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West Fraser Announces Fourth Quarter 2024 Results
WFGWest Fraser(WFG) Prnewswire·2025-02-12 22:01

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 1.405billion,aslightdecreasefrom1.405 billion, a slight decrease from 1.437 billion in the previous quarter. The company reported a loss of 62million,or62 million, or (0.80) per diluted share, compared to a loss of 83million,or83 million, or (1.03) per diluted share in Q3-24. The loss included a non-cash impairment of 70millionrelatedtoEuropeanEWPgoodwill[6][10].−Forthefullyear,salestotaled70 million related to European EWP goodwill [6][10]. - For the full year, sales totaled 6.174 billion, down from 6.454billionin2023.Theannuallosswas6.454 billion in 2023. The annual loss was 5 million, or (0.07)perdilutedshare,significantlyimprovedfromalossof(0.07) per diluted share, significantly improved from a loss of 167 million, or (2.01)perdilutedsharein2023.Restructuringandimpairmentchargeswererecordedat(2.01) per diluted share in 2023. Restructuring and impairment charges were recorded at 102 million in 2024, compared to 279millionin2023[7][10].SegmentPerformance−AdjustedEBITDAforQ4−24was279 million in 2023 [7][10]. Segment Performance - Adjusted EBITDA for Q4-24 was 140 million, representing 10% of sales, compared to 62millioninQ3−24.TheLumbersegmenthadanAdjustedEBITDAof62 million in Q3-24. The Lumber segment had an Adjusted EBITDA of 21 million, while the North America Engineered Wood Products segment reported 127million[10][39].−Forthefullyear,AdjustedEBITDAwas127 million [10][39]. - For the full year, Adjusted EBITDA was 673 million, or 11% of sales, compared to 561millionin2023.TheLumbersegmentreportedanAdjustedEBITDAlossof561 million in 2023. The Lumber segment reported an Adjusted EBITDA loss of 82 million, while the North America Engineered Wood Products segment had 744million[10][39].LiquidityandCapitalAllocation−Cashandshort−terminvestmentsdecreasedto744 million [10][39]. Liquidity and Capital Allocation - Cash and short-term investments decreased to 641 million at the end of 2024 from 900millionattheendof2023,primarilyduetotherepaymentof900 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 156million,withtotalcapitalexpendituresfor2024amountingto156 million, with total capital expenditures for 2024 amounting to 487 million, slightly up from 477millionin2023[8][9].DividendandShareRepurchase−Thecompanypaid477 million in 2023 [8][9]. Dividend and Share Repurchase - The company paid 26 million in dividends during Q4-24, or 0.32pershare,anddeclaredasimilardividendforQ1−25.Totaldividendspaidin2024were0.32 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 27million,andforthefullyear,itrepurchased1,799,217sharesfor27 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].