West Fraser Timber (WFG) Q2 2026 earnings summary

Executive summary

• Q2 2026 sales reached $1.434 billion, with adjusted EBITDA of $59 million (4% margin), rebounding from a Q1 loss, and all core segments contributed positively.

• Liquidity remained strong, exceeding $1 billion, with a net debt-to-capital ratio of 5%.

• Production at the new Henderson, Texas sawmill more than doubled sequentially, offsetting closures and supporting shipment growth.

• Strategic closure of the High Level, Alberta OSB mill was completed on time and under budget, focusing production on efficient facilities.

• Declared a $0.32/share dividend for Q3 2026.

Financial highlights

• Sales rose to $1.434 billion in Q2 from $1.334 billion in Q1; adjusted EBITDA improved to $59 million from -$66 million.

• Net loss narrowed to $61 million (EPS: -$0.78) from $188 million loss in Q1.

• Generated $192 million in cash from operations, enabling repayment of $148 million in borrowings.

• Lumber segment adjusted EBITDA was $41 million, rebounding from a loss in Q1, aided by a $13 million duties adjustment.

• North America and Europe EWP segments each posted $13 million adjusted EBITDA, up from Q1.

Outlook and guidance

• 2026 shipment guidance unchanged: SPF and SYP lumber at 2.4–2.7 billion board feet each; NA OSB at 5.9–6.3 billion square feet.

• Capital expenditures for 2026 forecast at $300–$350 million, focusing on operationalizing recent projects.

• Expect further production gains and lower unit costs as Henderson ramps up.

• Monitoring potential tariff exposure, especially in LVL, MDF, and Canadian exports.

• Near-term demand faces uncertainty from tariffs, inflation, mortgage rates, and housing affordability.