA was $84 million compared to $195 million in the first quarter of 2025. Tariffs Canadian softwood lumber exports to the U.S. have been the subject of trade disputes and managed trade arrangements for several decades. Countervailing and antidumping duties have been in place since April 2017. Except for a two-day window in Q1-25, our wood products imported to the U.S. have not been subject to tariffs. A Section 232 investigation by the U.S. Secretary of Commerce is ongoing to determine the effects on national security of imports of timber, lumber and their derivative products. The actual impact of tariffs and possible actions resulting from the Section 232 investigation are subject to a number of factors and uncertainties including the effective date and duration of such tariffs, changes in the amount, scope and nature of the tariffs in the future, any countermeasures that the Canadian government may take, and any mitigating actions that may become available. Refer to the discussion in our 2024 Annual MD&A under "Risks and Uncertainties - Trade Restrictions" as supplemented by the discussion in our Q1-25 MD&A under "Risks and Uncertainties" for discussion of risks associated with the aforementioned tariffs and possible actions resulting from the Section 232 investigation. Liquidity and Capital Allocation Cash and short-term investments increased slightly to $646 million at June 27, 2025 from $641 million at December 31, 2024. Capital expenditures in the second quarter were $78 million. We paid $25 million of dividends in the second quarter, or $0.32 per share, and declared a $0.32 per share dividend payable in the third quarter of 2025. On February 27, 2025, we renewed our normal course issuer bid ("2025 NCIB") allowing us to acquire up to 3,868,177 Common shares for cancellation from March 3, 2025 until the expiry of the bid on March 2, 2026. From January 1, 2025 to July 22, 2025, 1,094,770 shares have been repurchased under both the prior NCIB and the 2025 NCIB. Markets Several key trends that have served as positive drivers in recent years are expected to continue to support medium and longer-term demand for new home construction in North America. The most significant uses for our North American lumber, OSB and engineered wood panel products are residential construction, repair and remodelling and industrial applications. Over the medium term, improved housing affordability from the stabilization of inflation and interest rates, a large cohort of the population entering the typical home buying stage, and an aging U.S. housing stock are expected to drive new home construction and repair and renovation spending that supports lumber, plywood and OSB demand. Over the longer term, growing market penetration of mass timber in industrial and commercial applications is also expected to become a more significant source of demand growth for wood building products in North America. The seasonally adjusted annualized rate of U.S. housing starts was 1.32 million units in June 2025, with permits issued of 1.40 million units, according to the U.S. Census Bureau. While there are near-term uncertainties for new home construction, owing in large part to the level and rate of change of mortgage rates and the resulting impact on housing affordability, unemployment remains relatively low in the U.S. Further, the U.S. central bank has cut its key lending rate a total of 100 bps since September 2024 and Federal funds futures indicate prospects for additional rate cuts later in 2025, though there are evolving risks related to the U.S. administration's tariff and other policies, which may be inflationary and could impact rates and rate cut expectations. These developments notwithstanding, demand for new home construction and our wood building products may decline in the near term should the broader economy and employment slow or the trend in interest and mortgage rates negatively impact consumer sentiment and housing affordability. In Europe and the U.K., we expect challenging industry demand to persist over the near term. In the longer term, we continue to expect demand for our European products will grow as use of OSB as an alternative to plywood grows. An aging housing stock is also expected to support long-term repair and renovation spending and additional demand for our wood building products. In the current environment, inflation appears to have stabilized and interest rates have continued to ease, which is directionally positive for housing demand. That said, ongoing geopolitical developments, including the potential price inflation of U.S. tariffs on the U.K. and Europe, may adversely impact near-term demand for our panel products in the region. Despite these risk factors, we are confident that we will be able to navigate demand markets and capitalize on the long-term growth opportunities ahead. Operations While the second quarter experienced some catch-up of previously delayed SYP lumber shipments caused by transportation and weather disruptions earlier in the year, the Lumber segment more broadly has experienced a slower than expected demand environment in the first half of 2025, owing primarily to continued housing affordability challenges as well as uncertainty related to impacts from the U.S. administration's shifting tariff policies. Therefore, based on current conditions, including the mill closures and indefinite curtailments we announced last year and the uncertainties around the impact of tariffs, offset in part by the ongoing reliability and capital improvement gains across our lumber mill portfolio, we are reducing the ranges of our 2025 lumber shipments targets. For SPF shipments, we are now targeting 2.6 to 2.8 billion board feet (previously 2.7 to 2.9 billion board feet) and for SYP shipments, we are now targeting 2.4 to 2.6 billion board feet (previously 2.5 to 2.7 billion board feet). In our NA EWP segment, much like the Lumber segment, the second quarter experienced some catch-up of previously delayed shipments caused by transportation challenges earlier in the year. However, the latter part of the second quarter also saw a slowing of demand for our OSB products, which continued into the third quarter. Given this trend and the ongoing risks to our demand forecasts related to trade tariffs and policy uncertainty, we are reducing the range of our 2025 North American OSB target shipments. We are now targeting shipments of 6.3 to 6.5 billion square feet (3/8-inch basis) versus our previous target of 6.5 to 6.8 billion square feet (3/8-inch basis). In our Europe EWP segment, we continue to expect demand to improve for our MDF, particleboard and OSB panel products in 2025, recognizing there are ongoing macroeconomic uncertainties surrounding interest rates and economic growth in the region. As such, we reiterate guidance for 2025 OSB shipments in the range of 1.0 to 1.25 billion square feet (3/8-inch basis). The global pulp market continues to experience disruption with the economic impact of U.S. tariffs creating considerable demand uncertainty in Chinese markets. As such, we anticipate NBSK pricing weakness over the near to medium term and a potentially adverse financial impact on our Pulp & Paper segment. Further, we anticipate the Cariboo Pulp & Paper mill will be down for approximately two weeks late in the third quarter for annual maintenance. On balance, we continued to experience relatively stable costs for inputs across our supply chain in Q2-25, including resins and chemicals, and contract labour availability and capital equipment lead times continued to show improvement. We expect these trends to largely continue in second half of 2025. Based on our current outlook, assuming no deterioration from current market demand conditions during the year and no additional lengthening of lead times for projects underway or planned, expected capital expenditures remain in the range of $400 million to $450 million in 2025 1. As the U.S. administration's tariff and other policies evolve, we will evaluate the impact of the tariffs on our operations and consider whether any further revisions to our shipment estimates are warranted. Refer to the discussion in our 2024 Annual MD&A under "Risks and Uncertainties - Trade Restrictions" and in our Q2-25 MD&A under "Risks and Uncertainties" for a detailed discussion of the risks and uncertainties associated with the imposition of tariffs, which may impact our operational guidance and our profitability during 2025. Management Discussion & Analysis ("MD&A") Our Q2-25 MD&A and interim consolidated financial statements and accompanying notes are available on our website at and the System for Electronic Document Analysis and Retrieval + ("SEDAR+") at and the Electronic Data Gathering, Analysis and Retrieval System ("EDGAR") website at under the Company's profile. Risks and Uncertainties Risk and uncertainty disclosures are included in our 2024 Annual MD&A, as updated in the disclosures in our Q1-25 MD&A and our Q2-25 MD&A, as well as in our public filings with securities regulatory authorities. See also the discussion of "Forward-Looking Statements" below. Conference Call West Fraser will hold an analyst conference call to discuss the Company's Q2-25 financial and operating results on Thursday, July 24, 2025, at 8:30 a.m. Pacific Time (11:30 a.m. Eastern Time). To participate in the call, please dial: 1-888-510-2154 (toll-free North America) or 437-900-0527 (toll) or connect on the webcast. The call and an earnings presentation may also be accessed through West Fraser's website at Please let the operator know you wish to participate in the West Fraser conference call chaired by Mr. Sean McLaren, President and Chief Executive Officer. Following management's discussion of the quarterly results, investors and the analyst community will be invited to ask questions. The call will be recorded for webcasting purposes and will be available on the West Fraser website at About West Fraser West Fraser is a diversified wood products company with more than 50 facilities in Canada, the United States, the United Kingdom, and Europe, which promotes sustainable forest practices in its operations. The Company produces lumber, engineered wood products (OSB, LVL, MDF, plywood, and particleboard), pulp, newsprint, wood chips, and other residuals. West Fraser's products are used in home construction, repair and remodelling, industrial applications, papers and tissue. For more information about West Fraser, visit Forward-Looking Statements This news release includes statements and information that constitutes "forward-looking information" within the meaning of Canadian securities laws and "forward-looking statements" within the meaning of United States securities laws (collectively, "forward-looking statements"). Forward-looking statements include statements that are forward-looking or predictive in nature and are dependent upon or refer to future events or conditions. We use words such as "expects," "anticipates," "plans," "believes," "estimates," "seeks," "intends," "targets," "projects," "forecasts," or negative versions thereof and other similar expressions, or future or conditional verbs such as "may," "will," "should," "would," and "could," to identify these forward-looking statements. These forward-looking statements generally include statements which reflect management's expectations regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies and outlook of West Fraser and its subsidiaries, as well as the outlook for North American and international economies for the current fiscal year and subsequent periods. Forward-looking statements included in this news release include references to the following and their impact on our business: demand in North American and European markets for our products, including demand from new home construction, repairs and renovations and industrial and commercial applications; the impact on demand for our products resulting from the ongoing housing affordability and the U.S. administration's tariff and other policies; international trade and trade restrictions, including the impact of tariff actions and possible actions from the 232 investigation; the impact of sustained elevated interest rates and inflationary pressures on mortgage rates and housing affordability; the anticipated growing market penetration of mass timber; the anticipated moderation of interest rates, including prospects of additional rate cuts in 2025, and the potential impact of the U.S. administration's tariff and other policies on this trend; our plans to take action to ensure our operations are flexible, sized to meet the needs of our customers, and that they continue to be managed with a strong focus on controlling costs; our strategy of improving our cost position across our portfolio of mills and investing to modernize our mills; the anticipated continuation of relatively stable costs across our supply chain over the near term and continued challenges on labour availability and capital equipment lead times; operational guidance, including projected shipments, projected capital expenditures and the potential impact of tariffs on our projections; and the continuation of investments in our assets and the maintenance of our balance sheet flexibility to be able to pursue a balanced capital allocation strategy and opportunistic growth objectives. By their nature, these forward-looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, which contribute to the possibility that the predictions, forecasts, and other forward-looking statements will not occur. Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include, but are not limited to: assumptions in connection with the economic and financial conditions in the U.S., Canada, U.K., Europe and globally and consequential demand for our products, including the ability to meet our shipment guidance, and variability of operating schedules and the impact of the conflicts in Ukraine and the Middle East; future increases in interest rates and inflation or continued sustained higher interest rates and rates of inflation could impact housing affordability and repair and remodelling demand, which could reduce demand for our products; near and long-term impacts and uncertainties of U.S. administration tariffs and other policies on the demand and prices of our wood products in the U.S. and the consequential impact on the profitability of our Canadian business, financial condition and results of operations; risks associated with international trade and trade restrictions, including impact of tariff actions and possible actions from the Section 232 investigation such as potential tariffs, export controls, including quotas, or incentives to increase domestic production, future cross border trade rulings, agreements and duty rates; global supply chain issues may result in increases to our costs and may contribute to a reduction in near-term demand for our products; continued governmental approvals and authorizations to access timber supply, and the impact of forest fires, infestations, environmental protection measures and actions taken by government respecting Indigenous rights, title and/or reconciliation efforts on these approvals and authorizations; risks inherent in our product concentration and cyclicality; effects of competition for logs, availability of fibre and fibre resources and product pricing pressures, including continued access to log supply and fibre resources at competitive prices and the impact of third-party certification standards; including reliance on fibre off-take agreements and third party consumers of wood chips; effects of variations in the price and availability of manufacturing inputs, including energy, employee wages, resin and other input costs, and the impact of inflationary pressures on the costs of these manufacturing costs, including increases in stumpage fees and log costs; availability and costs of transportation services, including truck and rail services, and port facilities, and impacts on transportation services of wildfires and severe weather events, and the impact of increased energy prices on the costs of transportation services; the recoverability of property, plant and equipment ($3,812 million), goodwill and intangibles ($2,159 million), both as at June 27, 2025, is based on numerous key assumptions which are inherently uncertain, including production volume, product pricing, operating costs, terminal multiple, and discount rate. Adverse changes in these assumptions could lead to a change in financial outlook which may result in carrying amounts exceeding their recoverable amounts and as a consequence an impairment, which could have a material non-cash adverse effect on our results of operations; transportation constraints, including the impact of labour disruptions, may negatively impact our ability to meet projected shipment volumes; the timing of our planned capital investments may be delayed, the ultimate costs of these investments may be increased as a result of inflation, and the projected rates of return may not be achieved; various events that could disrupt operations, including natural, man-made or catastrophic events including drought, wildfires, cyber security incidents, any state of emergency and/or evacuation orders issued by governments, and ongoing relations with employees; risks inherent to customer dependence; implementation of important strategic initiatives and identification, completion and integration of acquisitions; impact of changes to, or non-compliance with, environmental or other regulations; government restrictions, standards or regulations intended to reduce greenhouse gas emissions and our inability to achieve our SBTi commitment for the reduction of greenhouse gases as planned; the costs and timeline to achieve our greenhouse gas emissions objectives may be greater and take longer than anticipated; changes in government policy and regulation, including actions taken by the Government of British Columbia pursuant to recent amendments to forestry legislation and initiatives to defer logging of forests deemed "old growth" and the impact of these actions on our timber supply; impact of weather and climate change on our operations or the operations or demand of our suppliers and customers; ability to implement new or upgraded information technology infrastructure; impact of information technology service disruptions or failures; impact of any product liability claims in excess of insurance coverage; risks inherent to a capital intensive industry; impact of future outcomes of tax exposures; potential future changes in tax laws, including tax rates; risks associated with investigations, claims and legal, regulatory and tax proceedings covering matters which if resolved unfavourably may result in a loss to the Company; effects of currency exposures and exchange rate fluctuations; fair values of our electricity swaps may be volatile and sensitive to fluctuations in forward electricity prices and changes in government policy and regulation; future operating costs; availability of financing, bank lines, securitization programs and/or other means of liquidity; continued access to timber supply in the traditional territories of Indigenous Nations and our ability to work with Indigenous Nations in B.C. to secure continued fibre supply for our lumber mills through various commercial agreements and joint ventures; our ability to continue to maintain effective internal control over financial reporting; the risks and uncertainties described in this document; and other risks detailed from time to time in our annual information forms, annual reports, MD&A, quarterly reports and material change reports filed with and furnished to securities regulators. In addition, actual outcomes and results of these statements will depend on a number of factors including those matters described under "Risks and Uncertainties" in our 2024 Annual MD&A, Q1-25 MD&A, and the Q2-25 MD&A and may differ materially from those anticipated or projected. This list of important factors affecting forward–looking statements is not exhaustive and reference should be made to the other factors discussed in public filings with securities regulatory authorities. Accordingly, readers should exercise caution in relying upon forward–looking statements and we undertake no obligation to publicly update or revise any forward–looking statements, whether written or oral, to reflect subsequent events or circumstances except as required by applicable securities laws. Non-GAAP and Other Specified Financial Measures Throughout this news release, we make reference to (i) certain non-GAAP financial measures, including Adjusted EBITDA and Adjusted EBITDA by segment (our "Non-GAAP Financial Measures"), and (ii) certain supplementary financial measures, including our expected capital expenditures (our "Supplementary Financial Measures"). We believe that these Non-GAAP Financial Measures and Supplementary Financial Measures (collectively, our "Non-GAAP and other specified financial measures") are useful performance indicators for investors with regard to operating and financial performance and our financial condition. These Non-GAAP and other specified financial measures are not generally accepted financial measures under IFRS Accounting Standards and do not have standardized meanings prescribed by IFRS Accounting Standards. Investors are cautioned that none of our Non-GAAP Financial Measures should be considered as an alternative to earnings or cash flow, as determined in accordance with IFRS Accounting Standards. As there is no standardized method of calculating any of these Non-GAAP and other specified financial measures, our method of calculating each of them may differ from the methods used by other entities and, accordingly, our use of any of these Non-GAAP and other specified financial measures may not be directly comparable to similarly titled measures used by other entities. Accordingly, these Non-GAAP and other specified financial measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS Accounting Standards. The reconciliation of the Non-GAAP measures used and presented by the Company to the most directly comparable measures under IFRS Accounting Standards is provided in the tables set forth below. Figures have been rounded to millions of dollars to reflect the accuracy of the underlying balances and as a result certain tables may not add due to rounding impacts. Adjusted EBITDA is defined as earnings determined in accordance with IFRS Accounting Standards adding back the following line items from the consolidated statements of earnings and comprehensive earnings: finance income or expense, tax provision or recovery, amortization, equity-based compensation, restructuring and impairment charges, and other income or expense. Adjusted EBITDA by segment is defined as operating earnings determined for each reportable segment in accordance with IFRS adding back the following line items from the consolidated statements of earnings and comprehensive earnings for that reportable segment: amortization, equity-based compensation, and restructuring and impairment charges. EBITDA is commonly reported and widely used by investors and lending institutions as an indicator of a company's operating performance, ability to incur and service debt, and as a valuation metric. We calculate Adjusted EBITDA and Adjusted EBITDA by segment to exclude items that do not reflect our ongoing operations and that should not, in our opinion, be considered in a long-term valuation metric or included in an assessment of our ability to service or incur debt. We believe that disclosing these measures assists readers in measuring performance relative to other entities that operate in similar industries and understanding the ongoing cash generating potential of our business to provide liquidity to fund working capital needs, service outstanding debt, fund future capital expenditures and investment opportunities, and pay dividends. Adjusted EBITDA is used as an additional measure to evaluate the operating and financial performance of our reportable segments. The following tables reconcile Adjusted EBITDA to the most directly comparable IFRS measure, earnings. Quarterly Adjusted EBITDA ($ millions) The following tables reconcile Adjusted EBITDA by segment to the most directly comparable IFRS measures for each of our reportable segments. We consider operating earnings to be the most directly comparable IFRS measure for Adjusted EBITDA by segment as operating earnings is the IFRS measure most used by the chief operating decision maker when evaluating segment operating performance. Quarterly Adjusted EBITDA by segment ($ millions) Q2-25 Lumber NA EWP Pulp & Paper Europe EWP Corp & Other Total Operating earnings (loss) $ (31) $ (5) $ (5) $ (8) $ 3 $ (45) Amortization 46 73 4 10 1 134 Equity-based compensation — — — — (5) (5) Adjusted EBITDA by segment $ 15 $ 68 $ (1) $ 2 $ — $ 84 Q1-25 Lumber NA EWP Pulp & Paper Europe EWP Corp & Other Total Operating earnings (loss) $ 21 $ 52 $ 3 $ (13) $ 1 $ 64 Amortization 46 72 4 10 1 134 Equity-based compensation — — — — (3) (3) Adjusted EBITDA by segment $ 66 $ 125 $ 7 $ (2) $ (1) $ 195 Expected capital expenditures This measure represents our best estimate of the amount of cash outflows relating to additions to capital assets for the current year based on our current outlook. This amount is comprised primarily of various improvement projects and maintenance-of-business expenditures, projects focused on optimization and automation of the manufacturing process, and projects targeted to reduce greenhouse gas emissions. This measure assumes no deterioration in market conditions during the year and that we are able to proceed with our plans on time and on budget. This estimate is subject to the risks and uncertainties identified in the Company's 2024 Annual MD&A and Q2-25 MD&A. SOURCE West Fraser Timber Co. Ltd.
Business Insider
17-07-2025
- Business
- Business Insider
'Willing… to Have a Conversation': West Fraser Timber Stock (TSE:WFG) Slides as New Limits on Lumber Exports Considered
One of Canada's biggest exports to the United States is lumber. A lot of American buildings have a certain amount of Canadian plywood and other materials as part of their makeup. But that Canadian lumber has made for some friction between Canada and the United States, and Canada is now willing to talk about setting some limits to keep trade tensions down. The news was not welcome for lumber maker West Fraser Timber (TSE:WFG) and its shareholders, as shares slid nearly 1.5% in Wednesday morning's trading. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Word from David Eby, Premier of British Columbia, was that Canada is willing to talk about limits on softwood lumber exports to the United States. The American coalition, Eby noted in an interview with Bloomberg News, has been routinely asking for a 'quota' of Canadian softwood lumber hitting the United States market. The Canadian side has routinely resisted these efforts, and with good reason. The lumber trade is substantial, so why would Canada voluntarily limit the amount of that market it can get its hands on? But now, with a trade war on, Canada is a bit more willing to talk. That comes at a good time for American lumber mills; said mills have added fully eight billion board feet of production capacity since 2016, and if Canada backs off on exporting, more of that production can hit American markets. For West Fraser Timber, however, the story is much different. Still Renewable Yet even as West Fraser Timber faces a potential punch in the market share, there are still those who praise its position in the field. A recent report referred to West Fraser Timber as '…a resilient player in the wood products sector.' Ahead of its earnings report release next week, some point out that West Fraser has already put substantial focus on '…sustainable forestry practices and product diversification….' That combination of factors is likely to give West Fraser a leg up. Certainly, a quota on Canadian exports to the United States would be a problem for West Fraser, but if it could open up other markets—in much the same way the Canadian liquefied natural gas (LNG) market is looking to open up Asia—the loss of some of the United States market could be replaced by other buyers. Is West Fraser Timber Stock a Buy? Turning to Wall Street, analysts have a Strong Buy consensus rating on TSE:WFG stock based on six Buys assigned in the past three months, as indicated by the graphic below. After a 0.42% loss in its share price over the past year, the average TSE:WFG price target of C$131.28 per share implies 31.38% upside potential.
