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West Fraser Timber’s ULTIMATE Stress Test Is Lumber And EWP Losses!

West Fraser Timber Co. Ltd., a Canadian lumber company, reported its fourth quarter and full-year 2025 financial results, revealing a challenging period marked by sectoral downturns and strategic realignments. In Q4 2025, the company posted a negative adjusted EBITDA of $79 million, an improvement from the negative $144 million in Q3. This improvement was attributed partly to the absence of a $67 million out-of-period duty expense recorded in the prior quarter. Over the entire year, West Fraser generated $56 million of adjusted EBITDA, a significant decline from the $673 million seen in 2024, primarily due to a tough lumber market and broader affordability pressures in the housing and renovation sectors. The lumber segment experienced ongoing turbulence, with a negative adjusted EBITDA of $57 million in Q4, showing some improvement when adjusted for the duty expense from the previous quarter.