Core Insights - West Fraser Timber Co. Ltd. reported its fourth quarter results for 2024, highlighting a continued resilience in its North American Engineered Wood Products business and modest improvements in its Lumber segment [4][6][7]. Financial Performance - Fourth quarter sales were $1.405 billion, a slight decrease from $1.437 billion in the previous quarter. The company reported a loss of $62 million, or $(0.80) per diluted share, compared to a loss of $83 million, or $(1.03) per diluted share in Q3-24. The loss included a non-cash impairment of $70 million related to European EWP goodwill [6][10]. - For the full year, sales totaled $6.174 billion, down from $6.454 billion in 2023. The annual loss was $5 million, or $(0.07) per diluted share, significantly improved from a loss of $167 million, or $(2.01) per diluted share in 2023. Restructuring and impairment charges were recorded at $102 million in 2024, compared to $279 million in 2023 [7][10]. Segment Performance - Adjusted EBITDA for Q4-24 was $140 million, representing 10% of sales, compared to $62 million in Q3-24. The Lumber segment had an Adjusted EBITDA of $21 million, while the North America Engineered Wood Products segment reported $127 million [10][39]. - For the full year, Adjusted EBITDA was $673 million, or 11% of sales, compared to $561 million in 2023. The Lumber segment reported an Adjusted EBITDA loss of $82 million, while the North America Engineered Wood Products segment had $744 million [10][39]. Liquidity and Capital Allocation - Cash and short-term investments decreased to $641 million at the end of 2024 from $900 million at the end of 2023, primarily due to the repayment of $300 million in senior notes [8][9]. - Capital expenditures for Q4-24 were $156 million, with total capital expenditures for 2024 amounting to $487 million, slightly up from $477 million in 2023 [8][9]. Dividend and Share Repurchase - The company paid $26 million in dividends during Q4-24, or $0.32 per share, and declared a similar dividend for Q1-25. Total dividends paid in 2024 were $101 million [9][18]. - In Q4-24, West Fraser repurchased 311,523 shares for $27 million, and for the full year, it repurchased 1,799,217 shares for $144 million [11][9]. Market Outlook - The company anticipates continued demand for new home construction in North America, driven by improved housing affordability and an aging housing stock. However, near-term uncertainties remain due to high mortgage rates and potential tariffs on Canadian exports [12][14][15]. - In Europe and the U.K., a modest market recovery is expected, with long-term demand growth anticipated as OSB gains market penetration as an alternative to plywood [15][14]. Operational Guidance - The company plans to evaluate the impact of evolving U.S. tariffs on its operations and shipment estimates for 2025 [16]. Expected shipments for various products include 2.7 to 3.0 billion board feet of spruce-pine-fir and 2.5 to 2.8 billion board feet of southern yellow pine [20].

Core Viewpoint - West Fraser Timber Co. Ltd. will hold an analysts' conference call to discuss its fourth quarter 2024 financial and operating results on February 13, 2025 [1][2]. Group 1: Conference Call Details - The conference call will take place at 8:30 a.m. Pacific Time / 11:30 a.m. Eastern Time [1]. - Participants can join the call by dialing 1-888-510-2154 (Toll-free North America) or (437) 900-0527 (Toll number) [1]. - The call will be chaired by Mr. Sean McLaren, President and Chief Executive Officer, and will include a Q&A session for analysts after the management discussion [2]. Group 2: Company Overview - West Fraser is a diversified wood products company with over 60 facilities across Canada, the United States, the United Kingdom, and Europe [3]. - The company promotes sustainable forest practices and produces a variety of products including lumber, engineered wood products, pulp, newsprint, and renewable energy [3]. - West Fraser's products are utilized in home construction, repair and remodeling, industrial applications, and various paper products [3].

Financial Data and Key Metrics Changes - West Fraser generated $62 million of adjusted EBITDA in Q3 2024, representing a 4% margin, impacted by a $32 million lumber export duty expense [4][6] - On a trailing 4-quarter basis, adjusted EBITDA was $630 million, an improvement from $561 million at year-end 2023 [5] - Cash flow from operations was $150 million in Q3, with a cash balance net of debt and lease obligations at $463 million [9] Business Line Data and Key Metrics Changes - The lumber segment posted an adjusted EBITDA loss of $62 million in Q3, compared to a $51 million loss in Q2 [6] - North America EWP segment generated $121 million of adjusted EBITDA in Q3, down from $308 million in Q2 [7] - The Pulp & Paper segment generated $2 million of adjusted EBITDA in Q3, below the $9 million reported in Q2 [7] - European business adjusted EBITDA was $1 million in Q3, down from $6 million in Q2 [7] Market Data and Key Metrics Changes - SYP shipments in the U.S. South are down more than 10% year-to-date from 2023, with Q3 shipments down nearly 12% versus the prior quarter [8] - The final combined rate for softwood lumber duties is approximately 11.9%, effective until the U.S. Department of Commerce finalizes AR6 [8] Company Strategy and Development Direction - The company remains focused on geographic and product diversification to weather challenging lumber markets [10] - Actions taken include curtailing production at higher-cost mills and optimizing operations to improve cost structure [12] - The company expects SPF shipments to exceed previous guidance, while reiterating reduced guidance for SYP shipments [14] Management's Comments on Operating Environment and Future Outlook - Management is encouraged by the stabilization of new home construction and the expectation of rate cuts, which should support demand for wood products [11] - Inflation risks are considered benign, with costs stabilizing across the supply chain [11] - The company has reduced available capacity by over 800 million board feet since 2022, which is expected to support industry balance [12] Other Important Information - The company is narrowing the guidance range for 2024 capital expenditures to $475 million to $525 million [14] - Shareholders have been rewarded through dividends and buybacks, with a focus on creating value [15] Q&A Session Summary Question: How is R&R demand trending? - Management noted slight improvement in SYP demand, largely due to supply-side adjustments [17][18] Question: Why is there not a bigger price response in SPF? - Management indicated that supply-demand balance for SPF is different from SYP, leading to more volume from SPF [19] Question: What is the outlook for CapEx next year? - Guidance for CapEx will be provided at year-end, but it is expected to be slightly lower than previous years due to project completions [20][21] Question: How much of the capacity closures in the South are permanent? - Management stated that two mills are permanently closed while two are indefinitely curtailed, with no immediate dismantling planned [34][35] Question: What is the status of the European panels business? - The European business remains slow, with profitability restoration dependent on general economic improvement [36] Question: Are customers looking to secure larger volumes for 2025? - Customers are planning for 2025, but volumes can adjust based on market conditions [39] Question: What cost-saving opportunities are being pursued in the U.S. South? - Management is focused on modernizing plants and improving productivity to enhance competitiveness [40][41] Question: What drove the change in downtime at Caribou? - Additional projects and ensuring adequate fiber supply for colder months necessitated an extended shutdown [42]

Financial Performance - For Q3 2024, West Fraser reported sales of $1,437 million, a decrease from $1,705 million in Q2 2024 and $1,705 million in Q3 2023[20]. - The company recorded an operating loss of $108 million in Q3 2024, compared to an operating profit of $132 million in Q2 2024 and $184 million in Q3 2023[20]. - Adjusted EBITDA for Q3 2024 was $62 million, down from $272 million in Q2 2024 and $325 million in Q3 2023[20]. - Lumber sales decreased to $518 million in Q3-24 from $616 million in Q2-24, and from $613 million in Q3-23, with year-to-date sales at $1.733 billion compared to $1.906 billion in YTD-23[23]. - Adjusted EBITDA for Q3-24 was a loss of $62 million, down from a loss of $51 million in Q2-24 and a profit of $44 million in Q3-23, reflecting a decrease of $149 million compared to YTD-23[26]. - Operating earnings for the Lumber segment in Q3 2024 were reported at a loss of $126 million, while the NA EWP segment generated earnings of $50 million[196]. - Adjusted EBITDA for Q3 2024 was $62 million, a decrease from $159 million in Q3 2023, reflecting a year-over-year decline of 61%[195]. - Year-to-date Adjusted EBITDA for 2024 reached $533 million, compared to $464 million for the same period in 2023, indicating a 15% increase[198]. Production and Sales Volumes - SPF production volumes decreased by 11% from Q2-24 and 6% from Q3-23 due to the closure of the Fraser Lake lumber mill, impacting annual capacity by 160 million board feet[32]. - SYP production volumes decreased by 15% from Q2-24, 18% from Q3-23, and 10% from YTD-23 due to operational curtailments and mill closures[34]. - SPF shipment volumes were 689 million board feet in Q3-24, down from 799 million board feet in Q2-24, but comparable to 678 million board feet in Q3-23[30]. - OSB production volumes decreased from Q2-24 due to higher unscheduled downtime, but increased from Q3-23 and YTD-23 due to ramp-up of the Allendale mill[64]. Costs and Expenses - Cost of products sold decreased to $494 million in Q3-24 from $590 million in Q2-24, and from $551 million in Q3-23, influenced by lower shipment volumes and log costs[35]. - Selling, general and administration costs decreased to $34 million in Q3-24 from $37 million in Q2-24, and from $41 million in Q3-23, due to reduced corporate overhead allocation[48]. - The unfavorable impact from inventory valuation adjustments in Q3-24 was $3 million compared to Q2-24 and Q3-23[69]. - Freight and other distribution costs decreased in Q3-24 due to lower fuel costs and favorable changes in customer geographic mix[70]. - Cost of products sold increased from Q2-24 due to higher fibre costs and maintenance costs, but decreased compared to Q3-23 and YTD-23 primarily due to pulp mill disposals[80]. Market Conditions - The U.S. housing starts averaged 1.35 million units in September 2024, with permits issued averaging 1.43 million units, indicating a stabilization in new housing construction[9]. - The pricing environment for SYP lumber has weakened compared to SPF and OSB products, influenced by subdued demand in repair and remodeling applications[10]. - The company anticipates that an aging housing stock and stabilization of inflation and interest rates will stimulate renovation and repair spending in the medium to long term[10]. - The overall price variance resulted in a decrease in operating earnings of $22 million compared to Q2-24 and $70 million compared to Q3-23[26]. Debt and Liquidity - The company repaid $300 million in senior notes on October 15, 2024, using cash on hand[18]. - Available liquidity as of September 27, 2024, was $2,042 million, an increase from $1,954 million as of December 31, 2023[145]. - The company has a $200 million term loan maturing in July 2025, with interest payable at floating rates based on Base Rate Advances or SOFR Advances[152]. - Interest rate swaps were amended in January 2024, extending their maturity to July 2025, with a new weighted average fixed interest rate of 2.61%, up from 0.91%[153]. Shareholder Actions - The company has repurchased 1,414,985 Common shares under the 2024 NCIB, leaving 2,556,395 available for purchase until February 28, 2025[134]. - The company repurchased 1,907,510 common shares for cancellation under its 2023 NCIB program and 446,460 shares under its 2024 NCIB program[160][161]. - Cash used in financing activities increased to $39 million for Q3-24 due to common share repurchases, compared to no cash used for repurchases in the same period of 2023[175]. Tax and Financial Reporting - Income tax recovery of $26 million was recorded in Q3-24, compared to an expense of $34 million in Q2-24 and $56 million in Q3-23[112]. - The tax provision for Q3 2024 was a recovery of $26 million, contrasting with a provision of $34 million in Q2 2024[195]. - The company maintained no changes in internal control over financial reporting during the three months ended September 27, 2024[186]. Strategic Initiatives - The indefinite curtailment of the Lake Butler Lumber Mill will reduce U.S. lumber capacity by approximately 110 million board feet annually, with restructuring and impairment charges of $18 million recorded in Q3 2024[15]. - Anticipated capital expenditures for 2024 are narrowed to approximately $475 million to $525 million, focusing on optimization and automation projects[132]. - The modernization of the Henderson, Texas lumber manufacturing facility is expected to be ready for ramp-up in the first half of 2025, with a ramp-up period of 18 to 24 months[132]. - The company continues to expect long-term demand growth for its European products as the use of OSB as an alternative to plywood increases[122].

VANCOUVER, BC, Oct. 23, 2024 /PRNewswire/ - West Fraser Timber Co. Ltd. ("West Fraser" or the "Company") (TSX andNYSE: WFG) reported today the third quarter results of 2024 ("Q3-24"). All dollar amounts in this news release are expressed in U.S. dollars unless noted otherwise. Third Quarter Highlights  Sales of $1.437 billion and earnings of $(83) million, or $(1.03) per diluted share Adjusted EBITDA1 of $62 million, representing 4% of sales Lumber segment Adjusted EBITDA1 of $(62) million, including $32 mi ...

VANCOUVER, BC, Oct. 3, 2024 /PRNewswire/ - West Fraser Timber Co. Ltd. ("West Fraser" or the "Company") (TSX andNYSE: WFG) will hold an analysts' conference call to discuss third quarter 2024 financial and operating results on Thursday, October 24, 2024 at 8:30 a.m. Pacific Time/11:30 a.m. Eastern Time. To participate in the call, please dial: 1-888-510-2154 (Toll-free North America) or (437) 900-0527 (Toll number) or connect on the webcast. Please let the operator know you wish to participate in the West F ...

West Fraser Timber Co. Ltd. (WFG) announced the indefinite curtailment of its sawmill in Lake Butler, FL, by the end of this month. This move better aligns the company's lumber capacity in the United States with demand. Lake Butler Curtailment's Impact on West Fraser The Lake Butler Sawmill's indefinite curtailment will affect 130 employees. The company intends to mitigate the impact on affected employees by providing job opportunities at other mills. The halt will reduce West Fraser's US lumber capacity by ...

VANCOUVER, BC, Sept. 19, 2024 /PRNewswire/ - West Fraser Timber Co. Ltd. ("West Fraser" or the "Company") (TSX andNYSE: WFG) announced today that it will indefinitely curtail its sawmill in Lake Butler, Florida by the end of this month. Today's decision is the result of high fiber costs and soft lumber markets. The indefinite curtailment of Lake Butler Sawmill will impact approximately 130 employees and reduce West Fraser's U.S. lumber capacity by approximately 110 million board feet. West Fraser expects to ...

VANCOUVER, BC, Sept. 10, 2024 /PRNewswire/ - West Fraser Timber Co. Ltd. ("West Fraser" or the "Company") (TSX andNYSE: WFG) has declared a quarterly dividend of US$0.32 per share on the Common shares and Class B Common shares in the capital of the Company, payable on October 11, 2024 to shareholders of record on September 26, 2024. Dividends are designated to be eligible dividends pursuant to subsection 89(14) of the Income Tax Act (Canada) and any applicable provincial legislation pertaining to eligible d ...

Monty Rakusen West Fraser Timber Co. Ltd. (NYSE: WFG) is a wood products and lumber play focused on the US and Canadian markets, but also a small business in Europe. The story here is that they are quite scaled. They bought a company called Norbord some years ago, and their inorganic growth strategy has been pretty successful and their business' run-rate performances are improving on average compared to previous downcycles. They are pushing more, not less, lumber onto the US market despite the low levels of ...