West Fraser(US:WFG)2025-07-24 15:30Financial Performance & Outlook - Q2 2025 adjusted EBITDA was $84 million, with an adjusted EBITDA margin of 6%[7] compared to $195 million and 13% in Q1 2025[7] - The company lowered its 2025 guidance for SPF shipments to 2,600-2,800 MMfbm, SYP shipments to 2,400-2,600 MMfbm, and North American OSB shipments to 6,300-6,500 MMsf 3/8"[15] - Capital expenditures for 2025 are projected to be $400-$450 million[15] Market Dynamics & Strategy - North American lumber end use in 2024 was 32% new residential, 38% R&R, 23% industrial, and 6% non-residential & other[35] - North American OSB end use in 2024 was 57% new residential, 24% R&R, 10% industrial, and 9% non-residential[35] - West Fraser is shifting lumber capacity to lower-risk, lower-cost regions, with US South accounting for approximately 53% of capacity in 2024, compared to 11% in 2004[40] Capital Allocation & Shareholder Value - From 2016 through YTD June 2025, West Fraser reinvested 35% of cash in existing operations and growth, returned 49% to shareholders, and retained 10% for leverage reduction[84] - Cumulative investment in share repurchases reached $4549 million by H1 2025[87] - The company has a net duty receivable of $372 million[105] Production & Capacity - West Fraser's 2024 lumber capacity was 66 billion board feet[26] - West Fraser's North American OSB capacity is 8060 MMsf 3/8"[26] - West Fraser's European OSB capacity is 1515 MMsf 3/8"[26]