West Fraser Timber Co., Ltd 6-K, filed Jul 23, 2025
West Fraser Timber Co., Ltd (WFG)
6-K
2025-07-23
For: 2025-06-27
View Original
Added on
April 11, 2026
About this 6-K
West Fraser Timber Co., Ltd filed this 6-K on July 23, 2025.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
| FORM 6-K | ||
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of July 2025
Commission File Number: 001-39974
WEST FRASER TIMBER CO. LTD.
(Exact name of Registrant, as specified in its charter)
1500 - 885 West Georgia Street
Vancouver, British Columbia
Canada, V6C 3E8
Tel: (604) 895-2700
(Address and Telephone Number of Registrant's Principal Executive Offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☐ Form 40-F ☒
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
The information contained in Exhibits 99.1 and 99.2 of this Form 6-K is incorporated by reference into the Registrant’s registration statements on Form S-8: File Nos. 333-257254 and 333-252631.
EXHIBIT INDEX
| Exhibit | Description | ||||
| 99.1 | |||||
| 99.2 | |||||
| 99.3 | |||||
| 99.4 | |||||
| 99.5 | |||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: July 23, 2025 | ||
WEST FRASER TIMBER CO. LTD. | ||
| /s/ Christopher A. Virostek | ||
| Christopher A. Virostek Senior Vice-President, Finance and Chief Financial Officer | ||
West Fraser Timber Co. Ltd.
Condensed Consolidated Balance Sheets
(in millions of United States dollars, except where indicated - unaudited)
| June 27, | December 31, | ||||||||||
| Note | 2025 | 2024 | |||||||||
| Assets | |||||||||||
| Current assets | |||||||||||
Cash and cash equivalents | $ | 646 | $ | 641 | |||||||
Receivables | 340 | 294 | |||||||||
Income taxes receivable | 28 | 22 | |||||||||
Inventories | 4 | 854 | 844 | ||||||||
Prepaid expenses | 65 | 36 | |||||||||
| 1,933 | 1,837 | ||||||||||
Property, plant and equipment | 3,812 | 3,842 | |||||||||
Timber licences | 350 | 358 | |||||||||
Goodwill and other intangible assets | 2,159 | 2,180 | |||||||||
Export duty deposits | 15 | 420 | 408 | ||||||||
Other assets | 91 | 129 | |||||||||
Deferred income tax assets | 3 | 7 | |||||||||
| $ | 8,767 | $ | 8,760 | ||||||||
| Liabilities | |||||||||||
| Current liabilities | |||||||||||
Payables and accrued liabilities | $ | 604 | $ | 604 | |||||||
Current portion of long-term debt | 5 | — | 200 | ||||||||
| Current portion of reforestation and decommissioning obligations | 57 | 55 | |||||||||
Income taxes payable | 8 | 75 | |||||||||
| 669 | 934 | ||||||||||
Long-term debt | 5 | 300 | — | ||||||||
Other liabilities | 6 | 315 | 264 | ||||||||
Deferred income tax liabilities | 586 | 609 | |||||||||
| 1,870 | 1,807 | ||||||||||
| Shareholders’ Equity | |||||||||||
Share capital | 8 | 2,517 | 2,549 | ||||||||
Retained earnings | 4,651 | 4,726 | |||||||||
Accumulated other comprehensive loss | (271) | (321) | |||||||||
| 6,898 | 6,954 | ||||||||||
| $ | 8,767 | $ | 8,760 | ||||||||
The number of Common shares and Class B Common shares outstanding at July 22, 2025 was 78,857,649.
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West Fraser Timber Co. Ltd.
Condensed Consolidated Statements of Earnings (Loss) and Comprehensive Earnings
(in millions of United States dollars, except where indicated - unaudited)
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| June 27, | June 28, | June 27, | June 28, | |||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||
| Sales | $ | 1,532 | $ | 1,705 | $ | 2,990 | $ | 3,332 | ||||||||||||
| Costs and expenses | ||||||||||||||||||||
| Cost of products sold | 1,149 | 1,133 | 2,130 | 2,250 | ||||||||||||||||
| Freight and other distribution costs | 208 | 215 | 395 | 435 | ||||||||||||||||
| Export duties, net, and tariffs | 15 | 21 | 15 | 45 | 30 | |||||||||||||||
| Amortization | 134 | 138 | 267 | 276 | ||||||||||||||||
| Selling, general and administration | 69 | 70 | 142 | 146 | ||||||||||||||||
| Equity-based compensation | (5) | (4) | (8) | — | ||||||||||||||||
| Restructuring and impairment charges | 9 | — | 5 | — | 16 | |||||||||||||||
| 1,576 | 1,573 | 2,971 | 3,152 | |||||||||||||||||
| Operating earnings (loss) | (45) | 132 | 19 | 180 | ||||||||||||||||
| Finance income, net | 10 | 4 | 6 | 10 | 15 | |||||||||||||||
| Other income (expense) | 11 | (2) | 1 | (5) | (5) | |||||||||||||||
| Earnings (loss) before tax | (43) | 139 | 24 | 189 | ||||||||||||||||
| Tax recovery (provision) | 12 | 19 | (34) | (6) | (50) | |||||||||||||||
| Earnings (loss) | $ | (24) | $ | 105 | $ | 18 | $ | 139 | ||||||||||||
Earnings per share (dollars) | ||||||||||||||||||||
| Basic | 13 | $ | (0.30) | $ | 1.29 | $ | 0.23 | $ | 1.71 | |||||||||||
| Diluted | 13 | $ | (0.38) | $ | 1.20 | $ | 0.09 | $ | 1.63 | |||||||||||
| Comprehensive earnings | ||||||||||||||||||||
| Earnings (loss) | $ | (24) | $ | 105 | $ | 18 | $ | 139 | ||||||||||||
| Other comprehensive earnings | ||||||||||||||||||||
| Items that may be reclassified to earnings | ||||||||||||||||||||
| Translation gain (loss) on operations with different functional currencies | 34 | (2) | 50 | (11) | ||||||||||||||||
Items that will not be reclassified to earnings | ||||||||||||||||||||
| Actuarial gain on retirement benefits, net of tax | 7 | 7 | 8 | 4 | 26 | |||||||||||||||
| 42 | 6 | 55 | 15 | |||||||||||||||||
| Comprehensive earnings | $ | 18 | $ | 111 | $ | 73 | $ | 155 | ||||||||||||
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West Fraser Timber Co. Ltd.
Condensed Consolidated Statements of Changes in Shareholders' Equity
(in millions of United States dollars, except where indicated - unaudited)
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| June 27, | June 28, | June 27, | June 28, | |||||||||||||||||
| Note | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||
| Share capital | ||||||||||||||||||||
| Balance - beginning of period | $ | 2,532 | $ | 2,604 | $ | 2,549 | $ | 2,607 | ||||||||||||
| Issuance of Common shares | 8 | — | — | — | 1 | |||||||||||||||
| Repurchase of Common shares for cancellation | 8 | (15) | (31) | (32) | (34) | |||||||||||||||
| Balance - end of period | $ | 2,517 | $ | 2,573 | $ | 2,517 | $ | 2,573 | ||||||||||||
| Retained earnings | ||||||||||||||||||||
| Balance - beginning of period | $ | 4,712 | $ | 4,936 | $ | 4,726 | $ | 4,913 | ||||||||||||
| Actuarial gain on retirement benefits, net of tax | 7 | 7 | 8 | 4 | 26 | |||||||||||||||
| Repurchase of Common shares for cancellation | 8 | (19) | (45) | (46) | (50) | |||||||||||||||
| Earnings (loss) for the period | (24) | 105 | 18 | 139 | ||||||||||||||||
| Dividends declared | (25) | (26) | (51) | (50) | ||||||||||||||||
| Balance - end of period | $ | 4,651 | $ | 4,978 | $ | 4,651 | $ | 4,978 | ||||||||||||
| Accumulated other comprehensive loss | ||||||||||||||||||||
| Balance - beginning of period | $ | (305) | $ | (306) | $ | (321) | $ | (297) | ||||||||||||
| Translation gain (loss) on operations with different functional currencies | 34 | (2) | 50 | (11) | ||||||||||||||||
| Balance - end of period | $ | (271) | $ | (308) | $ | (271) | $ | (308) | ||||||||||||
| Shareholders' Equity | $ | 6,898 | $ | 7,244 | $ | 6,898 | $ | 7,244 | ||||||||||||
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West Fraser Timber Co. Ltd.
Condensed Consolidated Statements of Cash Flows
(in millions of United States dollars, except where indicated - unaudited)
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| June 27, | June 28, | June 27, | June 28, | |||||||||||||||||
| Note | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||
| Cash provided by operating activities | ||||||||||||||||||||
| Earnings (loss) | $ | (24) | $ | 105 | $ | 18 | $ | 139 | ||||||||||||
| Adjustments | ||||||||||||||||||||
| Amortization | 134 | 138 | 267 | 276 | ||||||||||||||||
| Restructuring and impairment charges | 9 | — | 5 | — | 16 | |||||||||||||||
| Finance income, net | 10 | (4) | (6) | (10) | (15) | |||||||||||||||
| Foreign exchange loss (gain) | 7 | — | 6 | (3) | ||||||||||||||||
| Retirement benefit expense | 17 | 19 | 35 | 34 | ||||||||||||||||
| Net contributions to retirement benefit plans | (5) | (15) | (14) | (28) | ||||||||||||||||
| Tax provision (recovery) | 12 | (19) | 34 | 6 | 50 | |||||||||||||||
| Income taxes received (paid) | 20 | — | (54) | (3) | ||||||||||||||||
| Unrealized loss (gain) on electricity swaps | (9) | (5) | (5) | 6 | ||||||||||||||||
| Other | (13) | (19) | 10 | (4) | ||||||||||||||||
| Changes in non-cash working capital | ||||||||||||||||||||
| Receivables | 65 | 3 | (36) | (90) | ||||||||||||||||
| Inventories | 193 | 165 | — | 17 | ||||||||||||||||
| Prepaid expenses | (33) | (24) | (29) | (19) | ||||||||||||||||
| Payables and accrued liabilities | (44) | (22) | 15 | (38) | ||||||||||||||||
| 285 | 378 | 210 | 338 | |||||||||||||||||
| Cash provided by (used for) financing activities | ||||||||||||||||||||
Proceeds from amendment of long-term debt | 100 | — | 100 | — | ||||||||||||||||
Repayment of lease obligations | (4) | (3) | (7) | (6) | ||||||||||||||||
Finance expense paid | (5) | (11) | (9) | (15) | ||||||||||||||||
Repurchase of Common shares for cancellation | 8 | (34) | (71) | (80) | (79) | |||||||||||||||
Issuance of Common shares | — | — | — | 1 | ||||||||||||||||
Dividends paid | (25) | (24) | (51) | (49) | ||||||||||||||||
| 32 | (110) | (48) | (148) | |||||||||||||||||
| Cash provided by (used for) investing activities | ||||||||||||||||||||
Proceeds from sale of pulp mills | — | 119 | — | 124 | ||||||||||||||||
Additions to capital assets | (78) | (102) | (182) | (224) | ||||||||||||||||
| Interest received | 8 | 11 | 14 | 22 | ||||||||||||||||
| Other | 1 | — | (1) | — | ||||||||||||||||
| (70) | 28 | (169) | (78) | |||||||||||||||||
| Change in cash and cash equivalents | 247 | 296 | (7) | 112 | ||||||||||||||||
| Foreign exchange effect on cash and cash equivalents | 9 | (3) | 12 | (7) | ||||||||||||||||
| Cash and cash equivalents - beginning of period | 390 | 711 | 641 | 900 | ||||||||||||||||
| Cash and cash equivalents - end of period | $ | 646 | $ | 1,004 | $ | 646 | $ | 1,004 | ||||||||||||
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West Fraser Timber Co. Ltd.
Notes to Condensed Consolidated Financial Statements
For the three and six months ended June 27, 2025 and June 28, 2024
(figures are in millions of United States dollars, except where indicated - unaudited)
1.Nature of operations
West Fraser Timber Co. Ltd. ("West Fraser", the “Company”, "we", "us" or "our") 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. Our executive office is located at 885 West Georgia Street, Suite 1500, Vancouver, British Columbia. West Fraser was formed by articles of amalgamation under the Business Corporations Act (British Columbia) and is registered in British Columbia, Canada. Our Common shares are listed for trading on the Toronto Stock Exchange (“TSX”) and on the New York Stock Exchange (“NYSE”) under the symbol WFG.
2.Basis of presentation
These condensed consolidated financial statements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”) applicable to the preparation of interim financial statements, under International Accounting Standard (“IAS”) 34, Interim Financial Reporting. These condensed consolidated financial statements use the same accounting policies as the most recent audited annual consolidated financial statements.
These condensed consolidated interim financial statements were authorized for issue by the Audit Committee of the Company’s Board of Directors on July 23, 2025. These condensed consolidated interim financial statements should be read in conjunction with our audited annual consolidated financial statements for the year ended December 31, 2024.
Our fiscal year is the calendar year ending December 31. Effective January 1, 2023, our fiscal quarters are the 13-week periods ending on the closest Friday to the end of March, June, and September with the fourth quarter ending December 31. References to the three months ended June 27, 2025 and the second quarter of 2025 relate to the 13-week period ended June 27, 2025 and references to the six months ended June 27, 2025 relate to the 26-week period ended June 27, 2025.
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.
Accounting standards issued but not yet applied
IFRS 18, Presentation and Disclosure in Financial Statements
In April 2024, the IASB issued IFRS 18, Presentation and Disclosure in Financial Statements ("IFRS 18"), which replaces IAS 1, Presentation of Financial Statements. IFRS 18 introduces new requirements to improve comparability in the reporting of financial performance to give investors a better basis for analyzing and comparing entities. The standard impacts the presentation of the financial statements and notes, in particular the income statement where entities will be required to present separate categories of income and expense for operating, investing, and financing activities with prescribed subtotals for each new category. IFRS 18 will also require management-defined performance measures to be explained and included in a separate note within the financial statements. IFRS 18 is effective for reporting periods beginning on or after January 1, 2027. We are currently assessing the impact of this amendment on our consolidated financial statements.
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Amendments to the Classification and Measurement of Financial Instruments – Amendments to IFRS 9 and IFRS 7
On May 30, 2024, the IASB issued targeted amendments to IFRS 9 and IFRS 7 to respond to recent questions arising in practice, and to include new requirements not only for financial institutions but also for corporate entities. These amendments:
•clarify the date of recognition and derecognition of some financial assets and liabilities, with a new exception for some financial liabilities settled through an electronic cash transfer system;
•clarify and add further guidance for assessing whether a financial asset meets the solely payments of principal and interest (SPPI) criterion;
•add new disclosures for certain instruments with contractual terms that can change cash flows (such as some financial instruments with features linked to the achievement of environment, social and governance targets); and
•update the disclosures for equity instruments designated at fair value through other comprehensive income (FVOCI).
These amendments are effective for reporting periods beginning on or after January 1, 2026. We are currently assessing the impact of these amendments on our consolidated financial statements.
3. Seasonality of operations
Our operating results are subject to seasonal fluctuations that may impact quarter-to-quarter comparisons. Consequently, interim operating results may not proportionately reflect operating results for a full year.
Market demand varies seasonally, as home building activity and repair-and-remodelling work are generally stronger in the spring and summer months. Extreme weather conditions, including wildfires in Western Canada and hurricanes in the U.S. South, may periodically affect operations, including logging, manufacturing and transportation. Log inventory is typically built up in the northern regions of North America and Europe during the winter to sustain our lumber and EWP production during the second quarter when logging is curtailed due to wet and inaccessible land conditions. This inventory is generally consumed in the spring and summer months.
4. Inventories
| June 27, | December 31, | |||||||
| As at | 2025 | 2024 | ||||||
| Manufactured products | $ | 356 | $ | 344 | ||||
| Logs and other raw materials | 239 | 255 | ||||||
| Materials and supplies | 259 | 245 | ||||||
| $ | 854 | $ | 844 | |||||
Inventories at June 27, 2025 were subject to a valuation reserve of $55 million (March 28, 2025 - $13 million; December 31, 2024 - $18 million) to reflect net realizable value being lower than cost.
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5. Operating loans and long-term debt
Credit Facility and Term Loan Renewals
In May 2025, we amended and restated our syndicated credit agreement providing for the renewal of our $1 billion revolving credit facility and extension of the facility's maturity from July 2028 to May 2030. The revolving credit facility is undrawn and was made available on substantially the same terms and conditions as our revolving credit facility prior to renewal. Additionally, under the amended and restated credit agreement, we increased and extended our $200 million term loan facility maturing July 2025. The modified term loan facility is for $300 million, matures May 2028, and is under substantially the same terms and conditions as our term loan facility prior to renewal.
The amendment of the term loan facility was determined to be a non-substantial modification and resulted in a nominal loss recognized in Finance income, net.
Operating loans
As at June 27, 2025, our credit facilities consisted of the aforementioned $1 billion committed revolving credit facility which matures May 2030, $25 million of uncommitted revolving credit facilities available to our U.S. subsidiaries, a $20 million (£15 million) credit facility dedicated to our European operations, and an $11 million (CAD$15 million) demand line of credit dedicated to our jointly‑owned newsprint operation.
As at June 27, 2025, our revolving credit facilities were undrawn (December 31, 2024 - undrawn) and the associated deferred financing costs of $2 million (December 31, 2024 - $2 million) were recorded in other assets. Interest on the facilities is payable at floating rates based on Prime Rate Advances, US Base Rate Advances, Canadian Overnight Repo Rate Average (“CORRA”) Advances, or Secured Overnight Financing Rate (“SOFR”) Advances at our option.
In addition, we have credit facilities totalling $137 million (December 31, 2024 - $130 million) dedicated to letters of credit. Letters of credit in the amount of $37 million (December 31, 2024 - $36 million) were supported by these facilities.
All debt is unsecured except the $11 million (CAD$15 million) jointly-owned newsprint operation demand line of credit, which is secured by that joint operation’s current assets.
Long-term debt
| June 27, | December 31, | |||||||
| As at | 2025 | 2024 | ||||||
| Term loan due May 2028; floating interest rate | $ | 300 | $ | 200 | ||||
| 300 | 200 | |||||||
| Less: current portion | — | (200) | ||||||
| $ | 300 | $ | — | |||||
The fair value of the long-term debt at June 27, 2025 was $300 million (December 31, 2024 - $200 million) based on rates available to us at the balance sheet date for long-term debt with similar terms and remaining maturities.
Interest rate swap contracts
We have interest rate swap contracts expiring July 25, 2025 that have the effect of fixing the interest rate on $200 million of the term loan facility balance disclosed in the long-term debt table above, with the remaining $100 million being subject to a floating rate. In January 2024, these interest rate swaps were amended to extend their maturity from August 2024 to July 2025. Following this amendment, the weighted average fixed interest rate payable under the contract was 2.61% (previously 0.91%).
The interest rate swap contracts are accounted for as a derivative, with the changes in their fair value included in other income or expense in our consolidated statements of earnings. For the three and six months ended June 27, 2025, a loss of $1 million and a loss of $2 million (three and six months ended June 28, 2024 - a loss of $1 million and a loss of $1 million) was recognized in relation to the interest rate swap contracts. The fair value of the interest rate swap contracts at June 27, 2025 was a nominal asset (December 31, 2024 - asset of $2 million).
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6. Other liabilities
| June 27, | December 31, | ||||||||||
| As at | Note | 2025 | 2024 | ||||||||
Retirement liabilities | $ | 114 | $ | 97 | |||||||
| Non-current portion of reforestation obligations | 60 | 47 | |||||||||
Non-current portion of decommissioning obligations | 25 | 24 | |||||||||
Non-current portion of lease obligations | 29 | 19 | |||||||||
| Export duties | 15 | 48 | 46 | ||||||||
| Electricity swaps | 10 | 8 | |||||||||
| Other | 27 | 22 | |||||||||
| $ | 315 | $ | 264 | ||||||||
7. Retirement benefits
We maintain defined benefit and defined contribution pension plans covering most of our employees. The defined benefit plans generally do not require employee contributions and provide a guaranteed level of pension payable for life based either on length of service or on earnings and length of service, and in most cases do not increase after commencement of retirement. We also provide group life insurance, medical and extended health benefits to certain employee groups.
We used a discount rate assumption of 4.92% at June 27, 2025 (4.83% at December 31, 2024).
The actuarial gain on retirement benefits, included in other comprehensive earnings, is as follows:
| Three Months Ended | Six Months Ended | |||||||||||||
| June 27, | June 28, | June 27, | June 28, | |||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||
| Actuarial gain | $ | 10 | $ | 11 | $ | 6 | $ | 35 | ||||||
| Tax provision | (3) | (3) | (1) | (9) | ||||||||||
| $ | 7 | $ | 8 | $ | 4 | $ | 26 | |||||||
8. Share capital
Authorized
400,000,000 Common shares, without par value
20,000,000 Class B Common shares, without par value
10,000,000 Preferred shares, issuable in series, without par value
Issued and Outstanding
| June 27, 2025 | December 31, 2024 | |||||||||||||
| As at | Number | Amount | Number | Amount | ||||||||||
Common | 76,696,000 | $ | 2,517 | 77,706,788 | $ | 2,549 | ||||||||
Class B Common | 2,281,478 | — | 2,281,478 | — | ||||||||||
| Total Common | 78,977,478 | $ | 2,517 | 79,988,266 | $ | 2,549 | ||||||||
As at June 27, 2025, we held 16,110 Common shares as treasury shares for cancellation.
For the three and six months ended June 27, 2025, we issued 4,700 Common shares under our share option plans (three and six months ended June 28, 2024 - 310 and 7,310 Common shares).
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Rights and restrictions of Common shares
The Common shares and Class B Common shares are equal in all respects, including the right to dividends, rights upon dissolution or winding up and the right to vote, except that each Class B Common share may at any time be exchanged for one Common share. Our Common shares are listed for trading on the TSX and NYSE under the symbol WFG, while our Class B Common shares are not. Certain circumstances or corporate transactions may require the approval of the holders of our Common shares and Class B Common shares on a separate class by class basis.
Share repurchases
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.
On February 27, 2024, we renewed our normal course issuer bid (“2024 NCIB”) allowing us to acquire up to 3,971,380 Common shares for cancellation from March 1, 2024 until the expiry of the bid on February 28, 2025.
For the three and six months ended June 27, 2025, we repurchased for cancellation 448,001 and 977,661 Common shares respectively at an average price of $74.36 and $78.68 per share under our 2024 NCIB and 2025 NCIB programs. For the three and six months ended June 28, 2024, we repurchased for cancellation 935,568 and 1,041,234 respectively Common shares at an average price of $78.85 and $78.90 per share under our 2023 NCIB and 2024 NCIB programs.
9. Restructuring and impairment charges
| Three months ended | Six months ended | ||||||||||||||||
| June 27, 2025 | June 28, 2024 | June 27, 2025 | June 28, 2024 | ||||||||||||||
| Impairment loss (reversal) related to Hinton pulp mill | $ | — | $ | — | $ | — | $ | (1) | |||||||||
| Impairment loss related to Quesnel River Pulp mill and Slave Lake Pulp mill | — | 5 | — | 4 | |||||||||||||
| Restructuring and impairment losses (reversals) related to Canadian and U.S. lumber operations | — | (1) | — | 12 | |||||||||||||
| Other restructuring charges | — | 1 | — | 1 | |||||||||||||
| $ | — | $ | 5 | $ | — | $ | 16 | ||||||||||
In the six months ended June 28, 2024, we recorded an impairment reversal of $1 million in relation to the sale of the Hinton pulp mill and an impairment loss of $4 million in relation to the sale of the Quesnel River Pulp mill and Slave Lake Pulp mill.
In addition, in the six months ended June 28, 2024, we recorded restructuring and impairment charges of $12 million associated with the announcement of the permanent closure of our Fraser Lake lumber mill and the permanent closure of our lumber mill in Maxville, Florida and the indefinite curtailment of operations at our lumber mill in Huttig, Arkansas.
10. Finance income, net
| Three Months Ended | Six Months Ended | ||||||||||||||||
| June 27, 2025 | June 28, 2024 | June 27, 2025 | June 28, 2024 | ||||||||||||||
| Interest expense | $ | (4) | $ | (7) | $ | (7) | $ | (15) | |||||||||
| Interest income on cash and cash equivalents | 4 | 10 | 9 | 21 | |||||||||||||
| Net interest income on export duty deposits | 5 | 6 | 10 | 12 | |||||||||||||
| Finance expense on employee future benefits | (1) | (1) | (2) | (1) | |||||||||||||
| Other | — | (2) | — | (2) | |||||||||||||
| $ | 4 | $ | 6 | $ | 10 | $ | 15 | ||||||||||
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11. Other income (expense)
| Three Months Ended | Six Months Ended | ||||||||||||||||
| June 27, 2025 | June 28, 2024 | June 27, 2025 | June 28, 2024 | ||||||||||||||
| Foreign exchange gain (loss) | $ | (7) | $ | — | $ | (6) | $ | 3 | |||||||||
| Settlement gain on defined benefit pension plans | — | — | — | 2 | |||||||||||||
| Gain resulting from the CPP agreement | — | — | — | 1 | |||||||||||||
| Gain (loss) on electricity swaps | 6 | 4 | — | (7) | |||||||||||||
| Loss on interest rate swap contracts | (1) | (1) | (2) | (1) | |||||||||||||
Other | (1) | (2) | 3 | (3) | |||||||||||||
| $ | (2) | $ | 1 | $ | (5) | $ | (5) | ||||||||||
12. Tax recovery (provision)
The tax recovery (provision) differs from the amount that would have resulted from applying the B.C. statutory income tax rate to earnings (loss) before tax as follows:
| Three Months Ended | Six Months Ended | ||||||||||||||||
| June 27, 2025 | June 28, 2024 | June 27, 2025 | June 28, 2024 | ||||||||||||||
| Income tax recovery (provision) at statutory rate of 27% | $ | 11 | $ | (38) | $ | (7) | $ | (51) | |||||||||
| Rate differentials between jurisdictions and on specified activities | 1 | 3 | 2 | 2 | |||||||||||||
| Non-taxable amounts including goodwill impairment | 1 | — | 1 | 1 | |||||||||||||
| Impact of functional currency differences | 1 | — | — | — | |||||||||||||
| Valuation allowance | 4 | — | 4 | — | |||||||||||||
| Income tax settlement | — | — | (6) | — | |||||||||||||
| Other | 1 | 1 | — | (2) | |||||||||||||
| Tax recovery (provision) | $ | 19 | $ | (34) | $ | (6) | $ | (50) | |||||||||
In Q1-25, we entered into a settlement agreement with the CRA in respect of certain prior tax periods. As a result, we recorded an additional tax provision of $6 million in Q1-25 and have received income tax refunds of $34 million on account of the matters in question.
13. Earnings (loss) per share
Basic earnings (loss) per share is calculated based on earnings (loss) available to Common shareholders, as set out below, using the weighted average number of Common shares and Class B Common shares outstanding.
Certain of our equity-based compensation plans may be settled in cash or Common shares at the holder’s option and for the purposes of calculating diluted earnings (loss) per share, the more dilutive of the cash-settled and equity-settled method is used, regardless of how the plan is accounted for. Plans that are accounted for using the cash-settled method will require adjustments to the numerator and denominator if the equity-settled method is determined to have a dilutive effect as compared to the cash-settled method.
The numerator under the equity-settled method is calculated based on earnings (loss) available to Common shareholders adjusted to remove the cash-settled equity-based compensation expense or recovery that has been charged or credited to earnings (loss) and deducting a notional charge using the equity‑settled method, as set out below. Adjustments to earnings (loss) are tax-effected as applicable. The denominator under the equity-settled method is calculated using the treasury stock method. Share options under the equity-settled method are considered dilutive when the average market price of our Common shares for the period exceeds the exercise price of the share option.
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The equity-settled method was more dilutive for the three and six months ended June 27, 2025 and the three and six months ended June 28, 2024 , and an adjustment was required for the numerator and denominator for these periods.
A reconciliation of the numerator and denominator used for the purposes of calculating diluted earnings (loss) per share is as follows:
| Three Months Ended | Six Months Ended | ||||||||||||||||
| June 27, 2025 | June 28, 2024 | June 27, 2025 | June 28, 2024 | ||||||||||||||
| Earnings (loss) | |||||||||||||||||
Numerator for basic EPS | $ | (24) | $ | 105 | $ | 18 | $ | 139 | |||||||||
| Cash-settled expense included in earnings | (5) | (5) | (8) | (2) | |||||||||||||
Equity-settled expense adjustment | (2) | (2) | (3) | (4) | |||||||||||||
Numerator for diluted EPS | $ | (30) | $ | 98 | $ | 7 | $ | 134 | |||||||||
Weighted average number of shares (thousands) | |||||||||||||||||
Denominator for basic EPS | 79,197 | 81,209 | 79,433 | 81,444 | |||||||||||||
Effect of dilutive equity-based compensation | 176 | 249 | 191 | 266 | |||||||||||||
Denominator for diluted EPS | 79,373 | 81,457 | 79,624 | 81,710 | |||||||||||||
| Earnings (loss) per share (dollars) | |||||||||||||||||
Basic | $ | (0.30) | $ | 1.29 | $ | 0.23 | $ | 1.71 | |||||||||
Diluted | $ | (0.38) | $ | 1.20 | $ | 0.09 | $ | 1.63 | |||||||||
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14. Segment and geographical information
| Three Months Ended | Lumber | NA EWP | Pulp & Paper | Europe EWP | Corporate & Other | Total | ||||||||||||||
| June 27, 2025 | ||||||||||||||||||||
| Sales | ||||||||||||||||||||
| To external customers | $ | 702 | $ | 609 | $ | 91 | $ | 130 | $ | — | $ | 1,532 | ||||||||
| To other segments | 11 | 3 | 1 | — | (15) | — | ||||||||||||||
| $ | 713 | $ | 612 | $ | 92 | $ | 130 | $ | (15) | $ | 1,532 | |||||||||
| Cost of products sold | (545) | (434) | (76) | (108) | 15 | (1,149) | ||||||||||||||
| Freight and other distribution costs | (98) | (85) | (13) | (12) | — | (208) | ||||||||||||||
| Export duties, net, and tariffs | (21) | — | — | — | — | (21) | ||||||||||||||
| Amortization | (46) | (73) | (4) | (10) | (1) | (134) | ||||||||||||||
| Selling, general and administration | (34) | (25) | (3) | (8) | — | (69) | ||||||||||||||
| Equity-based compensation | — | — | — | — | 5 | 5 | ||||||||||||||
| Restructuring and impairment reversal | — | — | — | — | — | — | ||||||||||||||
| Operating earnings (loss) | $ | (31) | $ | (5) | $ | (5) | $ | (8) | $ | 3 | $ | (45) | ||||||||
| Three Months Ended | Lumber | NA EWP | Pulp & Paper | Europe EWP | Corporate & Other | Total | ||||||||||||||
| June 28, 2024 | ||||||||||||||||||||
| Sales | ||||||||||||||||||||
| To external customers | $ | 686 | $ | 809 | $ | 91 | $ | 119 | $ | — | $ | 1,705 | ||||||||
| To other segments | 11 | 2 | 1 | — | (14) | — | ||||||||||||||
| $ | 697 | $ | 811 | $ | 92 | $ | 119 | $ | (14) | $ | 1,705 | |||||||||
| Cost of products sold | (590) | (397) | (66) | (94) | 14 | (1,133) | ||||||||||||||
| Freight and other distribution costs | (106) | (83) | (15) | (11) | — | (215) | ||||||||||||||
| Export duties, net, and tariffs | (15) | — | — | — | — | (15) | ||||||||||||||
| Amortization | (49) | (71) | (4) | (12) | (3) | (138) | ||||||||||||||
| Selling, general and administration | (37) | (23) | (2) | (8) | — | (70) | ||||||||||||||
| Equity-based compensation | — | — | — | — | 4 | 4 | ||||||||||||||
| Restructuring and impairment reversal (charges) | 1 | (1) | (5) | — | — | (5) | ||||||||||||||
| Operating earnings (loss) | $ | (100) | $ | 236 | $ | — | $ | (6) | $ | 2 | $ | 132 | ||||||||
| Six Months Ended | Lumber | NA EWP | Pulp & Paper | Europe EWP | Corporate & Other | Total | ||||||||||||||
| June 27, 2025 | ||||||||||||||||||||
| Sales | ||||||||||||||||||||
| To external customers | $ | 1,367 | $ | 1,204 | $ | 171 | $ | 248 | $ | — | $ | 2,990 | ||||||||
| To other segments | 19 | 5 | 5 | — | (30) | — | ||||||||||||||
| $ | 1,387 | $ | 1,210 | $ | 176 | $ | 248 | $ | (30) | $ | 2,990 | |||||||||
| Cost of products sold | (1,003) | (807) | (139) | (209) | 30 | (2,130) | ||||||||||||||
| Freight and other distribution costs | (190) | (157) | (24) | (23) | — | (395) | ||||||||||||||
| Export duties, net, and tariffs | (43) | (1) | — | — | — | (45) | ||||||||||||||
| Amortization | (92) | (145) | (8) | (21) | (2) | (267) | ||||||||||||||
| Selling, general and administration | (69) | (52) | (6) | (15) | — | (142) | ||||||||||||||
| Equity-based compensation | — | — | — | — | 8 | 8 | ||||||||||||||
| Operating earnings (loss) | $ | (10) | $ | 47 | $ | (2) | $ | (21) | $ | 5 | $ | 19 | ||||||||
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| Six Months Ended | Lumber | NA EWP | Pulp & Paper | Europe EWP | Corporate & Other | Total | ||||||||||||||
| June 28, 2024 | ||||||||||||||||||||
| Sales | ||||||||||||||||||||
| To external customers | $ | 1,359 | $ | 1,504 | $ | 242 | $ | 227 | $ | — | $ | 3,332 | ||||||||
| To other segments | 23 | 4 | 5 | — | (31) | — | ||||||||||||||
| $ | 1,382 | $ | 1,508 | $ | 247 | $ | 227 | $ | (31) | $ | 3,332 | |||||||||
| Cost of products sold | (1,115) | (798) | (183) | (186) | 33 | (2,250) | ||||||||||||||
| Freight and other distribution costs | (204) | (164) | (45) | (21) | — | (435) | ||||||||||||||
| Export duties, net, and tariffs | (30) | — | — | — | — | (30) | ||||||||||||||
| Amortization | (99) | (141) | (6) | (24) | (6) | (276) | ||||||||||||||
| Selling, general and administration | (74) | (50) | (7) | (15) | — | (146) | ||||||||||||||
| Equity-based compensation | — | — | — | — | — | — | ||||||||||||||
| Restructuring and impairment charges | (12) | (1) | (3) | — | — | (16) | ||||||||||||||
| Operating earnings (loss) | $ | (152) | $ | 353 | $ | 3 | $ | (20) | $ | (5) | $ | 180 | ||||||||
The geographic distribution of external sales based on the location of product delivery is as follows:
| Three Months Ended | Six Months Ended | |||||||||||||
| June 27, | June 28, | June 27, | June 28, | |||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||
| United States | $ | 1,019 | $ | 1,176 | $ | 2,006 | $ | 2,238 | ||||||
| Canada | 293 | 323 | 569 | 631 | ||||||||||
| U.K. and Europe | 131 | 120 | 249 | 229 | ||||||||||
| Asia | 88 | 75 | 166 | 220 | ||||||||||
| Other | — | 11 | — | 14 | ||||||||||
| $ | 1,532 | $ | 1,705 | $ | 2,990 | $ | 3,332 | |||||||
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15. Export duties, net, and tariffs
The following table summarizes the impact of export duties, net, and tariffs in our earnings statement:
| Three Months Ended | Six Months Ended | ||||||||||||||||
| June 27, 2025 | June 28, 2024 | June 27, 2025 | June 28, 2024 | ||||||||||||||
| Export duties, net | $ | (20) | $ | (15) | $ | (41) | $ | (30) | |||||||||
| Tariffs | (1) | — | (3) | — | |||||||||||||
| Export duties, net, and tariffs | $ | (21) | $ | (15) | $ | (45) | $ | (30) | |||||||||
Countervailing (“CVD”) and antidumping (“ADD”) duty dispute
Additional details, including our accounting policy, can be found in note 26 - Countervailing (“CVD”) and antidumping (“ADD”) duty dispute of our audited annual consolidated financial statements for the year ended December 31, 2024.
Developments in CVD and ADD rates
We began paying CVD and ADD duties in 2017 based on the determination of duties payable by the United States Department of Commerce (“USDOC”). The CVD and ADD cash deposit rates are updated upon the finalization of the USDOC’s Administrative Review (“AR”) process for each Period of Inquiry (“POI”). On February 21, 2025, the USDOC initiated AR7 POI covering the 2024 calendar year. West Fraser was selected as a mandatory respondent, which will result in West Fraser continuing to be subject to a company-specific rate.
On March 3, 2025, the USDOC released the preliminary results for the AR6 ADD investigation covering the calendar year 2023, which indicated a rate of 9.48%. On April 4, 2025, the USDOC released the preliminary results for the AR6 CVD investigation covering calendar year 2023, which indicated a rate of 16.57%. The duty rates are subject to an appeal process, and we will record an adjustment once the rates are finalized. If the AR6 rates were to be confirmed, it would result in an expense of $65 million before the impact of interest for the POI covered by AR6. This adjustment would increase export duties payable recorded on our balance sheet. If these rates were to be finalized, our combined cash deposit rate would be 26.05%.
The Cash Deposit Rates and the West Fraser Estimated ADD Rate for the periods presented are as follows:
| Effective dates for CVD | Cash Deposit Rate | ||||
AR7 POI1 | |||||
| January 1, 2024 – August 18, 2024 | 2.19 | % | |||
| August 19, 2024 - December 31, 2024 | 6.85 | % | |||
AR8 POI2 | |||||
| January 1, 2025 – June 27, 2025 | 6.85 | % | |||
1.The CVD rate for the AR7 POI will be adjusted when AR7 is complete and the USDOC finalizes the rate, which is not expected until 2026.
2.The CVD rate for the AR8 POI will be adjusted when AR8 is complete and the USDOC finalizes the rate, which is not expected until 2027.
| Effective dates for ADD | Cash Deposit Rate | West Fraser Estimated Rate | ||||||
AR7 POI1 | ||||||||
| January 1, 2024 – August 18, 2024 | 7.06 | % | 2.58 | % | ||||
| August 19, 2024 - December 31, 2024 | 5.04 | % | 2.58 | % | ||||
AR8 POI2 | ||||||||
| January 1, 2025 – June 27, 2025 | 5.04 | % | 5.04 | % | ||||
1.The ADD rate for the AR7 POI will be adjusted when AR7 is complete and the USDOC finalizes the rate, which is not expected until 2026.
2.The ADD rate for the AR8 POI will be adjusted when AR8 is complete and the USDOC finalizes the rate, which is not expected until 2027.
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Impact on results
The following table reconciles our cash deposits paid during the period to the amount recorded in our earnings statement:
| Three Months Ended | Six Months Ended | ||||||||||||||||
| June 27, 2025 | June 28, 2024 | June 27, 2025 | June 28, 2024 | ||||||||||||||
Cash deposits1 | $ | (20) | $ | (15) | $ | (41) | $ | (30) | |||||||||
Adjust to West Fraser Estimated ADD rate2 | — | — | — | — | |||||||||||||
Export duties, net | $ | (20) | $ | (15) | $ | (41) | $ | (30) | |||||||||
1.Represents combined CVD and ADD cash deposit rate of 11.89% for January 1, 2025 to June 27, 2025 and 9.25% for January 1, 2024 to June 28, 2024.
2.No adjustments were recorded as the West Fraser Estimated ADD rate of 5.04% for Q2-25 and YTD-25 and 7.06% for Q2-24 and YTD-24 equaled the cash deposit rate.
As of June 27, 2025, our export duties paid and payable on deposit with the USDOC were $939 million.
Impact on balance sheet
Each POI is subject to independent administrative review by the USDOC, and the results of each POI may not be offset but the results within a POI in respect of ADD and CVD may be offset.
Export duty deposits receivable is represented by:
| Six Months Ended | ||||||||
| June 27, | ||||||||
| Export duties receivable | 2025 | |||||||
| Beginning of period | $ | 408 | ||||||
| Interest income recognized on duty deposits receivable | 12 | |||||||
| End of period | $ | 420 | ||||||
Export duties payable is represented by:
| Six Months Ended | ||||||||
| June 27, | ||||||||
Export duties payable | 2025 | |||||||
| Beginning of period | $ | 46 | ||||||
| Interest expense recognized on export duties payable | 2 | |||||||
| End of period | $ | 48 | ||||||
Appeals
Notwithstanding the deposit rates assigned under the investigations, our final liability for CVD and ADD will not be determined until each annual administration review process is complete and the related appeal processes are concluded.
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
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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.
16. Contingencies
We are subject to various investigations, claims and legal, regulatory and tax proceedings covering matters that arise in the ordinary course of business activities, including civil claims and lawsuits, regulatory examinations, investigations, audits and requests for information by governmental regulatory agencies and law enforcement authorities in various jurisdictions. Each of these matters is subject to uncertainties and it is possible that some of these matters may be resolved unfavourably. Certain conditions may exist as of the date the financial statements are issued, which may result in an additional loss. In the opinion of management none of these matters are expected to have a material effect on our results of operations or financial condition.
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MANAGEMENT’S DISCUSSION & ANALYSIS
| INTRODUCTION | ||||||||||||||
This discussion and analysis by management (“MD&A”) of West Fraser Timber Co. Ltd.’s (“West Fraser”, the “Company”, “we”, “us”, or “our”) financial performance for the three and six months ended June 27, 2025 should be read in conjunction with: (i) our unaudited condensed consolidated interim financial statements and accompanying notes for the three and six months ended June 27, 2025 (“Interim Financial Statements”); (ii) our audited annual consolidated financial statements and accompanying notes for the year ended December 31, 2024 (“Annual Financial Statements”), which have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards"); and (iii) our related 2024 annual MD&A (“Annual MD&A”).
Our fiscal year is the calendar year ending December 31. Our fiscal quarters are the 13-week periods ending on the closest Friday to the end of March, June, and September with the fourth quarter ending December 31. References to the three months ended June 27, 2025 and the second quarter of 2025 relate to the 13-week period ended June 27, 2025 and references to the six months ended and year to date June 27, 2025 relate to the 26-week period ended June 27, 2025.
Unless otherwise indicated, the financial information contained in this MD&A is derived from our Interim Financial Statements, which have been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting, as issued by the International Accounting Standards Board. This MD&A uses various Non-GAAP and other specified financial measures, including “Adjusted EBITDA”, “Adjusted EBITDA by segment”, “available liquidity”, “total debt to capital ratio”, “net debt to capital ratio”, and “expected capital expenditures”. An explanation with respect to the use of these Non-GAAP and other specified financial measures is set out in the section titled “Non-GAAP and Other Specified Financial Measures”.
This MD&A includes statements and information that constitute “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”). Please refer to the cautionary note titled “Forward-Looking Statements” for a discussion of these forward-looking statements and the risks that impact these forward-looking statements.
This MD&A uses capitalized terms, abbreviations and acronyms that are defined under “Glossary of Key Terms”. Dollar amounts are expressed in the United States (“U.S.”) currency unless otherwise indicated. 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. The information in this MD&A is as at July 23, 2025 unless otherwise indicated.
| OUR BUSINESS AND STRATEGY | ||||||||||||||
West Fraser is a diversified wood products company with facilities in Canada, the U.S., the U.K. and Europe, manufacturing, selling, marketing and distributing lumber, engineered wood products (OSB, LVL, MDF, plywood, particleboard), pulp, newsprint, wood chips and other residuals. As at June 27, 2025, our business is comprised of 32 lumber mills, 15 OSB facilities, 3 plywood facilities, 3 MDF facilities, 1 particleboard facility, 1 LVL facility, 1 veneer facility, and 2 pulp and paper mills.
Our goal at West Fraser is to generate strong financial results through the business cycle, supported by robust product and geographic diversity, and relying on our committed workforce, the quality of our assets and our well-established people and culture. This culture emphasizes cost control in all aspects of the business and operating in a responsible, sustainable, financially conservative and prudent manner.
The North American wood products industry is cyclical and periodically faces difficult market conditions. Our earnings are sensitive to changes in world economic conditions, primarily those in North America, Asia and Europe and particularly to the U.S. housing market for new construction and repair and renovation spending. Most of our revenues are from sales of commodity products for which prices are sensitive to variations in supply and demand. As many of our costs are denominated in Canadian dollars, British pounds sterling and Euros, exchange rate fluctuations of the Canadian dollar,
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British pound sterling and Euro against the United States dollar can and are anticipated to be a significant source of earnings volatility for us.
We believe that maintaining a strong balance sheet and liquidity profile, along with our investment-grade issuer rating, enables us to execute a balanced capital allocation strategy. Our goal is to reinvest in our operations across all market cycles to strategically enhance productivity, product mix, and capacity and to maintain a leading cost position. We believe that a strong balance sheet also provides the financial flexibility to capitalize on growth opportunities, including the pursuit of opportunistic acquisitions and larger-scale strategic growth initiatives, and is a key tool in managing our business over the long term including returning capital to shareholders.
| RECENT DEVELOPMENTS | ||||||||||||||
Markets
In North America, new home construction activity in the U.S. is a significant driver of lumber and OSB demand. According to the U.S. Census Bureau, the seasonally adjusted annualized rate of U.S. housing starts averaged 1.32 million units in June 2025, with permits issued averaging 1.40 million units. In comparison, U.S. housing starts were 1.37 million units in the full year 2024 and 1.42 million units in 2023. New housing construction has recently shown signs of further slowing as consumers continue to manage an environment of relatively high mortgage rates and housing affordability challenges. Conversely, existing home sales have improved moderately from recent depressed levels but remain near historic lows, owing largely to the lock-in effect with U.S. mortgages. Over the longer term, a large cohort of the population entering the typical home-buying age demographic are expected to support core demand for home construction and resale activity. Further, the U.S. central bank has cut its key lending rate a total of 100 bps since September 2024, which is directionally supportive for housing market demand. However, actual bond yields have failed to ease in-line with these rate cuts. Notwithstanding these factors, should the economy and employment slow more meaningfully, interest rates remain higher for longer or housing prices not adjust sufficiently lower to offset relatively elevated mortgage rates, housing affordability could continue to be adversely impacted, reducing near-term demand for new home construction and thus near-term demand for our wood-based building products.
In the second quarter, demand for our products used in repair and remodelling applications continued to be subdued. While there is risk that historically low rates of existing home sales will keep downward pressure on short-term repair and remodelling demand, over the medium and longer term, an aging housing stock and stabilization of inflation and interest rates are expected to stimulate renovation and repair spending that supports growth in lumber, plywood and OSB demand.
Regarding lumber supply fundamentals, several new capacity announcements in the U.S. South in recent years have not translated into an increase in overall North American supply. Rather, a significant offset to these new projects has been the capacity contraction within other key lumber producing regions of North America, including in the U.S. South where costs are generally lower but are also varied and depend on fibre supply, mill modernization levels, sawmill residuals disposition markets and labour reliability. In particular, the U.S. South has seen a number of announcements in recent quarters of mills in the region being permanently or indefinitely curtailed. It is also noteworthy that due to lengthy lumber supply chains, particularly for SPF products being transported by rail from Western Canada, the impact of facility closures in that region can take several weeks or months before the supply effects are realized by the industry. Lower demand from offshore markets for North American lumber is also a continuing factor, resulting in more domestically produced lumber remaining in the continent. Imports of lumber from Europe remain below the elevated levels experienced in early 2023. However, should these imports head materially higher again, the rebalancing of supply and demand for lumber products in North America could experience an even further extended time to recovery.
A number of OSB mill greenfield and re-start projects have been announced in recent years. While some of the announced greenfield projects are apt to be completed and begin production over the near to medium term, we continue to see meaningful constraints to significant new available OSB supply in the near term, including typical mill start-up curves. However, should new OSB supply come online in excess of demand requirements, OSB markets may experience a period of oversupply.
According to industry data, from 2020 through 2024 approximately 25% of U.S. lumber consumption and 28% of U.S. OSB consumption was supplied by Canadian mills. However, rising duties, tariffs and a Section 232 investigation currently underway by the U.S. Department of Commerce have created an environment of heightened financial uncertainty for
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Canadian-based manufacturing of lumber, OSB and other wood-based building products. If Canadian exports to the U.S. are constrained because of these or any other factors, the supply of these products may fall short of U.S. demand levels over the near to medium term.
Credit Facility & Term Loan Renewals
In May 2025, we amended and restated our syndicated credit agreement providing for the renewal of our $1 billion revolving credit facility and extension of the facility's maturity from July 2028 to May 2030. The revolving credit facility is undrawn and was made available on substantially the same terms and conditions as our revolving credit facility prior to renewal. Additionally, under the amended and restated credit agreement, we increased and extended our $200 million term loan facility maturing July 2025. The modified term loan facility is for $300 million, matures May 2028, and is under substantially the same terms and conditions as our term loan facility prior to renewal.
Tariffs
Canadian softwood lumber exports to the U.S. have been the subject of trade disputes and managed trade arrangements for several decades. Countervailing and antidumping duties have been in place since April 2017. Except for a two-day window in Q1-25, our wood products imported to the U.S. have not been subject to tariffs. A Section 232 investigation by the U.S. Secretary of Commerce is ongoing to determine the effects on national security of imports of timber, lumber and their derivative products.
The actual impact of tariffs and possible actions resulting from the Section 232 investigation are subject to a number of factors and uncertainties including the effective date and duration of such tariffs, changes in the amount, scope and nature of the tariffs in the future, any countermeasures that the Canadian government may take, and any mitigating actions that may become available.
Refer to the discussion in our 2024 Annual MD&A under "Risks and Uncertainties - Trade Restrictions" as supplemented in the discussion in the Q1-25 MD&A under "Risks and Uncertainties" for discussion of risks associated with the aforementioned tariffs and possible actions resulting from the Section 232 investigation.
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SECOND QUARTER RESULTS | ||
Summary Results ($ millions) | Q2-25 | Q1-25 | YTD-25 | Q2-24 | YTD-24 | ||||||||||||
| Earnings | |||||||||||||||||
| Sales | $ | 1,532 | $ | 1,459 | $ | 2,990 | $ | 1,705 | $ | 3,332 | |||||||
| Cost of products sold | (1,149) | (981) | (2,130) | (1,133) | (2,250) | ||||||||||||
| Freight and other distribution costs | (208) | (187) | (395) | (215) | (435) | ||||||||||||
| Export duties, net, and tariffs | (21) | (23) | (45) | (15) | (30) | ||||||||||||
| Amortization | (134) | (134) | (267) | (138) | (276) | ||||||||||||
| Selling, general and administration | (69) | (73) | (142) | (70) | (146) | ||||||||||||
| Equity-based compensation | 5 | 3 | 8 | 4 | — | ||||||||||||
| Restructuring and impairment charges | — | — | — | (5) | (16) | ||||||||||||
| Operating earnings (loss) | (45) | 64 | 19 | 132 | 180 | ||||||||||||
| Finance income, net | 4 | 6 | 10 | 6 | 15 | ||||||||||||
| Other income (expense) | (2) | (3) | (5) | 1 | (5) | ||||||||||||
| Tax recovery (provision) | 19 | (25) | (6) | (34) | (50) | ||||||||||||
| Earnings (loss) | $ | (24) | $ | 42 | $ | 18 | $ | 105 | $ | 139 | |||||||
Adjusted EBITDA1 | $ | 84 | $ | 195 | $ | 279 | $ | 272 | $ | 472 | |||||||
1.This is a non-GAAP financial measure. Refer to the “Non-GAAP and Other Specified Financial Measures” section of this document for more information on this measure.
Selected Quarterly Amounts ($ millions, unless otherwise indicated) | Q2-25 | Q1-25 | Q4-24 | Q3-24 | Q2-24 | Q1-24 | Q4-23 | Q3-23 | ||||||||||||||||||
| Sales | $ | 1,532 | $ | 1,459 | $ | 1,405 | $ | 1,437 | $ | 1,705 | $ | 1,627 | $ | 1,514 | $ | 1,705 | ||||||||||
| Earnings (loss) | $ | (24) | $ | 42 | $ | (62) | $ | (83) | $ | 105 | $ | 35 | $ | (153) | $ | 159 | ||||||||||
Basic EPS (dollars) | (0.30) | 0.53 | (0.77) | (1.03) | 1.29 | 0.42 | (1.87) | 1.91 | ||||||||||||||||||
Diluted EPS (dollars) | (0.38) | 0.46 | (0.80) | (1.03) | 1.20 | 0.42 | (1.87) | 1.81 | ||||||||||||||||||
Sales and earnings decreased from Q3-23 to Q4-23 due primarily to decreases in lumber and OSB pricing, higher export duties, and impairment charges related to announced facility closures and curtailments in our lumber segment. Sales and earnings improved in Q1-24 and Q2-24 due primarily to improvements in OSB pricing and lower impairment charges, partially offset by lower lumber pricing. Sales and earnings decreased in Q3-24 due primarily to lower OSB and lumber pricing and, earnings improved in Q4-24 as product pricing improved across all product segments, offset in part by lower OSB shipment volumes, higher costs, major maintenance downtime in the pulp & paper segment, and impairment charges related to goodwill in our Europe EWP segment. Sales and earnings improved in Q1-25 due primarily to higher lumber pricing, lower costs, and the non-recurrence of major maintenance in the pulp & paper segment and impairment charges in the Europe EWP segment. Sales increased from Q1-25 to Q2-25 primarily due to higher shipments in our lumber and NA EWP segments, offset in part by lower lumber and OSB pricing. Earnings decreased from Q1-25 to Q2-25 due primarily to the impact of lower product pricing, inventory write-downs, and higher fibre costs, offset in part by lower tax expense.
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Discussion & Analysis by Product Segment
Lumber Segment
Lumber Segment Earnings ($ millions unless otherwise indicated) | Q2-25 | Q1-25 | YTD-25 | Q2-24 | YTD-24 | ||||||||||||
| Sales | |||||||||||||||||
| Lumber | $ | 639 | $ | 598 | $ | 1,236 | $ | 616 | $ | 1,215 | |||||||
| Wood chips and other residuals | 63 | 56 | 119 | 69 | 137 | ||||||||||||
| Logs and other | 11 | 20 | 31 | 12 | 29 | ||||||||||||
| 713 | 674 | 1,387 | 697 | 1,382 | |||||||||||||
| Cost of products sold | (545) | (458) | (1,003) | (590) | (1,115) | ||||||||||||
| Freight and other distribution costs | (98) | (92) | (190) | (106) | (204) | ||||||||||||
| Export duties, net, and tariffs | (21) | (22) | (43) | (15) | (30) | ||||||||||||
| Amortization | (46) | (46) | (92) | (49) | (99) | ||||||||||||
| Selling, general and administration | (34) | (35) | (69) | (37) | (74) | ||||||||||||
| Restructuring and impairment reversal (charges) | — | — | — | 1 | (12) | ||||||||||||
| Operating earnings (loss) | $ | (31) | $ | 21 | $ | (10) | $ | (100) | $ | (152) | |||||||
Adjusted EBITDA1 | $ | 15 | $ | 66 | $ | 81 | $ | (51) | $ | (41) | |||||||
SPF (MMfbm) | |||||||||||||||||
| Production | 667 | 639 | 1,306 | 746 | 1,457 | ||||||||||||
| Shipments | 696 | 669 | 1,366 | 799 | 1,504 | ||||||||||||
SYP (MMfbm) | |||||||||||||||||
| Production | 667 | 602 | 1,269 | 691 | 1,389 | ||||||||||||
| Shipments | 680 | 570 | 1,251 | 705 | 1,369 | ||||||||||||
1.This is a non-GAAP financial measure. Refer to the “Non-GAAP and Other Specified Financial Measures” section of this document for more information on this measure.
Sales and Shipments
Lumber sales increased from Q1-25 due to higher shipment volumes, offset by lower product pricing. Lumber sales increased from Q2-24 and YTD-24 due to higher product pricing, offset in part by lower shipment volumes.
The overall price variance resulted in a decrease in operating earnings and Adjusted EBITDA of $17 million compared to Q1-25, an increase of $85 million compared to Q2-24, and an increase of $144 million compared to YTD-24.
SPF shipment volumes increased from Q1-25 due to higher production volumes, discussed further in the section below. SPF shipment volumes decreased from Q2-24 and YTD-24 due primarily to lower production volumes, including the impact of the closure of our Fraser Lake, B.C. lumber mill.
SYP shipment volumes increased from Q1-25 due primarily to higher production volumes and drawdown of finished goods inventory, discussed further in the section below. SYP shipment volumes decreased versus Q2-24 and YTD-24 due primarily to lower production volumes resulting from reduced operating schedules and mill closures.
The overall volume variance resulted in a nominal decrease in operating earnings and Adjusted EBITDA compared to Q1-25, a decrease of $2 million compared to Q2-24, and a decrease of $9 million compared to YTD-24.
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| SPF Sales by Destination | Q2-25 | Q1-25 | YTD-25 | Q2-24 | YTD-24 | |||||||||||||||||||||||||||
| MMfbm | % | MMfbm | % | MMfbm | % | MMfbm | % | MMfbm | % | |||||||||||||||||||||||
| U.S. | 429 | 62% | 433 | 65% | 863 | 63% | 466 | 58% | 888 | 59% | ||||||||||||||||||||||
| Canada | 240 | 34% | 200 | 30% | 440 | 32% | 301 | 38% | 556 | 37% | ||||||||||||||||||||||
| Other | 27 | 4% | 36 | 5% | 63 | 5% | 32 | 4% | 60 | 4% | ||||||||||||||||||||||
| 696 | 669 | 1,366 | 799 | 1,504 | ||||||||||||||||||||||||||||
We ship SPF to certain export markets, while our SYP sales are almost entirely within the U.S. The relative proportion of shipments of SPF by destination remained broadly comparable versus comparative periods.
Wood chip and other residuals sales increased from Q1-25 due primarily to higher production volumes, improved chip pricing, and the impact of the strengthening of the CAD against the USD on CAD-denominated sales of SPF wood chips. Wood chip and other residuals sales decreased from Q2-24 and YTD-24 due primarily to lower production volumes, lower chip pricing in the U.S. South, and the impact of the weakening of the CAD against the USD on SPF chip pricing.
Logs and other revenue decreased from Q1-25 due to lower volumes of logs sold during spring breakup. Logs and other revenue were broadly comparable versus Q2-24 and YTD-24.
Costs and Production
Although SPF production volumes increased modestly from Q1-25, Q2-25 production continued to be impacted by log shortages at our B.C. lumber mills. SPF production volumes decreased versus Q2-24 and YTD-24 due to the impact of the closure of our Fraser Lake, B.C. lumber mill and incremental reductions in operating schedules due to log shortages.
In Q1-24, we announced and promptly completed the indefinite curtailment of operations at our Huttig, Arkansas lumber mill and the permanent closure of our Maxville, Florida lumber mill. Further, in Q3-24, we announced the indefinite curtailment of operations at our lumber mill in Lake Butler, Florida. Together, these actions reduced our SYP capacity by approximately 390 million board feet on an annual basis, representing 11% of our capacity at December 31, 2023. In addition, we selectively reduced operating hours and shifts across our SYP manufacturing facilities during 2024 and continue to do so in 2025.
SYP production volumes increased from Q1-25 due to higher operating schedules and the impact of weather-related impacts in the U.S. South in Q1-25. SYP production volumes decreased versus Q2-24 and YTD-24 due to the impacts of the aforementioned indefinite curtailments and closures, and reductions in operating schedules. Lower production from locations impacted by curtailments was partially offset by the ramp up of output from our more modern lower cost facilities.
Cost of products sold increased from Q1-25 due primarily to higher shipment volumes and a $26 million unfavourable impact relating to inventory valuation adjustment. Cost of products sold also increased from Q1-25 due to the impact of fixed costs incurred during this time of reduced logging activities. The unfavourable impact relating to inventory valuation adjustments resulted from having recorded a significant inventory valuation reserve in Q2-25 as product pricing decreased in particular close to the end of the quarter, while Q1-25 benefited from a modest release of inventory valuation reserves.
Cost of products sold decreased from Q2-24 and YTD-24 due primarily to lower shipment volumes, the impact of the weakening of the CAD against the USD on SPF costs, and lower SYP log costs. This was offset in part by higher unit manufacturing costs and higher SPF log costs.
Most of our SPF log requirements are harvested from crown lands owned by the provinces of B.C. or Alberta. B.C.’s stumpage system is tied to reported lumber prices, with a time lag, and publicly auctioned timber harvesting rights. Alberta’s stumpage system is correlated to published lumber prices with a shorter time lag.
Logging slowed significantly in Q2-25 due to seasonal wet and inaccessible land conditions, and accordingly the cost of SPF logs consumed was largely determined by the cost of the logs on hand at Q1-25. SPF log costs increased from Q2-24 due to higher logging and hauling costs and B.C. stumpage costs. SPF log costs increased from YTD-24 due to higher logging and hauling costs and higher estimated silviculture costs, offset in part by lower B.C. stumpage costs.
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SPF unit manufacturing costs decreased from Q1-25 due to higher production in the period and lower labour and energy costs, offset in part by the strengthening of the CAD against the USD.
SPF unit manufacturing costs increased from Q2-24 and YTD-24 due primarily to lower production in the current year, higher labour costs, and higher repairs and maintenance costs. This was offset in part by the weakening of the CAD against the USD. Lower energy costs in the current year was a partial offsetting factor in the comparison to YTD-24 also.
SYP log costs decreased versus comparative periods as demand for logs moderated and we improved productivity in Q2-25.
SYP unit manufacturing costs were comparable versus Q1-25 as higher repairs and maintenance costs were offset by productivity improvements across most of our facilities.
SYP unit manufacturing costs increased from Q2-24 and YTD-24 due to the impact of lower production in the current year, higher labour costs, and higher repairs and maintenance costs. This was offset in part by the favourable cost impact of the indefinite curtailments and mill closures in the U.S. South.
Freight and other distribution costs generally trended with changes in shipment volumes with higher freight rates a contributing factor versus Q1-25.
The following table summarizes the impact of export duties, net, and tariffs on our Lumber segment:
Duties and Tariffs ($ millions) | Q2-25 | Q1-25 | YTD-25 | Q2-24 | YTD-24 | ||||||||||||
| Export duties, net | (20) | (21) | (41) | (15) | (30) | ||||||||||||
| Tariffs | (1) | (1) | (2) | — | — | ||||||||||||
| Export duties, net, and tariffs | $ | (21) | $ | (22) | $ | (43) | $ | (15) | $ | (30) | |||||||
Export duties expense decreased compared to Q1-25 due to lower product pricing and lower shipment volumes to the U.S. Export duties expense increased compared to Q2-24 and YTD-24 due to a higher cash deposit rate and higher product pricing, offset by lower shipment volumes to the U.S. in the current year.
The following table reconciles our cash deposits paid during the period to the amounts recorded in our earnings statement:
Duty impact on earnings ($ millions) | Q2-25 | Q1-25 | YTD-25 | Q2-24 | YTD-24 | ||||||||||||
Cash deposits1 | $ | (20) | $ | (21) | $ | (41) | $ | (15) | $ | (30) | |||||||
Adjust to West Fraser Estimated ADD rate2 | — | — | — | — | — | ||||||||||||
Export duties, net | (20) | (21) | (41) | (15) | (30) | ||||||||||||
1.Represents combined CVD and ADD cash deposit rate of 11.89% for January 1, 2025 to June 27, 2025 and 9.25% for January 1,2024 to June 28, 2024.
2.No adjustments were recorded as the West Fraser Estimated ADD rate of 5.04% for Q2-25 and YTD-25 and 7.06% for Q2-24 and YTD-24 equaled the cash deposit rate.
Amortization expense was comparable versus Q1-25. Amortization expense decreased versus Q2-24 and YTD-24 due primarily to the impact of our lumber mill closures, offset in part by the completion of certain capital investments in our U.S. operations.
Selling, general and administration costs were comparable versus Q1-25. Selling, general and administration costs decreased versus Q2-24 and YTD-24 due primarily to the impact of indefinite curtailments and closures.
Operating earnings for the Lumber Segment decreased by $52 million compared to Q1-25, increased by $69 million compared to Q2-24, and increased by $141 million compared to YTD-24 for the reasons explained above.
Adjusted EBITDA for the Lumber Segment decreased by $52 million compared to Q1-25, increased by $66 million compared to Q2-24, and increased by $122 million compared to YTD-24. The following table shows the Adjusted EBITDA
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variance for the period. The impact of changes relating to our sales of logs, wood chips, and other residuals is included under Other.
Adjusted EBITDA ($ millions) | Q1-25 to Q2-25 | Q2-24 to Q2-25 | YTD-24 to YTD-25 | ||||||||
| Adjusted EBITDA - comparative period | $ | 66 | $ | (51) | $ | (41) | |||||
| Price | (17) | 85 | 144 | ||||||||
| Volume | — | (2) | (9) | ||||||||
| Changes in export duties and tariffs | 2 | (9) | (18) | ||||||||
| Changes in costs | (18) | (2) | 22 | ||||||||
| Impact of inventory write-downs | (26) | (3) | (4) | ||||||||
| Other | 7 | (4) | (12) | ||||||||
| Adjusted EBITDA - current period | $ | 15 | $ | 15 | $ | 81 | |||||
Softwood Lumber Dispute
On November 25, 2016, a coalition of U.S. lumber producers petitioned the USDOC and the USITC to investigate alleged subsidies to Canadian softwood lumber producers and levy CVD and ADD duties against Canadian softwood lumber imports. The USDOC has chosen and continues to choose us as a “mandatory respondent” to both the countervailing and antidumping investigations, and as a result, we have received unique company-specific rates.
Developments in CVD and ADD rates
We began paying CVD and ADD duties in 2017 based on the determination of duties payable by the USDOC. The CVD and ADD cash deposit rates are updated based on the USDOC’s AR for each POI.
The respective Cash Deposit Rates, the AR POI Final Rate and the West Fraser Estimated ADD Rate for each period are as follows:
| Effective dates for CVD | Cash Deposit Rate | ||||
AR7 POI1 | |||||
| January 1, 2024 – August 18, 2024 | 2.19 | % | |||
| August 19, 2024 - December 31, 2024 | 6.85 | % | |||
AR8 POI2 | |||||
| January 1, 2025 – June 27, 2025 | 6.85 | % | |||
1.The CVD rate for the AR7 POI will be adjusted when AR7 is complete and the USDOC finalizes the rate, which is not expected until 2026.
2.The CVD rate for the AR8 POI will be adjusted when AR8 is complete and the USDOC finalizes the rate, which is not expected until 2027.
| Effective dates for ADD | Cash Deposit Rate | West Fraser Estimated Rate | ||||||
AR7 POI1 | ||||||||
| January 1, 2024 – August 18, 2024 | 7.06 | % | 2.58 | % | ||||
| August 19, 2024 - December 31, 2024 | 5.04 | % | 2.58 | % | ||||
AR8 POI2 | ||||||||
| January 1, 2025 – June 27, 2025 | 5.04 | % | 5.04 | % | ||||
1.The ADD rate for the AR7 POI will be adjusted when AR7 is complete and the USDOC finalizes the rate, which is not expected until 2026.
2.The ADD rate for the AR8 POI will be adjusted when AR8 is complete and the USDOC finalizes the rate, which is not expected until 2027.
Accounting policy for duties
The CVD and ADD rates apply retroactively for each POI. We record CVD as export duty expense at the cash deposit rate until an AR finalizes a new applicable rate for each POI. We record ADD as export duty expense by estimating the rate to be applied for each POI by using our actual results and a similar calculation methodology as the USDOC and adjust when
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an AR finalizes a new applicable rate for each POI. The difference between the cash deposits paid and the export duty expense recognized for each POI is recorded on our balance sheet as export duty deposits receivable or payable.
The difference between the cash deposit amount and the amount that would have been due based on the final AR rate will incur interest based on the U.S. federally published interest rate. We record interest income on our duty deposits receivable, net of any interest expense on our duty deposits payable, based on this rate.
Appeals
Our 2024 annual MD&A includes additional details on Softwood Lumber Dispute appeals.
Notwithstanding the deposit rates assigned under the investigations, our final liability for CVD and ADD will not be determined until each annual administrative review process is complete and related appeals processes are concluded.
North America Engineered Wood Products Segment
NA EWP Segment Earnings ($ millions unless otherwise indicated) | Q2-25 | Q1-25 | YTD-25 | Q2-24 | YTD-24 | ||||||||||||
| Sales | — | — | — | — | — | ||||||||||||
| OSB | 469 | 467 | 936 | 660 | 1,210 | ||||||||||||
| Plywood, LVL and MDF | 135 | 122 | 258 | 142 | 279 | ||||||||||||
| Wood chips, logs and other | 7 | 9 | 16 | 8 | 19 | ||||||||||||
| 612 | 598 | 1,210 | 811 | 1,508 | |||||||||||||
| Cost of products sold | (434) | (373) | (807) | (397) | (798) | ||||||||||||
| Freight and other distribution costs | (85) | (73) | (157) | (83) | (164) | ||||||||||||
| Export duties, net, and tariffs | — | (1) | (1) | — | — | ||||||||||||
| Amortization | (73) | (72) | (145) | (71) | (141) | ||||||||||||
| Selling, general and administration | (25) | (27) | (52) | (23) | (50) | ||||||||||||
| Restructuring and impairment charges | — | — | — | (1) | (1) | ||||||||||||
| Operating earnings (loss) | (5) | 52 | 47 | 236 | 353 | ||||||||||||
Adjusted EBITDA1 | 68 | 125 | 192 | 308 | 495 | ||||||||||||
OSB (MMsf 3/8” basis) | |||||||||||||||||
| Production | 1,706 | 1,555 | 3,261 | 1,735 | 3,354 | ||||||||||||
| Shipments | 1,710 | 1,503 | 3,213 | 1,645 | 3,254 | ||||||||||||
Plywood (MMsf 3/8” basis) | |||||||||||||||||
| Production | 179 | 163 | 342 | 192 | 368 | ||||||||||||
| Shipments | 180 | 160 | 340 | 189 | 369 | ||||||||||||
1.This is a non-GAAP financial measure. Refer to the “Non-GAAP and Other Specified Financial Measures” section of this document for more information on this measure.
Our NA EWP segment includes our North American OSB, plywood, MDF, and LVL operations.
Sales and Shipments
Sales increased versus Q1-25 due primarily to higher shipment volumes of all products, offset in part by lower OSB product pricing. Sales decreased versus Q2-24 and YTD-24 due primarily to lower OSB product pricing.
The price variance resulted in a decrease in operating earnings and Adjusted EBITDA of $48 million compared to Q1-25, a decrease of $223 million compared to Q2-24, and a decrease of $289 million compared to YTD-24.
OSB shipment volumes increased compared to Q1-25 due primarily to higher production levels, discussed further in the section below, and the impact of weather-related transportation delays in the U.S. South in Q1-25. OSB shipment volumes were broadly comparable to prior year periods.
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Changes in plywood shipment volumes versus comparative periods were driven primarily by changes in production levels, discussed further in the section below.
The volume variance resulted in an increase in operating earnings and Adjusted EBITDA of $15 million compared to Q1-25, an increase of $5 million compared to Q2-24, and a decrease of $6 million compared to YTD-24.
| NA OSB Sales by Destination | Q2-25 | Q1-25 | YTD-25 | Q2-24 | YTD-24 | |||||||||||||||||||||||||||
| MMsf 3/8” | % | MMsf 3/8” | % | MMsf 3/8” | % | MMsf 3/8” | % | MMsf 3/8” | % | |||||||||||||||||||||||
| U.S. | 1,552 | 91% | 1,363 | 91% | 2,915 | 91% | 1,502 | 91% | 2,930 | 90% | ||||||||||||||||||||||
| Canada | 130 | 8% | 118 | 8% | 248 | 8% | 125 | 8% | 271 | 8% | ||||||||||||||||||||||
| Other | 28 | 1% | 22 | 1% | 50 | 1% | 17 | 1% | 52 | 2% | ||||||||||||||||||||||
| 1,710 | 1,503 | 3,213 | 1,645 | 3,254 | ||||||||||||||||||||||||||||
The above table shows the proportion of shipments of OSB from our North American OSB operations to the U.S., Canada, and other export markets. For Q2-25 and comparative periods, substantially all plywood shipments were to Canada, while the majority of LVL shipments were to Canada. Approximately half of MDF shipments were to Canada in Q2-25, broadly consistent with comparative periods.
Costs and Production
OSB production volumes increased from Q1-25 due to lower downtime at our facilities relating to capital projects and weather-related impacts, offset in part by incremental reductions in operating schedules to manage inventory levels. OSB production volumes decreased from Q2-24 due to incremental reductions in operating schedules to manage inventory levels, offset by the ramp-up of our Allendale, South Carolina mill. OSB production volumes decreased versus YTD-24 due to higher downtime at our facilities relating to capital projects and weather-related impacts in the U.S. South, and incremental reductions in operating schedules to manage inventory levels, offset in part by the ramp-up of our Allendale, South Carolina mill.
Plywood production volumes increased from Q1-25 due to lower maintenance downtime in the current period and improved productivity. Plywood production decreased versus Q2-24 and YTD-24 due to higher planned and unplanned downtime taken in the current year.
Cost of products sold increased versus Q1-25 due primarily to a $18 million unfavourable impact relating to inventory valuation adjustments, higher shipment volumes, the strengthening of the CAD against the USD, and higher fibre costs. This was offset in part by lower repairs and maintenance, resin and energy costs. We recorded significant inventory valuation reserves in Q2-25 as OSB product pricing declined.
Cost of products sold increased versus Q2-24 due primarily to a $17 million unfavourable impact relating to inventory valuation adjustments, higher OSB shipment volumes and higher labour, fibre, and energy costs, offset in part by lower resin costs and the weakening of the CAD against the USD.
Cost of products sold increased versus YTD-24 due primarily to a $18 million unfavourable impact relating to inventory valuation adjustments and higher labour and fibre costs, offset by lower shipment volumes, the weakening of the CAD against the USD, and lower resin costs.
Freight and other distribution costs increased from Q1-25 due to higher product shipment volumes and higher freight rates. Freight and other distribution costs increased from Q2-24 due to higher OSB shipment volumes and higher freight rates, offset by lower plywood shipment volumes. Freight and other distribution costs decreased from YTD-24 due to lower product shipment volumes, offset by higher freight rates.
Amortization expense and selling, general and administration costs were broadly comparable to comparative periods.
Operating earnings for the NA EWP Segment decreased by $57 million compared to Q1-25, decreased by $241 million compared to Q2-24, and decreased by $306 million from YTD-24 due to the reasons explained above.
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Adjusted EBITDA for the NA EWP Segment decreased by $57 million compared to Q1-25, decreased by $240 million compared to Q2-24, and decreased by $303 million from YTD-24. The following table shows the Adjusted EBITDA variance for the period.
Adjusted EBITDA ($ millions) | Q1-25 to Q2-25 | Q2-24 to Q2-25 | YTD-24 to YTD-25 | ||||||||
| Adjusted EBITDA - comparative period | $ | 125 | $ | 308 | $ | 495 | |||||
| Price | (48) | (223) | (289) | ||||||||
| Volume | 15 | 5 | (6) | ||||||||
| Changes in costs | (8) | (5) | 13 | ||||||||
| Impact of inventory write-downs | (18) | (17) | (18) | ||||||||
| Other | 2 | — | (1) | ||||||||
| Adjusted EBITDA - current period | $ | 68 | $ | 68 | $ | 192 | |||||
Pulp & Paper Segment
Pulp & Paper Segment Earnings ($ millions unless otherwise indicated) | Q2-25 | Q1-25 | YTD-25 | Q2-24 | YTD-24 | ||||||||||||
| Sales | $ | 92 | $ | 85 | $ | 176 | $ | 92 | $ | 247 | |||||||
| Cost of products sold | (76) | (63) | (139) | (66) | (183) | ||||||||||||
| Freight and other distribution costs | (13) | (12) | (24) | (15) | (45) | ||||||||||||
| Amortization | (4) | (4) | (8) | (4) | (6) | ||||||||||||
| Selling, general and administration | (3) | (3) | (6) | (2) | (7) | ||||||||||||
Restructuring and impairment charges | — | — | — | (5) | (3) | ||||||||||||
| Operating earnings (loss) | $ | (5) | $ | 3 | $ | (2) | $ | — | $ | 3 | |||||||
Adjusted EBITDA1 | $ | (1) | $ | 7 | $ | 6 | $ | 9 | $ | 12 | |||||||
NBSK (Mtonnes) | |||||||||||||||||
| Production | 84 | 79 | 162 | 74 | 118 | ||||||||||||
| Shipments | 87 | 74 | 160 | 72 | 112 | ||||||||||||
1.This is a non-GAAP financial measure. Refer to the “Non-GAAP and Other Specified Financial Measures” section of this document for more information on this measure.
Following our attaining sole control of CPP in Q1-24 and completion of the pulp mill disposals, the Pulp & Paper segment is comprised of our 100% interest in CPP and our 50%-owned joint operation, Alberta Newsprint Company. In light of the composition of the segment on a go-forward basis, the production and shipment volumes for all periods disclosed in the above table relate to those of NBSK pulp produced and shipped from CPP only and exclude BCTMP and UKP pulp amounts related to the disposed pulp mills.
The comparison versus comparative periods is impacted by the sale of Hinton pulp mill on February 3, 2024, the sale of Quesnel River Pulp mill and Slave Lake Pulp mill on April 20, 2024, and our attaining sole control of CPP in Q1-24.
Sales and Shipments
Sales increased from Q1-25 due to higher NBSK shipment volumes. Sales were comparable to Q2-24 as the impact of the pulp mill disposals was offset by higher NBSK shipment volumes. Sales decreased from YTD-24 due to the impact of the pulp mill disposals, offset in part by higher NBSK product pricing and NBSK shipment volumes.
Costs and Production
NBSK production volume increased from Q1-25 and Q2-24 due to improved productivity in the current period. NBSK production increased versus YTD-24 due to our attaining sole control of CPP in Q1-24 and less downtime taken in the current year.
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Cost of products sold increased from Q1-25 due to higher NBSK shipment volumes, a $6 million unfavourable impact relating to inventory valuation adjustments, higher repairs and maintenance costs, higher fibre costs, and the strengthening of the CAD against the USD.
Cost of products sold increased versus Q2-24 due primarily to higher NBSK shipment volumes, offset by the impact of the pulp mill disposals. Cost of products sold decreased versus YTD-24 due primarily to the impact of the pulp mill disposals and the weakening of the CAD against the USD, offset in part by higher NBSK shipment volumes. The comparison of cost of products sold versus Q2-24 and YTD-24 were also both impacted by a $7 million unfavourable impact relating to inventory valuation adjustments.
Freight and other distribution costs increased compared to Q1-25 due to higher NBSK shipment volumes and higher freight rates. Freight and other distribution costs decreased versus Q2-24 and YTD-24 due to the impact of the pulp mill disposals, offset by higher NBSK shipment volumes.
Amortization expense was comparable versus Q1-25 and Q2-24. In 2024, the disposed pulp mills were classified as held for sale and were not amortized. Amortization expense increased from YTD-24 due to our attaining sole control of CPP in Q1-24.
Selling, general and administration costs were comparable versus all comparative periods.
We recorded an impairment loss of $5 million in Q2-24 and $3 million in YTD-24 upon completion of the pulp mill disposals.
Operating earnings for the Pulp & Paper Segment decreased by $8 million compared to Q1-25, decreased by $5 million compared to Q2-24, and decreased by $5 million from YTD-24 due to the reasons explained above.
Adjusted EBITDA for the Pulp & Paper Segment decreased by $8 million compared to Q1-25, decreased by $9 million compared to Q2-24, and decreased by $6 million from YTD-24 due to the reasons explained above.
Europe Engineered Wood Products Segment
Europe EWP Segment Earnings ($ millions unless otherwise indicated) | Q2-25 | Q1-25 | YTD-25 | Q2-24 | YTD-24 | ||||||||||||
| Sales | $ | 130 | $ | 117 | $ | 248 | $ | 119 | $ | 227 | |||||||
| Cost of products sold | (108) | (101) | (209) | (94) | (186) | ||||||||||||
| Freight and other distribution costs | (12) | (11) | (23) | (11) | (21) | ||||||||||||
| Amortization | (10) | (10) | (21) | (12) | (24) | ||||||||||||
| Selling, general and administration | (8) | (7) | (15) | (8) | (15) | ||||||||||||
| Operating loss | $ | (8) | $ | (13) | $ | (21) | $ | (6) | $ | (20) | |||||||
Adjusted EBITDA1 | $ | 2 | $ | (2) | $ | — | $ | 6 | $ | 5 | |||||||
OSB (MMsf 3/8” basis) | |||||||||||||||||
| Production | 296 | 271 | 567 | 304 | 577 | ||||||||||||
| Shipments | 301 | 292 | 593 | 299 | 576 | ||||||||||||
| GBP - USD exchange rate | |||||||||||||||||
| Closing rate | 1.37 | 1.29 | 1.37 | 1.26 | 1.26 | ||||||||||||
| Average rate | 1.33 | 1.26 | 1.29 | 1.26 | 1.26 | ||||||||||||
1.This is a non-GAAP financial measure. Refer to the “Non-GAAP and Other Specified Financial Measures” section of this document for more information on this measure.
Our Europe EWP segment includes our U.K. and Belgium OSB, MDF, and particleboard operations. Revenues and expenses of our European operations, which have British pound sterling and Euro functional currencies, are translated at the average rate of exchange prevailing during the period.
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Sales and Shipments
Sales increased compared to Q1-25 due primarily to higher OSB product pricing, the strengthening of the GBP against the USD, and higher OSB shipment volumes. Sales increased compared to Q2-24 and YTD-24 due primarily to the strengthening of the GBP against the USD and higher shipment volumes. Higher OSB pricing was offset by lower MDF and particleboard product pricing.
The price variance resulted in an increase of $4 million in operating earnings and Adjusted EBITDA compared to Q1-25, a decrease of $1 million compared to Q2-24, and a decrease of $7 million from YTD-24. The price variance represents the impact of changes in product pricing in local currency terms, with any associated foreign exchange impact from the strengthening or weakening of the GBP against the USD presented under Other in the Adjusted EBITDA variance table.
The volume variance resulted in an increase in operating earnings and Adjusted EBITDA of $3 million compared to Q1-25, an increase of $3 million compared to Q2-24, and an increase of $6 million compared to YTD-24.
Costs and Production
OSB production volumes increased compared to Q1-25 due to lower production curtailments taken to manage inventory levels in the current quarter. OSB production volumes were broadly comparable versus Q2-24 and YTD-24. MDF and particleboard production volumes increased versus all comparative periods due to lower production curtailments taken to manage inventory levels in the current year.
Cost of products sold increased versus all comparative periods, driven by higher OSB shipment volumes and the strengthening of the GBP against the USD. The increase versus prior year periods was also driven by higher fibre costs, with higher energy costs being a contributing factor in the comparison versus Q2-24.
Freight and other distribution costs increased versus all comparative periods due to higher shipment volumes.
Amortization expense in Q2-25 was broadly consistent with Q1-25. Amortization expense decreased versus prior year as certain assets reached the end of their estimated useful lives.
Selling, general and administration costs were broadly consistent with comparable periods.
Operating earnings for the Europe EWP Segment increased by $5 million compared to Q1-25, decreased by $2 million compared to Q2-24, and decreased by $1 million from YTD-24 due to the reasons explained above.
Adjusted EBITDA for the Europe EWP Segment increased by $5 million compared to Q1-25, decreased by $4 million compared to Q2-24, and decreased by $5 million from YTD-24.
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Discussion & Analysis of Specific Items
Selling, general and administration
Selling, general and administration costs for Q2-25 were $69 million (Q1-25 - $73 million; Q2-24 - $70 million). Selling, general and administration costs for YTD-25 were $142 million (YTD-24 - $146 million).
Selling, general and administration costs decreased versus Q1-25 due primarily to the impact of variable compensation expense recorded in Q1-25.
Selling, general and administration costs decreased versus Q2-24 due primarily to the impact of facility closures and curtailments and various organizational efficiency initiatives.
Selling, general and administration costs decreased versus YTD-24 due primarily to the impact of the pulp mill disposals and other facility curtailments and closures and the strengthening of the USD against the CAD. This was offset in part by the impact of variable compensation expense recorded in Q1-25 and our attaining sole control of CPP in Q1-24.
Selling, general and administration costs related to our operating segments are also discussed under “Discussion & Analysis of Quarterly Results by Product Segment”.
Equity-based compensation
Our equity-based compensation includes our share purchase option, phantom share unit, and deferred share unit plans (collectively, the “Plans”). Our Plans are fair valued at each period-end, and the resulting expense or recovery is recorded in equity-based compensation expense over the vesting period.
Our valuation models consider various factors, with the most significant being the change in the market value of our shares from the beginning to the end of the relevant period. The expense or recovery does not necessarily represent the value that the holders of options and units will ultimately receive.
We recorded a $5 million recovery during Q2-25 (Q1-25 - recovery of $3 million; Q2-24 - recovery of $4 million) and a $8 million recovery during YTD-25 (YTD-24 - nominal expense). The recovery in Q2-25 and YTD-25 primarily reflects a decrease in the price of our common shares traded on the TSX.
Finance income, net
Finance income, net includes interest earned on short-term investments and net interest income recognized on our Canadian lumber export duty deposits.
We recorded finance income, net of $4 million in Q2-25 (Q1-25 - finance income, net of $6 million; Q2-24 - finance income, net of $6 million) and finance income, net of $10 million in YTD-25 (YTD-24 - finance income, net of $15 million).
Finance income, net decreased from Q1-25 due primarily to the amendment of our existing $200 million term loan facility maturing July 2025 to a $300 million term loan facility maturing May 2028.
Finance income, net decreased compared to Q2-24 and YTD-24 due primarily to decreased interest income earned on lower cash and cash equivalents balances, offset in part by lower interest expense relating to long-term debt following the repayment of our senior notes in October 2024.
Other income (expense)
Other expense of $2 million was recorded in Q2-25 (Q1-25 - other expense of $3 million; Q2-24 - other income of $1 million). Other expense of $5 million was recorded in YTD-25 (YTD-24 - other expense of $5 million).
Other expense in Q2-25 relates primarily to foreign exchange losses recorded on our CAD-denominated monetary assets and liabilities as the USD weakened against the CAD, offset in part by gains on our electricity swaps, driven by increases in forward electricity prices over the remaining term of the contracts. Other expense in YTD-25 relates primarily to foreign exchange losses recorded on our CAD-denominated monetary assets and liabilities as the USD weakened against the CAD.
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Tax recovery (provision)
Q2-25 results include income tax recovery of $19 million, compared to income tax expense of $25 million in Q1-25 and income tax expense of $34 million in Q2-24, resulting in an effective tax rate of 44% in the current quarter compared to 37% in Q1-25 and 25% in Q2-24.
The effective tax rate in Q2-25 was primarily impacted by the impacts of functional currency differences and changes in valuation allowances. The effective tax rate can be sensitive to non-taxable permanent differences and differences in our jurisdictional tax rates in periods of lower pre-tax earnings.
In Q1-25, we entered into a settlement agreement with the CRA in respect of certain prior tax periods. As a result, we recorded an additional tax provision of $6 million in Q1-25 and have received income tax refunds of $34 million on account of the matters in question.
YTD-25 income tax expense is $6 million compared to income tax expense of $50 million for YTD-24, resulting in effective tax rates of 25% and 26% respectively.
Other comprehensive earnings – translation of operations with different functional currencies
We recorded a translation gain of $34 million during Q2-25 (Q1-25 - translation gain of $16 million; Q2-24 - translation loss of $2 million) and a translation gain of $50 million during YTD-25 (YTD-24 - translation loss of $11 million).
In general, a strengthening (weakening) of the USD against the Canadian dollar, British pound sterling or Euro results in a translation loss (gain). The translation gains in the Q2-25 and YTD-25 reflect a weakening of the USD against the British pound sterling and Canadian dollar.
Other comprehensive earnings – actuarial gains/losses on retirement benefits
We recorded an after-tax actuarial gain of $7 million during Q2-25 (Q1-25 - after-tax actuarial loss of $3 million; Q2-24 - after-tax actuarial gain of $8 million) and an after-tax actuarial gain of $4 million during YTD-25 (YTD-24 - after-tax actuarial gain of $26 million).
The actuarial gains in Q2-25 and YTD-25 relate primarily to the impact of an increase in the weighted average discount rate used to calculate our plan liabilities, offset in part by lower returns on plan assets.
| OUTLOOK AND OPERATIONS | ||
Business Outlook
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
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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.
Softwood lumber dispute
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, and we are required to make deposits in respect of these duties. Whether and to what extent we can realize a selling price to recover the impact of duties payable will largely depend on the strength of demand for softwood lumber.
The USDOC commenced Administrative Review 7 (“AR7”) in February 2025, with final rates expected in 2026. Additional details can be found under the section “Discussion & Analysis of Quarterly Results by Product Segment - Lumber Segment - Softwood Lumber Dispute".
On March 3, 2025, the USDOC released the preliminary results for the AR6 ADD investigation covering the calendar year 2023, which indicated a rate of 9.48%. On April 4, 2025, the USDOC released the preliminary results for the AR6 CVD investigation covering calendar year 2023, which indicated a rate of 16.57%. The duty rates are subject to an appeal process, and we will record an adjustment once the rates are finalized. If the AR6 rates were to be confirmed, it would result in an expense of $65 million before the impact of interest for the POI covered by AR6. This adjustment would increase export duties payable recorded on our balance sheet. If these rates were to be finalized, our combined cash deposit rate would be 26.05%.
Operations
Anticipated shipment levels assume no significant change from current market demand conditions, typical seasonal demand patterns, sufficient availability of logs within our economic return criteria, and no further indefinite or permanent curtailments. Our operations and results could be negatively affected by increasing or elevated interest rates, duties and tariffs, softening demand, the availability of transportation, the availability of labour, disruption to the global economy resulting from the conflicts in Ukraine and the Middle East, inflationary pressures, including increases in energy prices, adverse weather conditions in our operating areas, intense competition for logs, elevated stumpage fees, and production disruptions due to other uncontrollable factors.
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). 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. On July 1, 2025, stumpage rates increased slightly in B.C. due to the market-based adjustments related to lumber prices, with inflationary pressures on development, logging and delivery costs continuing to provide upward bias to total fibre costs. Given the recent commodity price environment, B.C. stumpage rates are expected to track only modestly higher through Q3-25. In Alberta, Q3-25 stumpage rates are also expected to be slightly above Q2-25 levels as these rates are closely linked to the price of lumber but with a quicker response to changing lumber prices. Recent sawmill capacity curtailments across the U.S. South have created opportunities for lower log costs, with the
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pace of cost reductions largely stabilizing in Q2-25 but varying by region. We expect average 2025 log costs across the U.S. South to be largely similar to those we experienced in the second half of 2024, though pulp mill curtailments and closures have caused a decline in the net prices received for sawmill residuals in some instances. Region-specific log costs and prices for residuals are likely to vary depending on the unique conditions in each procurement zone.
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). 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. Start-up of the Allendale mill is ongoing and we continue to anticipate a ramp-up period for the mill of up to three years to meet targeted production levels. We expect our overall OSB platform to be better and lower cost with a modern Allendale facility optimized and running near full operating rates, and as with all our wood products operations, demand is a key input in determining our operating schedules across our manufacturing footprint. Input costs for the NA EWP business are still expected to be relatively stable through 2025. Pulp mill curtailments and closures in the U.S. South in recent years have caused some regional excess supply of pulpwood logs, the primary fibre source for OSB production.
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). Input costs for the Europe EWP business in 2025, including energy and resin costs, are still expected to stabilize near 2024 levels, though we note year-to-date energy costs have been significantly higher than levels experienced in the period before the 2022 escalation of the Ukraine and Russia conflict.
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.
We will continue to regularly evaluate the factors above as well as evolving market conditions in making production decisions across the business.
Cash Flows
We anticipate levels of operating cash flows and available liquidity will support our capital spending plans in 2025 as we look to operationalize the significant capital we have invested in recent years. 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 20251. Our total capital budget consists of various improvement projects and maintenance expenditures, projects focused on optimization and automation of the manufacturing process, and projects targeted to reduce greenhouse gas emissions. Construction for the modernization of our Henderson, Texas lumber manufacturing facility is now largely complete and preparations are underway for the mill to begin its start-up curve. We anticipate 18 to 24 months to ramp-up the new Henderson mill and do not expect to realize meaningful incremental production from the mill until 2026.
1.This is a supplementary financial measure. Refer to the “Non-GAAP and Other Specified Financial Measures” section of this document for more information on this measure.
We expect to maintain our investment grade issuer rating and intend to preserve sufficient liquidity to be able to take advantage of strategic growth opportunities that may arise.
Under our 2024 NCIB that expired February 28, 2025, we purchased 2,079,530 Common shares of the Company.
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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. As of July 22, 2025, 741,748 Common shares have been repurchased for cancellation, leaving 3,126,429 available to purchase at our discretion until the expiry of the 2025 NCIB.
As of July 22, 2025, we have repurchased for cancellation 44,470,582 of the Company’s Common shares since the closing of the Norbord Acquisition on February 1, 2021 through the completion of the 2021 SIB, the 2022 SIB, and normal course issuer bids, equalling 82% of the shares issued in respect of the Norbord Acquisition.
We have paid a dividend in every quarter since we became a public company in 1986 and expect to continue this practice. At the latest declared quarterly dividend rate of $0.32 per share, the total anticipated cash payment of dividends in 2025 is $101 million based on the number of Common and Class B Common shares outstanding on June 27, 2025.
We will continue to consider share repurchases with excess cash, subject to regulatory approvals, if we are satisfied that this will enhance shareholder value and not compromise our financial flexibility.
| LIQUIDITY AND CAPITAL RESOURCES | ||
Capital Management Framework
Our business is cyclical and is subject to significant changes in cash flow over the business cycle. In addition, financial performance can be materially influenced by changes in product prices and the relative values of the Canadian and U.S. dollars. Our objective in managing capital is to ensure adequate liquidity and financial flexibility at all times, particularly at the lower points in the business cycle.
Our main policy relating to capital management is to maintain a strong balance sheet and otherwise meet financial tests that rating agencies commonly apply for investment-grade issuers of public debt. We are currently rated as an investment grade issuer by three major rating agencies.
We monitor and assess our financial performance to ensure that debt levels are prudent, taking into account the anticipated direction of the business cycle. When financing acquisitions, we combine cash on hand, debt, and equity financing in a proportion that is intended to maintain an investment-grade rating for debt throughout the cycle. Debt repayments are arranged, where possible, on a staggered basis that takes into account the uneven nature of anticipated cash flows. We have established committed revolving lines of credit that provide liquidity and flexibility when capital markets are restricted. In addition, as a normal part of our business, we have in the past and may from time to time seek to repurchase our outstanding securities through issuer bids or tender offers, open market purchases, privately negotiated transactions or otherwise. Such repurchases, if any, will depend on prevailing market conditions, our liquidity requirements, contractual and legal restrictions and other factors.
A strong balance sheet and liquidity profile, along with our investment-grade issuer rating, are key elements of our goal to maintain a balanced capital allocation strategy. Priorities within this strategy include: reinvesting in our operations across all market cycles to strategically enhance productivity, product mix, and capacity; optimizing our portfolio of assets to reduce the variability of cash flows across market cycles; maintaining a leading cost position; maintaining financial flexibility to capitalize on growth opportunities, including the pursuit of acquisitions and larger-scale strategic growth initiatives; and returning capital to shareholders through dividends and share repurchases.
Liquidity and Capital Resource Measures
Our capital structure consists of Common share equity and long-term debt, and our liquidity includes our operating facilities.
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Summary of Liquidity and Debt Ratios ($ millions, except as otherwise indicated) | June 27, | December 31, | ||||||
| 2025 | 2024 | |||||||
| Available liquidity | ||||||||
| Cash and cash equivalents | $ | 646 | $ | 641 | ||||
Operating lines available (excluding newsprint operation)1 | 1,046 | 1,044 | ||||||
| Available liquidity | $ | 1,692 | $ | 1,685 | ||||
Total debt to total capital2 | 5 | % | 4 | % | ||||
Net debt to total capital2 | (5 | %) | (6 | %) | ||||
1.Excludes demand line of credit dedicated to our jointly-owned newsprint operation as West Fraser cannot draw on it.
2.This is a capital management measure. Refer to the “Non-GAAP and Other Specified Financial Measures” section of this document for more information on this measure.
Available liquidity as at June 27, 2025 was $1,692 million (December 31, 2024 - $1,685 million). Available liquidity includes cash and cash equivalents, cheques issued in excess of funds on deposit, and amounts available on our operating loans, excluding the demand line of credit dedicated to our 50% jointly-owned newsprint operation.
Please refer to the “Cash Flow” section for analysis of the changes in cash and cash equivalents. Net debt to total capital and total debt to total capital were comparable to Q4-24 and we remain well positioned with a strong balance sheet and liquidity profile.
Credit Facilities
As at June 27, 2025, our credit facilities consisted of a $1 billion committed revolving credit facility which matures May 2030, $25 million of uncommitted revolving credit facilities available to our U.S. subsidiaries, a $20 million (£15 million) credit facility dedicated to our European operations, and a $11 million (CAD$15 million) demand line of credit dedicated to our jointly‑owned newsprint operation.
In May 2025, we amended and restated our syndicated credit agreement providing for the renewal of our $1 billion revolving credit facility and extension of the facility's maturity from July 2028 to May 2030. The renewed credit facility was made available on substantially the same terms and conditions as our existing credit facility.
As at June 27, 2025, our revolving credit facilities were undrawn (December 31, 2024 - undrawn) and the associated deferred financing costs of $2 million (December 31, 2024 - $2 million) were recorded in other assets. Interest on the facilities is payable at floating rates based on Prime Rate Advances, US Base Rate Advances, Canadian Overnight Repo Rate Average (“CORRA”) Advances, or Secured Overnight Financing Rate (“SOFR”) Advances at our option.
In addition, we have credit facilities totalling $137 million (December 31, 2024 - $130 million) dedicated to letters of credit. Letters of credit in the amount of $37 million (December 31, 2024 - $36 million) were supported by these facilities.
All debt is unsecured except the $11 million (CAD$15 million) jointly-owned newsprint operation demand line of credit, which is secured by that joint operation’s current assets.
Long-Term Debt
In May 2025, in addition to the renewal of our $1 billion revolving credit facility, we also increased and extended our existing $200 million term loan facility maturing July 2025. The modified term loan facility is for $300 million and matures May 2028. Interest on the term loan facility is payable at floating rates based on US Base Rate Advances or SOFR Advances at our option. This loan is repayable at any time, in whole or in part, at our option and without penalty but cannot be redrawn after payment.
We have interest rate swap contracts to pay fixed interest rates and receive variable interest rates on $200 million notional principal amount of indebtedness expiring July 25, 2025. Prior to expiry, these swap agreements have the effect of fixing the interest rate on $200 million of the term loan facility discussed above, with the remaining $100 million being subject to a floating rate.
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Issuer Ratings
We are considered investment grade by three leading rating agencies. On October 22, 2024, Moody's upgraded our issuer rating to Baa2, with an outlook of stable. The ratings in the table below are as at July 22, 2025.
| Agency | Rating | Outlook | ||||||
| DBRS | BBB | Stable | ||||||
| Moody’s | Baa2 | Stable | ||||||
| Standard & Poor’s | BBB- | Stable | ||||||
These ratings are not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time by the rating agencies.
Shareholder’s Equity
Our outstanding Common share equity consists of 76,576,171 Common shares and 2,281,478 Class B Common shares for a total of 78,857,649 Common shares issued and outstanding as at July 22, 2025. As of July 22, 2025, we held 13,390 Common shares as treasury shares for cancellation.
The Common shares and Class B Common shares are equal in all respects, including the right to dividends, rights upon dissolution or winding up and the right to vote, except that each Class B Common share may at any time be exchanged for one Common share. Our Common shares are listed for trading on the TSX and NYSE under the symbol WFG, while our Class B Common shares are not. Certain circumstances or corporate transactions may require the approval of the holders of our Common shares and Class B Common shares on a separate class by class basis.
Share Repurchases
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. As of July 22, 2025, we have repurchased 741,748 common shares under our 2025 NCIB program.
On February 27, 2024, we renewed our normal course issuer bid (“2024 NCIB”) allowing us to acquire up to 3,971,380 Common shares for cancellation from March 1, 2024 until the expiry of the bid on February 28, 2025. Under this program, we repurchased 2,079,530 common shares for cancellation.
The following table shows our purchases under our NCIB programs in 2024 and 2025:
Share repurchases (number of common shares and price per share) | Common Shares | Average Price in USD | |||||||||
| NCIB: | January 1, 2024 to December 31, 2024 | 1,799,217 | $ | 80.26 | |||||||
| NCIB: | January 1, 2025 to June 27, 2025 | 977,661 | $ | 78.68 | |||||||
Share Options
As at July 22, 2025, there were 719,092 share options outstanding with exercise prices ranging from CAD$40.97 to CAD$123.63 per Common share.
Cash Flow
Our cash is deployed primarily for operating purposes, interest payments, repayment of debt, investments in property, plant and equipment, acquisitions, share repurchases, and dividends. In normal business cycles and in years without a major acquisition or debt repayment, cash on hand and cash provided by operations have typically been sufficient to meet these uses.
We are exposed to commodity price changes. To manage our liquidity risk, we maintain adequate cash and cash equivalents balances and appropriate lines of credit. In addition, we regularly monitor and review both actual and
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forecasted cash flows. Refinancing risks are managed by extending maturities through regular renewals and refinancing when market conditions are supportive.
| Three Months Ended | Six Months Ended | ||||||||||||||||
($ millions - cash provided by (used for)) | June 27, | June 28, | June 27, | June 28, | |||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||
| Cash provided by operating activities | |||||||||||||||||
| Earnings (loss) | $ | (24) | $ | 105 | $ | 18 | $ | 139 | |||||||||
| Adjustments | |||||||||||||||||
| Amortization | 134 | 138 | 267 | 276 | |||||||||||||
| Restructuring and impairment charges | — | 5 | — | 16 | |||||||||||||
| Finance income, net | (4) | (6) | (10) | (15) | |||||||||||||
| Foreign exchange loss (gain) | 7 | — | 6 | (3) | |||||||||||||
| Retirement benefit expense | 17 | 19 | 35 | 34 | |||||||||||||
| Net contributions to retirement benefit plans | (5) | (15) | (14) | (28) | |||||||||||||
| Tax provision (recovery) | (19) | 34 | 6 | 50 | |||||||||||||
| Income taxes received (paid) | 20 | — | (54) | (3) | |||||||||||||
| Unrealized loss (gain) on electricity swaps | (9) | (5) | (5) | 6 | |||||||||||||
| Other | (13) | (19) | 10 | (4) | |||||||||||||
| Changes in non-cash working capital | |||||||||||||||||
| Receivables | 65 | 3 | (36) | (90) | |||||||||||||
| Inventories | 193 | 165 | — | 17 | |||||||||||||
| Prepaid expenses | (33) | (24) | (29) | (19) | |||||||||||||
| Payables and accrued liabilities | (44) | (22) | 15 | (38) | |||||||||||||
| 285 | 378 | 210 | 338 | ||||||||||||||
| Cash provided by (used for) financing activities | |||||||||||||||||
Proceeds from amendment of long-term debt | 100 | — | 100 | — | |||||||||||||
Repayment of lease obligations | (4) | (3) | (7) | (6) | |||||||||||||
Finance expense paid | (5) | (11) | (9) | (15) | |||||||||||||
Repurchase of Common shares for cancellation | (34) | (71) | (80) | (79) | |||||||||||||
Issuance of Common shares | — | — | — | 1 | |||||||||||||
Dividends paid | (25) | (24) | (51) | (49) | |||||||||||||
| 32 | (110) | (48) | (148) | ||||||||||||||
| Cash provided by (used for) investing activities | |||||||||||||||||
Proceeds from sale of pulp mills | — | 119 | — | 124 | |||||||||||||
Additions to capital assets | (78) | (102) | (182) | (224) | |||||||||||||
| Interest received | 8 | 11 | 14 | 22 | |||||||||||||
| Other | 1 | — | (1) | — | |||||||||||||
| $ | (70) | $ | 28 | $ | (169) | $ | (78) | ||||||||||
| Change in cash and cash equivalents | $ | 247 | $ | 296 | $ | (7) | $ | 112 | |||||||||
Operating Activities
The table above shows the main components of cash flows provided by or used for operating activities for each period.
Cash provided by operating activities decreased versus comparative periods due primarily to lower earnings driven by lower OSB pricing, offset in part by higher lumber pricing, changes in income tax payments, and incremental releases in working capital.
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Income tax payments for YTD-25 included top-up payments for the prior year and were net of $34 million of refunds on account of a settlement agreement reached with the CRA in Q1-25 with the funds received in Q2-25.
Working capital decreased in Q2-25 due primarily to lower inventories and receivables, offset in part by higher prepaids and lower payables and accrued liabilities.
Decreases in inventories related primarily to consumption of log inventory. Log inventory is typically built up in the northern regions of North America and Europe during the winter to sustain our lumber and EWP production during the spring and summer months, when logging is curtailed due to wet and inaccessible land conditions. Q2-25 also saw a decrease in volumes of NA EWP and SYP lumber finished goods inventory.
Decreases in receivables in Q2-25 driven primarily by lower OSB and lumber product pricing. Prepaids increased due primarily to the timing of certain insurance renewals and property tax payments made. Payables and accrued liabilities decreased in Q2-25 due primarily to lower stumpage and contractor accruals as logging was curtailed during the second quarter.
Working capital increased in YTD-25 due to higher receivables and prepaids, offset in part by higher payables and accrued liabilities.
Receivables increased in YTD-25 due primarily to higher shipment activity at the end of Q2-25. Prepaids increased due primarily to the reasons discussed above. Payables and accrued liabilities increased in YTD-25 due primarily to lower accrued equity-based compensation and timing of payments.
Financing Activities
Cash used in financing activities increased versus comparative periods due primarily to proceeds from amendment of our term loan facility. We received $100 million as we increased and extended our existing $200 million term loan facility maturing July 2025. The modified term loan facility is for $300 million and matures May 2028.
We returned $34 million and $80 million respectively during the three and six months ended June 27, 2025 to our shareholders through Common shares repurchased under our NCIB, compared to $71 million and $79 million respectively during the three and six months ended June 28, 2024.
We returned a total of $25 million and $51 million during the three and six months ended June 27, 2025 to our shareholders through dividend payments, which was comparable to the same periods in 2024.
Investing Activities
Capital expenditures of $78 million in Q2-25 (Q2-24 - $102 million) and $182 million in YTD-25 (YTD-24 - $224 million) reflect our strategy of continued reinvestment in our mills.
We received $124 million of proceeds during the six months ended June 28, 2024 in relation to the sale of Hinton pulp mill on February 3, 2024 and the sale of Quesnel River Pulp mill and Slave Lake Pulp mill on April 20, 2024.
| Three Months Ended | Six Months Ended | |||||||||||||
Capital Expenditures by Segment ($ millions) | June 27, | June 28, | June 27, | June 28, | ||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||
| Lumber | $ | 40 | $ | 60 | $ | 103 | $ | 156 | ||||||
| North America EWP | 33 | 35 | 71 | 53 | ||||||||||
| Pulp & Paper | 1 | 1 | 0 | 4 | ||||||||||
| Europe EWP | 3 | 6 | 6 | 11 | ||||||||||
| Corporate | 1 | 0 | 1 | 0 | ||||||||||
| Total | $ | 78 | $ | 102 | $ | 182 | $ | 224 | ||||||
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| RISKS AND UNCERTAINTIES | ||
Our business is subject to a number of risks and uncertainties. Risks and uncertainties are included in our Annual MD&A, as updated in the disclosures in our quarterly MD&A, our public filings with securities regulatory authorities, and also include additional risks and uncertainties identified in this MD&A.
| CONTROLS AND PROCEDURES | ||
West Fraser is responsible for establishing and maintaining disclosure controls and procedures and internal control over financial reporting, each as defined in NI 52-109 in Canada and under the Securities Exchange Act of 1934, as amended, in the United States.
Disclosure Controls and Procedures
We have designed our disclosure controls and procedures to provide reasonable assurance that information that is required to be disclosed by us in our annual filings, interim filings and other reports that we file or submit under securities legislation is recorded, processed, summarized, and reported within the time periods specified in the securities legislation. These include controls and procedures designed to ensure that information that we are required to disclose under securities legislation is accumulated and communicated to our management, including our President and Chief Executive Officer (“CEO”) and the Senior Vice-President, Finance and Chief Financial Officer (“CFO”), as appropriate to allow timely decisions regarding required disclosure.
Management’s Report on Internal Control Over Financial Reporting
Management, under the supervision of the CEO and CFO, is responsible for establishing and maintaining adequate internal control over financial reporting, as defined under NI 52-109 in Canada and the Securities Exchange Act of 1934, as amended, in the United States, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external reporting purposes in accordance with IFRS Accounting Standards.
There has been no change in our internal control over financial reporting during the three months ended June 27, 2025 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
Due to its inherent limitations, internal control over financial reporting may not prevent or detect misstatements on a timely basis. Additionally, projections of any evaluation of the effectiveness of internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
| DEFINITIONS, RECONCILIATIONS, AND OTHER INFORMATION | ||
Non-GAAP and Other Specified Financial Measures
Throughout this MD&A, we make reference to (i) certain non-GAAP financial measures, including Adjusted EBITDA and Adjusted EBITDA by segment (our “Non-GAAP Financial Measures”), (ii) certain capital management measures, including available liquidity, total debt to capital ratio, and net debt to capital ratio (our “Capital Management Measures”), and (iii) certain supplementary financial measures, including our expected capital expenditures (our “Supplementary Financial Measures”). We believe that these Non-GAAP Financial Measures, Capital Management Measures, and Supplementary Financial Measures (collectively, our “Non-GAAP and other specified financial measures”) are useful performance indicators for investors to understand our 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
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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.
Adjusted EBITDA and Adjusted EBITDA by Segment
Adjusted EBITDA is used to evaluate the operating and financial performance of our operating segments, generate future operating plans, and make strategic decisions. 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 Accounting Standards 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 should not, in our opinion, be considered in a long-term valuation metric or should not be 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 table reconciles Adjusted EBITDA to the most directly comparable IFRS measure, earnings.
Quarterly Adjusted EBITDA ($ millions) | ||||||||||||||||||||
| Q2-25 | Q1-25 | YTD-25 | Q2-24 | YTD-24 | ||||||||||||||||
| Earnings | $ | (24) | $ | 42 | $ | 18 | $ | 105 | $ | 139 | ||||||||||
| Finance expense (income), net | (4) | (6) | (10) | (6) | (15) | |||||||||||||||
| Tax (recovery) provision | (19) | 25 | 6 | 34 | 50 | |||||||||||||||
| Amortization | 134 | 134 | 267 | 138 | 276 | |||||||||||||||
| Equity-based compensation | (5) | (3) | (8) | (4) | — | |||||||||||||||
| Restructuring and impairment charges | — | — | — | 5 | 16 | |||||||||||||||
| Other expense (income) | 2 | 3 | 5 | (1) | 5 | |||||||||||||||
| Adjusted EBITDA | $ | 84 | $ | 195 | $ | 279 | $ | 272 | $ | 472 | ||||||||||
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 | Corporate & 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 | ||||||||
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| Q1-25 | Lumber | NA EWP | Pulp & Paper | Europe EWP | Corporate & 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 | ||||||||
| Q2-24 | Lumber | NA EWP | Pulp & Paper | Europe EWP | Corporate & Other | Total | ||||||||||||||
| Operating earnings (loss) | $ | (100) | $ | 236 | $ | — | $ | (6) | $ | 2 | $ | 132 | ||||||||
| Amortization | 49 | 71 | 4 | 12 | 3 | 138 | ||||||||||||||
| Equity-based compensation | — | — | — | — | (4) | (4) | ||||||||||||||
| Restructuring and impairment charges (reversal) | (1) | 1 | 5 | — | — | 5 | ||||||||||||||
| Adjusted EBITDA by segment | $ | (51) | $ | 308 | $ | 9 | $ | 6 | $ | 1 | $ | 272 | ||||||||
| YTD-25 | Lumber | NA EWP | Pulp & Paper | Europe EWP | Corporate & Other | Total | ||||||||||||||
| Operating earnings (loss) | $ | (10) | $ | 47 | $ | (2) | $ | (21) | $ | 5 | $ | 19 | ||||||||
| Amortization | 92 | 145 | 8 | 21 | 2 | 267 | ||||||||||||||
| Equity-based compensation | — | — | — | — | (8) | (8) | ||||||||||||||
| Adjusted EBITDA by segment | $ | 81 | $ | 192 | $ | 6 | $ | — | $ | (1) | $ | 279 | ||||||||
| YTD-24 | Lumber | NA EWP | Pulp & Paper | Europe EWP | Corporate & Other | Total | ||||||||||||||
| Operating earnings (loss) | $ | (152) | $ | 353 | $ | 3 | $ | (20) | $ | (5) | $ | 180 | ||||||||
| Amortization | 99 | 141 | 6 | 24 | 6 | 276 | ||||||||||||||
| Equity-based compensation | — | — | — | — | — | — | ||||||||||||||
| Restructuring and impairment charges | 12 | 1 | 3 | — | — | 16 | ||||||||||||||
| Adjusted EBITDA by segment | $ | (41) | $ | 495 | $ | 12 | $ | 5 | $ | 1 | $ | 472 | ||||||||
Available liquidity
Available liquidity is the sum of our cash and cash equivalents and funds available under our committed and uncommitted bank credit facilities. We believe disclosing this measure assists readers in understanding our ability to meet uses of cash resulting from contractual obligations and other commitments at a point in time.
Summary of Liquidity and Debt Ratios ($ millions, except as otherwise indicated) | June 27, | December 31, | ||||||
| 2025 | 2024 | |||||||
| Cash and cash equivalents | $ | 646 | $ | 641 | ||||
Operating lines available (excluding newsprint operation)1 | 1,046 | 1,044 | ||||||
| 1,692 | 1,685 | |||||||
| Cheques issued in excess of funds on deposit | — | — | ||||||
| Borrowings on operating lines | — | — | ||||||
| Available liquidity | $ | 1,692 | $ | 1,685 | ||||
1.Excludes demand line of credit dedicated to our jointly-owned newsprint operation as West Fraser cannot draw on it.
Total debt to total capital ratio
Total debt to total capital ratio is total debt divided by total capital, expressed as a percentage. Total capital is defined as the sum of total debt plus total equity. This calculation is defined in certain of our bank covenant agreements. We believe
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disclosing this measure assists readers in understanding our capital structure, financial solvency, and degree of leverage at a point in time.
The following table outlines the composition of the measure.
Total Debt to Capital ($ millions) | June 27, | December 31, | ||||||
| 2025 | 2024 | |||||||
| Debt | ||||||||
| Operating loans | $ | — | $ | — | ||||
| Current and non-current lease obligation | 36 | 29 | ||||||
| Current and non-current debt | 300 | 200 | ||||||
Derivative liabilities1 | — | — | ||||||
Open letters of credit1 | 37 | 36 | ||||||
| Total debt | 373 | 265 | ||||||
| Shareholders’ equity | 6,898 | 6,954 | ||||||
| Total capital | $ | 7,270 | $ | 7,219 | ||||
| Total debt to capital | 5% | 4% | ||||||
1.Letters of credit facilities and the fair value of derivative liabilities are part of our bank covenants’ total debt calculation.
Net debt to capital ratio
Net debt to capital ratio is net debt divided by total capital, expressed as a percentage. Net debt is calculated as total debt less cash and cash equivalents, open letters of credit, and the fair value of any derivative liabilities. Total capital is defined as the sum of net debt plus total equity. We believe disclosing this measure assists readers in understanding our capital structure, financial solvency, and degree of leverage at a point in time. We believe that using net debt in the calculation is helpful because net debt represents the amount of debt obligations that are not covered by available cash and cash equivalents.
The following table outlines the composition of the measure.
Net Debt to Capital ($ millions) | June 27, | December 31, | ||||||
| 2025 | 2024 | |||||||
| Debt | ||||||||
| Operating loans | $ | — | $ | — | ||||
| Current and long-term lease obligation | 36 | 29 | ||||||
| Current and long-term debt | 300 | 200 | ||||||
Derivative liabilities1 | — | — | ||||||
Open letters of credit1 | 37 | 36 | ||||||
| Total debt | 373 | 265 | ||||||
| Cash and cash equivalents | (646) | (641) | ||||||
Open letters of credit | (37) | (36) | ||||||
Derivative liabilities | — | — | ||||||
| Cheques issued in excess of funds on deposit | — | — | ||||||
| Net debt | (310) | (412) | ||||||
| Shareholders’ equity | 6,898 | 6,954 | ||||||
| Total capital | $ | 6,588 | $ | 6,542 | ||||
| Net debt to capital | (5) | % | (6) | % | ||||
1.Letters of credit facilities and the fair value of derivative liabilities are part of our bank covenants’ total debt calculation.
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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 this MD&A.
Glossary of Key Terms
We use the following terms in this MD&A:
| Term | Description | ||||
| AAC | Annual allowable cut | ||||
| ADD | Antidumping duty | ||||
| AR | Administrative Review by the USDOC | ||||
| B.C. | British Columbia | ||||
| BCTMP | Bleached chemithermomechanical pulp | ||||
| CAD or CAD$ | Canadian dollars | ||||
| CEO | President and Chief Executive Officer | ||||
| CFO | Senior Vice-President, Finance and Chief Financial Officer | ||||
| CGU | Cash generating unit | ||||
| COSO | Committee of Sponsoring Organizations of the Treadway Commission | ||||
CPP | Cariboo Pulp & Paper | ||||
CRA | Canada Revenue Agency | ||||
| Crown timber | Timber harvested from lands owned by a provincial government | ||||
| CVD | Countervailing duty | ||||
DC&P | Disclosure Controls and Procedures | ||||
| EDGAR | Electronic Data Gathering, Analysis and Retrieval System | ||||
| ESG | Environmental, Social and Governance | ||||
| EWP | Engineered wood products | ||||
GBP | British pound sterling | ||||
| GHG | Greenhouse gas | ||||
ICFR | Internal Control over Financial Reporting | ||||
IFRS Accounting Standards | International Financial Reporting Standards as issued by the International Accounting Standards Board | ||||
| LVL | Laminated veneer lumber | ||||
| MDF | Medium-density fibreboard | ||||
| NA | North America | ||||
| NA EWP | North America Engineered Wood Products | ||||
| NBSK | Northern bleached softwood kraft pulp | ||||
| NCIB | Normal course issuer bid | ||||
| 2023 NCIB | Normal course issuer bid - February 27, 2023 to February 26, 2024 | ||||
| 2024 NCIB | Normal course issuer bid - March 1, 2024 to February 28, 2025 | ||||
2025 NCIB | Normal course issuer bid - March 3, 2025 to March 2, 2026 | ||||
| NI 52-109 | National Instrument 52-109 - Certification of Disclosure in Issuers’ Annual and Interim Filings | ||||
| Norbord | Norbord Inc. | ||||
| Norbord Acquisition | Acquisition of Norbord completed February 1, 2021 | ||||
| NYSE | New York Stock Exchange | ||||
| OSB | Oriented strand board | ||||
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| POI | Period of Investigation in respect of an USDOC administrative review | ||||
| PPE | Property, plant, and equipment | ||||
| Q1-25 or Q1-24 | three months ended March 28, 2025 or March 29, 2024 and for balance sheet amounts as at March 28, 2025 or March 29, 2024 | ||||
| Q2-25 or Q2-24 | three months ended June 27, 2025 or June 28, 2024 and for balance sheet amounts as at June 27, 2025 or June 28, 2024 | ||||
| Q3-25 or Q3-24 | three months ended September 26, 2025 or September 27, 2024 and for balance sheet amounts as at September 26, 2025 or September 27, 2024 | ||||
| Q4-25 or Q4-24 | three months ended December 31, 2025 or 2024 and for balance sheet amounts as at December 31, 2025 or 2024 | ||||
| SEDAR+ | System for Electronic Document Analysis and Retrieval + | ||||
| SOFR | Secured Overnight Financing Rate | ||||
| SOX | Section 404 of the Sarbanes-Oxley Act | ||||
| SPF | Spruce/pine/balsam fir lumber | ||||
Spray Lake lumber mill | Spray Lake Sawmills (1980) Ltd. | ||||
| SYP | Southern yellow pine lumber | ||||
| TSX | Toronto Stock Exchange | ||||
| U.K. | United Kingdom | ||||
| UKP | Unbleached kraft pulp | ||||
| U.S. | United States | ||||
| USD or $ or US$ | United States Dollars | ||||
| USDOC | United States Department of Commerce | ||||
| USITC | United States International Trade Commission | ||||
YTD-25 or YTD-24 | six months ended June 27, 2025 or June 28, 2024 | ||||
Forward-Looking Statements
This MD&A 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 MD&A include references to:
| Discussion | Forward-Looking Statements | ||||
| Our Business and Strategy | our corporate strategy and objectives to generate strong financial results through the business cycle, to maintain robust product and geographic diversity, to maintain a strong balance sheet and liquidity profile along with an investment-grade issuer rating, to maintain a leading cost position and to return capital to shareholders, reinvest in operations across all market cycles to enhance productivity, product mix and capacity, and pursuit of opportunistic acquisitions and larger-scale growth initiatives | ||||
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| Recent Developments – Markets | impact of new home construction activity, interest rates and inflationary price pressures, mortgage rates, housing supply and demand and affordability, housing starts, housing prices, unemployment rates, repair and remodelling demand, inflationary pressures on demand for lumber and OSB, capacity contraction in lumber supply fundamentals, expectations regarding near, medium and longer-term core demand, prospect of future interest rate cuts, import trends and inflation; impact of new or reduced lumber and OSB production capacity on market supply and pricing; impact of tariff actions and possible actions from the Section 232 investigation on demand for our Canadian wood-based building products in the U.S. | ||||
Recent Developments - Tariffs | impact of tariff actions and possible actions from the Section 232 investigation, including the finalization of effective tariff rates, the duration of tariffs imposed and the scope and nature of tariffs imposed | ||||
Discussion & Analysis of Quarterly Results by Product Segment - Lumber Segment - Softwood Lumber Dispute | administrative review commencement, adjustment of export duty rates, proceedings related to duty rates, and timing of finalization of AR6, AR7 and AR8 duty rates | ||||
| Business Outlook – Markets | market conditions, housing affordability, demand for our products over the near, medium and longer term, growing market penetration of mass timber, impacts of interest rates and mortgage rates, rates for U.S. housing starts, inflationary pressures, ability to capitalize on long-term growth opportunities; and expectations as to reductions of interest rates, impact of broader economy and employment slowing and potential for demand decline in near term, ongoing geopolitical conflict, and the potential price inflation impact of U.S. tariffs | ||||
| Business Outlook – Softwood lumber dispute | the timing and finalization of the AR6, AR7 and AR8 duty rates and their impact on our financial position | ||||
Business Outlook – Operations | production levels, demand expectations, projected SPF and SYP lumber shipments, projected OSB shipments, and the impact of tariffs on SPF lumber and OSB demand and consequential impact on shipments into the U.S. from Canada, operating costs, fibre costs, expectation of trends in B.C. and Alberta stumpage rates, U.S. South log costs stabilizing at rates similar to 2024 levels, with region-specific log costs varying; reduced projected OSB shipments and related uncertainty in OSB demand forecasts due to tariff and policy uncertainty, the stability of costs from inputs continuing in the near term for U.S. OSB, regional excess supply of pulp logs as a result of recent sawmill curtailments, the timing, ramp up period to target production and contribution to shipments of Allendale OSB facility, and the contribution to our overall OSB platform with modern Allendale OSB facility operating, and expectations as to moderation of input costs and improved availability across supply chain, expected stabilization of input costs for Europe EWP in 2025 | ||||
| Business Outlook – Cash Flows | projected cash flows from operations and available liquidity, projected capital expenditures, total estimated capital costs, completion dates and ramp-up periods (including with respect to the modernization of the Henderson, Texas lumber manufacturing facility), expected results of capital expenditures, including improvements, maintenance, optimization and automation projects and projects targeted to reduce greenhouse gas emissions, maintenance of our investment grade issuer rating, strategic growth opportunities, expected continuity of dividends and share repurchases | ||||
| Liquidity and Capital Resources | available liquidity, our policy on capital management, maintenance of investment grade issuer rating, and our goal to maintain a balanced capital allocation strategy | ||||
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;
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•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;
- 30 -
•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 this 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.
Additional Information
Additional information on West Fraser, including our Annual Information Form and other publicly filed documents, is available on the Company’s website at www.westfraser.com, on SEDAR+ at www.sedarplus.ca and on the EDGAR section of the SEC website at www.sec.gov/edgar.
Where this MD&A includes information from third parties, we believe that such information (including information from industry and general publications and surveys) is generally reliable. However, we have not independently verified any such third-party information and cannot assure you of its accuracy or completeness.
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Form 52-109F2
Certification of Interim Filings
Full Certificate
I, Sean P. McLaren, President and Chief Executive Officer of West Fraser Timber Co. Ltd., certify the following:
1. Review: I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of West Fraser Timber Co. Ltd. (the “issuer”) for the interim period ended June 27, 2025.
2. No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.
3.Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.
4.Responsibility: The issuer’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, for the issuer.
5.Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer and I have, as at the end of the period covered by the interim filings
(a) designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that
(i) material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and
(ii) information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and
(b) designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP.
5.1 Control framework: The control framework the issuer’s other certifying officer and I used to design the issuer’s ICFR is the Internal Control – Integrated Framework (2013 COSO Framework) published by The Committee of Sponsoring Organizations of the Treadway Commission (COSO).
5.2 “N/A”
5.3 “N/A”
6. Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on March 29, 2025 and ended on June 27, 2025 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.
Date: July 23, 2025
/s/ Sean P. McLaren
Sean P. McLaren
President and Chief Executive Officer
Sean P. McLaren
President and Chief Executive Officer
1
Form 52-109F2
Certification of Interim Filings
Full Certificate
I, Christopher A. Virostek, Senior Vice-President, Finance and Chief Financial Officer of West Fraser Timber Co. Ltd., certify the following:
1. Review: I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of West Fraser Timber Co. Ltd. (the “issuer”) for the interim period ended June 27, 2025.
2. No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.
3.Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.
4.Responsibility: The issuer’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, for the issuer.
5.Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer and I have, as at the end of the period covered by the interim filings
(a) designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that
(i) material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and
(ii) information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and
(b) designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP.
5.1 Control framework: The control framework the issuer’s other certifying officer and I used to design the issuer’s ICFR is the Internal Control – Integrated Framework (2013 COSO Framework) published by The Committee of Sponsoring Organizations of the Treadway Commission (COSO).
5.2 “N/A”
5.3 “N/A”
6. Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on March 29, 2025 and ended on June 27, 2025 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.
Date: July 23, 2025
/s/ Christopher A. Virostek
Christopher A. Virostek
Senior Vice-President, Finance and Chief Financial Officer
Christopher A. Virostek
Senior Vice-President, Finance and Chief Financial Officer
News Release |  | ||||
For Immediate Release
West Fraser Announces Second Quarter 2025 Results
VANCOUVER, B.C., July 23, 2025 – 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.
Second Quarter Highlights
•Sales of $1.532 billion and earnings of $(24) million, or $(0.38) per diluted share
•Adjusted EBITDA1 of $84 million, representing 6% of sales
•Lumber segment Adjusted EBITDA1 of $15 million
•North America Engineered Wood Products (“NA EWP”) segment Adjusted EBITDA1 of $68 million
•Pulp & Paper segment Adjusted EBITDA1 of $(1) million
•Europe Engineered Wood Products (“Europe EWP”) segment Adjusted EBITDA1 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.”
1.Adjusted EBITDA is a non-GAAP financial measure. Refer to the “Non-GAAP and Other Specified Financial Measures” section of this document for more information on this measure.
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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.
Outlook
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.
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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.
1.This is a supplementary financial measure. Refer to the “Non-GAAP and Other Specified Financial Measures” section of this document for more information on this measure.
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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 20251.
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 www.westfraser.com and the System for Electronic Document Analysis and Retrieval + (“SEDAR+”) at www.sedarplus.ca and the Electronic Data Gathering, Analysis and Retrieval System (“EDGAR”) website at www.sec.gov/edgar 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 www.westfraser.com. 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 www.westfraser.com.
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 www.westfraser.com.
1.This is a supplementary financial measure. Refer to the “Non-GAAP and Other Specified Financial Measures” section of this document for more information on this measure.
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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;
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•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;
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•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 and Adjusted EBITDA by segment
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.
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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)
| Q2-25 | Q1-25 | |||||||
| Earnings (loss) | $ | (24) | $ | 42 | ||||
| Finance income, net | (4) | (6) | ||||||
| Tax provision (recovery) | (19) | 25 | ||||||
| Amortization | 134 | 134 | ||||||
| Equity-based compensation | (5) | (3) | ||||||
| Restructuring and impairment charges | — | — | ||||||
| Other expense | 2 | 3 | ||||||
Adjusted EBITDA | $ | 84 | $ | 195 | ||||
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 | ||||||||
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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.
For More Information
Investor Contact
Robert B. Winslow, CFA
Director, Investor Relations & Corporate Development
Tel. (416) 777-4426
shareholder@westfraser.com
Media Contact
Joyce Wagenaar
Director, Communications
Tel. (604) 817-5539
media@westfraser.com
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