Overview

* West Fraser Q3 sales of $1.307 bln missed analyst expectations

* Adjusted EBITDA for Q3 was negative, reflecting market challenges

* Company repurchased 553,467 shares for $40 mln

Outlook

* West Fraser targets 2025 SPF shipments of 2.6 to 2.7 bln board feet

* Company expects 2025 OSB shipments of 6.3 to 6.5 bln square feet in North America

* West Fraser anticipates 2025 capital expenditures of $400 mln to $450 mln

Result Drivers

* SUPPLY-DEMAND IMBALANCE - Co cites ongoing supply and demand imbalances for wood-based products amid high mortgage rates impacting housing affordability

* INCREASED TARIFFS - New Section 232 tariffs and increased duty rates on Canadian softwood lumber affected financial results

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Sales Miss $1.31 $1.38

bln bln (2

Analysts

)

Q3 -$144

Adjusted mln

EBITDA

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "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 34 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release:

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(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.)