-- 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.

 
Global OSB manufacturing giant West Fraser, declared Europe a “bright spot” in its business during Q2,2026, according to the company’s latest financial results.

West Fraser, which also produces lumber, MDF, particleboard, plywood, and LVL, reported a group operating loss of -US$61m in Q2, down from -US$188m in Q1. However, adjusted EBITDA turned positive at US$59m in Q2 (Q1 -US$66m).

The company posted an operating loss of US-$47m for its North America engineered wood product division (including the significant OSB manufacturing business) and US$2m operating profit for the European EWP division.

The figures for adjusted EBITDA were US$13m for both the NA EWP and Europe EWP segments.

During Q2, West Fraser completed the wind-down of operations at its High Level, Alberta OSB mill – a strategic decision that focuses production on the company’s most modern and efficient facilities.

“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.

Mr McLaren said 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 EBITDA.”

West Fraser expects “somewhat softer demand” for its OSB products in NA during 2026. It predicts 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,” it said.

West Fraser is targeting 2026 OSB shipments in its European EWP division in the range of 1.0 to 1.25 billion square feet (3/8-inch basis).

But 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, it added.

The company also updated about how global events during the first quarter of 2026 have contributed to an increase in oil‑based input costs, including fuels, chemicals and waxes.

The costs of resin and wax (key components of wood-based panels) increased by approximately $13m in Q2-26 compared to Q1-26 across all of divisions due to these factors.

“We estimate that a $10 per barrel change in crude oil prices impacts annual resin and wax costs by approximately $15m, with other factors held constant.”

West Fraser’s current capital expenditure prediction for 2026 is expected to remain within the $300m to $350m million range.

About West Fraser Timber (NYSE:WFG)

West Fraser Timber Co Ltd. 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.

Source: marketbeat.com