West Fraser Timber (WFG) investor relations material

Executive summary

• Q3-26 sales were $1,363M and Adjusted EBITDA was $38M, down from $59M in Q2; the net loss widened to $80M amid soft demand and lower realized prices.

• Huguley OSB and Leola lumber are to be indefinitely curtailed after Q4 wind-downs, aligning capacity with demand and focusing production on more competitive assets.

• Shipment and capex guidance were unchanged, with SPF, SYP and North American OSB shipments expected at the lower end of their ranges.

Financial highlights

• Sales were $1,363M versus $1,434M in Q2-26; the net loss was $80M versus $61M, and diluted loss per share was $1.03 versus $0.78.

• Adjusted EBITDA was $38M versus $59M in Q2-26, with a 3% margin; Q3 included a favorable $12M antidumping-rate adjustment.

• Cash from operations was $72M versus $192M in Q2; Q3 capex was $53M, and capital expenditures totaled $212M year to date.

• Lower prices reduced Q2-to-Q3 Adjusted EBITDA by ~$23M, largely in North American EWP; inventory reserve releases added ~$25M, broadly offsetting the price impact.

• Higher lumber and North American EWP costs, including resin, labor and diesel-related log haul, contributed $13M; resin and wax costs then rose $3M sequentially.

Outlook and guidance

• 2026 SPF and SYP shipments are expected at the low end of the 2.4–2.7B board feet range; North American OSB shipments at the low end of 5.9–6.3B sq. ft. on a 3/8-inch basis.

• Europe OSB shipment guidance remains 1.0–1.25B sq. ft.; 2026 capex guidance remains $300M–$350M, below 2025’s $411M as major projects conclude.

• U.S. South log costs are expected to rise modestly in 2026; chemical, fuel, resin and wax costs are higher versus 2025, partly due to the Middle East conflict.

• BC stumpage is expected to remain near Q3 levels and Alberta rates to decline in Q4; elevated U.S. South diesel costs and harvesting and hauling constraints may pressure log costs.

• Capital spending is expected to decline significantly next year, primarily supporting the existing platform; next-year shipment and capital guidance was expected before year-end.