Western Forest Products Inc. reported Adjusted EBITDA of $0.5 million in the Q2 2025, which included an inventory provision expense of $3.6 million related to price declines in certain lumber products. In comparison, the Company reported Adjusted EBITDA of $9.4 million in the Q2 2024, which included a $5.3 million inventory provision recovery, and Adjusted EBITDA of $3.5 million in the Q1 2025, which included an inventory provision expense of $1.8 million.
Net loss was $17.4 million in the Q2 2025, as compared to a net loss of $5.7 million in the Q2 2024, and net income of $13.8 million in the Q1 2025.
Market Outlook
Markets in North America are expected to be volatile through the Q3 2025 as softwood lumber duties have increased significantly. Persistently high interest rates, low consumer confidence and general economic uncertainty are leading to a slower pace in repairs and renovations, and housing activity. Expectations are for this trend to continue throughout the Q3 2025, and as a result, lumber markets will be challenged for both commodity and specialty products with demand and pricing expected to remain weak across most species and product categories.
Demand remains strong for specialty products into all export markets, with anticipated price increases for western red cedar, hemlock and fir species throughout the Q3 2025. In Japan and China, housing activity continues to trend downwards, however, market lumber inventories remain low. Because of the lower lumber inventory levels, pricing remains stable with price gains expected on key products in Japan, Taiwan, and Hong Kong.
Western Forest Products is an integrated forest products company building a margin-focused log and lumber business to compete successfully in global softwood markets.
