West Fraser reported 2025 sales of $5.5 billion, down from $6.2 billion in 2024, and a loss of $937 million, compared with a $5 million loss in 2024. It reported adjusted EBITDA of $56 million, down from $673 million in 2024, and said pre-tax earnings included $712 million of restructuring and impairment charges.
For 2025, the company reported segment adjusted EBITDA of a loss of $100 million for lumber, including $67 million of export duty expense tied to the finalization of AR6 but excluding $473 million of restructuring and impairment charges, and $153 million for North America engineered wood products, excluding $239 million of restructuring and impairment charges. It reported segment adjusted EBITDA of a loss of $2 million for pulp and paper and $5 million for Europe engineered wood products.
In the fourth quarter, the company reported sales of $1.2 billion and a loss of $751 million, or $10 per diluted share, and adjusted EBITDA of a loss of $79 million. It reported segment adjusted EBITDA of a loss of $57 million for lumber, a loss of $24 million for North America engineered wood products, a loss of $1 million for pulp and paper, and $4 million for Europe engineered wood products, and it said the quarter excluded $473 million of restructuring and impairment charges in lumber and $239 million in North America engineered wood products.
West Fraser said wood building products markets remain pressured, citing elevated softwood lumber duties and tariffs, oversupply in southern yellow pine lumber and OSB, and demand tied to housing affordability constraints.
The company said it completed construction and started up its modernized lumber mill in Henderson, Texas, and said the ramp-up of its large-scale OSB mill in Allendale, South Carolina, is effectively complete. It also said it announced closures or curtailments of lumber and OSB mills it views as uneconomic, describing the actions as adjustments to match customer demand and reduce costs.
For 2026, West Fraser reiterated lumber shipment targets of 2.4 billion to 2.7 billion board feet for SPF and southern yellow pine and said it expects another year of modest demand, with uncertainty tied to tariffs and housing affordability constraints. It reiterated North America OSB target shipments of 5.9 billion to 6.3 billion square feet on a 3/8-inch basis, including the impact of a planned OSB mill curtailment, and reiterated Europe OSB shipment targets of 1.0 billion to 1.25 billion square feet on a 3/8-inch basis, while saying Europe demand for MDF, particleboard and OSB should be similar to or slightly better than 2025.
In pulp, West Fraser said the economic impact of U.S. tariffs is creating demand uncertainty in Chinese markets and said it expects NBSK pricing to be relatively stable to slightly higher over the near to medium term.
The company said it expects 2026 input costs to remain relatively stable across its supply chain and kept its 2026 capital expenditure guidance at $300 million to $350 million. It reported capital expenditures of $139 million in the fourth quarter, $411 million for 2025 and $487 million for 2024, and it said it repurchased 1.6 million shares for $124 million in 2025 and 108 thousand shares for $7 million in the fourth quarter.
