West Fraser(US:WFG)2025-02-12 22:02Financial Performance - Q4-24 sales were $1.405 billion, a decrease from $1.437 billion in Q3-24, with a loss of $62 million or $(0.80) per diluted share[7]. - Full year 2024 sales totaled $6.174 billion, down from $6.454 billion in 2023, with a loss of $5 million or $(0.07) per diluted share[8]. - Adjusted EBITDA for Q4-24 was $140 million, representing 10% of sales, compared to $62 million in Q3-24[7]. - Adjusted EBITDA for 2024 was $673 million, an increase of 20% from $561 million in 2023[38]. - The company reported a loss of $5 million for 2024, significantly improved from a loss of $167 million in 2023[38]. - Annual operating earnings for the Lumber segment were a loss of $303 million, while the EWP segment reported operating earnings of $459 million[40]. - Restructuring and impairment charges for 2024 amounted to $102 million, down from $279 million in 2023[38]. Capital Expenditures - Capital expenditures for Q4-24 were $156 million, with total capital expenditures for 2024 at $487 million, slightly up from $477 million in 2023[9]. - The company anticipates capital expenditures of $400 million to $450 million for 2025, with stable input costs expected[20]. - Expected capital expenditures for the current year focus on optimization, automation, and greenhouse gas emissions reduction projects[43]. Shareholder Returns - The company declared a dividend of $0.32 per share, payable on April 3, 2025, with $101 million in dividends paid for the full year 2024[10]. - The company repurchased 311,523 shares for $27 million in Q4-24, totaling 1,799,217 shares repurchased for $144 million in 2024[11]. Market Outlook - The company expects U.S. housing starts to stabilize at an annualized rate of 1.50 million units, with permits issued at 1.48 million units as of December 2024[14]. - Projected shipments for 2025 include 2.7 to 3.0 billion board feet of spruce-pine-fir and 2.5 to 2.8 billion board feet of southern yellow pine[20]. - Transportation constraints and labor disruptions may negatively impact projected shipment volumes[6]. Risks and Assumptions - The recoverability of property, plant, and equipment is based on key assumptions, including production volume and product pricing, totaling $3,842 million[6]. - The company faces risks related to international trade and potential changes in government regulations affecting timber supply[6]. Non-GAAP Measures - The company emphasizes the importance of non-GAAP financial measures for evaluating operating performance and financial condition[32].