Global panels and lumber giant West Fraser has posted sales of US$1.459bn in Q1, saying the first quarter of 2025 was a continuation of the more balanced supply and demand fundamentals experienced in recent quarters.
The company recorded adjusted EBITDA of $195m in Q1, with the lumber segment reporting adjusted EBITDA of $66m and the North America Engineered Wood Products segment declaring adjusted EBITDA of $125m. The Europe Engineered Wood Products division recorded an adjusted EBITDA of $-2m.
“In many respects, the first quarter of 2025 was a continuation of the more balanced supply and demand fundamentals we have experienced in recent quarters,” said Sean McLaren, West Fraser’s President and CEO.
“Demand uncertainty for wood building products persists more broadly given ongoing housing affordability challenges, and this has only been magnified recently by a US administration that has both threatened and imposed higher lumber duties and punitive tariffs on many of the products we export from Canada to the US.
“These challenges aside, we continue to focus on the controllables so that we may be better prepared for an eventual market recovery.”
Between March 4, 2025 and March 6, 2025, 25% tariffs were imposed on the company’s wood products shipped from Canada to the US, including lumber, OSB, plywood, MDF, and pulp. On March 6, 2025, the US administration signed an executive order temporarily pausing tariffs on Canadian goods compliant with the United States-Mexico-Canada Agreement (“USMCA”) until April 2, 2025. Included in the USMCA are products such as lumber, OSB, plywood, MDF, and pulp.
On April 2, 2025, the US administration issued an executive order imposing tariffs beginning at 10% on all imports into the US from all countries, but with much higher rates for many. While Canada was not exempt, goods compliant with the USMCA are not subject to these additional tariffs.
“In Europe and the UK, we expect challenging markets to persist over the near term,” said West Fraser.
