West Fraser Timber Co Ltd

West Fraser Timber Co. Ltd. has entered into a new $500 million three-year term loan, with partial proceeds used to retire its existing $300 million term loan due in 2028. The new term loan matures in September 2029, while the company's $1 billion syndicated credit facility remains outstanding on existing terms with roughly four years left to its May 2030 maturity. Pro forma for the refinancing at the end of the second quarter, West Fraser would have had a cash balance of $219 million, no draw on its syndicated credit facility, available liquidity of over $1.2 billion, and a net debt to capital ratio of 5.4%. President and CEO Sean McLaren said the new term loan strengthens near-term liquidity and provides additional financial flexibility. The company also declared a quarterly dividend of US$0.32 per share on its Common shares and Class B Common shares, payable October 19, 2026 to shareholders of record on September 29, 2026.

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.