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West Fraser(WFG) - 2024 Q4 - Annual Report
WFGWest Fraser(WFG)2025-02-12 22:02
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Financial Performance - Q4-24 sales were 1.405billion,adecreasefrom1.405 billion, a decrease from 1.437 billion in Q3-24, with a loss of 62millionor62 million or (0.80) per diluted share[7]. - Full year 2024 sales totaled 6.174billion,downfrom6.174 billion, down from 6.454 billion in 2023, with a loss of 5millionor5 million or (0.07) per diluted share[8]. - Adjusted EBITDA for Q4-24 was 140million,representing10140 million, representing 10% of sales, compared to 62 million in Q3-24[7]. - Adjusted EBITDA for 2024 was 673million,anincreaseof20673 million, an increase of 20% from 561 million in 2023[38]. - The company reported a loss of 5millionfor2024,significantlyimprovedfromalossof5 million for 2024, significantly improved from a loss of 167 million in 2023[38]. - Annual operating earnings for the Lumber segment were a loss of 303million,whiletheEWPsegmentreportedoperatingearningsof303 million, while the EWP segment reported operating earnings of 459 million[40]. - Restructuring and impairment charges for 2024 amounted to 102million,downfrom102 million, down from 279 million in 2023[38]. Capital Expenditures - Capital expenditures for Q4-24 were 156million,withtotalcapitalexpendituresfor2024at156 million, with total capital expenditures for 2024 at 487 million, slightly up from 477millionin2023[9].−Thecompanyanticipatescapitalexpendituresof477 million in 2023[9]. - The company anticipates capital expenditures of 400 million to 450millionfor2025,withstableinputcostsexpected[20].−Expectedcapitalexpendituresforthecurrentyearfocusonoptimization,automation,andgreenhousegasemissionsreductionprojects[43].ShareholderReturns−Thecompanydeclaredadividendof450 million for 2025, with stable input costs expected[20]. - Expected capital expenditures for the current year focus on optimization, automation, and greenhouse gas emissions reduction projects[43]. Shareholder Returns - The company declared a dividend of 0.32 per share, payable on April 3, 2025, with 101millionindividendspaidforthefullyear2024[10].−Thecompanyrepurchased311,523sharesfor101 million in dividends paid for the full year 2024[10]. - The company repurchased 311,523 shares for 27 million in Q4-24, totaling 1,799,217 shares repurchased for 144millionin2024[11].MarketOutlook−ThecompanyexpectsU.S.housingstartstostabilizeatanannualizedrateof1.50millionunits,withpermitsissuedat1.48millionunitsasofDecember2024[14].−Projectedshipmentsfor2025include2.7to3.0billionboardfeetofspruce−pine−firand2.5to2.8billionboardfeetofsouthernyellowpine[20].−Transportationconstraintsandlabordisruptionsmaynegativelyimpactprojectedshipmentvolumes[6].RisksandAssumptions−Therecoverabilityofproperty,plant,andequipmentisbasedonkeyassumptions,includingproductionvolumeandproductpricing,totaling144 million in 2024[11]. Market Outlook - The company expects U.S. housing starts to stabilize at an annualized rate of 1.50 million units, with permits issued at 1.48 million units as of December 2024[14]. - Projected shipments for 2025 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]. - Transportation constraints and labor disruptions may negatively impact projected shipment volumes[6]. Risks and Assumptions - The recoverability of property, plant, and equipment is based on key assumptions, including production volume and product pricing, totaling 3,842 million[6]. - The company faces risks related to international trade and potential changes in government regulations affecting timber supply[6]. Non-GAAP Measures - The company emphasizes the importance of non-GAAP financial measures for evaluating operating performance and financial condition[32].