Accessibility StatementSkip Navigation VANCOUVER, BC, Nov. 6, 2025 /PRNewswire/ - West Fraser Timber Co. Ltd. ("West Fraser" or the "Company") (TSX: WFG) (NYSE: WFG) announced today that it will permanently close both its Augusta, Georgia and 100 Mile House, British Columbia lumber mills by the end of 2025 following an orderly wind- down. Today's decision is the result of timber supply challenges and soft lumber markets. The 100 Mile House lumber mill is no longer able to reliably access an adequate volume ...

Financial Data and Key Metrics Changes - West Fraser reported an adjusted EBITDA of -$144 million for Q3 2025, indicating continued operation within an extended cycle trough [3] - The company exited the quarter with nearly $1.6 billion in available liquidity and a positive net cash position after debt [4] - Cash flow from operations was $58 million, with a net cash balance of $212 million, down from $310 million in the prior quarter [9] Business Line Data and Key Metrics Changes - The lumber segment posted an adjusted EBITDA of -$123 million in Q3 2025, a significant decline from $15 million in Q2 2025, primarily due to lower pricing and a $67 million duty expense [6] - The North America EWP segment reported an adjusted EBITDA of -$15 million, down from $68 million in the previous quarter, driven by lower OSB pricing [7] - The pulp and paper segment's adjusted EBITDA was -$6 million, compared to -$1 million in Q2, largely due to an annual maintenance shutdown [8] - The Europe business generated $1 million of adjusted EBITDA, similar to the $2 million reported in the second quarter [8] Market Data and Key Metrics Changes - U.S. housing starts averaged 1.31 million units through August, indicating stable but uninspiring levels of new home construction [4] - The company noted subdued demand in repair and remodeling, continuing a trend observed in previous quarters [4] Company Strategy and Development Direction - The company is focused on a defensive capital allocation strategy, leveraging a strong balance sheet to invest countercyclically and pursue investment opportunities [5] - West Fraser has permanently removed 820 million board feet of lumber capacity, representing approximately 12% of its total capacity, to optimize its asset portfolio [11] - The company plans to maintain flexibility in its operating strategy to meet customer needs while driving down costs [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about navigating the current challenging macroeconomic conditions, supported by a strong financial position [11] - The company is preparing for a potential recovery in demand while remaining cautious about the timing and nature of such recovery [14] - Management highlighted the importance of quality in potential M&A opportunities, emphasizing a focus on enhancing strength at the bottom of the cycle [24] Other Important Information - The U.S. Department of Commerce announced final softwood lumber duty rates of 26.5%, with West Fraser having the lowest duty rate in the Canadian industry [10] - A 10% Section 232 tariff on imported softwood timber and lumber into the U.S. was imposed, effective October 14, 2025 [10] Q&A Session Summary Question: Approach to managing production in lumber and North America OSB - Management discussed maintaining a variable operating strategy that aligns with economics and customer demand needs, adjusting production as necessary [19] Question: Implied Q4 operating rate for OSB - The implied operating rate for OSB in Q4 is expected to be around 80%, influenced by seasonal maintenance shutdowns [22] Question: M&A opportunities in the current down cycle - Management emphasized a quality-first approach to M&A, focusing on opportunities that enhance the company's strength [23][24] Question: Federal support for the lumber industry - Management noted ongoing discussions with the government regarding support measures for the lumber industry, but specifics were limited [29] Question: Inventory levels in the U.S. channel - Management indicated that their inventory levels are intentionally lean, with customers buying as needed [31][34] Question: Conditions in the Canadian markets - The Canadian market remains competitive, but it does not drive demand as significantly as the U.S. market [46] Question: Capital expenditures outlook - Management indicated that capital expenditures would be discussed in more detail in February 2026, with a focus on operationalizing recent major projects [49] Question: State of the Cowie facility post-fire - The Cowie facility has been repaired and is back up and running, with positive signs in the European segment [50] Question: European lumber imports and OSB demand - Management noted limited visibility on European lumber imports but observed some price improvement and demand growth in OSB [55]

Financial Data and Key Metrics Changes - West Fraser Timber Co. Ltd. reported an adjusted EBITDA of negative $144 million for Q3 2025, indicating continued operation within an extended cycle trough [3] - The lumber segment's adjusted EBITDA was negative $123 million, a significant decline from $15 million in Q2 2025, primarily due to lower pricing and a $67 million out-of-period duty expense [7] - Cash flow from operations was $58 million, with a net cash balance of $212 million, down from $310 million in the prior quarter [9] Business Line Data and Key Metrics Changes - The North America EWP segment posted negative $15 million in adjusted EBITDA for Q3 2025, down from $68 million in Q2, driven by lower OSB pricing [7] - The pulp and paper segment reported negative $6 million in adjusted EBITDA, compared to negative $1 million in the previous quarter, largely due to an annual maintenance shutdown [8] - The Europe business generated $1 million in adjusted EBITDA, similar to the $2 million reported in Q2 2025 [8] Market Data and Key Metrics Changes - U.S. housing starts averaged 1.31 million units annually through August, reflecting stable but uninspiring levels of new home construction [4] - The company noted subdued demand in repair and remodeling, continuing a trend observed in previous quarters [4] Company Strategy and Development Direction - The company is focused on maintaining a strong balance sheet and liquidity profile, allowing for countercyclical investments and opportunistic growth [5][11] - Actions taken include the permanent removal of 820 million board feet of capacity, representing approximately 12% of the company's lumber capacity, to create a more resilient business [11][12] - The company plans to continue managing its asset portfolio prudently while remaining flexible in its operating strategy to meet customer needs [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's ability to navigate the challenging business environment, supported by a strong financial position [11] - The company is monitoring macroeconomic conditions and trade policies closely, indicating readiness to respond to changes in the market [15] - Despite a challenging year-to-year outlook, management remains optimistic about the longer-term prospects for the industry [16] Other Important Information - The U.S. Department of Commerce announced final CVD and ADD rates for AR6 at a combined rate of 26.5%, with West Fraser having the lowest duty rate in the Canadian industry [10] - A proclamation imposing Section 232 tariffs of 10% on imported softwood timber and lumber into the U.S. took effect on October 14, 2025 [10] Q&A Session Summary Question: Approach to managing production in lumber and North America OSB - Management highlighted actions taken early in the cycle, including mill closures and adjustments to shift configurations, to remain nimble in production management [18][19] Question: Implied Q4 operating rate for OSB - The implied operating rate for Q4 is expected to be around 80%, influenced by maintenance shutdowns during the weaker seasonal period [20][22] Question: M&A opportunities in the current down cycle - Management emphasized a quality-first approach to M&A, indicating that while there are opportunities, they remain selective and focused on enhancing the company's strength [23][24] Question: Federal support for the lumber industry - Management noted ongoing discussions with the government regarding support measures for the industry, although specific details were not provided [28][30] Question: Inventory levels in the U.S. channel - Management indicated that their inventory levels are intentionally lean, with customers purchasing as needed, but they do not have visibility into customer inventory levels [31][34] Question: Conditions in Canadian markets and competitor behavior - The Canadian market remains competitive, with no significant changes in demand or competitor behavior noted since the imposition of higher U.S. duties [46][47] Question: Capital expenditures outlook for 2026 - Management indicated that they will provide 2026 capital expenditure guidance in February, with a focus on operationalizing major projects completed in recent years [50] Question: State of the Caribou Pulp facility post-fire - The Caribou Pulp facility has been repaired and is back up and running, with positive signs of improvement in the European segment [51]

Financial Data and Key Metrics Changes - West Fraser Timber Co. Ltd. reported an adjusted EBITDA of negative $144 million for Q3 2025, indicating continued operation within an extended cycle trough [3][4] - The lumber segment's adjusted EBITDA was negative $123 million, a significant decline from $15 million in Q2 2025, primarily due to lower pricing and a $67 million duty expense [6][8] - Cash flow from operations was $58 million, with a net cash balance of $212 million, down from $310 million in the previous quarter [9] Business Line Data and Key Metrics Changes - The North America EWP segment posted negative $15 million in adjusted EBITDA for Q3 2025, down from $68 million in Q2, driven by lower OSB pricing [6] - The pulp and paper segment reported negative $6 million in adjusted EBITDA, compared to negative $1 million in Q2, largely due to a maintenance shutdown [7] - The Europe business generated $1 million in adjusted EBITDA, similar to the $2 million reported in the previous quarter [8] Market Data and Key Metrics Changes - U.S. housing starts averaged 1.31 million units annually through August, reflecting stable but uninspiring levels of new home construction [4] - The company noted subdued demand in repair and remodeling, continuing a trend observed in previous quarters [4] Company Strategy and Development Direction - The company has removed 820 million board feet of capacity, approximately 12% of its lumber capacity, to optimize its asset portfolio and create a more resilient business [11][12] - West Fraser aims to maintain a flexible operating strategy to meet customer needs while focusing on cost reduction and safety [12][13] - The company plans to continue a balanced capital allocation strategy, investing in value-enhancing projects and pursuing opportunistic growth [13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by macroeconomic conditions and shifting trade policies but expressed confidence in the company's strong financial position to navigate these difficulties [11] - The company remains optimistic about the long-term prospects for the industry despite a challenging year-to-year outlook [16] Other Important Information - The U.S. Department of Commerce announced final combined duty rates of 26.5% for softwood lumber, with West Fraser having the lowest duty rate in the Canadian industry [10] - The company confirmed its 2025 capital expenditure guidance range of $400 to $450 million [9] Q&A Session Summary Question: Approach to managing production in a tough market - Management emphasized actions taken early in the cycle, including mill closures and adjustments to shift configurations, to remain nimble in production management [18][19] Question: Implied Q4 operating rate for OSB - The implied operating rate for OSB in Q4 is expected to be around 80%, with maintenance shutdowns strategically scheduled during this weaker seasonal period [20][21] Question: M&A opportunities in the current down cycle - Management reiterated a quality-first approach to M&A, emphasizing the importance of asset quality and the company's flexibility to pursue growth opportunities [22][24] Question: Federal support for the lumber industry - Management noted ongoing discussions with the government regarding support measures for the lumber industry, but specific details were not disclosed [28][29] Question: Inventory levels in the U.S. channel - Management indicated that their own inventory levels are intentionally lean, but they do not have visibility into customer inventory levels [30][32] Question: Conditions in the Canadian market - The Canadian market remains competitive, but it does not drive demand as significantly as the U.S. market [44][45] Question: Capital expenditures outlook for 2026 - Management indicated that they will provide 2026 capital expenditure guidance in February, noting that they have been busy with major projects [47] Question: State of the Caribou Pulp facility - The Caribou Pulp facility has been repaired and is back up and running after a recent incident [48]

Financial Data and Key Metrics Changes - West Fraser reported an adjusted EBITDA of negative $144 million for Q3 2025, indicating continued operation within an extended cycle trough [4][6] - The lumber segment posted adjusted EBITDA of negative $123 million, a significant decline from $15 million in Q2 2025, primarily due to lower pricing and a $67 million out-of-period duty expense [8][10] - Cash flow from operations was $58 million, with a net cash balance of $212 million, down from $310 million in the prior quarter [11] Business Line Data and Key Metrics Changes - The North America EWP segment reported adjusted EBITDA of negative $15 million, down from $68 million in Q2, driven by lower OSB pricing [8] - The Pulp and Paper segment's adjusted EBITDA was negative $6 million, compared to negative $1 million in Q2, largely due to maintenance shutdowns [9] - The Europe business generated $1 million of adjusted EBITDA, similar to the $2 million reported in Q2 [10] Market Data and Key Metrics Changes - U.S. housing starts averaged 1,310,000 units through August, reflecting stable but uninspiring demand [5] - The company noted subdued repair and remodeling demand during the quarter, continuing a trend observed in previous quarters [6] Company Strategy and Development Direction - The company is focused on maintaining a strong balance sheet and liquidity profile, allowing for counter-cyclical investments [6][16] - West Fraser has permanently removed 170 million board feet of capacity in its Canadian lumber business to optimize its asset portfolio [14][15] - The company aims to leverage its product and geographic diversity while maintaining cost discipline and a commitment to sustainability [19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macroeconomic conditions and the impact of shifting trade policies on operations [14] - The company remains optimistic about the long-term prospects for the industry despite a challenging near-term outlook [20] - Management emphasized the importance of quality in potential M&A opportunities, particularly in the current down cycle [28][30] Other Important Information - The U.S. Department of Commerce released final CVD and ADD rates for AR6 at a combined rate of 26.5%, with West Fraser having the lowest duty rate in the Canadian industry [12] - A proclamation imposing a 10% tariff on imported softwood timber and lumber into the U.S. took effect on October 14, 2025 [13] Q&A Session Summary Question: Approach to managing production in lumber and OSB - Management highlighted actions taken early in the cycle, including mill closures and shift adjustments, to remain nimble in production [22][24] Question: Implied Q4 operating rate for OSB - The implied operating rate for OSB in Q4 is expected to be around 80%, influenced by seasonal maintenance shuts [26] Question: M&A opportunities in the down cycle - The company maintains a quality-first approach to M&A, focusing on high-quality assets that enhance strength during the cycle [28][30] Question: Federal support for lumber industry - Management noted ongoing discussions with the government regarding support measures for the lumber industry, but specifics were limited [34][35] Question: Inventory levels in the U.S. channel - Management indicated that their own inventory levels are intentionally lean, but they do not have visibility into customer inventory levels [37][39] Question: Conditions in the Canadian market - The Canadian market remains competitive, but it is smaller than the U.S. market and does not drive demand significantly [51] Question: CapEx outlook for 2026 - The company is wrapping up major projects and will provide 2026 CapEx guidance in February, with a focus on operationalizing recent investments [55] Question: State of the Cowrie facility post-fire - The Cowrie facility has been repaired and is back up and running, with positive signs in the European segment [55] Question: European lumber imports and OSB demand - Management noted no significant changes in visibility regarding European lumber imports and observed some price improvement in OSB demand in Europe [60][61]

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INVESTOR PRESENTATION October 2025 Photo: Quesnel Sawmill, Quesnel, B.C., Canada Financial Information: The financial information related to West Fraser contained in this Presentation is derived from our Q3 2025 interim Financial Statements, which have been prepared in accordance with International Financial Reporting Standards ("IFRS") and is discussed in our Managements' Discussion and Analysis ("MD&A") for the three months ended September 26, 2025 (our "Q3 2025 MD&A"). Additional information is also disc ...

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 nine months ended September 26, 2025 should be read in conjunction with: (i) our unaudited condensed consolidated interim financial statements and accompanying notes for the three and nine months ended September 26, 2025 ("Interim Financial Statements"); (ii) our audited annual consoli ...

Core Viewpoint - West Fraser Timber Co. Ltd. reported significant challenges in the third quarter of 2025, including supply and demand imbalances for wood-based products, elevated mortgage rates affecting housing affordability, and new tariffs on Canadian softwood lumber. The company remains committed to its strategy of maintaining operational flexibility and controlling costs while seeking long-term shareholder value [1][2]. Financial Performance - Third quarter sales were $1.307 billion, down from $1.532 billion in the second quarter of 2025. - The company reported a loss of $204 million, or $(2.63) per diluted share, compared to a loss of $24 million, or $(0.38) per diluted share in the previous quarter. - Adjusted EBITDA for the third quarter was $(144) million, a decline from $84 million in Q2-25 [2][12]. Tariffs and Trade - The U.S. administration imposed a 10% Section 232 tariff on imported softwood timber and lumber effective October 14, 2025, in addition to existing duties on Canadian lumber [3]. - Canadian softwood lumber exports to the U.S. have faced trade disputes and tariffs since April 2017, impacting the company's operations [2]. Liquidity and Capital Allocation - Cash and short-term investments decreased to $546 million as of September 26, 2025, from $641 million at the end of 2024. - Capital expenditures in Q3-25 were $90 million, and the company paid $25 million in dividends, maintaining a dividend of $0.32 per share for the fourth quarter [5][6]. Market Outlook - The company anticipates medium to long-term demand for new home construction in North America due to factors such as improved housing affordability, a large population cohort entering home-buying age, and an aging housing stock [7][8]. - The seasonally adjusted annualized rate of U.S. housing starts was 1.31 million units in August 2025, with permits issued for the same number, indicating stable construction activity despite near-term uncertainties [9]. Operational Insights - The Lumber segment faced muted demand in Q3-25, leading to a reduction in shipment targets for both SPF and SYP products [11]. - Adjusted EBITDA for the Lumber segment was $(123) million, which included $67 million in export duty expenses [12][34]. Regional Demand - In Europe and the U.K., demand is expected to improve but remain challenging in the near term, with long-term growth anticipated due to the increasing use of OSB as an alternative to plywood [10]. - The global pulp market is experiencing disruptions due to U.S. tariffs, creating demand uncertainty in Chinese markets, although NBSK pricing is expected to remain stable [15].

Core Viewpoint - The transportation sector, particularly trucking, is facing price pressures from trade tariffs, leading to a slowdown in business activity. However, this situation presents buying opportunities for investors willing to take a contrarian approach [1][2]. Group 1: Industry Overview - The trucking industry is experiencing a rare combination of slowing activity and rising prices, influenced by trade tariffs that favor Canadian timber imports. This has resulted in a decline in stock prices for companies like Landstar Systems and West Fraser Timber [2][3]. - Executive commentaries within the services PMI index indicate that the trucking industry is in a worse state than during the 2008 financial crisis, contributing to Landstar's stock being discounted to 64% of its 52-week high [3][4]. Group 2: Company-Specific Insights - Landstar Systems Inc. - Landstar Systems operates not only as a trucking company but also provides logistics software, which is becoming increasingly important as efficiency is prioritized amid slowing volumes and rising prices [8]. - Financial metrics indicate that Landstar is operating at 280% of its baseline capacity, significantly higher than the industry average of 75.8%, suggesting that the company is not oversubscribed in trucking but rather in its software services [9]. - Wall Street analysts maintain a consensus price target of $145.17 for Landstar, indicating a potential upside of 16.8% from current trading levels. Institutional investors have also increased their holdings in Landstar, reflecting confidence in its future performance [10][11]. Group 3: Company-Specific Insights - West Fraser Timber Co. - The American housing market is currently facing challenges, with declining building permits and mortgage applications, leading to reduced demand for building products, including Canadian timber [5][6]. - Despite the housing slowdown, recent interest rate cuts by the Federal Reserve may positively impact demand for housing, which could benefit West Fraser if timber demand increases [6]. - West Fraser's stock is trading at 71% of its 52-week high, with analysts projecting a price target of $100 per share, suggesting a potential upside of 40.7% from current levels. The recent decline in short interest indicates a potential shift in market sentiment towards the stock [15].