Results / Forestry & Timber /
West Fraser returns to positive EBITDA with US$1,077 million on deposit in Washington
Adjusted EBITDA of US$59 million followed a negative US$66 million first quarter; the net loss narrowed to US$61 million, the Texas sawmill doubled output, and the company says the new 50% Section 338 tariffs do not touch its lumber or OSB.
West Fraser reported second-quarter 2026 sales of US$1,434 million, a net loss of US$61 million (US$0.78 a share) and adjusted EBITDA, its non-IFRS measure, of US$59 million, after a first quarter in which sales were US$1,334 million, the net loss US$188 million and adjusted EBITDA negative US$66 million [1]. The lumber segment earned US$41 million, including a US$13 million favorable duty adjustment, against a US$84 million loss in the first quarter; SPF shipments were 654 million board feet and SYP 634 million [2]. OSB earned US$13 million against US$68 million a year earlier on lower prices [2].
Two other numbers matter more than the quarter. Export duties paid and payable on deposit with the U.S. Department of Commerce reached US$1,077 million at July 3, 2026, from US$1,003 million at year end, with US$436 million of that carried as a receivable; the cash deposit rate in force stays at 26.47% until Commerce finalizes the seventh review, which at the preliminary rates would cut it to 20.70% [3][2][4]. And the company says the 50% Section 338 tariffs effective August 19 do not apply to its softwood lumber, OSB or about half of its MDF, though they would have caught about 3% of plywood and 20% of LVL shipments to the U.S. this year [1].
For a U.S. reader, the Henderson, Texas sawmill more than doubling its output from the first quarter is the hedge in action: lumber cut in Texas posts no deposit at all [1].
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West Fraser Announces Second Quarter 2026 Results
Q2 2026 sales US$1.434B; net loss US$(61)M, US$(0.78)/share; adjusted EBITDA US$59M (Lumber US$41M, NA EWP US$13M, Europe EWP US$13M); Q1 2026 sales US$1.334B, net loss US$(188)M, adjusted EBITDA US$(66)M; cash US$74M; 2026 capex US$300–350M; dividend US$0.32; Henderson output more than doubled; High Level wind-down completed; Section 338 50% from August 19, 2026 not applicable to softwood lumber, OSB and about half of MDF, about 3% of plywood and 20% of LVL U.S. shipments affected; June starts 1.43M, permits 1.37M.
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Management's Discussion and Analysis, second quarter 2026 (Form 6-K, Exhibit 99.2)
Combined cash deposit rate 26.47% (9.65% ADD + 16.82% CVD); AR7 preliminary CVD amended to 16.15% on June 29, 2026; US$13M favorable duty adjustment; Lumber adjusted EBITDA US$41M vs US$(84)M in Q1; SPF shipments 654 MMfbm, SYP 634 MMfbm; OSB shipments 1,619 MMsf; NA EWP adjusted EBITDA US$13M vs US$68M a year earlier; Q2 2025 sales US$1,532M and adjusted EBITDA US$84M; cash from operations US$192M; net debt US$317M, 5% of capital.
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Condensed consolidated interim financial statements, second quarter 2026 (Form 6-K, Exhibit 99.1)
Export duties paid and payable on deposit with the USDOC US$1,077M at July 3, 2026 (US$1,003M at December 31, 2025); export duties receivable US$436M.
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Notice of First Quarter Results Conference Call and Softwood Lumber Duties and Operational Update
AR7 preliminary rates would reduce the combined cash deposit rate from 26.47% to 20.70% once finalized.
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