News Financial Reports & Markets
West Fraser shares financial results for the fourth quarter of 2023

West Fraser reported the fourth quarter results of 2023.

“The fourth quarter of 2023 saw continued weakness in demand for our North American lumber and European panel products. In contrast, demand for our North American OSB, plywood and other engineered products experienced resilient demand as new home construction markets were surprisingly robust with mortgage rates showing signs of stabilizing after moving meaningfully higher earlier in the year,” said Sean McLaren, West Fraser’s president and CEO.

“On balance, while 2023 was a challenging year financially, it was also a period marked by significant progress in our ongoing portfolio optimization strategy, which we advanced through acquisitions, announced divestitures, mill curtailments and major capital investments.”

Fourth quarter highlights

• Sales of $1.514 billion and loss of $153 million, or $1.87 per diluted share
• Adjusted EBITDA of $97 million, representing six percent of sales
• Lumber segment Adjusted EBITDA of $51 million
• North America Engineered Wood Products NA EWP segment Adjusted EBITDA of $143 million
• Pulp & Paper segment Adjusted EBITDA of $2 million
• Europe Engineered Wood Products Europe EWP segment Adjusted EBITDA of $3 million
• Repurchased 1.495 million shares for aggregate consideration of $104 million
• Completed acquisition of Spray Lake Sawmills located in Cochrane, Alberta and associated timber tenures

Annual highlights

• Sales of $6.454 billion and loss of $167 million, or $2.01 per diluted share
• Adjusted EBITDA1 of $561 million, representing nine percent of sales
• Lumber segment Adjusted EBITDA1 of $2 million, including $62 million of export duty recovery attributable to finalization of AR4
• NA EWP segment Adjusted EBITDA1 of $589 million
• Pulp & Paper segment Adjusted EBITDA1 of $77 million
• Europe EWP segment Adjusted EBITDA1 of $46 million
• Repurchased 1.835 million shares for aggregate consideration of $129 million

Subsequent to quarter end

• Effective January 1, 2024, Sean McLaren succeeded Ray Ferris as president and CEO and joined the board of directors
• Completed sale of Hinton pulp mill
• Announced permanent closure of lumber mill in Maxville, Florida and indefinite curtailment of operations at lumber mill in Huttig, Arkansas
• Announced permanent closure of lumber mill in Fraser Lake, B.C., following an orderly wind-down

“Although demand markets face a measure of uncertainty in the near term, we will continue to look for opportunities that improve West Fraser over the longer term. We have been prudent and purposeful in preparing the company for what may lie ahead as we transition into 2024. And we believe our people and our culture combined with our diversified manufacturing platform and financial flexibility will continue to provide competitive advantages that are important to the business and our stakeholders, and that will allow us to continue to successfully execute our business strategy,” said McLaren.