West Fraser Records $409 Million Goodwill Impairment, Issues 2026 Outlook

West Fraser Timber Co. Ltd. announced a non-cash impairment of its Lumber segment goodwill for the fourth quarter of 2025 amid ongoing economic challenges. The company also shared initial 2026 guidance on product shipments, operational costs, and capital expenditures. In Q4 2025, West Fraser anticipates booking about $409 million in goodwill impairment, stemming from a prolonged market downcycle that prompted revised assumptions in its annual test. Key adjustments cover species-specific pricing trends, reduced demand and prices for wood chip residuals, and the cycle's depth, duration, and recovery timeline. This charge eliminates all goodwill tied to U.S. lumber operations. For 2026, operational guidance includes SPF shipments of 2.4 to 2.7 billion board feet, SYP shipments of 2.4 to 2.7 billion board feet, North American OSB shipments of 5.9 to 6.3 billion square feet (3/8-inch basis), and European/U.K. OSB shipments of 1.0 to 1.25 billion square feet (3/8-inch basis). Input costs like resins and chemicals should stay stable, while contractor availability and equipment lead times improve. Capital expenditures are projected at $300 to $350 million. West Fraser operates over 50 facilities across Canada, the U.S., U.K., and Europe, producing lumber, engineered wood products including OSB, LVL, MDF, plywood, particleboard, pulp, newsprint, wood chips, and residuals for home construction, remodeling, industrial uses, papers, and tissue.