Panel product giant West Fraser says its core product segments all reported Q1 positive adjusted EBITDA despite an overall loss from duty adjustments.
The company also signalled that housing affordability continues to be a key constraint as 2026 progress.
“The impact of the conflict in the Middle East has pushed 30-year mortgage rates back over 6%, which could cause additional headwinds as the year progresses,” Sean McLaren, West Fraser’s President and CEO said.
West Fraser reported Q1 sales of US$1.334bn and an overall loss of US$-188m.
The adjusted EBITDA of US$-66m included a US$114m charge for duty adjustments related to prior periods.
Adjusted EBITDA of $11m was recorded in the North America Engineered Wood Products segment, with the Europe Engineered Wood Products segment posting adjusted EBITDA of US$10m.
The Lumber division had adjusted EBITDA of US$-84m, which included the one-off adjustment charge.
Mr McLaren said the Q1 performance benefited from improved commodity pricing. He emphasised the significant non-cash duty adjustments related to prior year shipments.
“The wind-down of our High Level, Alberta OSB mill is now complete and reflects our commitment to proactively aligning our supply with customer demand,” he added.
He said West Fraser’s strong financial position and resilient balance sheet positions the company well to navigate continued macroeconomic uncertainty while remaining disciplined in its approach to capital deployment.
“We continue to be focused on cost control, taking a disciplined approach to managing expenses and operationalizing the investments we have made through the past several years. These priorities form a key part of our strategy to continually strengthen our competitive position and generate long-term value for all stakeholders.”
