West Fraser(US:WFG) Prnewswire·2026-02-11 22:01Core Viewpoint - West Fraser Timber Co. Ltd. reported challenging financial results for Q4 2025, with significant losses attributed to elevated softwood lumber duties, oversupply issues, and reduced demand for wood-based products, while also highlighting ongoing capital investments aimed at improving operational efficiency and cost management [1][2]. Financial Performance - Q4 2025 sales were $1.165 billion, down from $1.307 billion in Q3 2025 - Q4 2025 earnings were $(751) million, or $(9.63) per diluted share, compared to $(204) million, or $(2.63) per diluted share in Q3 2025 - Full year 2025 sales totaled $5.462 billion, down from $6.174 billion in 2024, with full year earnings of $(937) million, or $(12.08) per diluted share, compared to $(5) million, or $(0.07) per diluted share in 2024 [1][2][3]. Segment Performance - Europe Engineered Wood Products (EWP) segment Adjusted EBITDA was $4 million in Q4 2025 - North America EWP segment Adjusted EBITDA was $(24) million, excluding $239 million of restructuring and impairment charges - Lumber segment Adjusted EBITDA was $(57) million, excluding $473 million of restructuring and impairment charges [1][2][6]. Capital Allocation and Share Repurchase - The company repurchased 108,079 shares for $7 million in Q4 2025 and 1,639,207 shares for $124 million in 2025 - Cash and short-term investments decreased to $202 million at the end of 2025 from $641 million at the end of 2024 - Capital expenditures in Q4 2025 were $139 million, with full year capital expenditures at $411 million [1][2][3]. Market Outlook - The U.S. housing market is expected to stabilize, with a seasonally adjusted annualized rate of housing starts at 1.25 million units in October 2025 - Demand for new home construction may face challenges due to mortgage rate fluctuations and housing affordability issues - In Europe, demand for wood products is anticipated to improve in the long term, driven by an aging housing stock and increased use of OSB [2][3][4]. Strategic Initiatives - The company is focused on modernizing its operations, including the completion of a new lumber mill in Texas and ramping up an OSB mill in South Carolina - Strategic decisions have been made to close or curtail uneconomic mills to align production with customer demand - The company aims to maintain robust liquidity and a balanced capital allocation strategy to enhance long-term shareholder value [1][2][3].