VANCOUVER, BC, Jan. 8, 2026 /PRNewswire/ - West Fraser Timber Co. Ltd. ("West Fraser" or the "Company") (TSX andNYSE: WFG) announced today that it will record an impairment of its Lumber segment goodwill in the fourth quarter of 2025 due to persistently challenging economic conditions. The Company is also providing initial 2026 guidance for key product shipments, operational costs and capital expenditures. In Q4-2025, West Fraser expects to record an approximately $409 million non-cash impairment of goodwi ...

Valued at a market cap of $21 billion, International Paper Company (IP) is a global leader in fiber-based packaging, pulp, and paper products, with operations spanning North America, Latin America, Europe, North Africa, and the Middle East. Headquartered in Tennessee, the company primarily serves industrial and consumer markets through its corrugated packaging and cellulose fibers businesses. The company is expected to release its fiscal Q4 2025 results before the market opens on Thursday, Jan. 29. Ahead ...

Core Insights - The article discusses the potential resurgence of small-cap dividend stocks, highlighting their current undervaluation and the favorable economic conditions that may support their growth [2][5]. Economic Environment - Small-cap American stocks have been slow-moving, but expectations of interest rate cuts by the Fed could benefit these companies due to reduced borrowing costs [2][3]. - Goldman Sachs reports that American small-cap earnings are showing signs of recovery, with 25% of Russell 2000 members posting growing earnings for at least two consecutive quarters [4]. International Perspective - European small-caps are expected to experience robust growth, with higher market expectations compared to larger companies [5]. - Japanese small and mid-cap companies have outperformed large-caps, supported by solid earnings and strong local demand [5]. Valuation Metrics - US small-cap stocks are currently priced about 26% less than large caps, while international small caps are 8% cheaper, indicating potential undervaluation [5]. Investment Strategy - The article presents a list of the best small-cap dividend stocks to buy, focusing on those with significant hedge fund interest [6][9]. - The methodology for selecting these stocks involves using the Invesco S&P SmallCap High Dividend Low Volatility ETF and focusing on holdings with market caps between $300 million and $2 billion [9]. Company Highlights - **Sylvamo Corporation (NYSE:SLVM)**: - Market Cap: $1.967 billion, Dividend Yield: 3.69%, with a potential upside of 21% to 54% based on price targets [11][12]. - Recently upgraded by BofA, with a rights plan approved to protect shareholder value [12][13][14]. - **SunCoke Energy, Inc. (NYSE:SXC)**: - Market Cap: $575.726 million, Dividend Yield: 7.06%, with a suggested upside of 47% [16]. - Adjusted EBITDA guidance for 2025 raised to between $220 million and $224 million, driven by strong performance in Industrial Services [18]. - Extended a cokemaking deal with Cleveland-Cliffs Inc. for three years, starting January 1, 2026 [19].

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 Insights - Mercer International Inc. will have its CFO Richard Short attending and hosting meetings at two upcoming conferences in December 2025 [1] - The company is a global forest products entity with significant production capacities across various product lines [3] Conference Details - Richard Short will present at the BofA Securities 2025 Leveraged Finance Conference on December 2, 2025, at 10:10 a.m. (EST) [1] - The UBS Global Industrials & Transportation Conference will take place on December 4, 2025 [1] - A copy of the presentation will be available on the company's website prior to the events [2] Company Overview - Mercer International Inc. has operations in Germany, the United States, and Canada [3] - The company has a consolidated annual production capacity of: - 2.1 million tonnes of pulp - 960 million board feet of lumber - 210,000 cubic meters of cross-laminated timber - 45,000 cubic meters of glulam - 17 million pallets - 230,000 metric tonnes of biofuels [3]

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]

Core Insights - International Paper reported a net loss of $1.1 billion for Q3 2025, a significant decline from a profit of $150 million in the same period last year, primarily due to $675 million in accelerated depreciation related to mill closures [1] - Despite the loss, net sales increased to $6.22 billion in Q3 2025 from $3.98 billion a year earlier, indicating strong revenue growth [1] Financial Performance - The company achieved a 28% sequential improvement in adjusted EBITDA across its Packaging Solutions businesses, attributed to price realization, cost management, and lower fiber costs [2] - The GCF division reported revenue of $2.8 billion in 2024, highlighting its significance within the company's portfolio [5] Operational Changes - International Paper closed four facilities in the US in 2025, including the Red River containerboard mill, which reduced annual containerboard capacity by 800,000 tonnes [3][4] - The shutdown affected approximately 179 salaried employees, representing 1% of the company's global workforce [4] Strategic Initiatives - The company is focusing on sustainable packaging solutions and has agreed to sell its Global Cellulose Fibers business to American Industrial Partners for $1.5 billion, part of its strategy to concentrate on core operations [4]

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 Points - Mercer International will release its third quarter results for the period ending September 30, 2025, on November 6, 2025, after market close [1] - A conference call to discuss the results will be hosted by the President and CEO, Juan Carlos Bueno, and CFO, Richard Short, on November 7, 2025, at 10:00 am ET [1] Company Overview - Mercer International Inc. is a global forest products company with operations in Germany, the United States, and Canada [4] - The company has a consolidated annual production capacity of 2.1 million tonnes of pulp, 960 million board feet of lumber, 210,000 cubic meters of cross-laminated timber, 45,000 cubic meters of glulam, 17 million pallets, and 230,000 metric tonnes of biofuels [4]

Core Insights - West Fraser Timber Co. Ltd. reported a decline in demand for wood-based building products in Q2-25, particularly in the North America Engineered Wood Products (NA EWP) segment, due to lower-than-expected spring building activity and ongoing housing affordability challenges [3][4][12] - The company experienced a decrease in sales and earnings compared to Q1-25, with Q2-25 sales at $1.532 billion and a net loss of $24 million, or $0.38 per diluted share [5][10] - Adjusted EBITDA for Q2-25 was $84 million, down from $195 million in Q1-25, reflecting the impact of reduced demand and pricing pressures [5][10] Financial Performance - Q2-25 sales were $1.532 billion, an increase from $1.459 billion in Q1-25 [5] - Q2-25 earnings were a loss of $24 million compared to a profit of $42 million in Q1-25 [5] - Adjusted EBITDA for Q2-25 was $84 million, representing 6% of sales, down from $195 million in Q1-25 [10][41] Market and Demand Outlook - The U.S. housing market showed a seasonally adjusted annualized rate of 1.32 million housing starts in June 2025, with permits issued at 1.40 million units, indicating potential for future demand despite near-term uncertainties [14] - Long-term demand for wood products is expected to be supported by improved housing affordability, stabilization of inflation and interest rates, and an aging U.S. housing stock [13][15] - In Europe, demand for wood products is anticipated to grow in the long term, although near-term challenges persist due to geopolitical developments and inflationary pressures [15] Operational Adjustments - The company is taking steps to ensure operational flexibility and cost control in response to the current demand environment [4] - Capital expenditures in Q2-25 were $78 million, with expected total capital expenditures for 2025 projected to be between $400 million and $450 million [9][22] - The company has reduced its shipment targets for both SPF and SYP lumber due to slower demand and uncertainties related to tariffs [16][18] Segment Performance - Adjusted EBITDA for the Lumber segment was $15 million, while the NA EWP segment reported $68 million [10][42] - The Pulp & Paper segment experienced a slight loss with an Adjusted EBITDA of $(1) million [10][42] - The Europe EWP segment reported an Adjusted EBITDA of $2 million, indicating stable performance amidst market challenges [10][42]