WFG

Interested in West Fraser Timber Co. Ltd.? Here are five stocks we like better. West Fraser reported a stronger second quarter: Sales reached approximately $1.4 billion and adjusted EBITDA was $59 million, supported by improved lumber and European pricing, higher shipments and a favorable $13 million duty adjustment. Operational performance improved across key segments. Lumber benefited from higher realizations, shipment growth and the ramp-up of the Henderson mill, while engineered wood and European operations generated positive EBITDA; however, seasonal logging costs, transportation constraints and higher resin expenses remained headwinds. Cash generation strengthened the balance sheet. West Fraser produced $192 million in operating cash flow, reduced net debt by $140 million and ended the quarter with approximately $1 billion in liquidity, while maintaining its 2026 capital-spending and shipment guidance despite tariff uncertainty. Forget Tariffs, Landstar and West Fraser Can Still Rally West Fraser Timber (NYSE:WFG) reported second-quarter 2026 sales of approximately $1.4 billion and adjusted EBITDA of $59 million, supported by improved lumber and European pricing, higher shipment volumes and positive contributions from its core operating segments. Chief Financial Officer Chris Virostek said the quarterly EBITDA result included a $13 million favorable softwood lumber duty adjustment and represented an adjusted EBITDA margin of about 4%. The company reported sales of roughly $1.3 billion and adjusted EBITDA of negative $66 million in the first quarter, though that prior-quarter figure included a $114 million non-cash duty adjustment related to prior periods. Excluding duty adjustments, Virostek said underlying consolidated performance was stable sequentially. → Microsoft Just Flipped the AI Spending Narrative Overnight 3 Stocks To Watch For When Tariffs Subside The lumber segment generated $41 million in adjusted EBITDA during the second quarter, compared with reported adjusted EBITDA of negative $84 million in the first quarter. Excluding the first-quarter duty adjustment, the segment posted a modest sequential improvement, according to Virostek. The company cited higher mill net realizations and shipment volumes as contributors. Canadian spruce-pine-fir shipments increased 18% from the first quarter, aided by the mid-March restart of the Blue Ridge, Alberta, facility. Southern yellow pine shipments rose 5%, despite transportation shortages in the U.S. South. → 2 Unique Space ETFs That Could Upend the Industry Don’t Miss These Stock Picks for the Lumber Price Surge President and CEO Sean McLaren said West Fraser produced about the same amount of southern yellow pine in the first half as it did a year earlier despite operating one fewer mill. He attributed that performance to productivity gains and continued optimization of the company’s U.S. lumber portfolio. McLaren also said production at the company’s new Henderson mill more than doubled in the second quarter from the first quarter and was regularly exceeding production levels at the former mill. West Fraser expects additional production gains and lower unit costs as the facility continues to ramp through the rest of 2026. → MarketBeat Week in Review – 07/27- 07/31 Lumber results were partly affected by the seasonal timing of Canadian logging costs during spring breakup and inventory valuation adjustments tied to quarter-end pricing. Looking ahead, McLaren said Canadian lumber supply has been shrinking, which the company expects will limit pressure on fiber inputs. He also noted that duty rates are expected to decline following the AR7 review when the new rates take effect later this year. West Fraser’s North America engineered wood products segment generated $13 million in adjusted EBITDA, compared with $11 million in the first quarter. North American OSB results were driven primarily by pricing dynamics, while controllable costs were largely consistent with the prior quarter despite resin inflation, Virostek said. The company completed the closure of its High Level, Alberta, OSB mill during the quarter, finishing the wind-down on time and under budget. McLaren said the move better aligns the production footprint with customer demand and should improve operational efficiency. He added that the company has yet to realize the full benefit of reallocating products previously made at High Level to other mills. West Fraser’s European operations generated $13 million in adjusted EBITDA, up from $10 million in the first quarter, as higher demand supported stronger pricing and volumes. The company said it managed higher resin and freight expenses through pricing actions, procurement and operating discipline. McLaren said the European business delivered its strongest first-half performance since 2023. He added that the company sees longer-term support for wood-based construction in Europe, including rising adoption of timber-frame building in the United Kingdom. Senior Vice President of Sales and Marketing Matt Tobin described transportation conditions as a “multilayered challenge.” Trucking-company bankruptcies reduced available capacity beginning in the fourth quarter, while higher fuel prices and seasonal demand from produce shipments added pressure in the U.S. South. Tobin said conditions have eased recently as seasonal demand moderated and railroads moved more product, although geopolitical pressures and fuel costs could keep transportation markets tight. Virostek said freight and resin costs increased during the first half. The company estimated that resin and wax costs rose by $13 million sequentially in the second quarter across North American and European engineered wood operations. West Fraser estimates a $10-per-barrel change in crude oil prices affects annual resin and wax costs by roughly $15 million. Outbound transportation costs are largely passed through to customers, Virostek said, while lower fiber costs, particularly in the U.S. South, offset much of the resin and wax cost increase. The company is also assessing potential effects from announced 50% tariffs under Section 338 of the Tariff Act of 1930. Year to date, approximately 3% of West Fraser’s Canadian plywood shipments and 20% of its LVL shipments were exported to the United States. About half of the company’s MDF shipments go to the U.S., but those shipments are not directly subject to the tariffs, Virostek said. West Fraser generated $192 million of cash from operations during the quarter as seasonal working-capital investment began to reverse. The company repaid $148 million of operating borrowings and reduced net debt by $140 million. It ended the quarter with $55 million drawn on its $1 billion revolver, a net debt-to-capital ratio of 5%, and approximately $1 billion in liquidity. The company did not repurchase shares in the second quarter, saying it chose to preserve financial flexibility during the current phase of the cycle. Management maintained its shipment guidance for major products and its 2026 capital expenditure range of $300 million to $350 million. McLaren said West Fraser’s principal project under construction is the Bemidji asset re-life project, which is expected to begin ramping early next year. The company said all of its facilities remained safe and had not experienced wildfire-related operational impacts as it monitored conditions in British Columbia and Alberta. West Fraser Timber Co Ltd. (NYSE: WFG) is a leading North American diversified wood products company headquartered in Vancouver, British Columbia. The company operates a broad portfolio of manufacturing facilities that produce lumber, engineered wood products such as laminated veneer lumber (LVL), oriented strand board (OSB) and plywood, as well as medium density fibreboard (MDF), particleboard, pulp and paper. West Fraser's integrated production model spans harvesting, milling and finishing, allowing it to serve a wide range of residential, commercial and industrial construction markets. Founded in 1955 as West Fraser Mills, the company has grown through both organic investment and strategic acquisitions to become one of the largest lumber producers in the world. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "West Fraser Timber Q2 Earnings Call Highlights" was originally published by MarketBeat. 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This article first appeared on GuruFocus. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. West Fraser Timber Co.Ltd (NYSE:WFG) reported positive adjusted EBITDA of $50 million in Q2 2026, with contributions from all three core segments. The new Henderson mill is ramping up successfully, with production more than doubling quarter-over-quarter and regularly exceeding old mill levels. The company reduced net debt by $140 million in Q2, ending with a low 5% net debt-to-capital ratio and $1 billion in liquidity. European OSB operations delivered the strongest first-half results since 2023, driven by higher demand and effective pricing strategies. Unit costs across the U.S. lumber portfolio decreased by approximately 4% in the first half of 2026, aided by lower production and startup costs at Henderson. Underlying demand remains measured, with elevated mortgage rates and consumer affordability concerns pressuring the market. Transportation constraints in the U.S. South, including trucking bankruptcies and fuel spikes, continue to challenge shipping momentum and increase costs. Resin and wax costs rose by an estimated $13 million sequentially in Q2 due to higher oil prices, impacting the engineered wood products segment. The company did not repurchase any shares in Q2 to maintain financial flexibility, signaling caution amid market uncertainty. Pulp mill closures in the U.S. South are a headwind for lumber residual realizations, though they lower OSB fiber costs as an offset. Here are the key highlights from the West Fraser Timber Co. Ltd (NYSE:WFG) Q2 2026 earnings call, presented as summarized Q&A pairs. Warning! GuruFocus has detected 6 Warning Signs with WFG. Is WFG fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide some color on the transportation constraints you are facing? Are there multiple issues, and is there a solution that could improve over time? A: Matt Tobin, Senior Vice President of Sales and Marketing: The challenge has been multi-layered. We saw a lot of bankruptcies from trucking companies in Q4, which took out supply, and then we layered on a spike in fuel. This was followed by a seasonally tight period for trucks in the South due to produce pickups. We are seeing that ease as of late, with railways responding and more product moving by rail. However, with local pressures and fuel costs, it will likely remain tight, though we do see some easing. Q: You mentioned that duty rates will drop later this year. Would you expect pricing to fall on a dollar-for-dollar basis, or is there an opportunity for margin capture? A: Sean McLaren, President and CEO: It really depends on the supply-demand dynamics at that moment. Duties impact the cost floor, but pricing is based on supply and demand. If there is an imbalance, pricing will be based on demand. If not, the cost floor adjusts. It is very difficult to predict. Matt Tobin added that we have been navigating this environment for the last 9 or 10 years, and supply and demand will ultimately determine what happens when the rates drop. Q: You have not done any buybacks this year despite having an open NCIB. What do we need to see for you to restart buybacks? Are there certain metrics you are looking for? A: Chris Frost, EVP and CFO: Maintaining financial flexibility to preserve full optionality for a range of outcomes remains a priority. This includes organic growth, inorganic opportunities, or share buybacks. It is hard to nail down to a single factor. We are looking at all variables to determine where we can deploy capital to create the most value for shareholders over the long-term. We are starting to see a potential inflection point on the lumber side, and we have worked hard to do the right things for the business in a cycle-agnostic way. Q: With your European OSB business rebounding, how do you think about your positioning in Europe and the potential to expand that platform into other wood products, perhaps as distressed assets come to market? A: Sean McLaren, President and CEO: We are pleased with our progress in Europe. We have a strong management team and efficient assets. Our cost position and asset location position us well to compete through cost pressures in other regions. In terms of growth, Europe is just another region for us to look at opportunities. Any growth opportunity would compete on its own merits against other opportunities in our platform. Q: The Henderson ramp-up is progressing well. What is the next "Henderson-type" project you are considering, and are there similar opportunities on the OSB side? A: Sean McLaren, President and CEO: We have done a lot of work on our portfolio over the last 4-5 years and are now in the mode of operationalizing those investments. Our Bemidji project is the only major project under construction, which is a relife of a very solid asset and will be ramping up early next year. We have a basket of other opportunities, but our focus today is getting the value from the investments we have already made. Chris Frost added that through this cycle, we have done a lot of countercyclical investing, so we are not entering an inflection point with a bunch of deferred CapEx. Q: Can you give us a sense of what you are seeing from North American customers in terms of product demand? We have seen a lift in lumber prices, but mortgage rates are up and affordability is compromised. A: Matt Tobin, Senior Vice President of Sales and Marketing: On the lumber side, we are seeing a better supply-demand mix, which has held prices. We see consistent ordering with no real shift or change. On the R&R side, we look at treaters as a good lens, and we are seeing seasonally in-line order patterns. We have not seen a meaningful shift in demand that would change our view from the last few quarters for either new home construction or R&R. Q: Has the M&A opportunity set in North America evolved at all year-to-date? Are you seeing more opportunities? A: Sean McLaren, President and CEO: I wouldn't say it has changed much at all. I imagine folks are waiting to see if there is durability to the improved conditions, as we are only a couple of quarters into improved SYP conditions. We have been consistent that we are looking for high-quality assets and will be very selective if those opportunities arrive. Q: North American engineered wood costs were held in check nicely this quarter. Between lower pulpwood costs and margin benefits from the High Level closure, which was a more important determinant of that cost progression? A: Sean McLaren, President and CEO: It is a whole number of things. We have become very adept at flexing our portfolio of assets to meet customer demand. We took early action at High Level, and while we have yet to see the full benefit, redeploying that production to other mills will improve efficiency. Finally, operationalizing capital investments at Allendale and Shambord, which are exceeding expectations, has allowed us to reduce costs. This, combined with more competitive fiber coming to market due to pulp mill restructurings, has been a key driver. Q: How would you expect diesel prices to affect your Canadian log prices in Q3, given the log deck built through Q1 and Q2? A: Sean McLaren, President and CEO: Most of our agreements with contractors have fuel riders, so there will be some impact depending on where diesel pricing is. However, we have a number of other cost initiatives underway in Western Canada that will allow us to manage any inflationary pressure in the coming quarters. Q: Given recent volatility, do you have a sense of how much of a sequential headwind resin and wax costs should be for North American EWP in Q3 versus Q2? A: Chris Frost, EVP and CFO: We provided a sensitivity in our disclosure, but all things being equal, we had that headwind in Q2. Through a number of other initiatives, we were able to more than offset that. We will continue to navigate changes in the resin market, and our agreements For the complete transcript of the earnings call, please refer to the full earnings call transcript.

VANCOUVER, BC, July 29, 2026 /CNW/ -- West Fraser Timber Co. Ltd. ("West Fraser" or the "Company") (TSX and NYSE: WFG) reported today the second quarter results of 2026 ("Q2-26"). All dollar amounts in this news release are expressed in U.S. dollars unless noted otherwise. Second Quarter Highlights Sales of $1.434 billion and earnings of $(61) million, or $(0.78) per diluted share Adjusted EBITDA1 of $59 million, representing 4% of sales Lumber segment Adjusted EBITDA1 of $41 million, including a $13 million favourable in-year duties adjustment North America Engineered Wood Products ("NA EWP") segment Adjusted EBITDA1 of $13 million Europe Engineered Wood Products ("Europe EWP") segment Adjusted EBITDA1 of $13 million Other Operating Segments Adjusted EBITDA of $(8) million, due largely to maintenance at our Cariboo pulp facility Continued ramp-up of Henderson, Texas sawmill, with production more than doubling versus the first quarter of 2026 Completed the wind-down of operations at our High Level, Alberta OSB mill Generated $192 million of cash from operations and repaid $148 million of operating loans Declared a $0.32 per share dividend, payable in the third quarter Released 2025 Sustainability Report "West Fraser's second quarter results delivered continued progress against our business priorities supported by improved market conditions across most of our segments," said Sean McLaren, West Fraser's President and CEO. "Our new Henderson mill continues to ramp-up, with the mill more than doubling its output in the quarter and now operating at levels equivalent to the mill it replaced. We continue to make productivity and reliability gains in our U.S. Lumber operations. SYP Lumber production year to date in 2026 was similar to 2025, despite closing the Augusta sawmill in Q4-25. In Canada, lumber production in the quarter rose 13% as our Blue Ridge facility returned to normal operating rates. We also completed the wind-down of our High Level, Alberta OSB mill, a strategic decision that focuses our production in our most modern and efficient facilities, while Europe remained a bright spot as market conditions improved relative to last year. We were pleased to see all of our core segments - lumber, NA EWP, and Europe EWP - report positive Adjusted EBITDA1." "We continue to focus on maintaining a strong balance sheet and being disciplined in controlling costs. This will position us to navigate the current environment and capitalize on an eventual recovery in demand. We remain constructive on the long-term outlook for residential construction, supported by an ongoing housing supply deficit in the U.S." Results Summary Second quarter sales were $1.434 billion, compared to $1.334 billion in the first quarter of 2026. Second quarter earnings were $(61) million, or $(0.78) per diluted share, compared to earnings of $(188) million, or $(2.40) per diluted share in the first quarter of 2026. Second quarter Adjusted EBITDA was $59 million compared to $(66) million in the first quarter of 2026. Tariffs On September 29, 2025, the U.S. administration issued a proclamation that imposed a tariff of 10% under Section 232 of the Trade Expansion Act of 1962 on imported softwood timber and lumber into the U.S., effective October 14, 2025. This tariff is in addition to the existing softwood lumber duties applied to U.S. imports of Canadian lumber. On July 20, 2026, the U.S. administration announced new tariffs of 50% on certain Canadian products imported into the U.S. under Section 338 of the Tariff Act of 1930, effective August 19, 2026. Our shipments to the U.S. of softwood lumber, OSB and MDF (approximately half of our MDF shipments) are not affected by the recently announced tariffs. The impact of the 338 tariffs on our MDF business is not fully determinable at this time due to indirect exposures and the potential impact on downstream supply chains. On a year-to-date basis had Section 338 tariffs been in place, we estimate these tariffs would have applied to approximately 3% of plywood shipments and 20% of LVL shipments made to customers in the U.S. We continue to monitor developments relating to the scope and implementation of these tariffs and any potential impacts on our business. For additional information, refer to the discussion in our 2025 Annual MD&A under "Risks and Uncertainties – Trade Restrictions" as supplemented by the discussion in our Q2-2026 MD&A under "Forward-Looking Statements". Liquidity and Capital Allocation Cash and short-term investments decreased to $74 million at July 3, 2026 from $202 million at December 31, 2025. We accessed our $1 billion credit facility, with borrowings of $55 million as of July 3, 2026, up from nil at December 31, 2025. Capital expenditures were $159 million through the first six months of 2026. We paid $50 million in dividends year-to-date in 2026, and in the second quarter declared a $0.32 per share dividend payable in the third quarter of 2026. From January 1, 2026 to July 28, 2026, no shares have been repurchased under the 2026 NCIB. Outlook Markets The most significant uses for our North American lumber, OSB and engineered wood panel products are residential construction, repair and remodelling and industrial applications. Over the medium term, improvements in housing affordability supported by U.S. government policy changes and the expected normalization of inflation and interest rates, a large cohort entering the typical home‑buying stage, and the advanced age of the U.S. housing stock (with a median home age of approximately 44 years) are expected to support new home construction and repair and renovation activity that generates lumber, plywood and OSB demand. Over the longer term, growing market penetration of mass timber in industrial and commercial applications is also expected to become a more significant source of demand growth for wood building products in North America. The seasonally adjusted annualized rate of U.S. housing starts was 1.43 million units in June 2026, with permits issued for 1.37 million units, according to the U.S. Census Bureau. While there are near-term uncertainties for new home construction and repair and renovation spending, owing in large part to weak consumer confidence and the level of mortgage rates and housing affordability, unemployment remains relatively low in the U.S. Further, the U.S. central bank has cut its key lending rate a total of 175 bps since September 2024. While recent rate trends are directionally supportive for the broader housing industry, competing forces continue to create uncertainty around the near-term path of interest rates and rates of inflation. U.S. employment growth has shown signs of slowing, while the conflict in the Middle East and the potential inflationary effects of tariff and other government policies may continue to exert upward pressure on inflation and interest rates. Given these developments, demand for our wood building products may continue to be challenged and even decline over the near term should the broader economy and employment slow or the trend in interest and mortgage rates negatively impact consumer sentiment and housing affordability. We anticipate continued improvement in industry demand across Europe and the U.K. in the near term. In the longer term, we continue to expect demand for our European products to grow as use of OSB as an alternative to plywood and timber framing as an alternative to brick and block construction for new home construction expands. An aging housing stock is also expected to drive sustained repair and renovation spending, which will continue to support demand for our wood building products. That said, ongoing geopolitical developments, including the inflationary effect of the conflict in the Middle East, may adversely impact near-term demand for our EWP products in the region. Despite these risk factors, we are confident that we will be able to navigate demand markets and capitalize on the long-term growth opportunities ahead. Operations Demand for lumber products is expected to remain stable in 2026, reflecting ongoing housing affordability challenges. Given the current operating environment, the 2025 sawmill closures, and the positive contributions from ongoing reliability and capital improvement gains across our lumber mill portfolio, including the ramp up of our modernized Henderson mill, we reiterate our SPF and SYP shipment targets of 2.4 to 2.7 billion board feet for 2026. In our NA EWP segment, we expect somewhat softer demand for our OSB products in 2026. Similar to the Lumber segment, we acknowledge risks to our demand forecasts given the near-term uncertainty from potential trade tariffs and housing affordability challenges. In light of these factors as well as the High Level, Alberta OSB mill curtailment we completed in Q2-26, we are reiterating 2026 North American OSB target shipments of 5.9 to 6.3 billion square feet (3/8-inch basis). In our Europe EWP segment, we anticipate 2026 demand for our MDF, particleboard, and OSB panel products to remain stable or show modest improvement compared to 2025 levels, while continuing to monitor macroeconomic conditions in the region. As such, we are reiterating 2026 OSB shipments targeted in the range of 1.0 to 1.25 billion square feet (3/8-inch basis). Global events during the first quarter of 2026 contributed to an increase in oil‑based input costs, including fuels, chemicals and waxes. Resin and wax costs increased by approximately $13 million in Q2-26 compared to Q1-26 across all of our divisions due to these factors. Resin and wax costs are influenced by a range of factors. While the relationship is not direct, resin and wax costs generally move in the same direction as crude oil prices. We estimate that a $10 per barrel change in crude oil prices impacts annual resin and wax costs by approximately $15 million, with other factors held constant. In addition, transportation costs, particularly in the U.S. South, also increased due to an increase in oil-based input costs as well as a reduction in transportation labour availability. Much of this increase has been passed on via customer surcharges. Ongoing geopolitical uncertainty in the Middle East and broader macroeconomic conditions create uncertainty regarding the duration and magnitude of these impacts. Based on our current outlook and assuming stable market demand conditions and no further extension of lead times for ongoing or planned projects, capital expenditures for 2026 are expected to remain within the $300 million to $350 million range.1 Refer to the discussion in our 2025 Annual MD&A under "Risks and Uncertainties - Trade Restrictions" under "Risks and Uncertainties" for a detailed discussion of the risks and uncertainties associated with the imposition of tariffs, which may impact our operational guidance and our profitability during 2026. Management Discussion & Analysis ("MD&A") Our Q2-26 MD&A and interim consolidated financial statements and accompanying notes are available on our website at www.westfraser.com and the System for Electronic Document Analysis and Retrieval + ("SEDAR+") at www.sedarplus.ca and the Electronic Data Gathering, Analysis and Retrieval System ("EDGAR") website at www.sec.gov/edgar under the Company's profile. Risks and Uncertainties Risk and uncertainty disclosures are included in our 2025 Annual MD&A, as updated in the disclosures in our Q1-26 and our Q2-26 MD&A, as well as in our public filings with securities regulatory authorities. See also the discussion of "Forward-Looking Statements" below. Conference Call West Fraser will hold an analyst conference call to discuss the Company's Q2-26 financial and operating results on Thursday, July 30, 2026, at 8:00 a.m. Pacific Time (11:00 a.m. Eastern Time). To participate in the call, please dial: 1-888-510-2154 (toll-free North America) or 437-900-0527 (toll) or connect on the webcast. The call and an earnings presentation may also be accessed through West Fraser's website at www.westfraser.com. Please let the operator know you wish to participate in the West Fraser conference call chaired by Mr. Sean McLaren, President and Chief Executive Officer. Following management's discussion of the quarterly results, investors and the analyst community will be invited to ask questions. The call will be recorded for webcasting purposes and will be available on the West Fraser website at www.westfraser.com. About West Fraser West Fraser is a diversified wood products company with more than 50 facilities in Canada, the United States, the United Kingdom, and Europe, which promotes sustainable forest practices in its operations. The Company produces lumber, engineered wood products (OSB, LVL, MDF, plywood, and particleboard), northern bleached softwood kraft pulp, paper, wood chips, and other residuals. West Fraser's products are used in home construction, repair and remodelling, industrial applications, papers and tissue. For more information about West Fraser, visit www.westfraser.com. Forward-Looking Statements This news release includes statements and information that constitutes "forward-looking information" within the meaning of Canadian securities laws and "forward-looking statements" within the meaning of United States securities laws (collectively, "forward-looking statements"). Forward-looking statements include statements that are forward-looking or predictive in nature and are dependent upon or refer to future events or conditions. We use words such as "expects," "anticipates," "plans," "believes," "estimates," "seeks," "intends," "targets," "projects," "forecasts," or negative versions thereof and other similar expressions, or future or conditional verbs such as "may," "will," "should," "would," and "could," to identify these forward-looking statements. These forward-looking statements generally include statements which reflect management's expectations regarding the operations, business, financial condition, results of operations expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies and outlook of West Fraser and its subsidiaries, as well as the outlook for North American and international economies for the current fiscal year and subsequent periods. Forward-looking statements included in this news release include references to the following and their impact on our business: our plan to follow a balanced capital allocation strategy that allows us to grow while maintaining robust liquidity, increasing through cycle-resilience and creating long-term shareholder value; demand in North American and European markets for our products, including demand from new home construction, repairs and renovations and industrial and commercial applications; the impact on demand for our products resulting from the ongoing housing affordability challenges and the U.S. administration's tariffs and other government policies; international trade and trade restrictions, including the direct and indirect impact of Section 338 and Section 232 tariff actions; the impact of sustained elevated interest rates and inflationary pressures on mortgage rates and housing affordability; the anticipated growing market penetration of mass timber; the anticipated moderation of interest rates, and the potential impact of the U.S. administration's tariff and other government policies and other competing forces on this trend; our plans to take action to ensure our operations are flexible, sized to meet the needs of our customers, and that they continue to be managed with a strong focus on controlling costs; our strategy of improving our cost position across our portfolio of mills and investing to modernize our mills; the anticipated ongoing reliability and capital improvement gains across our lumber mill portfolio; the anticipated continuation of relatively stable costs across our supply chain over the near term and continued challenges on labour availability and capital equipment lead times; operational guidance, including projected shipments, projected capital expenditures and the potential impact of tariffs on our projections; and the continuation of investments in our assets and the maintenance of our balance sheet flexibility to be able to pursue a balanced capital allocation strategy and opportunistic growth objectives. By their nature, these forward-looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, which contribute to the possibility that the predictions, forecasts, and other forward-looking statements will not occur. Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include, but are not limited to: assumptions in connection with the economic and financial conditions in the U.S., Canada, U.K., Europe and globally and consequential demand for our products, including the ability to meet our shipment guidance, and variability of operating schedules and the impact of the conflicts in Ukraine and the Middle East or elsewhere; future increases in interest rates and inflation or continued sustained higher interest rates and rates of inflation could impact housing affordability and repair and remodelling demand, which could reduce demand for our products; near and long-term impacts and uncertainties of U.S. administration tariffs, including direct and indirect impacts of the Section 338 tariffs and Section 232 tariffs, and other government policies on the demand and prices of our wood products in the U.S., the demand for products manufactured with our wood products and shipped to the U.S. and the consequential impact on the profitability of our Canadian business, financial condition, results of operations and cash flow and ability to meet our shipment guidance; risks associated with international trade and trade restrictions, including impact of tariff actions and possible further actions from the Section 232 investigation such as potential tariffs, export controls, including quotas, or incentives to increase domestic production, future cross border trade rulings, agreements and duty rates, including the renegotiation of CUSMA and/or the failure to renew or replace CUSMA as well as the impact of other government policies, including the timing and effectiveness of affordability measures; global supply chain issues may result in increases to our costs and may contribute to a reduction in near-term demand for our products; continued governmental approvals and authorizations to access timber supply, and the impact of forest fires, infestations, environmental protection measures and actions taken and legislation adopted by government respecting Indigenous rights, title and/or reconciliation efforts on these approvals and authorizations, and evolving jurisprudence in Canada on aboriginal rights and title; risks inherent in our product concentration and cyclicality; effects of competition for logs, availability of fibre and fibre resources and product pricing pressures, including continued access to log supply and fibre resources at competitive prices and the impact of third-party certification standards; including reliance on fibre off-take agreements and third-party consumers of wood chips; effects of variations in the price and availability of manufacturing inputs, including energy, employee wages, resin and other input costs, and the impact of inflationary pressures on the costs of these manufacturing costs, including increases in stumpage fees and log costs; availability and costs of transportation services, including truck and rail services, and port facilities, and impacts on transportation services of wildfires and severe weather events, and the impact of increased energy prices on the costs of transportation services; the recoverability of property, plant and equipment ($3,490 million), goodwill and intangibles ($1,700 million), both as at July 3, 2026, is based on numerous key assumptions which are inherently uncertain, including production volume, product pricing, operating costs, terminal multiple, and discount rate. Adverse changes in these assumptions could lead to a change in financial outlook which may result in carrying amounts exceeding their recoverable amounts and as a consequence an impairment, which could have a material non-cash adverse effect on our results of operations; transportation constraints, including the impact of labour disruptions, may negatively impact our ability to meet projected shipment volumes; the timing of our planned capital investments may be delayed, the ultimate costs of these investments may be increased as a result of inflation, and the projected rates of return may not be achieved; various events that could disrupt operations, including natural, man-made or catastrophic events including drought, wildfires, fires, explosions, mechanical failures, cyber security incidents, any state of emergency and/or evacuation orders issued by governments, and ongoing relations with employees; risks inherent to customer dependence; implementation of important strategic initiatives and identification, completion and integration of acquisitions; impact of changes to, or non-compliance with, environmental or other regulations; government restrictions, standards or regulations intended to reduce greenhouse gas emissions and our inability to achieve our SBTi commitment for the reduction of greenhouse gases as planned; the costs and timeline to achieve our greenhouse gas emissions objectives may be greater and take longer than anticipated; changes in government policy and regulation, including actions taken by the Government of British Columbia pursuant to recent amendments to forestry legislation and initiatives to defer logging of forests deemed "old growth" and the impact of these actions on our timber supply; impact of weather and climate change on our operations or the operations or demand of our suppliers and customers; ability to implement new or upgraded information technology infrastructure; impact of information technology service disruptions or failures or cyber security breaches or attacks; impact of any product, property or general liability claims in excess of insurance coverage; risks inherent to a capital intensive industry; impact of future outcomes of tax exposures; potential future changes in tax laws, including tax rates; risks associated with investigations, claims and legal, regulatory and tax proceedings covering matters which if resolved unfavourably may result in a loss to and/or reputational issues for the Company; effects of currency exposures and exchange rate fluctuations; fair values of our electricity swaps may be volatile and sensitive to fluctuations in forward electricity prices and changes in government policy and regulation; future operating costs; availability of financing, bank lines, securitization programs and/or other means of liquidity; continued access to timber supply in the traditional territories of Indigenous Nations and our ability to work with Indigenous Nations in B.C. to secure continued fibre supply for our lumber mills through various commercial agreements and joint ventures; our ability to continue to maintain effective internal control over financial reporting; the risks and uncertainties described in this document; and other risks detailed from time to time in our annual information forms, annual reports, MD&A, quarterly reports and material change reports filed with and furnished to securities regulators. In addition, actual outcomes and results of these statements will depend on a number of factors including those matters described under "Risks and Uncertainties" in our 2025 Annual MD&A and the Q2-26 MD&A and may differ materially from those anticipated or projected. This list of important factors affecting forward‑looking statements is not exhaustive and reference should be made to the other factors discussed in public filings with securities regulatory authorities. Accordingly, readers should exercise caution in relying upon forward‑looking statements and we undertake no obligation to publicly update or revise any forward‑looking statements, whether written or oral, to reflect subsequent events or circumstances except as required by applicable securities laws. Non-GAAP and Other Specified Financial Measures Throughout this news release, we make reference to (i) certain non-GAAP financial measures, including Adjusted EBITDA and Adjusted EBITDA by segment (our "Non-GAAP Financial Measures"), and (ii) certain supplementary financial measures, including our expected capital expenditures (our "Supplementary Financial Measures"). We believe that these Non-GAAP Financial Measures and Supplementary Financial Measures (collectively, our "Non-GAAP and other specified financial measures") are useful performance indicators for investors with regard to operating and financial performance and our financial condition. These Non-GAAP and other specified financial measures are not generally accepted financial measures under IFRS Accounting Standards and do not have standardized meanings prescribed by IFRS Accounting Standards. Investors are cautioned that none of our Non-GAAP Financial Measures should be considered as an alternative to earnings or cash flow, as determined in accordance with IFRS Accounting Standards. As there is no standardized method of calculating any of these Non-GAAP and other specified financial measures, our method of calculating each of them may differ from the methods used by other entities and, accordingly, our use of any of these Non-GAAP and other specified financial measures may not be directly comparable to similarly titled measures used by other entities. Accordingly, these Non-GAAP and other specified financial measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS Accounting Standards. The reconciliation of the Non-GAAP measures used and presented by the Company to the most directly comparable measures under IFRS Accounting Standards is provided in the tables set forth below. Figures have been rounded to the nearest million to reflect the precision of the underlying balances, which may result in minor discrepancies in the totals of certain tables due to rounding. Adjusted EBITDA and Adjusted EBITDA by segment Adjusted EBITDA is defined as earnings determined in accordance with IFRS Accounting Standards adding back the following line items from the consolidated statements of earnings and comprehensive earnings: finance income or expense, tax provision or recovery, amortization, equity-based compensation, restructuring and impairment charges, and other income or expense. Adjusted EBITDA by segment is defined as operating earnings determined for each reportable segment in accordance with IFRS Accounting Standards adding back the following line items from the consolidated statements of earnings and comprehensive earnings for that reportable segment: amortization, equity-based compensation, and restructuring and impairment charges. EBITDA is commonly reported and widely used by investors and lending institutions as an indicator of a company's operating performance, ability to incur and service debt, and as a valuation metric. We calculate Adjusted EBITDA and Adjusted EBITDA by segment to exclude items that do not reflect our ongoing operations and that should not, in our opinion, be considered in a long-term valuation metric or included in an assessment of our ability to service or incur debt. We believe that disclosing these measures assists readers in measuring performance relative to other entities that operate in similar industries and understanding the ongoing cash generating potential of our business to provide liquidity to fund working capital needs, service outstanding debt, fund future capital expenditures and investment opportunities, and pay dividends. Adjusted EBITDA is used as an additional measure to evaluate the operating and financial performance of our reportable segments. The following tables reconcile Adjusted EBITDA to the most directly comparable IFRS Accounting Standards measure, earnings. Quarterly Adjusted EBITDA ($ millions) The following tables reconcile Adjusted EBITDA by segment to the most directly comparable IFRS Accounting Standards measures for each of our reportable segments. We consider operating earnings to be the most directly comparable IFRS Accounting Standards measure for Adjusted EBITDA by segment as operating earnings is the IFRS Accounting measure most used by the chief operating decision maker when evaluating segment operating performance. Quarterly Adjusted EBITDA by segment ($ millions) Expected capital expenditures This measure represents our best estimate of the amount of cash outflows relating to additions to capital assets for the current year based on our current outlook. This amount is comprised primarily of various improvement projects and maintenance-of-business expenditures, and projects focused on optimization and automation of the manufacturing process. This measure assumes no deterioration in market conditions during the year and that we are able to proceed with our plans on time and on budget. This estimate is subject to the risks and uncertainties identified in the Company's 2025 Annual MD&A and Q2-26 MD&A. For More Information Investor ContactAnil AggarwalaDirector, Treasurer and Investor RelationsTel. (604) [email protected] Media ContactJoyce WagenaarDirector, CommunicationsTel. (604) [email protected] View original content:https://www.prnewswire.com/news-releases/west-fraser-announces-second-quarter-2026-results-302838241.html

Winnebago Industries (WGO) came out with quarterly earnings of $0.66 per share, missing the Zacks Consensus Estimate of $0.82 per share. This compares to earnings of $0.81 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -19.76%. A quarter ago, it was expected that this recreational vehicle maker would post earnings of $0.25 per share when it actually produced earnings of $0.27, delivering a surprise of +8%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Winnebago, which belongs to the Zacks Building Products - Mobile Homes and RV Builders industry, posted revenues of $698.7 million for the quarter ended May 2026, missing the Zacks Consensus Estimate by 10.07%. This compares to year-ago revenues of $775.1 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Winnebago shares have lost about 32.7% since the beginning of the year versus the S&P 500's gain of 7.5%. While Winnebago has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Winnebago was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.78 on $783.67 million in revenues for the coming quarter and $2.31 on $2.89 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products - Mobile Homes and RV Builders is currently in the bottom 5% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the broader Zacks Construction sector, West Fraser Timber Co. Ltd. (WFG), is yet to report results for the quarter ended June 2026. This company is expected to post quarterly loss of $0.79 per share in its upcoming report, which represents a year-over-year change of -107.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. West Fraser Timber Co. Ltd.'s revenues are expected to be $1.46 billion, down 4.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Winnebago Industries, Inc. (WGO) : Free Stock Analysis Report West Fraser Timber Co. Ltd. (WFG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Worthington Enterprises (WOR) came out with quarterly earnings of $0.97 per share, missing the Zacks Consensus Estimate of $1.04 per share. This compares to earnings of $1.06 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -6.73%. A quarter ago, it was expected that this metal manufacturer would post earnings of $0.95 per share when it actually produced earnings of $0.98, delivering a surprise of +3.16%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Worthington Enterprises, which belongs to the Zacks Building Products - Wood industry, posted revenues of $371.46 million for the quarter ended May 2026, missing the Zacks Consensus Estimate by 3.69%. This compares to year-ago revenues of $317.88 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Worthington Enterprises shares have added about 19.2% since the beginning of the year versus the S&P 500's gain of 9.2%. While Worthington Enterprises has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Worthington Enterprises was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.81 on $330.6 million in revenues for the coming quarter and $3.92 on $1.5 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products - Wood is currently in the bottom 19% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, West Fraser Timber Co. Ltd. (WFG), has yet to report results for the quarter ended June 2026. This company is expected to post quarterly loss of $0.79 per share in its upcoming report, which represents a year-over-year change of -107.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. West Fraser Timber Co. Ltd.'s revenues are expected to be $1.46 billion, down 4.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Worthington Enterprises, Inc. (WOR) : Free Stock Analysis Report West Fraser Timber Co. Ltd. (WFG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

West Fraser reported negative $66 million of Adjusted EBITDA in Q1, but that included $114 million of prior-period duty adjustments—excluding those the underlying business generated about $48 million, with all three operating segments contributing and showing a sequential improvement from Q4. Management flagged rising input and transportation costs—notably resin, diesel and freight—as a growing headwind (resin is roughly 25% of OSB mill costs), while demand for housing remains subdued despite a modest seasonal uptick in lumber pricing. Liquidity remained strong at close to $900 million$457 million; the company paused buybacks in Q1 to preserve liquidity, is ramping new/modernized mills (Henderson, High Level) and continues cost-reduction moves (five mill closures, two brownfield modernizations). Interested in West Fraser Timber Co. Ltd.? Here are five stocks we like better. Forget Tariffs, Landstar and West Fraser Can Still Rally West Fraser Timber (NYSE:WFG) reported a sequential improvement in first-quarter 2026 results, supported by stronger lumber pricing and operational progress, while management flagged rising input and transportation costs as a developing headwind. President and CEO Sean McLaren said the company entered 2026 with “a seasonal improvement in the lumber market,” particularly in Southern Yellow Pine (SYP), where supply and seasonal demand were “better balance[d].” While demand tied to new residential construction and repair-and-remodel activity “remained subdued,” McLaren said overall market conditions were healthier than in the second half of 2025. In oriented strand board (OSB), he described first-quarter conditions as “challenging,” though he said modest signs of improvement appeared toward quarter-end as seasonal demand increased. → The Real SpaceX Play: 5 Chip Stocks Powering the IPO Before It Launches 3 Stocks To Watch For When Tariffs Subside West Fraser generated negative $66 million of Adjusted EBITDA in the first quarter. McLaren said that result included $114 million of prior-period duty adjustments. Excluding those adjustments, he said the “underlying business generated $48 million,” with all three operating segments contributing positively, representing a significant improvement from the fourth quarter’s $79 million loss. Executive Vice President and CFO Chris Virostek said the two duty-related items were non-cash and tied to (1) preliminary rates released by the U.S. Department of Commerce for the 2024 calendar year and (2) a change in the company’s estimate of amounts recoverable and payable related to the liquidation process covering the last half of 2017. Virostek directed listeners to the company’s April 16 news release and first-quarter filings for additional detail. → Roblox Stock Slides to New Low as Safety Changes Weigh on Outlook Don’t Miss These Stock Picks for the Lumber Price Surge By segment, Virostek reported: Lumber: Adjusted EBITDA of negative $84 million, but positive $30 million excluding the duties impact, compared with negative $57 million in Q4. He attributed the improvement largely to higher SYP and SPF pricing. North America Engineered Wood Products (EWP): Adjusted EBITDA of $11 million, improving from negative $24 million in Q4, “due largely to better OSB pricing.” Europe: Adjusted EBITDA of $10 million, up from $4 million in Q4, which Virostek said reflected better demand and higher prices and marked Europe’s highest Adjusted EBITDA since Q2 2023. Virostek also said West Fraser moved its previously named Pulp and Paper segment into “Other” starting in Q1, as that business has become a less significant part of total operations and will no longer be addressed separately. → These 3 AI Stocks Just Crushed Earnings: Still Time To Buy? Management emphasized ongoing portfolio and cost-structure actions. McLaren said the company completed production activities at its High Level OSB mill in Alberta and is “four months into the production ramp-up” at its new Henderson lumber mill in Texas. He said the company’s U.S. lumber portfolio optimization has lowered costs through five mill closures and two brownfield modernizations over the past five years. Virostek said costs were flat versus Q4, with lower SYP costs offset by repair costs associated with a fire at Blue Ridge and higher resin and energy-related inputs in North American OSB. McLaren later noted the Blue Ridge mill was temporarily paused due to the fire and has since resumed full operational capacity. On operating efficiency, Virostek said U.S. South lumber cost per 1,000 board feet has declined by about 6% over the last two years, following mill closures, a full brownfield modernization, and additional capital projects and cost-reduction initiatives. He added that SYP shipments rose 4% versus Q4 on better operating efficiencies, and that excluding downtime at Blue Ridge, overall shipment volumes were consistent with expectations. McLaren highlighted capital work underway at Bemidji, describing the heat energy and dryer project as one that will “improve safety, increase throughput, lower costs, and lower energy usage and emissions” once complete. He also said West Fraser believes the modernized Henderson mill is positioned to be “one of the lowest-cost mills in our fleet once it achieves full operating rates.” McLaren said West Fraser ended the quarter with liquidity “close to $900 million,” while Virostek noted cash flow from operations was affected by seasonal working capital builds, resulting in negative $170 million in the quarter and a net debt position of $457 million. Virostek said the company expects working capital to reverse in the second and third quarters. Virostek said net debt was also influenced by two dividend payments during the quarter, which occurred because the fiscal quarter ended on April 3 rather than March 31. He said the company’s net debt-to-capital ratio remains in single digits and described the balance sheet as “robust.” On share repurchases, Virostek said West Fraser did not repurchase shares in the first quarter as it prioritized liquidity through the cycle, while emphasizing that the commitment to returning capital via dividends and “tactical share repurchases” has not changed. Responding to a question on buybacks, McLaren said the company has maintained a “durable capital allocation strategy” and remains opportunistic when balance sheet flexibility is appropriate and shares are priced attractively. Management repeatedly characterized end-market demand as challenging near term. McLaren said housing “remains challenged,” though he believes longer-term demand drivers remain favorable. He also pointed to macro pressures affecting consumers, including long-term mortgage rates moving above 6% and higher gas prices, which he said continue to shape sentiment. At the same time, McLaren said lumber pricing improved modestly in Q1 on a sequential basis, helped by seasonally better supply-demand balance. Matt Tobin, Senior Vice President of Sales and Marketing, said the Q1 uplift in SYP prices reflected “pretty typical…seasonal” demand and customer activity, and he did not see a structural shift in demand. On customer visibility, Tobin described feedback as “mixed,” adding that treated-wood customers—viewed as a lens into the market—remain “subdued.” A key theme in the Q&A was cost inflation tied to resin, diesel, and freight. McLaren said cost pressure has shown up more quickly in Europe than in North America, and while the company has been navigating it, he said it is “difficult to quantify for Q2.” Virostek added that resin’s role is expected to be “more visible” in Q2 results, noting that methanol-based resin pricing has been rising. McLaren told analysts resin represents roughly 25% of OSB mill cost structure, and said the company is working with suppliers and can adjust resin types and board-building approaches. Both McLaren and Virostek declined to provide specific cost “goalposts,” citing volatility in energy and oil prices and uncertainty in forecasting the magnitude of impacts. On logistics, Tobin said freight markets have been challenging, citing increased trucking bankruptcies late in 2025 and noting that late Q1/early Q2 is seasonally tight for trucks due to competing demand such as produce shipments. He said West Fraser is working with vendors and customers to maintain on-time deliveries. McLaren also discussed OSB conditions by region, saying the company’s European OSB business delivered its best quarter since mid-2023 and that West Fraser’s two European OSB assets are “well positioned,” while noting the macro environment remains difficult. In North America, he cited uncertainty but said actions including ramp-ups and portfolio moves—such as High Level—are strengthening the OSB platform and lowering costs. Looking ahead, Virostek said West Fraser made no changes to shipment guidance across its main products or its capital expenditure range for 2026. McLaren said the company continues to focus on cost reduction and portfolio quality, summarizing the quarter as evidence of operating leverage as markets improve, supported by a strong balance sheet and diversified footprint. West Fraser Timber Co Ltd. (NYSE: WFG) is a leading North American diversified wood products company headquartered in Vancouver, British Columbia. The company operates a broad portfolio of manufacturing facilities that produce lumber, engineered wood products such as laminated veneer lumber (LVL), oriented strand board (OSB) and plywood, as well as medium density fibreboard (MDF), particleboard, pulp and paper. West Fraser's integrated production model spans harvesting, milling and finishing, allowing it to serve a wide range of residential, commercial and industrial construction markets. Founded in 1955 as West Fraser Mills, the company has grown through both organic investment and strategic acquisitions to become one of the largest lumber producers in the world. The article "West Fraser Timber Q1 Earnings Call Highlights" was originally published by MarketBeat.

This article first appeared on GuruFocus. Adjusted EBITDA: Negative $66 million, including $114 million of prior period duty adjustments. Underlying Business EBITDA: $48 million, excluding duty adjustments. Lumber Segment EBITDA: Negative $84 million, adjusted to positive $30 million excluding duties. North America EWP Segment EBITDA: $11 million, improved from negative $24 million in the prior quarter. Europe Segment EBITDA: $10 million, more than doubling from $4 million in the previous quarter. Liquidity: Close to $900 million at the end of the quarter. Cash Flow from Operations: Negative $170 million due to seasonal working capital build. Net Debt: $457 million, influenced by dividend payments. Net Debt to Capital Ratio: Remains in single digits. SYP Shipments: Increased by 4% compared to the previous quarter. Warning! GuruFocus has detected 3 Warning Signs with WFG. Is WFG fairly valued? Test your thesis with our free DCF calculator. Release Date: April 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. West Fraser Timber Co.Ltd (NYSE:WFG) experienced a significant improvement in Q1 2026 results, with a $120 million turnaround compared to Q4 2025. The company saw stronger lumber pricing and operational progress, particularly in Southern Yellow Pine, which balanced supply and demand better. West Fraser Timber Co.Ltd (NYSE:WFG) maintained a strong balance sheet with liquidity close to $900 million, providing flexibility and optionality for future opportunities. The company's US lumber portfolio optimization has successfully lowered the cost structure, with a 6% reduction in total cost per 1,000 board feet over the last two years. In Europe, West Fraser Timber Co.Ltd (NYSE:WFG) achieved its highest level of adjusted EBITDA since Q2 2023, driven by improved demand and higher prices. West Fraser Timber Co.Ltd (NYSE:WFG) reported negative $66 million of adjusted EBITDA in Q1 2026, impacted by $114 million in noncash softwood lumber duty adjustments. The OSB market conditions remained challenging, with only modest signs of improvement toward the end of the quarter. Cash flow from operations was negatively impacted by a seasonal build in working capital, resulting in negative $170 million in Q1. The company faced cost pressures from rising resin and energy-related inputs, which are expected to be more visible in Q2 results. Transportation and resin costs have been influenced by evolving geopolitical dynamics, creating uncertainty in cost management. Q: Can you provide more perspective on the magnitude of resin cost pressure and how higher diesel will affect delivered wood costs? A: Sean McLaren, President and CEO, explained that the impact varies geographically, with Europe experiencing it more quickly. In North America, the situation is still evolving. Resin is a significant component of OSB costs, and while it's difficult to quantify the impact for Q2, the company is working with suppliers to navigate these pressures. Diesel pricing will affect Western Canada in Q3 as log inventories are replenished, but the South has not seen a material change yet. Q: How strong are your wood chip offtake agreements across your sawmill system, given recent pulp mill closures? A: Sean McLaren noted that West Fraser's diverse portfolio and integration in British Columbia provide flexibility. The company has long-term relationships and offtake agreements in the South, allowing it to navigate changes effectively. Additionally, their OSB business purchases pulpwood, providing a hedge against cost pressures. Q: Can you discuss the price differential between Southern Yellow Pine (SYP) and SPF in Q1 and whether SYP is gaining market share? A: Matthew Tobin, Senior Vice President of Sales and Marketing, stated that SYP prices rose seasonally due to increased treater activity in Q1. There is no structural shift in demand; it is typical seasonal activity. SPF saw steady markets with slight price improvements, consistent with seasonal patterns. Q: How should we think about share repurchases in light of weaker housing demand? A: Chris Virostek, Executive Vice President and CFO, emphasized that West Fraser maintains a disciplined capital allocation strategy. While the company did not repurchase shares in Q1, it remains committed to returning capital to shareholders through dividends and opportunistic share repurchases when conditions are favorable. Q: Can you provide an outlook for OSB in North America versus Europe? A: Sean McLaren expressed cautious optimism. In Europe, despite macroeconomic challenges, West Fraser's assets are well-positioned, and market conditions have improved. In North America, the company focuses on controllable factors like asset ramp-ups and cost reductions to strengthen its competitive position amid uncertainty. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

VANCOUVER, BC, April 29, 2026 /CNW/ - West Fraser Timber Co. Ltd. ("West Fraser" or the "Company") (TSX and NYSE: WFG) reported today the first quarter results of 2026 ("Q1-26"). All dollar amounts in this news release are expressed in U.S. dollars unless noted otherwise. First Quarter Highlights Sales of $1.334 billion and earnings of $(188) million, or $(2.40) per diluted share Adjusted EBITDA1 of $(66) million (including $114 million charge for duty adjustments related to prior periods), representing (5%) of sales Lumber segment Adjusted EBITDA1 of $(84) million (including $114 million charge for duty adjustments related to prior periods) North America Engineered Wood Products ("NA EWP") segment Adjusted EBITDA1 of $11 million Europe Engineered Wood Products ("Europe EWP") segment Adjusted EBITDA1 of $10 million "In the first quarter of 2026 we benefited from improved commodity pricing and continue to demonstrate the resilience of West Fraser's diversified portfolio. Although net income was impacted by significant non-cash duty adjustments, these relate to prior year shipments. Operationally, our Blue Ridge lumber team did a remarkable job in quickly and effectively restoring operations following the January fire, with no recordable injuries, and the mill is now back to normal operating rates. The wind-down of our High Level, Alberta OSB mill is now complete and reflects our commitment to proactively aligning our supply with customer demand," said Sean McLaren, West Fraser's President and CEO. "Excluding the impact of prior year duty adjustments, we were pleased to see all of our core segments - lumber, NA EWP, and Europe EWP - report positive Adjusted EBITDA." "Housing affordability continues to be a key constraint as we continue into 2026. The impact of the conflict in the Middle East has pushed 30-year mortgage rates back over 6%, which could cause additional headwinds as the year progresses. Our strong financial position and resilient balance sheet positions us well to navigate continued macroeconomic uncertainty while remaining disciplined in our approach to capital deployment. We continue to be focused on cost control, taking a disciplined approach to managing expenses and operationalizing the investments we have made through the past several years. These priorities form a key part of our strategy to continually strengthen our competitive position and generate long-term value for all stakeholders." Results Summary First quarter sales were $1.334 billion, compared to $1.165 billion in the fourth quarter of 2025. First quarter earnings were $(188) million, or $(2.40) per diluted share, compared to earnings of $(751) million, or $(9.63) per diluted share in the fourth quarter of 2025. First quarter Adjusted EBITDA was $(66) million compared to $(79) million in the fourth quarter of 2025. Included in first quarter Adjusted EBITDA in the Lumber segment is ($114) million of duty adjustments related to prior periods compared to nil in the fourth quarter of 2025. Liquidity and Capital Allocation Cash and short-term investments decreased to $81 million at April 3, 2026 from $202 million at December 31, 2025. Borrowings on our $1 billion credit facility totaled $203 million at April 3, 2026 from nil at December 31, 2025. Capital expenditures in the first quarter were $94 million. We paid a $0.32 per share dividend that was declared in the fourth quarter of 2025, and declared and paid a $0.32 per share dividend in the first quarter. In the first quarter of 2026, we repurchased no shares under our current normal course issuer bid ("2026 NCIB"). From January 1, 2026 to April 28, 2026, no shares have been repurchased under the 2026 NCIB. Outlook Markets Several key trends that have served as positive drivers in recent years are expected to continue to support medium and longer-term demand for new home construction in North America. The most significant uses for our North American lumber, OSB and engineered wood panel products are residential construction, repair and remodelling and industrial applications. Over the medium term, improved housing affordability from stabilizing inflation and interest rates, a large cohort entering the typical home‑buying stage, and the advanced age of the U.S. housing stock (with a median home age of approximately 44 years) are expected to support new home construction and repair and renovation activity that drives lumber, plywood and OSB demand. Over the longer term, growing market penetration of mass timber in industrial and commercial applications is also expected to become a more significant source of demand growth for wood building products in North America. The seasonally adjusted annualized rate of U.S. housing starts was 1.50 million units in March 2026, with permits issued for 1.37 million units, according to the U.S. Census Bureau. On a 3-month trailing average basis, there were 1.42 million units started and permits issued for 1.43 million units. While there are near-term uncertainties for new home construction, owing in large part to the level and rate of change of mortgage rates and the resulting impact on housing affordability, unemployment remains relatively low in the U.S. Further, the U.S. central bank has cut its key lending rate a total of 175 bps since September 2024. While recent rate trends are directionally supportive for the broader housing industry, competing forces continue to create uncertainty around the near-term path of interest rates and rates of inflation. U.S. employment growth has shown signs of slowing, while the conflict in the Middle East and the potential inflationary effects of tariff and other government policies may exert upward pressure on inflation and interest rates. Given these developments, demand for new home construction and our wood building products may continue to be challenged and even decline over the near term should the broader economy and employment slow or the trend in interest and mortgage rates negatively impact consumer sentiment and housing affordability. In Europe and the U.K., we expect industry demand to continue to improve in the near term. In the longer term, we continue to expect demand for our European products to grow as use of OSB as an alternative to plywood grows. An aging housing stock is also expected to support long-term repair and renovation spending and additional demand for our wood building products. That said, ongoing geopolitical developments, including the potential inflationary effect of the conflict in the Middle East, may adversely impact near-term demand for our panel products in the region. Despite these risk factors, we are confident that we will be able to navigate demand markets and capitalize on the long-term growth opportunities ahead. Operations Demand for lumber products is not expected to increase meaningfully in 2026, reflecting persistent housing affordability challenges. Based on the current operating environment, the sawmill closures announced in 2025, and offsets from ongoing reliability and capital improvement gains across our lumber mill portfolio, including the ramp up of our modernized Henderson mill, we are reiterating our SPF and SYP shipments targets of 2.4 to 2.7 billion board feet for 2026. In our NA EWP segment, we expect somewhat softer demand for our OSB products in 2026. Similar to the Lumber segment, we acknowledge risks to our demand forecasts given the near-term uncertainty from potential trade tariffs and housing affordability challenges. In light of these factors as well as the planned OSB mill curtailment we announced in late 2025, we are reiterating 2026 North American OSB target shipments of 5.9 to 6.3 billion square feet (3/8-inch basis). In our Europe EWP segment, we expect 2026 demand for our MDF, particleboard and OSB panel products to be similar or improve slightly from 2025 levels, recognizing there are ongoing macroeconomic uncertainties in the region. As such, we are reiterating 2026 OSB shipments targeted in the range of 1.0 to 1.25 billion square feet (3/8-inch basis). Global events during the first quarter of 2026 are expected to increase oil‑based input costs, including fuels, chemicals and waxes. While no material impacts on contract labour availability or capital equipment lead times are currently anticipated, ongoing geopolitical uncertainty in the Middle East and broader macroeconomic conditions create uncertainty regarding the duration and magnitude of these impacts. Based on our current outlook, assuming no deterioration from current market demand conditions and no additional lengthening of lead times for projects underway or planned, expected capital expenditures remain in the range of $300 million to $350 million in 20261. Refer to the discussion in our 2025 Annual MD&A under "Risks and Uncertainties - Trade Restrictions" under "Risks and Uncertainties" for a detailed discussion of the risks and uncertainties associated with the imposition of tariffs, which may impact our operational guidance and our profitability during 2026. Management Discussion & Analysis ("MD&A") Our Q1-26 MD&A and interim consolidated financial statements and accompanying notes are available on our website at www.westfraser.com and the System for Electronic Document Analysis and Retrieval + ("SEDAR+") at www.sedarplus.ca and the Electronic Data Gathering, Analysis and Retrieval System ("EDGAR") website at www.sec.gov/edgar under the Company's profile. Risks and Uncertainties Risk and uncertainty disclosures are included in our 2025 Annual MD&A, as updated in the disclosures in our Q1-26 MD&A, as well as in our public filings with securities regulatory authorities. See also the discussion of "Forward-Looking Statements" below. Conference Call West Fraser will hold an analyst conference call to discuss the Company's Q1-26 financial and operating results on Thursday, April 30, 2026, at 8:30 a.m. Pacific Time (11:30 a.m. Eastern Time). To participate in the call, please dial: 1-888-510-2154 (toll-free North America) or 437-900-0527 (toll) or connect on the webcast. The call and an earnings presentation may also be accessed through West Fraser's website at www.westfraser.com. Please let the operator know you wish to participate in the West Fraser conference call chaired by Mr. Sean McLaren, President and Chief Executive Officer. Following management's discussion of the quarterly results, investors and the analyst community will be invited to ask questions. The call will be recorded for webcasting purposes and will be available on the West Fraser website at www.westfraser.com. About West Fraser West Fraser is a diversified wood products company with more than 50 facilities in Canada, the United States, the United Kingdom, and Europe, which promotes sustainable forest practices in its operations. The Company produces lumber, engineered wood products (OSB, LVL, MDF, plywood, and particleboard), northern bleached softwood kraft pulp, paper, wood chips, and other residuals. West Fraser's products are used in home construction, repair and remodelling, industrial applications, papers and tissue. For more information about West Fraser, visit www.westfraser.com. Forward-Looking Statements This news release includes statements and information that constitutes "forward-looking information" within the meaning of Canadian securities laws and "forward-looking statements" within the meaning of United States securities laws (collectively, "forward-looking statements"). Forward-looking statements include statements that are forward-looking or predictive in nature and are dependent upon or refer to future events or conditions. We use words such as "expects," "anticipates," "plans," "believes," "estimates," "seeks," "intends," "targets," "projects," "forecasts," or negative versions thereof and other similar expressions, or future or conditional verbs such as "may," "will," "should," "would," and "could," to identify these forward-looking statements. These forward-looking statements generally include statements which reflect management's expectations regarding the operations, business, financial condition, results of operations expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies and outlook of West Fraser and its subsidiaries, as well as the outlook for North American and international economies for the current fiscal year and subsequent periods. Forward-looking statements included in this news release include references to the following and their impact on our business: our plan to follow a balanced capital allocation strategy that allows us to grow while maintaining robust liquidity, increasing through cycle-resilience and creating long-term shareholder value; demand in North American and European markets for our products, including demand from new home construction, repairs and renovations and industrial and commercial applications; the impact on demand for our products resulting from the ongoing housing affordability challenges and the U.S. administration's tariff and other government policies; international trade and trade restrictions, including the impact of tariff actions and possible actions from the Section 232 investigation; the impact of sustained elevated interest rates and inflationary pressures on mortgage rates and housing affordability; the anticipated growing market penetration of mass timber; the anticipated moderation of interest rates, including prospects of at least one additional rate cut in 2026, and the potential impact of the U.S. administration's tariff and other government policies and other competing forces on this trend; our plans to take action to ensure our operations are flexible, sized to meet the needs of our customers, and that they continue to be managed with a strong focus on controlling costs; our strategy of improving our cost position across our portfolio of mills and investing to modernize our mills; the anticipated ongoing reliability and capital improvement gains across our lumber mill portfolio; the anticipated continuation of relatively stable costs across our supply chain over the near term and continued challenges on labour availability and capital equipment lead times; operational guidance, including projected shipments, projected capital expenditures and the potential impact of tariffs on our projections; and the continuation of investments in our assets and the maintenance of our balance sheet flexibility to be able to pursue a balanced capital allocation strategy and opportunistic growth objectives. By their nature, these forward-looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, which contribute to the possibility that the predictions, forecasts, and other forward-looking statements will not occur. Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include, but are not limited to: assumptions in connection with the economic and financial conditions in the U.S., Canada, U.K., Europe and globally and consequential demand for our products, including the ability to meet our shipment guidance, and variability of operating schedules and the impact of the conflicts in Ukraine and the Middle East or elsewhere; future increases in interest rates and inflation or continued sustained higher interest rates and rates of inflation could impact housing affordability and repair and remodelling demand, which could reduce demand for our products; near and long-term impacts and uncertainties of U.S. administration tariffs and other government policies on the demand and prices of our wood products in the U.S. and the consequential impact on the profitability of our Canadian business, financial condition, results of operations and cash flow and ability to meet our shipment guidance; risks associated with international trade and trade restrictions, including impact of tariff actions and possible further actions from the Section 232 investigation such as potential tariffs, export controls, including quotas, or incentives to increase domestic production, future cross border trade rulings, agreements and duty rates, including the renegotiation of CUSMA and/or the failure to renew or replace CUSMA as well as the impact of other government policies; global supply chain issues may result in increases to our costs and may contribute to a reduction in near-term demand for our products; continued governmental approvals and authorizations to access timber supply, and the impact of forest fires, infestations, environmental protection measures and actions taken and legislation adopted by government respecting Indigenous rights, title and/or reconciliation efforts on these approvals and authorizations, and evolving jurisprudence in Canada on aboriginal rights and title; risks inherent in our product concentration and cyclicality; effects of competition for logs, availability of fibre and fibre resources and product pricing pressures, including continued access to log supply and fibre resources at competitive prices and the impact of third-party certification standards; including reliance on fibre off-take agreements and third party consumers of wood chips; effects of variations in the price and availability of manufacturing inputs, including energy, employee wages, resin and other input costs, and the impact of inflationary pressures on the costs of these manufacturing costs, including increases in stumpage fees and log costs; availability and costs of transportation services, including truck and rail services, and port facilities, and impacts on transportation services of wildfires and severe weather events, and the impact of increased energy prices on the costs of transportation services; the recoverability of property, plant and equipment ($3,551 million), goodwill and intangibles ($1,713 million), both as at April 3, 2026, is based on numerous key assumptions which are inherently uncertain, including production volume, product pricing, operating costs, terminal multiple, and discount rate. Adverse changes in these assumptions could lead to a change in financial outlook which may result in carrying amounts exceeding their recoverable amounts and as a consequence an impairment, which could have a material non-cash adverse effect on our results of operations; transportation constraints, including the impact of labour disruptions, may negatively impact our ability to meet projected shipment volumes; the timing of our planned capital investments may be delayed, the ultimate costs of these investments may be increased as a result of inflation, and the projected rates of return may not be achieved; various events that could disrupt operations, including natural, man-made or catastrophic events including drought, wildfires, fires, explosions, mechanical failures, cyber security incidents, any state of emergency and/or evacuation orders issued by governments, and ongoing relations with employees; risks inherent to customer dependence; implementation of important strategic initiatives and identification, completion and integration of acquisitions; impact of changes to, or non-compliance with, environmental or other regulations; government restrictions, standards or regulations intended to reduce greenhouse gas emissions and our inability to achieve our SBTi commitment for the reduction of greenhouse gases as planned; the costs and timeline to achieve our greenhouse gas emissions objectives may be greater and take longer than anticipated; changes in government policy and regulation, including actions taken by the Government of British Columbia pursuant to recent amendments to forestry legislation and initiatives to defer logging of forests deemed "old growth" and the impact of these actions on our timber supply; impact of weather and climate change on our operations or the operations or demand of our suppliers and customers; ability to implement new or upgraded information technology infrastructure; impact of information technology service disruptions or failures or cyber security breaches or attacks; impact of any product, property or general liability claims in excess of insurance coverage; risks inherent to a capital intensive industry; impact of future outcomes of tax exposures; potential future changes in tax laws, including tax rates; risks associated with investigations, claims and legal, regulatory and tax proceedings covering matters which if resolved unfavourably may result in a loss to and/or reputational issues for the Company; effects of currency exposures and exchange rate fluctuations; fair values of our electricity swaps may be volatile and sensitive to fluctuations in forward electricity prices and changes in government policy and regulation; future operating costs; availability of financing, bank lines, securitization programs and/or other means of liquidity; continued access to timber supply in the traditional territories of Indigenous Nations and our ability to work with Indigenous Nations in B.C. to secure continued fibre supply for our lumber mills through various commercial agreements and joint ventures; our ability to continue to maintain effective internal control over financial reporting; the risks and uncertainties described in this document; and other risks detailed from time to time in our annual information forms, annual reports, MD&A, quarterly reports and material change reports filed with and furnished to securities regulators. In addition, actual outcomes and results of these statements will depend on a number of factors including those matters described under "Risks and Uncertainties" in our 2025 Annual MD&A and the Q1-26 MD&A and may differ materially from those anticipated or projected. This list of important factors affecting forward‑looking statements is not exhaustive and reference should be made to the other factors discussed in public filings with securities regulatory authorities. Accordingly, readers should exercise caution in relying upon forward‑looking statements and we undertake no obligation to publicly update or revise any forward‑looking statements, whether written or oral, to reflect subsequent events or circumstances except as required by applicable securities laws. Non-GAAP and Other Specified Financial Measures Throughout this news release, we make reference to (i) certain non-GAAP financial measures, including Adjusted EBITDA and Adjusted EBITDA by segment (our "Non-GAAP Financial Measures"), and (ii) certain supplementary financial measures, including our expected capital expenditures (our "Supplementary Financial Measures"). We believe that these Non-GAAP Financial Measures and Supplementary Financial Measures (collectively, our "Non-GAAP and other specified financial measures") are useful performance indicators for investors with regard to operating and financial performance and our financial condition. These Non-GAAP and other specified financial measures are not generally accepted financial measures under IFRS Accounting Standards and do not have standardized meanings prescribed by IFRS Accounting Standards. Investors are cautioned that none of our Non-GAAP Financial Measures should be considered as an alternative to earnings or cash flow, as determined in accordance with IFRS Accounting Standards. As there is no standardized method of calculating any of these Non-GAAP and other specified financial measures, our method of calculating each of them may differ from the methods used by other entities and, accordingly, our use of any of these Non-GAAP and other specified financial measures may not be directly comparable to similarly titled measures used by other entities. Accordingly, these Non-GAAP and other specified financial measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS Accounting Standards. The reconciliation of the Non-GAAP measures used and presented by the Company to the most directly comparable measures under IFRS Accounting Standards is provided in the tables set forth below. Figures have been rounded to millions of dollars to reflect the accuracy of the underlying balances and as a result certain tables may not add due to rounding impacts. Adjusted EBITDA and Adjusted EBITDA by segment Adjusted EBITDA is defined as earnings determined in accordance with IFRS Accounting Standards adding back the following line items from the consolidated statements of earnings and comprehensive earnings: finance income or expense, tax provision or recovery, amortization, equity-based compensation, restructuring and impairment charges, and other income or expense. Adjusted EBITDA by segment is defined as operating earnings determined for each reportable segment in accordance with IFRS Accounting Standards adding back the following line items from the consolidated statements of earnings and comprehensive earnings for that reportable segment: amortization, equity-based compensation, and restructuring and impairment charges. EBITDA is commonly reported and widely used by investors and lending institutions as an indicator of a company's operating performance, ability to incur and service debt, and as a valuation metric. We calculate Adjusted EBITDA and Adjusted EBITDA by segment to exclude items that do not reflect our ongoing operations and that should not, in our opinion, be considered in a long-term valuation metric or included in an assessment of our ability to service or incur debt. We believe that disclosing these measures assists readers in measuring performance relative to other entities that operate in similar industries and understanding the ongoing cash generating potential of our business to provide liquidity to fund working capital needs, service outstanding debt, fund future capital expenditures and investment opportunities, and pay dividends. Adjusted EBITDA is used as an additional measure to evaluate the operating and financial performance of our reportable segments. The following tables reconcile Adjusted EBITDA to the most directly comparable IFRS Accounting Standards measure, earnings. Quarterly Adjusted EBITDA ($ millions) The following tables reconcile Adjusted EBITDA by segment to the most directly comparable IFRS Accounting Standards measures for each of our reportable segments. We consider operating earnings to be the most directly comparable IFRS Accounting Standards measure for Adjusted EBITDA by segment as operating earnings is the IFRS Accounting measure most used by the chief operating decision maker when evaluating segment operating performance. Quarterly Adjusted EBITDA by segment ($ millions) Expected capital expenditures This measure represents our best estimate of the amount of cash outflows relating to additions to capital assets for the current year based on our current outlook. This amount is comprised primarily of various improvement projects and maintenance-of-business expenditures, and projects focused on optimization and automation of the manufacturing process. This measure assumes no deterioration in market conditions during the year and that we are able to proceed with our plans on time and on budget. This estimate is subject to the risks and uncertainties identified in the Company's 2025 Annual MD&A and Q1-26 MD&A. For More Information Investor Contact Anil Aggarwala Director, Treasury and Investor Relations Tel. (604) 245-9718 [email protected] Media Contact Joyce Wagenaar Director, Communications Tel. (604) 817-5539 [email protected] View original content:https://www.prnewswire.com/news-releases/west-fraser-announces-first-quarter-2026-results-302757788.html