Canada's West Fraser Timber Q2 sales rise sequentially, output at Henderson sawmill more than double

Overview

• Canada wood products maker's Q2 sales rose sequentially

• Adjusted EBITDA turned positive at $59 mln after a loss in Q1

• Company ramped up Henderson, Texas sawmill and wound down High Level, Alberta OSB mill

Outlook

• West Fraser reiterates 2026 SPF and SYP lumber shipment targets of 2.4-2.7 bln board feet

• Company maintains 2026 North American OSB shipment target of 5.9-6.3 bln square feet

• West Fraser expects 2026 capital expenditures to remain within $300 mln to $350 mln range

Result Drivers

• HENDERSON SAWMILL RAMP-UP - Output at the new Henderson, Texas sawmill more than doubled versus Q1 and is now operating at levels equivalent to the mill it replaced

• CANADIAN LUMBER PRODUCTION - Lumber production in Canada rose 13% as the Blue Ridge facility returned to normal operating rates

• HIGHER INPUT COSTS - Resin and wax costs increased by $13 mln in Q2 versus Q1 due to higher oil prices, with transportation costs also rising, especially in the U.S. South

Company press release: ID:nPnxKzZna

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the forest wood products peer group is "hold."

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)