West Fraser to Indefinitely Curtail Alberta OSB Mill, Anticipating $200 Million Loss
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 04 2025
0mins
Should l Buy WFG?
Source: PRnewswire
- Capacity Reduction: West Fraser will indefinitely curtail its OSB mill in High Level, Alberta, in spring 2026, resulting in a capacity reduction of 860 million square feet due to a significant weakening in OSB demand, which is expected to negatively impact the company's financial condition.
- Employee Mitigation: Although the closure will affect approximately 190 employees, West Fraser plans to mitigate this impact by providing work opportunities at other operations, demonstrating the company's commitment to its workforce and strategic foresight in managing operational transitions.
- Production Line Idling: The OSB production line at the Cordele, Georgia facility has been idled indefinitely since late 2023, with a capacity of 440 million square feet, further reflecting the ongoing weakness in market demand that may affect the company's overall profitability.
- Asset Impairment Loss: West Fraser anticipates recording an asset impairment loss of approximately $200 million in Q4 2025 related to the curtailment of the High Level mill, indicating the financial pressures the company faces in navigating market challenges.
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Analyst Views on WFG
Wall Street analysts forecast WFG stock price to rise
3 Analyst Rating
2 Buy
1 Hold
0 Sell
Moderate Buy
Current: 73.370
Low
69.11
Averages
80.70
High
88.00
Current: 73.370
Low
69.11
Averages
80.70
High
88.00
About WFG
West Fraser Timber Co. Ltd. is a Canada-based diversified wood products company. The Company is engaged in manufacturing, selling, marketing and distributing lumber, engineered wood products such as oriented strand board (OSB), laminated veneer lumber (LVL), medium-density fiberboard (MDF), plywood, particleboard, pulp, newsprint, wood chips and other residuals. Its products are used in home construction, repair and remodeling, industrial applications, paper and tissue. Its segments include Lumber, North America engineered wood products (NA EWP), Pulp & Paper and Europe EWP. The Company’s business comprises lumber mills, OSB facilities, plywood facilities, MDF facilities, particleboard facilities, LVL facilities, veneer facilities, and pulp and paper mills. The Company operates approximately 58 facilities in Canada, the United States, the United Kingdom and Europe.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Dividend Yield: The forward yield of 1.75% reflects the company's ongoing commitment to shareholder returns, even as overall financial performance remains under pressure.
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- Market Reaction: While the dividend remains unchanged, the decline in financial performance may affect investor confidence, leading to stock price volatility and reflecting market concerns about the company's future growth potential.
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- Adjusted EBITDA Loss: Adjusted EBITDA stood at -$79 million, representing 7% of sales, with the lumber segment alone reporting an adjusted EBITDA loss of -$57 million, underscoring the significant impact of restructuring and impairment charges on profitability.
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- Disclosure of Information: The annual report also contains management's discussion and analysis (MD&A) and an annual information form, all of which have been submitted to Canadian securities authorities, ensuring adherence to regulatory requirements in both countries and bolstering investor confidence.
- Sustainability Commitment: Operating over 50 facilities globally, West Fraser is dedicated to sustainable forest management, producing a variety of wood products including lumber, engineered wood products, and pulp, catering to construction and industrial needs while promoting environmentally friendly practices.
- Investor Services: The company provides electronic access to the annual report on its website and commits to offering hard copies free of charge upon shareholder request, reflecting its focus on shareholder engagement and transparent communication strategies.
See More
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- Document Accessibility: The annual report is available on EDGAR and SEDAR+, and can also be accessed in the investors section of the company's website, ensuring shareholders and investors can easily obtain critical information.
- Company Overview: West Fraser is a diversified wood products company with over 50 facilities across Canada, the U.S., the U.K., and Europe, emphasizing sustainable forest management, which highlights its strategic positioning in environmental stewardship.
- Product Diversity: The company produces a variety of wood products, including lumber, engineered wood products, and pulp, which are widely used in home construction and industrial applications, demonstrating its broad market impact and business resilience.
See More
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- Revenue Decline: The anticipated revenue for Q4 stands at $1.19 billion, down 15.6% year-over-year, which highlights the overall weakness in the lumber industry and could adversely affect the company's market share and profitability.
- Historical Performance Review: Over the past year, West Fraser has only beaten EPS estimates 25% of the time and revenue estimates 50% of the time, showcasing considerable volatility in its performance and necessitating cautious evaluation from investors regarding future outcomes.
- Dividend Distribution: The company has declared a dividend of $0.32 per share, maintaining a commitment to shareholder returns despite profitability pressures, which reflects management's confidence in cash flow and dedication to its investors.
See More
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- Quarterly Dividend Announcement: West Fraser Timber has declared a quarterly dividend of $0.32 per share, consistent with previous distributions, indicating the company's stability during the current economic cycle despite market challenges.
- Dividend Yield: The forward yield of 1.75% reflects the company's ongoing commitment to shareholder returns, even as overall financial performance remains under pressure.
- Poor Financial Performance: West Fraser Timber reported a GAAP EPS of -$9.63, missing expectations by $7.19, with revenue of $1.17 billion falling short of targets, highlighting significant challenges in revenue growth.
- Market Reaction: While the dividend remains unchanged, the decline in financial performance may affect investor confidence, leading to stock price volatility and reflecting market concerns about the company's future growth potential.
See More
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- Earnings Miss: West Fraser Timber's Q4 report reveals a GAAP EPS of -$9.63, missing expectations by $7.19, indicating severe profitability challenges amid a sluggish market.
- Revenue Decline: The company reported Q4 revenue of $1.17 billion, a 17% year-over-year decrease, falling short of market expectations by $20 million, highlighting the direct impact of weak lumber demand on performance.
- Adjusted EBITDA Loss: Adjusted EBITDA stood at -$79 million, representing 7% of sales, with the lumber segment alone reporting an adjusted EBITDA loss of -$57 million, underscoring the significant impact of restructuring and impairment charges on profitability.
- Segment Performance Issues: The North America Engineered Wood Products segment reported an adjusted EBITDA loss of -$24 million, while the Pulp & Paper segment barely managed -$1 million, and the Europe Engineered Wood Products segment achieved a modest profit of $4 million, reflecting the company's challenges across various markets.
See More
West Fraser Reports Q4 2025 Financial Results Amidst Challenges
- Sales Decline: Q4 2025 sales were $1.165 billion, down 10.8% from $1.307 billion in Q3 2025, reflecting ongoing weak demand for wood products due to housing affordability constraints impacting revenue performance.
- Increased Losses: The company reported a net loss of $751 million in Q4, translating to a loss of $9.63 per share, compared to a loss of $204 million or $2.63 per share in Q3, indicating significant financial strain under high tariffs and supply-demand imbalances.
- Capital Expenditure Adjustments: Capital expenditures in Q4 2025 totaled $139 million, with annual spending at $411 million, a 15.6% decrease from $487 million in 2024, as the company reduces investments to navigate market challenges and maintain liquidity.
- Dividend Declaration: The Board declared a dividend of $0.32 per share payable on April 2, 2026, reflecting a commitment to shareholder returns despite losses, indicating confidence in future recovery and profitability.
See More
West Fraser Files 2025 Annual Report with SEC
- Annual Report Filing: West Fraser Timber Co. Ltd. filed its 2025 Form 40-F with the SEC on February 11, 2026, which includes audited financial statements for the year ending December 31, 2025, demonstrating the company's commitment to transparency and compliance.
- Disclosure of Information: The annual report also contains management's discussion and analysis (MD&A) and an annual information form, all of which have been submitted to Canadian securities authorities, ensuring adherence to regulatory requirements in both countries and bolstering investor confidence.
- Sustainability Commitment: Operating over 50 facilities globally, West Fraser is dedicated to sustainable forest management, producing a variety of wood products including lumber, engineered wood products, and pulp, catering to construction and industrial needs while promoting environmentally friendly practices.
- Investor Services: The company provides electronic access to the annual report on its website and commits to offering hard copies free of charge upon shareholder request, reflecting its focus on shareholder engagement and transparent communication strategies.
See More
West Fraser Timber Files 2025 Annual Report with SEC
- Annual Report Filing: West Fraser Timber Co. Ltd. filed its 2025 annual report with the SEC on February 11, 2026, which includes audited financial statements and management's discussion and analysis, reflecting the company's commitment to transparency and compliance.
- Document Accessibility: The annual report is available on EDGAR and SEDAR+, and can also be accessed in the investors section of the company's website, ensuring shareholders and investors can easily obtain critical information.
- Company Overview: West Fraser is a diversified wood products company with over 50 facilities across Canada, the U.S., the U.K., and Europe, emphasizing sustainable forest management, which highlights its strategic positioning in environmental stewardship.
- Product Diversity: The company produces a variety of wood products, including lumber, engineered wood products, and pulp, which are widely used in home construction and industrial applications, demonstrating its broad market impact and business resilience.
See More
West Fraser Timber to Announce Q4 Earnings on February 11
- Earnings Announcement: West Fraser Timber is set to release its Q4 earnings on February 11 after market close, with a consensus EPS estimate of -$2.41, reflecting a staggering 201.3% year-over-year decline, indicating significant profitability challenges ahead.
- Revenue Decline: The anticipated revenue for Q4 stands at $1.19 billion, down 15.6% year-over-year, which highlights the overall weakness in the lumber industry and could adversely affect the company's market share and profitability.
- Historical Performance Review: Over the past year, West Fraser has only beaten EPS estimates 25% of the time and revenue estimates 50% of the time, showcasing considerable volatility in its performance and necessitating cautious evaluation from investors regarding future outcomes.
- Dividend Distribution: The company has declared a dividend of $0.32 per share, maintaining a commitment to shareholder returns despite profitability pressures, which reflects management's confidence in cash flow and dedication to its investors.
See More
