West Fraser Reports Q2 Results as Cariboo Pulp Maintenance Weighs on Other Operating Segments

West Fraser Timber Co. Ltd. reported second-quarter 2026 results with sales of US$1.434 billion and a net loss of US$61 million, while its pulp and paper-related operations were affected by scheduled maintenance at the company's Cariboo pulp facility.

The company said its Other Operating Segments recorded Adjusted EBITDA of negative US$8 million, largely due to maintenance at the Cariboo pulp facility during the quarter. Overall, West Fraser reported Adjusted EBITDA of US$59 million, representing 4% of sales.

President and Chief Executive Officer Sean McLaren said the company's second-quarter performance reflected continued progress across its core businesses despite ongoing market challenges.

While lumber and engineered wood products returned positive Adjusted EBITDA, maintenance work at Cariboo affected earnings from the company's other operations during the period.

West Fraser generated US$192 million in cash from operations during the quarter and repaid US$148 million of operating loans. The company also declared a quarterly dividend of US$0.32 per share and released its 2025 Sustainability Report.

The company noted that recently announced U.S. Section 338 tariffs are not expected to affect shipments of softwood lumber, OSB or approximately half of its MDF shipments, although the potential impact on its MDF business remains uncertain because of indirect exposure through downstream supply chains. West Fraser said it continues to monitor developments related to the tariffs and their potential effects on its operations.

West Fraser also reported that higher oil-based input costs increased resin and wax expenses by approximately US$13 million compared with the previous quarter across its divisions, while transportation costs also rose due to higher fuel-related costs and reduced transportation labour availability.

The company expects 2026 capital expenditures to remain within the US$300 million to US$350 million range, subject to stable market conditions.

West Fraser operates more than 50 facilities across Canada, the United States, the United Kingdom and Europe. In addition to lumber and engineered wood products, the company produces northern bleached softwood kraft pulp, paper, wood chips and other residuals, serving home construction, industrial, paper and tissue markets.