West Fraser Timber Co. Ltd. reported its first-quarter 2025 financial results on April 22, 2025. The company achieved sales of $1.459 billion, an increase from $1.405 billion in the fourth quarter of 2024, and posted earnings of $42 million, or $0.46 per diluted share, a significant improvement from the $62 million loss in the prior quarter.
Adjusted EBITDA for Q1 2025 was $195 million, up from $140 million in Q4 2024, with the Lumber segment recording its best quarter in over two years due to mill curtailments and portfolio optimization. However, the quarter was marked by new U.S. trade policies, including a Section 232 investigation into timber and lumber imports, and the imposition of 25% tariffs on Canadian wood products between March 4-6, 2025, followed by a temporary pause and then new tariffs starting at 10% on April 2, 2025.
The company's liquidity saw cash and short-term investments decrease to $390 million at March 28, 2025, from $641 million at December 31, 2024, primarily due to a seasonal log inventory build. Capital expenditures for the quarter were $104 million, and West Fraser repurchased 637,258 shares under its NCIBs from January 1 to April 21, 2025.
West Fraser revised its 2025 operational guidance, reducing the top-end of SPF shipments to 2.7-2.9 billion board feet and SYP shipments to 2.5-2.7 billion board feet, citing transportation challenges and tariff uncertainty. North American OSB target shipments were also reduced to 6.5-6.8 billion square feet, and NBSK pricing weakness is anticipated due to tariff impacts on Chinese markets, while capital expenditures remain projected at $400 million to $450 million.
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