Financial Performance - Western Forest Products Inc. reported a net income of $13.8 million in Q1 2025, a significant improvement from a net loss of $8.0 million in Q1 2024 and a net loss of $1.2 million in Q4 2024 [1][3] - Adjusted EBITDA for Q1 2025 was $3.5 million, compared to a negative $4.2 million in Q1 2024 and $14.4 million in Q4 2024, indicating a recovery in operational performance [1][3] - Revenue increased to $262.5 million in Q1 2025 from $239.5 million in Q1 2024, although it decreased from $273.2 million in Q4 2024 [3] Balance Sheet and Liquidity - Net debt decreased significantly to $21.2 million at the end of Q1 2025 from $83.6 million at the end of Q4 2024, and from $77.6 million at the end of Q1 2024 [2][3] - The net debt to capitalization ratio improved to 4% at the end of Q1 2025, down from 12% at the end of Q4 2024 and 13% at the end of Q1 2024 [2][3] - Liquidity at the end of Q1 2025 was $195.4 million, compared to $144.6 million at the end of Q4 2024 [3] Operational Highlights - Lumber production was 134 million board feet in Q1 2025, down from 145 million board feet in Q1 2024, while lumber shipments increased to 137 million board feet from 131 million board feet in Q1 2024 [7] - The average lumber selling price rose to $1,533 per thousand board feet in Q1 2025, compared to $1,351 per thousand board feet in Q1 2024, driven by improvements in lumber markets and a stronger USD to CAD exchange rate [7] - The company is advancing two continuous dry kilns, expected to be completed in early 2026, and has received a milestone payment of $1.4 million related to these projects [7] Market Conditions - The US Department of Commerce announced a preliminary combined countervailing and anti-dumping rate of 34.45% for softwood lumber, up from the previous rate of 14.40%, which may impact future financial results [8][9] - North American markets are anticipated to be volatile due to potential US tariffs, while demand for industrial lumber products in North America is expected to strengthen as supply remains tight [10][12] - In Japan, spring housing demand is stronger than expected, although a decline in housing starts is anticipated later in the year [11]