West Fraser Timber Revises 2025 Shipment Guidance Amid Lower Demand and Higher Tariffs.

West Fraser Timber Co. has revised its 2025 shipment guidance due to lower demand and elevated tariffs. The company generated $84 million of adjusted EBITDA in Q2 2025, with a 6% margin. CEO Sean P. McLaren attributed this to operating within a challenging market environment.

VANCOUVER, BC, July 2, 2025 – West Fraser Timber Co. Ltd. (TSX and NYSE: WFG) has revised its 2025 shipment guidance due to lower demand and elevated tariffs. The company reported $84 million of adjusted EBITDA in Q2 2025, with a 6% margin. CEO Sean P. McLaren attributed this to operating within a challenging market environment [1].

West Fraser's adjusted EBITDA for the second quarter was $84 million, representing 6% of sales. The company's Lumber segment reported an adjusted EBITDA of $15 million, while the North America Engineered Wood Products (NA EWP) segment had an adjusted EBITDA of $68 million. The Pulp & Paper segment, however, reported a loss of $1 million. The Europe Engineered Wood Products (Europe EWP) segment had an adjusted EBITDA of $2 million [1].

The company also renewed and extended a $1 billion credit facility and increased and extended a $300 million term loan. Additionally, West Fraser repurchased 448,001 shares for a total consideration of $33 million and released its 2024 Sustainability Report [1].

McLaren stated, "Demand for many of our wood-based building products slowed in the second quarter as spring building activity fell short of our expectations. This was more acute in our NA EWP segment, which experienced further easing of demand as the quarter progressed, consistent with government data pointing to softer U.S. new home construction." Despite these challenges, the company is taking action to ensure its operations are flexible and cost-controlled, and it continues to evaluate mill investments that generate returns above its cost of capital [1].

West Fraser has reduced its 2025 lumber shipment targets due to lower demand and uncertainty surrounding tariffs. The company now targets 2.6 to 2.8 billion board feet for SPF shipments and 2.4 to 2.6 billion board feet for SYP shipments, down from previous targets of 2.7 to 2.9 billion and 2.5 to 2.7 billion, respectively. Similarly, the NA EWP segment targets shipments of 6.3 to 6.5 billion square feet, down from a previous target of 6.5 to 6.8 billion square feet [1].

The company also anticipates NBSK pricing weakness in the near to medium term, which could adversely impact its Pulp & Paper segment. Additionally, the Cariboo Pulp & Paper mill will be down for approximately two weeks late in the third quarter for annual maintenance [1].

Despite these challenges, West Fraser remains optimistic about the long-term growth opportunities ahead. The company expects demand for its products to grow in Europe and the U.K. as use of OSB as an alternative to plywood grows. Additionally, the aging housing stock in these regions is expected to support long-term repair and renovation spending [1].

References:
[1] https://www.prnewswire.com/news-releases/west-fraser-announces-second-quarter-2025-results-302512356.html