Core Insights - Western Forest Products Inc. reported a significant decline in financial performance for Q4 2025, with an Adjusted EBITDA of negative $6.2 million, compared to $14.4 million in Q4 2024 and negative $65.9 million in Q3 2025 [1][2] - The company experienced a net loss of $17.5 million in Q4 2025, worsening from a net loss of $1.2 million in Q4 2024 and a net loss of $61.3 million in Q3 2025 [2] Financial Performance - Total revenue for Q4 2025 was $201.9 million, down from $273.2 million in Q4 2024 and $233.0 million in Q3 2025 [3] - The Adjusted EBITDA margin for Q4 2025 was negative 3%, compared to a positive 5% in Q4 2024 and negative 28% in Q3 2025 [3] - The annual revenue for 2025 was $986.5 million, a decrease from $1,063.9 million in 2024 [3] Operational Highlights - Lumber production in Q4 2025 was 94 million board feet, down from 135 million board feet in Q4 2024, with total lumber shipments decreasing by 26% year-over-year [7] - The average lumber selling price in Q4 2025 was $1,437 per thousand board feet, slightly down from $1,467 per thousand board feet in Q4 2024 [7] - The company ended 2025 with liquidity of $212.2 million, an increase from $144.6 million at the end of 2024 [12] Strategic Developments - Construction on two continuous dry kilns at the Value-Added Division is on schedule, with commissioning expected in February and mid-2026 [6][8] - The company has decided not to rebuild on the Columbia Vista Division sawmill site and is in the process of selling the land and associated assets [12] - A new collective agreement was negotiated covering hourly employees represented by the United Steelworkers, marking one of the longest-term agreements in the BC coastal forest sector [19] Market Outlook - Lumber markets are expected to remain challenged in 2026 due to economic uncertainty and a slowing US housing market, with no significant market improvements anticipated in the first half of 2026 [14] - Demand for Western Red Cedar product lines remains slow, following trends in other building products [14] - The company is focused on maintaining a strong balance sheet and financial flexibility amid market challenges [12]

Financial Data and Key Metrics Changes - For the full year 2025, the company reported GAAP earnings of $324 million, or $0.45 per diluted share, on net sales of $6.9 billion. Excluding special items, earnings totaled $143 million, or $0.20 per diluted share, with adjusted EBITDA of $1 billion [3] - In the fourth quarter, GAAP earnings were $74 million, or $0.10 per diluted share, on net sales of $1.5 billion. Excluding special items, the company reported a loss of $67 million, or $0.09 per diluted share, with adjusted EBITDA of $140 million [3][4] Business Line Data and Key Metrics Changes - Timberlands contributed $50 million to fourth quarter earnings, with adjusted EBITDA of $114 million, a $34 million decrease compared to the third quarter, primarily due to lower sales volumes and realizations in the West [7] - Real Estate and ENR contributed $84 million to earnings in the fourth quarter, with adjusted EBITDA of $95 million, slightly higher than the prior quarter, driven by strong demand and pricing for high-value development transactions [11][12] - Wood Products reported a $78 million loss in the fourth quarter, with adjusted EBITDA at a $20 million loss, reflecting challenging lumber and OSB markets [15] Market Data and Key Metrics Changes - In the Western domestic market, log demand and pricing softened in the fourth quarter due to ample supply and elevated log inventories [8] - The average sales realizations for export logs to Japan were moderately higher, driven by freight-related benefits, while demand for logs softened due to elevated finished goods inventories [9] - In the South, adjusted EBITDA for Southern Timberlands was $69 million, a $5 million decrease compared to the third quarter, with stable takeaway for logs despite muted sawlog markets [10] Company Strategy and Development Direction - The company launched an ambitious growth strategy through 2030, optimizing its Timberlands portfolio and expanding climate solutions offerings [4][6] - A new target was set to grow the Climate Solutions business to $250 million of annual EBITDA by 2030, with significant progress made in 2025 [12][13] - The company aims to enhance its timberlands portfolio and evaluate capital-efficient opportunities to drive long-term shareholder value [6][20] Management's Comments on Operating Environment and Future Outlook - Management remains constructive on long-term fundamentals supporting the business, despite challenging market conditions in 2025 [6] - The company anticipates stable domestic log pricing in the first quarter, with potential upside if lumber prices improve [8][23] - The outlook for housing activity remains cautious, with expectations of modest improvement in 2026 driven by federal housing policies and lower mortgage rates [34][35] Other Important Information - The company returned $766 million to shareholders in 2025, including a 5% increase in the base dividend and $160 million in share repurchases [4][19] - The company completed divestiture transactions covering non-core timberlands for total proceeds of $406 million and expects to close another transaction for $193 million [6] Q&A Session Summary Question: On the pricing front, do you think the improvement for both lumber and OSB is largely a reflection of curtailments, or is underlying demand actually picking up? - Management indicated that the improvement is primarily driven by curtailment activity, with some potential for demand pickup as the spring building season approaches [42] Question: Given the strong appetite for HBU properties, how is the company approaching A&D decisions into 2026? - Management noted a solid market for timber acquisitions and divestitures, expecting continued demand for HBU transactions [52] Question: What are the operating rates in lumber and OSB, and what steps have been taken to improve profitability? - Operating rates were in the mid-70% for lumber and mid-90% for OSB, with management focused on operational excellence to navigate challenging pricing environments [62]

Core Viewpoint - President Trump has announced an increase in tariffs on South Korean imports of autos, lumber, and pharmaceuticals from 15% to 25%, citing South Korea's failure to comply with the trade agreement [1][5]. Group 1: Tariff Increase Details - The new tariffs will apply to various sectors including autos, lumber, and pharmaceuticals, reflecting a significant increase aimed at enforcing trade compliance [1][5]. - The increase in tariffs is part of a broader strategy by the Trump administration to use tariffs as leverage rather than temporary negotiating tools [8]. Group 2: Trade Agreement Context - Trump emphasized that the South Korean legislature has not approved the trade agreement, which he views as a failure to uphold the terms of the deal [2][5]. - The announcement comes as the administration awaits a Supreme Court ruling regarding the legality of certain trade duties imposed in 2025, which could impact future tariff actions [8]. Group 3: Economic Implications - Tariffs are essentially taxes on imported goods, which are typically paid by companies but often passed on to consumers through higher prices, potentially increasing the cost of living [11]. - The timeline for when the higher tariffs will take effect remains uncertain, as does South Korea's potential response to this decision [11].

JUST IN: 🇺🇸 President Trump announces 25% tariffs on South Korean cars, pharmaceuticals, and lumber for delaying trade deal. https://t.co/m2S7SKjkWA ...

Group 1 - Tariffs on imported goods from South Korea, including autos, pharmaceuticals, and lumber, are increasing to 25% due to the lack of legislative action on the trade agreement with the U.S. [2]

Core Viewpoint - President Donald Trump announced an increase in tariffs on South Korean imports related to autos, lumber, and pharmaceuticals to 25%, citing the South Korean legislature's failure to adhere to the trade agreement with the United States [1] Group 1: Tariff Details - The tariffs on South Korean imports will rise to 25% [1] - The affected sectors include autos, lumber, and pharmaceuticals [1] Group 2: Trade Agreement Context - The increase in tariffs is framed as a response to South Korea's legislature "not living up" to its trade deal obligations with the United States [1]

Core Viewpoint - The U.S. is increasing tariffs on imported autos, pharmaceuticals, and lumber from South Korea from 15% to 25% due to delays in legislative approval of a trade deal [1][2][3] Group 1: Tariff Increases - Tariffs on South Korean imports, specifically autos, pharmaceuticals, and lumber, will rise from 15% to 25% [1][3] - The increase in tariffs is a response to the South Korean legislature's failure to approve a trade agreement reached in July 2025 [2][3] Group 2: Trade Agreement Context - The trade deal was initially agreed upon by U.S. President Donald Trump and South Korean President Lee Jae Myung on July 30, 2025 [2] - The terms of the trade agreement were reaffirmed during Trump's visit to South Korea on October 29, 2025 [2] Group 3: Impact on Companies - Hyundai Motor, a South Korean automaker, is identified as the largest importer of new vehicles from South Korea into the United States [3]

Core Viewpoint - Shares are currently undervalued, presenting an attractive opportunity for long-term investors [1] Group 1 - The market has seen a significant decline in share prices, leading to a perception of value among investors [1] - Long-term investment strategies may benefit from the current market conditions, as the potential for recovery exists [1]

Core Viewpoint - Conifex Timber Inc. will temporarily curtail operations at its Mackenzie sawmill for four weeks starting December 15, 2025, due to ongoing weakness in North American lumber markets [1][2]. Company Summary - The curtailment is a response to declining benchmark Western SPF prices, which have fallen sharply due to a slowdown in residential construction, soft repair-and-remodel activity, high interest rates, and increased countervailing and anti-dumping duties on Canadian softwood lumber exported to the U.S. [2] - The planned reduction in production is expected to decrease output by approximately 13 million board feet [3]. - Despite current market challenges, the company believes in positive long-term fundamentals for SPF lumber, citing structural housing undersupply in the U.S., aging housing stock, and improving affordability conditions as factors that will support demand recovery starting in the second half of 2026 [4]. - The company acknowledges recent federal government measures aimed at supporting softwood lumber producers and has applied for assistance under the Large Enterprise Tariff Loan Program and the BDC Loan Guarantee Program [5]. - Conifex's power generation operations and competitive log cost structure continue to provide essential support during this difficult period [6]. - The company remains committed to the Mackenzie region and its workforce, and it is optimistic about securing sawlogs to maintain operational capacity once market conditions improve [7]. Industry Summary - The curtailments across the industry have led to North American lumber production reaching its lowest level in a decade, which is anticipated to help rebalance inventories and support a return to sustainable pricing [4].

Core Viewpoint - Conifex Timber Inc. will temporarily curtail operations at its Mackenzie sawmill for four weeks starting December 15, 2025, due to ongoing weakness in North American lumber markets [1][2]. Industry Summary - The North American lumber market is experiencing significant challenges, with benchmark Western SPF prices declining sharply due to factors such as a slowdown in residential construction, reduced repair-and-remodel activity, high interest rates, and increased countervailing and anti-dumping duties on Canadian softwood lumber exported to the U.S. [2] - These duties and tariffs have compressed cash margins across the sector, leading to operating losses for many producers [2]. Company Summary - Conifex plans to reduce production by approximately 13 million board feet to minimize operating losses during this challenging period [3]. - Despite current market difficulties, Conifex remains optimistic about the medium to long-term fundamentals for SPF lumber, citing structural housing undersupply in the U.S., aging housing stock, and improving affordability conditions as factors that may support demand recovery starting in the second half of 2026 [4]. - The company acknowledges recent federal government measures aimed at supporting softwood lumber producers and has applied for assistance under the Large Enterprise Tariff Loan Program and the BDC Loan Guarantee Program [5]. - Conifex's power generation operations and competitive log cost structure continue to provide essential support during this period [6]. - The company emphasizes its commitment to the Mackenzie region and its workforce, while expressing confidence in securing sawlogs to maintain operational capacity once market conditions improve [7].