West Fraser Timber Co. Ltd., a leading company in the wood products industry, has released its financial results for the first quarter of 2025. This report offers a detailed look at the company’s performance and strategic responses to current market dynamics.

West Fraser Timber Co. Ltd. reports first quarter 2025 sales of $1.46 billion and net earnings of $42 million, a rebound from the $62 million loss in the previous quarter. Adjusted EBITDA rose to $195 million, representing 13% of sales. The company repurchased 530 thousand shares for $44 million and recorded adjusted EBITDA of $66 million in the Lumber segment and $125 million in North America Engineered Wood Products.

The Europe Engineered Wood Products segment posted a $2 million adjusted EBITDA loss, while the Pulp & Paper segment earned $7 million. First quarter capital expenditures totaled $104 million, with full-year guidance set between $400 million and $450 million. The company paid $26 million in dividends and declared another $0.32 per share for the second quarter.

Following U.S. actions in March 2025, West Fraser faces 25% tariffs on Canadian wood products exported to the U.S., with a temporary pause under USMCA ending April 2. New 10% tariffs on all imports were imposed thereafter, though USMCA-compliant goods remain exempt from the latest round. The company warns that these measures could affect profitability and shipment forecasts.

Operationally, West Fraser cut its 2025 shipment targets for softwood lumber and OSB, citing transportation delays and tariff uncertainty. SPF shipment estimates dropped to 2.7–2.9 billion board feet from 2.7–3.0 billion, and SYP to 2.5–2.7 billion from 2.5–2.8 billion. OSB targets in North America were lowered to 6.5–6.8 billion square feet from 6.5–6.9 billion. The European OSB guidance remains unchanged at 1.0–1.25 billion square feet.

Despite these headwinds, West Fraser anticipates long-term demand growth for wood products driven by U.S. housing needs and mass timber adoption. The company maintains strong liquidity with $390 million in cash and short-term investments at quarter-end, down from $641 million in December 2024 due to seasonal log inventory build.

About West Fraser

West Fraser is recognized for its commitment to sustainable forest practices and operates more than 50 facilities across Canada, the U.S., the U.K., and Europe, producing a wide range of wood products necessary for both residential and industrial uses.

Source: West Fraser