After U.S. actions in March 2025, West Fraser is now subject to a 25% tariff on Canadian wood products exported to the USA, following the end of a temporary pause under the USMCA on April 2.
In addition, new 10% tariffs on all imports were introduced, although USMCA-compliant products remain exempt from this latest round. The company has cautioned that these tariffs could impact both profitability and future shipment projections.
West Fraser Timber Co. Ltd. reported first-quarter 2025 sales of $1.46 billion and net earnings of $42 million, marking a recovery from a $62 million loss in the previous quarter. Adjusted EBITDA increased to $195 million, or 13% of sales. The company repurchased 530,000 shares for $44 million, with adjusted EBITDA of $66 million from the Lumber segment and $125 million from North America Engineered Wood Products.
The Europe Engineered Wood Products segment posted a $2 million adjusted EBITDA loss, while the Pulp & Paper segment generated $7 million in earnings. First-quarter capital expenditures amounted to $104 million, with full-year guidance ranging from $400 million to $450 million. The company paid $26 million in dividends and declared a second-quarter dividend of $0.32 per share.
Operationally, West Fraser has revised its 2025 shipment targets for softwood lumber and OSB, citing challenges such as transportation delays and ongoing tariff uncertainties. SPF shipment projections have been adjusted to 2.7–2.9 billion board feet, down from 2.7–3.0 billion, while SYP estimates were lowered to 2.5–2.7 billion from 2.5–2.8 billion. North American OSB targets have been reduced to 6.5–6.8 billion square feet, down from 6.5–6.9 billion. However, the European OSB guidance remains unchanged at 1.0–1.25 billion square feet.
Despite these challenges, West Fraser remains optimistic about long-term demand for wood products, driven by U.S. housing growth and the adoption of mass timber. The company also maintains strong liquidity, with $390 million in cash and short-term investments at the end of the quarter, a decrease from $641 million in December 2024, primarily due to seasonal log inventory buildup.
