West Fraser Announces First Quarter 2026 Results

• West Fraser reported Q1 2026 sales of $1.334 billion, up from $1.165 billion in Q4 2025.
• Net loss narrowed significantly to $(188) million ($2.40 per share) compared to $(751) million in Q4 2025.
• Adjusted EBITDA improved sequentially to $(66) million from $(79) million in Q4, though remained negative.
• A $114 million non-cash charge for duty adjustments related to prior period shipments impacted net income; excluding this, core segments reported positive Adjusted EBITDA.
• Liquidity position tightened with cash and short-term investments dropping to $81 million from $202 million at year-end 2025.
• Borrowings on the $1 billion credit facility increased to $203 million from nil at December 31, 2025.
• Dividend of $0.32 per share was paid and declared for Q1 2026, maintaining shareholder returns despite losses.
• Operational updates confirm Blue Ridge mill returned to normal rates after January fire and High Level OSB wind-down is complete.

• The news aligns with prior expectations set in the April 16 operational update regarding the $114 million duty charge ($73M export duty + $41M estimate changes).
• Sequential improvement in Adjusted EBITDA from Q4 to Q1 indicates core operations are stabilizing, though profitability remains elusive.
• The maintenance of the dividend is a positive signal of management confidence but consumes cash during a period of liquidity drawdown.
• Liquidity tightening ($202M -> $81M cash) combined with increased debt drawdown ($0 -> $203M) presents a material risk to financial flexibility if operational losses persist.
• No M&A or strategic investor changes occurred; the Normal Course Issuer Bid renewal is routine capital management.
• Overall impact is positive relative to Q4's massive impairment hit, but neutral regarding immediate cash flow health due to the burn rate.

• West Fraser is one of North America's largest producers of softwood lumber, OSB, and engineered wood products.
• Flagship operations include sawmills in Canada (Alberta, BC) and the US (Texas, Georgia), plus OSB facilities in Alberta, South Carolina, and Europe.
• The company is currently executing a portfolio optimization strategy, closing uneconomic mills (High Level, Augusta, 100 Mile House) to align capacity with demand.
• Recent capital investments focus on modernizing existing assets and ramping up the new Henderson, Texas lumber facility.