Western Announces Fourth Quarter and Fiscal 2025 Results

Executive Summary

• Western Forest Products reported a Q4 2025 Adjusted EBITDA of ‑$6.2 M, a sharp decline from $14.4 M in Q4 2024 and deepening losses versus the Q3 2025 figure (‑$65.9 M).
• Net loss widened to $17.5 M for Q4 2025, compared with a $1.2 M loss in the same quarter last year; annual net loss for 2025 was $82.4 M.
• Liquidity improved to $212.2 M, but the company announced significant operational curtailments and a pending sale of its Columbia Vista Division (CVD) assets amid weak market conditions and an ongoing labor dispute.

Key Details

• Financial Highlights – Q4 2025 vs. Q4 2024
• Revenue: $201.9 M vs. $273.2 M
• Adjusted EBITDA: ‑$6.2 M (‑3% margin) vs. $14.4 M (5% margin)
• Net loss: $17.5 M vs. $1.2 M; loss per diluted share ‑$1.55 vs. ‑$0.05

• Net debt: $33.7 M (7% of capitalization) vs. $77.6 M (12%)

• Annual 2025 vs. 2024

• Total revenue: $986.5 M vs. $1,063.9 M
• Adjusted EBITDA: ‑$68.2 M (‑7% margin) vs. $8.9 M (1% margin)

• Net loss: $82.4 M vs. $34.5 M

• Operational Metrics – Q4 2025

• Lumber production: 94 M board feet (down from 135 M in Q4 2024)
• Lumber shipments: 108 M board feet (‑26% YoY); U.S. shipments down 64%, non‑U.S. down 8%
• Cedar lumber shipments: 19 M board feet (‑47% YoY)

• Average lumber selling price: $1,437 per mfbm (down from $1,467)

• Annual Operational Metrics – 2025

• Lumber production: 479 M board feet vs. 558 M in 2024
• Lumber shipments: 522 M board feet vs. 588 M in 2024 (‑11% YoY)

• Cedar lumber shipments: 106 M board feet vs. 138 M in 2024

• Capital Projects

• Two continuous dry kilns scheduled for commissioning Feb 2026 and mid‑2026; a new thermal kiln slated for mid‑2026.

• FY 2026 capex budget: $45–$50 M (including ~$16 M for the three kilns).

• Balance Sheet & Cash Flow

• End‑2025 liquidity: $212.2 M (up from $144.6 M end‑2024).

• Net debt to capitalization improved to 7% from 12%.

• Strategic / Other Items

• Decision not to rebuild the CVD sawmill; process initiated to sell land and assets; demolition completed, insurance proceeds being pursued.
• Ongoing strike at La‑kwa sa muqw Forestry Ltd. (LFLP) since Q2 2025; mediation scheduled Feb 2026.
• Anticipated operating curtailments in Q1 2026 at Saltair and Ladysmith sawmills (≥2 weeks each); Chemainus sawmill to remain curtailed for 2026.
• Sale of non‑core assets: private timberlands on northern Vancouver Island for $69.2 M; Alberni Pacific Division assets for $7.3 M.

• Extended $250 M credit facility to July 2028 and added a US$30 M letter of credit.

• Outlook

• Lumber markets expected to remain weak in early 2026, with modest demand recovery anticipated later in the year.
• Potential upward price pressure if supply constraints from competitor curtailments materialize.
• Continued exposure to softwood duties, labor dispute outcomes, and global housing market trends (U.S., Japan, China).

Notable Quotes

“Despite more challenging markets and higher softwood lumber duties and tariffs in 2025, we enter 2026 with a significantly improved balance sheet to navigate the expected near‑term market uncertainty,” – Steven Hofer, President & CEO.

Conference call scheduled for Feb 11 2026 at 9:00 a.m. PST.