Overview

* West Fraser Q2 sales miss analysts' expectations, totaling $1.532 bln

* Company reports Q2 loss of $24 mln, and loss per share of $0.38

* Adjusted EBITDA for Q2 at $84 mln, reflecting demand slowdown

Outlook

* West Fraser reduces 2025 lumber shipment targets due to demand uncertainty

* Company lowers 2025 OSB shipment target to 6.3-6.5 bln sq ft

* West Fraser expects stable input costs in H2 2025

* Capital expenditures for 2025 projected at $400 mln to $450 mln

Result Drivers

* DEMAND SLOWDOWN - Spring building activity fell short of expectations, impacting wood-based building products demand, particularly in NA EWP segment

* HOUSING AFFORDABILITY - Ongoing housing affordability challenges and potential higher lumber duties contribute to demand uncertainty

* TRANSPORTATION DISRUPTIONS - Lumber segment faced slower demand due to transportation and weather disruptions earlier in the year

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Miss $1.53 $1.59

bln bln (3

Analysts

)

Q2 EPS -$0.38

Q2 $84 mln

Adjusted

EBITDA

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the forest & wood products peer group is "buy"

* The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)