Financial Data and Key Metrics Changes - West Fraser reported an adjusted EBITDA of -$79 million in Q4 2025, an improvement from -$144 million in the previous quarter, which included a $67 million out-of-period duty expense [4] - For the full year 2025, adjusted EBITDA was $56 million, down from $673 million in 2024 [4] - Cash flow from operations was negative $172 million in Q4, with net debt at $131 million, compared to a net cash position of $212 million reported last quarter [10] Business Line Data and Key Metrics Changes - The lumber segment posted an adjusted EBITDA of -$57 million in Q4, compared to -$123 million in Q3, excluding the $67 million export duty expense [7] - The North America EWP segment reported an adjusted EBITDA of -$24 million in Q4, compared to -$15 million in Q3, with a $239 million non-cash restructuring and impairment charge [8] - The pulp and paper segment reported an adjusted EBITDA of -$1 million in Q4, an improvement from -$6 million in Q3 [8] - The Europe segment's adjusted EBITDA was $4 million in Q4, up from $1 million in Q3, indicating a moderately improved business environment [8] Market Data and Key Metrics Changes - The overall Q4 results showed sequential EBITDA improvement supported by reduced log costs and lower manufacturing costs, although offset by lower lumber and OSB prices [9] - Southern yellow pine shipments were 6% lower quarter-over-quarter, while unit manufacturing costs were also lower [10] Company Strategy and Development Direction - The company is focused on high-grading its mill portfolio, including closures of higher-cost assets and ramping up the Allendale OSB mill in South Carolina and the new Henderson lumber mill in Texas [5][15] - West Fraser has removed over 1.1 billion board feet of capacity since 2022, representing a 16% decrease in lumber operating capacity [15] - The company has invested nearly $1 billion in capital into its lumber business over the last four years to modernize assets and improve operational efficiency [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the difficult end markets in 2025 but emphasized a long-term focus on operational excellence and cost management [14][15] - The company remains optimistic about future prospects despite limited macro visibility and is actively managing its portfolio to be low-cost and diverse [17] Other Important Information - West Fraser had over $1.2 billion of available liquidity at year-end, providing financial flexibility to support capital allocation strategies [5][13] - The company is prepared to evaluate the impact of U.S. tariffs on operations and adjust forecasts as necessary [11] Q&A Session Summary Question: Can you provide insights on margins between SPF and SYP in Q4? - Management noted that the pricing spread between SPF and SYP has started to close, reflecting adjustments in customer demand patterns [20][21] Question: How sustainable are the lower costs reported in Q4? - Management indicated that the trends in cost structure are a result of ongoing efforts to lower costs through capacity adjustments and modernization [23] Question: What are the M&A opportunities given the current lumber market? - Management emphasized the importance of asset quality and indicated a willingness to consider quality opportunities that strengthen the company during the bottom of the cycle [26][27] Question: How is the ramp-up of the Henderson Mill being managed in a muted demand environment? - Management stated that the Henderson Mill is in early stages of startup and is expected to replace existing volume in the market [30] Question: What is the outlook for housing measures and their impact on lumber demand? - Management expressed optimism about discussions on housing affordability but noted uncertainty regarding the timing and impact of potential measures [49][51]

Financial Data and Key Metrics Changes - West Fraser generated an adjusted EBITDA of -$79 million in Q4 2025, an improvement from -$144 million in the prior quarter, which included a $67 million out-of-period duty expense [4] - For the full year 2025, adjusted EBITDA was $56 million, down from $673 million in 2024 [4] - Cash flow from operations was negative $172 million in Q4, with net debt at $131 million, compared to a net cash position of $212 million in the previous quarter [10] Business Line Data and Key Metrics Changes - The lumber segment reported an adjusted EBITDA of -$57 million in Q4, compared to -$123 million in Q3, excluding the $67 million duty expense [6] - The North America EWP segment had an adjusted EBITDA of -$24 million in Q4, worsening from -$15 million in Q3, with a $239 million non-cash restructuring charge [7] - The pulp and paper segment reported an adjusted EBITDA of -$1 million in Q4, an improvement from -$6 million in Q3 [8] - The Europe segment's adjusted EBITDA was $4 million in Q4, up from $1 million in Q3, indicating a moderately improved business environment [8] Market Data and Key Metrics Changes - The overall Q4 results showed sequential EBITDA improvement supported by reduced SPF log costs, lower southern yellow pine manufacturing costs, and lower OSB labor costs, despite lower lumber and North American OSB prices [9] - Southern yellow pine shipments were 6% lower quarter-over-quarter, while unit manufacturing costs also decreased [10] Company Strategy and Development Direction - The company has focused on high-grading its mill portfolio, including closures of higher-cost assets and ramping up the Allendale OSB mill in South Carolina and the new Henderson lumber mill in Texas [5] - Since 2022, West Fraser has removed over 1.1 billion board feet of capacity through mill closures, representing a 16% decrease in lumber operating capacity [14] - The company has invested nearly $1 billion in capital over the last four years to modernize assets and improve operational flexibility [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the difficult end markets in 2025 but emphasized a long-term focus on operational excellence and cost management [13] - The company remains optimistic about its future, particularly with the ramp-up of the Henderson Mill and ongoing portfolio optimization [14][17] - Management is cautious about the demand outlook for OSB compared to lumber, reflecting mixed sentiment from customers regarding growth in the repair and remodeling market [50] Other Important Information - The company had over $1.2 billion of available liquidity at year-end, providing financial flexibility to support capital allocation strategies [5][12] - Management is actively evaluating the impact of U.S. tariffs on operations and will adjust forecasts as necessary [11] Q&A Session Summary Question: Can you provide insights on margins between SPF and SYP in Q4? - Management noted that the pricing spread between SPF and SYP has started to close, reflecting adjustments in customer demand patterns [20][21] Question: How sustainable are the lower costs observed in Q4? - Management indicated that the trends in cost structure are a result of efforts made over the past years to lower costs through capacity adjustments and modernization [22] Question: What are the M&A opportunities given the current lumber market? - Management emphasized the importance of asset quality and indicated that they are prepared to react to quality opportunities that may arise [25][26] Question: How should we view the ramp-up of the Henderson Mill in a muted demand environment? - Management stated that the Henderson Mill is in early stages of startup and is expected to replace existing volume in the market [29] Question: What is the outlook for housing measures from the administration? - Management expressed optimism about any measures that could improve housing affordability and demand for lumber, though the timing and impact remain uncertain [46][47] Question: What drives the difference in demand outlook for OSB versus lumber? - Management noted mixed customer sentiment regarding growth in the repair and remodeling market, leading to a cautious outlook for OSB [50]

Photo: Sundre Forest Products, Sundre, Alberta, Canada Financial Information: The financial information related to West Fraser contained in this Presentation is derived from our 2025 Annual 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 year ended December 31, 2025 (our "2025 Annual MD&A"). This Presentation uses various Non-GAAP and other specified financial ...

Core 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].

Core Viewpoint - West Fraser Timber Co. Ltd. (NYSE:WFG) is recognized as a strong sustainability investment, despite facing significant financial losses in Q3 2025 due to challenging market conditions [1][2]. Financial Performance - The company's Q3 2025 earnings report indicated a substantial decline in financial metrics, with adjusted EBITDA margin dropping from 6% to -11% and sales decreasing from $1.532 billion in Q2 to $1.307 billion [2]. Market Position and Strategy - West Fraser's low-cost strategy, favorable softwood lumber duty rate, geographic diversification, and strong financial position are seen as advantages that will help the company navigate various market conditions through 2025 and 2026 [3]. - RBC Capital believes that West Fraser is well-positioned to potentially acquire premium assets if the market continues to decline [3]. Company Overview - West Fraser Timber Co. Ltd. is a diversified wood products company that produces a range of products including lumber, engineered wood products, pulp, newsprint, wood chips, and other residuals [4].

Core Viewpoint - West Fraser Timber Co. Ltd. will permanently close its Augusta, Georgia and 100 Mile House, British Columbia lumber mills by the end of 2025 due to timber supply challenges and soft lumber markets [1][2][3] Group 1: Mill Closures - The 100 Mile House lumber mill is unable to access a sufficient volume of economically viable timber, leading to its closure, which will affect approximately 165 employees and reduce capacity by 160 million board feet [2] - The Augusta lumber mill's closure is attributed to challenging lumber demand and loss of economically viable residual outlets, impacting around 130 employees and reducing capacity by 140 million board feet [3] - The indefinite curtailment of the Huttig, Arkansas and Lake Butler, Florida mills will now be permanent, with plans for dismantling and site sales [4] Group 2: Strategic Positioning - The closures are intended to better position West Fraser to compete in a challenging market environment [5] - The company anticipates restructuring and impairment charges in the fourth quarter of 2025 related to these closures [5] Group 3: Company Overview - West Fraser is a diversified wood products company with over 50 facilities across Canada, the United States, the United Kingdom, and Europe, producing a variety of wood products [6]

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 ...

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 - Weyerhaeuser Company has completed the sale of its lumber mill in Princeton, British Columbia, to the Gorman Group, which includes associated timber licenses that will transfer separately in the coming months [1][2]. Company Overview - Weyerhaeuser Company is one of the largest private owners of timberlands, controlling approximately 10.4 million acres in the U.S. and additional public timberlands in Canada [3]. - The company generated $7.1 billion in net sales in 2024 and employs around 9,400 people globally [3]. - Weyerhaeuser operates as a real estate investment trust and is listed on the New York Stock Exchange under the symbol WY [3]. Transaction Details - Weyerhaeuser received approximately $60 million USD from the sale of the lumber facility, with additional proceeds expected from the timber license transfer [2]. - The company recognized a gain on the sale and anticipates a tax liability of about $11 million USD related to the transaction [2]. Gorman Group Overview - The Gorman Group is a family-owned company with operations in Southern British Columbia and northern Washington state, employing 900 people [4]. - Founded in 1951, the Gorman Group focuses on high-value lumber products for home finishing and renovation markets [4].

Financial Data and Key Metrics Changes - Total adjusted EBITDA for Q2 2025 was $52 million, down from $63 million in Q1 2025, primarily due to lower harvest volumes and higher forest management costs in the Timberland segment, along with an inventory impairment charge in Wood Products [19][3][4] - Adjusted EBITDA for the Timberlands segment decreased from $42 million in Q1 to $40 million in Q2, while Wood Products saw a drop from $12 million to $2 million [20][22] Business Line Data and Key Metrics Changes - The Wood Products division earned $2 million in adjusted EBITDA during Q2, impacted by lower lumber prices and several nonrecurring items totaling approximately $7 million [4][22] - Timberlands harvested 1.86 million tons in Q2, with Idaho's sawlog prices increasing by 9% per ton compared to Q1, while Southern sawlog prices rose by 2% [20][21] - Real estate segment produced adjusted EBITDA of $23 million in Q2, matching Q1 results, with 7,500 acres sold at an average price of $3,100 per acre [23][24] Market Data and Key Metrics Changes - Average total housing starts were just above 1.3 million units in Q2, with single-family starts around 900,000 units, indicating a stable market despite economic uncertainty [14][15] - The repair and remodel sector remains subdued, but slight gains in expenditures are forecasted for 2025 and modest growth in 2026 [16][17] Company Strategy and Development Direction - The company is focused on capital allocation strategies that create long-term shareholder value, including maintaining dividends, key capital investments, and opportunistic share repurchases [12] - The company anticipates improved results in Wood Products for Q3, driven by the resolution of temporary challenges faced in Q2 [29][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term fundamentals driving demand in the industry, despite near-term headwinds [18] - Lumber prices are expected to trend higher as Canadian softwood lumber duties and potential tariffs come into effect [9][18] Other Important Information - The company repurchased $56 million of its common stock in Q2 at an average price of $39 per share, marking the largest share repurchase volume in a single quarter since becoming a REIT in 2006 [12][13] - The company has $395 million in liquidity, including $95 million in cash, and plans to refinance $100 million of debt maturing in August [25][26] Q&A Session Summary Question: What are the assumptions behind the forecast of flat lumber prices for Q3 despite a 9% decline quarter-to-date? - Management indicated that duties are coming into effect, which will force supply adjustments in the marketplace, leading to a gradual increase in prices [34][35] Question: Will the unfavorable costs and inventory charge in Wood Products largely go away in Q3? - Management confirmed that the challenges faced in Q2 are expected to reverse in Q3, leading to improved earnings [38][39] Question: How does the company balance near-term uncertainty with attractive discounts to NAV for share repurchases? - Management emphasized the importance of protecting dividends and the balance sheet while utilizing free cash flow for shareholder value [42][46] Question: What is the outlook for tariffs and duties on lumber? - Management speculated that a tariff may be imposed on top of the duties, based on historical actions of the administration [51][52] Question: Is the company inclined to be an incremental buyer or seller of Timberland? - Management expressed a desire to buy Timberland but noted that current prices may not yield acceptable returns, leading to a more cautious approach [88][90] Question: What are the expectations for capital expenditures in the Wood Products business? - Management indicated that opportunities exist for growth and improvement in the Wood Products business, with plans to revisit expansion opportunities later in the year [99][100]