VANCOUVER, British Columbia, Feb. 10, 2026 (GLOBE NEWSWIRE) — Western Forest Products Inc. (TSX:WEF) (“Western” or the “Company”) reported Adjusted EBITDA of negative $6.2 million in the fourth quarter of 2025. In comparison, the Company reported Adjusted EBITDA of $14.4 million in the fourth quarter of 2024 and Adjusted EBITDA of negative $65.9 million in the third quarter of 2025, which included a non-cash export tax expense of $59.5 million related to the determination of final duty rates from the sixth Administrative Review (“AR”).
Net loss was $17.5 million in the fourth quarter of 2025, as compared to a net loss of $1.2 million in the fourth quarter of 2024, and net loss of $61.3 million in the third quarter of 2025.
| (millions of Canadian dollars except per share amounts and where otherwise noted) |
Q4 2025 |
Q4 2024 |
Q3 2025 |
Annual 2025 |
Annual 2024 |
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| Revenue | $ | 201.9 | $ | 273.2 | $ | 233.0 | $ | 986.5 | $ | 1,063.9 | |||||||||
| Adjusted EBITDA (1) | (6.2 | ) | 14.4 | (65.9 | ) | (68.2 | ) | 8.9 | |||||||||||
| Adjusted EBITDA margin (1) | (3% | ) | 5% | (28% | ) | (7% | ) | 1% | |||||||||||
| Operating loss prior to restructuring and other items | $ | (18.9 | ) | $ | (0.4 | ) | $ | (78.0 | ) | $ | (118.4 | ) | $ | (46.4 | ) | ||||
| Net loss | (17.5 | ) | (1.2 | ) | (61.3 | ) | (82.4 | ) | (34.5 | ) | |||||||||
| Loss per share, diluted | (1.55 | ) | (0.05 | ) | (5.71 | ) | (7.56 | ) | (2.88 | ) | |||||||||
| Net debt (1), end of period | 33.7 | 77.6 | 11.6 | ||||||||||||||||
| Liquidity (1), end of period | 212.2 | 144.6 | 234.2 | ||||||||||||||||
| Net debt to capitalization (1) | 7% | 12% | 2% | ||||||||||||||||
(1) Refer to Adjusted EBITDA, Adjusted EBITDA margin, Liquidity and Net debt to capitalization in the Non-GAAP Financial Measures section.
Fourth Quarter 2025 Financial and Operational Summary
- Lumber production of 94 million board feet (versus 135 million board feet in Q4 2024).
- Lumber shipments of 108 million board feet (versus 146 million board feet in Q4 2024).
- Total lumber shipments were down 26% year-over-year. U.S. lumber shipments were down 64%, while non-U.S. lumber shipments were down 8% over the same period.
- Cedar lumber shipments of 19 million board feet (versus 36 million board feet in Q4 2024).
- Specialty lumber mix of 52% (also 52% in Q4 2024).
- Average lumber selling price of $1,437 per mfbm (versus $1,467 per mfbm in Q4 2024).
- Average BC log sales price of $144 per m3 (versus $121 per m3 in Q4 2024).
Annual 2025 Financial and Operational Summary
- Lumber production of 479 million board feet (versus 558 million board feet in 2024).
- Lumber shipments of 522 million board feet (versus 588 million board feet in 2024).
- Total lumber shipments were down 11% year-over-year. U.S. lumber shipments were down 26%, while non-U.S. lumber shipments were down 5% over the same period.
- Cedar lumber shipments of 106 million board feet (versus 138 million board feet in 2024).
- Specialty lumber mix of 52% (versus 54% in 2024).
- Average lumber selling price of $1,463 per mfbm (versus $1,390 per mfbm in 2024).
- Average BC log sales price of $143 per m3 (versus $129 per m3 in 2024)
Accelerating the Transition to Higher Value Products
- Construction on two previously announced continuous dry kilns at our Value-Added Division is advancing on schedule and on budget, with the first kiln commissioning anticipated in February 2026 and the second kiln commissioning anticipated in mid-2026.
- Site preparation and fabrication is also advancing for a new thermal kiln at our Value-Added Division, with anticipated commissioning in mid-2026.
Balance Sheet and Cash Flow
- Ended 2025 with liquidity of $212.2 million, compared to $144.6 million at the end of 2024.
- Ended 2025 with net debt to capitalization of 7%, compared to 12% at the end of 2024.
- 2026 capital expenditure spending is anticipated to be between $45 and $50 million, which includes approximately $16 million of planned spending on the two previously announced continuous dry kilns and one thermal kiln.
- Near-term priority remains maintaining a strong balance sheet and financial flexibility.
Other Items
- Have decided to not rebuild on our Columbia Vista Division (“CVD”) sawmill site and have commenced a process to sell the land and associated assets of the CVD sawmill site. Separately, demolition of the fire impacted areas of the site has been completed and we are working with the insurance adjuster to finalize available property insurance proceeds.
- In January 2026, La-kwa sa muqw Forestry Limited Partnership (“LFLP”) United Steelworkers Local 1-1937 (“USW”) members voted to reject a new collective bargaining agreement. LFLP employees have been on strike since the second quarter of 2025. LFLP continues to work to bring a resolution to the strike and both parties agreed to a mediation process which is occurring in February 2026.
- In the first quarter of 2026, we anticipate operating curtailments at our Saltair sawmill for two weeks and at our Ladysmith sawmill for a minimum of two weeks. In addition, our Chemainus sawmill, which has been curtailed since July 2025, is expected to remain curtailed for the balance of 2026. Curtailments are in response to persistently weak market conditions and factors relating to the B.C. operating environment, including a lack of available economic log supply, ongoing harvesting permitting delays and the strike at LFLP. If there is no near-term resolution to the strike at LFLP, additional operating curtailments may be required at our Saltair and Duke Point sawmills near the end of the first quarter of 2026 due to log supply.
Advancing Our Strategic Priorities
“Despite more challenging markets and higher softwood lumber duties and tariffs in 2025, we enter 2026 with a significantly improved balance sheet to navigate the expected near-term market uncertainty,” said Steven Hofer, President and CEO of Western Forest Products. “Over the last year, we also continued to demonstrate success in executing on our strategic priorities to advance our transition to higher value products.”
Some notable highlights since the beginning of 2025 include:
- Continued focus on health and safety resulted in achieving a 2025 Company Medical Incident Rate of 2.70, better than our target of 2.87 and compared to 3.84 in 2024, with several operations achieving zero recordable incidences in 2025.
- Focused on stratifying our log sorts to support incremental margin in our timberlands operations, while also having a relentless emphasis on managing log inventory and turnover. Since 2023, our log inventory turnover has improved 11%.
- Improved operational uptime in our manufacturing operations, achieving a 2025 uptime of 86%, compared to 85% in 2024 and ahead of our target rate of 85%. We also continued to focus on log and lumber recovery, while reducing our lumber inventory year-over-year. The investment in our Saltair continuous dry kiln, which was completed in 2024, supported increased production of higher value and margin kiln dried lumber products in 2025.
- Continued with our customer focus strategy, developing value-added products and programs targeted with the end-user in mind within our sales and marketing group. We achieved improved on-time shipping performance of 88% in 2025, compared to 84% in 2024.
- Enhanced personnel within our engineered wood products business, which will support future value-added fabrication opportunities that we are executing on in 2026.
- Delivered, in partnership with ‘Namgis First Nation, the first draft forest landscape plan and forest operating plan in British Columbia to the Chief Forester covering the portion of ‘Namgis territory located in Tree Farm Licence 37.
- Negotiated a new, six-year collective agreement that covers the Company’s hourly employees represented by USW, which is one of the longest-term agreements in the history of the BC coastal forest sector.
- Repositioned and strengthened our balance sheet through the sale …