West Fraser Timber Reports Second Quarter Loss of $61 Million
The diversified wood products company saw six-month earnings drop to a $249 million loss from an $18 million profit in the prior year.
West Fraser Timber Co. Ltd. (WFG), a diversified wood products company, reported a loss of $61 million for the three months ended July 3, 2026. The company, which operates more than 50 facilities across Canada, the United States, the United Kingdom, and Europe, reported a loss of $24 million for the same period in 2025,.
Sales for the three-month period were $1.434 billion, down from $1.532 billion in the prior-year period. For the six months ended July 3, 2026, sales totaled $2.767 billion, compared to $2.990 billion for the same period in 2025.
Operating earnings for the six-month period fell to a loss of $284 million, compared to an operating profit of $19 million in the first half of 2025. This decline occurred as the company's cost of products sold for the six months reached $2.041 billion. Other expenses contributed to the downturn, including $405 million in freight and distribution costs and $271 million in amortization over the six-month period.
Net losses for the first half of 2026 reached $249 million, resulting in a basic loss of $3.18 a share. In the same period in 2025, the company reported earnings of $18 million, or $0.23 a share.
The company's balance sheet showed a decrease in cash and cash equivalents to $74 million as of July 3, 2026, from $202 million at the end of 2025. Total assets were $7.437 billion, down from $7.620 billion on December 31, 2025. Shareholders' equity also declined to $5.566 billion from $5.849 billion.
During the six months ended July 3, 2026, West Fraser spent $32 million to repurchase common shares for cancellation. The company also declared $50 million in dividends during this period.
West Fraser maintains a portfolio of 28 lumber mills, 15 OSB facilities, and various other wood product plants. The company said its earnings remain sensitive to world economic conditions, specifically the U.S. housing market for new construction and repair and renovation spending.