West Fraser(US:WFG) Prnewswire·2025-02-12 22:01Core Insights - West Fraser Timber Co. Ltd. reported its fourth quarter results for 2024, highlighting a continued resilience in its North American Engineered Wood Products business and modest improvements in its Lumber segment [4][6][7]. Financial Performance - Fourth quarter sales were $1.405 billion, a slight decrease from $1.437 billion in the previous quarter. The company reported a loss of $62 million, or $(0.80) per diluted share, compared to a loss of $83 million, or $(1.03) per diluted share in Q3-24. The loss included a non-cash impairment of $70 million related to European EWP goodwill [6][10]. - For the full year, sales totaled $6.174 billion, down from $6.454 billion in 2023. The annual loss was $5 million, or $(0.07) per diluted share, significantly improved from a loss of $167 million, or $(2.01) per diluted share in 2023. Restructuring and impairment charges were recorded at $102 million in 2024, compared to $279 million in 2023 [7][10]. Segment Performance - Adjusted EBITDA for Q4-24 was $140 million, representing 10% of sales, compared to $62 million in Q3-24. The Lumber segment had an Adjusted EBITDA of $21 million, while the North America Engineered Wood Products segment reported $127 million [10][39]. - For the full year, Adjusted EBITDA was $673 million, or 11% of sales, compared to $561 million in 2023. The Lumber segment reported an Adjusted EBITDA loss of $82 million, while the North America Engineered Wood Products segment had $744 million [10][39]. Liquidity and Capital Allocation - Cash and short-term investments decreased to $641 million at the end of 2024 from $900 million at the end of 2023, primarily due to the repayment of $300 million in senior notes [8][9]. - Capital expenditures for Q4-24 were $156 million, with total capital expenditures for 2024 amounting to $487 million, slightly up from $477 million in 2023 [8][9]. Dividend and Share Repurchase - The company paid $26 million in dividends during Q4-24, or $0.32 per share, and declared a similar dividend for Q1-25. Total dividends paid in 2024 were $101 million [9][18]. - In Q4-24, West Fraser repurchased 311,523 shares for $27 million, and for the full year, it repurchased 1,799,217 shares for $144 million [11][9]. Market Outlook - The company anticipates continued demand for new home construction in North America, driven by improved housing affordability and an aging housing stock. However, near-term uncertainties remain due to high mortgage rates and potential tariffs on Canadian exports [12][14][15]. - In Europe and the U.K., a modest market recovery is expected, with long-term demand growth anticipated as OSB gains market penetration as an alternative to plywood [15][14]. Operational Guidance - The company plans to evaluate the impact of evolving U.S. tariffs on its operations and shipment estimates for 2025 [16]. Expected shipments for various products 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].