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Canada faces new 50% US tariffs, with job losses feared in some industries
Canada faces a new 50% tariff measure from the United States this week. President Trump has indicated plans to impose a new 50% tariff on a wide range of imports from Canada starting on the 19th, and Prime Minister Carney said on the 17th that he expects to speak with Trump before the tariff deadline. According to two people in the auto industry, auto tariffs on Canadian-made vehicles are a key sticking point in the negotiations. Because the new tariffs also apply to products eligible for preferences under the United States-Mexico-Canada Agreement, they shake the framework of an agreement that has shielded much of Canadian trade from tariffs and pose further risk to the Canadian economy. Trump last month refused a 16-year extension of the agreement and made it subject to an annual review, a process likely to prolong the trade uncertainty that has dampened investment and hiring in Canada. Canada's struggling lumber sector and its wine industry, already hit by wildfires raging in the west, could be severely hurt by the new tariffs.
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Rayonier Q2 2026 Earnings Call Transcript
Rayonier reported second quarter 2026 net income of $19.1 million, or $0.06 per diluted share, reflecting $10.2 million in merger-related costs and a $2.3 million timber casualty loss. Pro forma net income was $31.5 million, or $0.10 per diluted share, excluding one-time costs related to the merger with PotlatchDeltic. Adjusted EBITDA was $123.7 million, driven by contributions from PotlatchDeltic operations and solid segment-level performance. Southern Timber adjusted EBITDA was $52.6 million, an 85% increase primarily due to 1.5 million tons of incremental harvest volume from the PotlatchDeltic timberlands. Northwest Timber adjusted EBITDA was $26.3 million, increasing nearly fourfold from the prior year period due to higher volumes and sawlog prices in Idaho. Wood Products adjusted EBITDA was $25.0 million, reflecting higher lumber price realizations that reached their highest level in nearly four years. Real Estate adjusted EBITDA was $38.3 million, exceeding management expectations due to strong momentum in rural and improved development sales. Southern Timber harvest volume was 3.35 million tons, doubling versus the prior year quarter following the integration of expanded acreage. Northwest Timber harvest volume was 578,000 tons, increasing 133% due to incremental volume from Idaho and favorable weather conditions. Average lumber price realization was $505 per MBF, representing an 18% increase from the first quarter realization of $427 per MBF. Lumber shipments were 314 million board feet, maintained through the quarter despite industry-wide transportation challenges and flatbed trucking shortages. Real estate revenue was $53.7 million, reflecting the sale of approximately 7,500 acres at an average price of $6,300 per acre. Rural land sales were $40.7 million, consisting of 7,490 acres sold at an average price of $5,439 per acre, including a $4.6 million solar developer sale. Common share repurchases totaled 3.5 million shares, or $72.4 million at an average price of $20.95 per share during the second quarter. Cash available for distribution was $177.1 million for the first six months of 2026, increasing $130.5 million primarily due to the PotlatchDeltic merger. Total debt was $1.86 billion at quarter end, including debt assumed in the recent merger. Cash and cash equivalents were $411.8 million as of June 30, 2026, following debt repayments and active share repurchases. Full year Southern Timber harvest guidance is 12.2 million to 12.5 million tons, incorporating recent land transactions and integration progress. Full year Northwest Timber harvest guidance is 2.0 million to 2.2 million tons, with 600,000 tons anticipated in the third quarter. Full year Real Estate adjusted EBITDA guidance is $180 million to $200 million, supported by a healthy pipeline of development land sales. Solar land pipeline is 77,000 acres, comprising land currently under option for lease or sale to renewable energy developers. RMS timberland sale was $145 million, involving 36,000 acres in Southwest Washington as part of a tax-efficient portfolio optimization strategy. RMS timberland acquisition was $146 million, adding 57,000 acres in Texas and Alabama to concentrate capital in high-growth southern markets. Term loan repayment was $200 million, completed in April using cash on hand to manage interest expense in a higher-rate environment. Average pine sawtimber price was $44.46 per ton, decreasing from $47.87 per ton due to changes in the geographic mix from the expanded southern footprint.
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West Fraser reports $50 million adjusted EBITDA with positive contributions from all three core segments
West Fraser generated $50 million of adjusted EBITDA with positive contributions from each of its 3 core reportable segments in the second quarter of 2026. Sales rose to $1.434 billion from $1.334 billion in the first quarter, driven by higher lumber pricing and shipment volumes, while the company posted a net loss of $61 million or $0.78 per diluted share. Adjusted EBITDA reached $59 million, yielding a 4% margin and improving from negative $66 million in the prior quarter, with the lumber segment contributing $41 million including a $13 million favorable in-year duty adjustment. North America EWP and Europe EWP each generated $13 million in adjusted EBITDA, and the company ended the quarter with approximately $1 billion of liquidity and a net debt-to-capital ratio of 5%. Management highlighted productivity gains in the U.S. lumber portfolio, the ramp-up of the modernized Henderson mill, and the completed wind-down of the High Level OSB facility, while navigating headwinds from resin inflation, elevated transportation costs, and new trade tariffs on Canadian engineered wood products.