West Fraser reports Q2 loss, cuts shipment targets
Overview
West Fraser Q2 sales miss analysts' expectations, totaling $1.532 bln
Company reports Q2 loss of $24 mln, and loss per share of $0.38
Adjusted EBITDA for Q2 at $84 mln, reflecting demand slowdown
Outlook
West Fraser reduces 2025 lumber shipment targets due to demand uncertainty
Company lowers 2025 OSB shipment target to 6.3-6.5 bln sq ft
West Fraser expects stable input costs in H2 2025
Capital expenditures for 2025 projected at $400 mln to $450 mln
Result Drivers
DEMAND SLOWDOWN - Spring building activity fell short of expectations, impacting wood-based building products demand, particularly in NA EWP segment
HOUSING AFFORDABILITY - Ongoing housing affordability challenges and potential higher lumber duties contribute to demand uncertainty
TRANSPORTATION DISRUPTIONS - Lumber segment faced slower demand due to transportation and weather disruptions earlier in the year
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Miss | $1.53 bln | $1.59 bln (3 Analysts) |
Q2 EPS | -$0.38 | ||
Q2 Adjusted EBITDA | $84 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the forest & wood products peer group is "buy"
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 16 three months ago
Press Release:
