Global panel products giant West Fraser saw its sales and profitability reduce in 2025 due to ongoing challenging market conditions.
West Fraser reported its total sales were $5.462bn for 2025 (2024: US$6.17bn), recording a loss of -US$937m and EBITDA of US$56m (2024: US$673m).
The North America Engineered Wood Products division recorded adjusted EBITDA of US$153m (2024: US$744m), excluding US$239m of restructuring and impairment charges.
Sales were US$2.12bn (2024: US$2.8bn). OSB shipment volumes decreased from 2024 due to weaker demand. Plywood shipment volumes decreased from 2024 due to lower production levels.
The company effectively completed the ramp-up of its large-scale OSB mill in Allendale, South Carolina during the period.
“We did have to make some difficult decisions late in the year with announced closures or curtailments of uneconomic lumber and OSB mills, but these decisions were made to size our portfolio to our customers’ demand and with a view to make the company stronger and better positioned for the future,” said Sean McLaren, West Fraser’s President and CEO.
West Fraser said there were near-term uncertainties for new home construction, owing in large part to the level and rate of change of mortgage rates and the resulting impact on housing affordability. The US central bank has cut its key lending rate a total of 175 bps since September 2024 and federal funds futures indicate prospects for at least one additional rate cut in 2026.
The Europe Engineered Wood Products segment reported adjusted EBITDA of US$5m (2024:US$8m). The Europe EWP segment includes UK and Belgium OSB, MDF, and particleboard operations.
Sales were US$493m (2024: US$453m). OSB production was broadly similar to 2024. Sales increased compared to 2024 due to higher OSB product pricing in local currency terms and the strengthening of the GBP against the USD, offset in part by lower particleboard and MDF product pricing.
In Europe and the UK, West Fraser expects industry demand to improve but remain challenging over the near term.
