Western Forest Products (WEF) Q3 2026 earnings summary

Executive summary

• Q3 2026 Adjusted EBITDA was $1.9 million versus negative $65.9 million YoY; net loss was $5.2 million versus $61.3 million, with improved lumber prices and higher log shipments partly offset by lower lumber shipments.

• Results included a $7.7 million business interruption insurance recovery, a $3.9 million non-cash export duty receivable estimate expense and $1.2 million share-based compensation expense.

Financial highlights

• Revenue was $237.0 million versus $233.0 million YoY; YTD revenue was $678.1 million versus $784.6 million.

• Operating loss before restructuring and other items was $18.8 million versus $78.0 million YoY; YTD operating loss was $56.2 million versus $99.5 million.

• Net loss was $5.2 million versus $61.3 million YoY; diluted loss per share was $0.44 versus $5.71. Q2 2026 net income was $10.5 million.

• YTD net loss was $14.6 million versus $64.9 million; diluted loss per share was $1.17 versus $6.00.

Outlook and guidance

• 2026 capital expenditures are expected at $45–$50 million, including approximately $23 million for kiln projects and the Duke Point autograder.

• Cowichan Bay and Chemainus sawmills are expected to remain curtailed through the rest of 2026 amid weak markets, high duties and tariffs, and BC operating conditions.

• Fourth-quarter commodity lumber prices are expected to improve, supported by greater focus on Canadian customers with higher net mill returns.