VANCOUVER, British Columbia, Aug. 07, 2025 (GLOBE NEWSWIRE) — Western Forest Products Inc. (TSX:WEF) (“Western” or the “Company”) reported Adjusted EBITDA of $0.5 million in the second quarter of 2025, which included an inventory provision expense of $3.6 million related to price declines in certain lumber products. In comparison, the Company reported Adjusted EBITDA of $9.4 million in the second quarter of 2024, which included a $5.3 million inventory provision recovery, and Adjusted EBITDA of $3.5 million in the first quarter of 2025, which included an inventory provision expense of $1.8 million.
Net loss was $17.4 million in the second quarter of 2025, as compared to a net loss of $5.7 million in the second quarter of 2024, and net income of $13.8 million in the first quarter of 2025.
| (millions of Canadian dollars except per share amounts and where otherwise noted) (1) |
Q2 2025 |
Q2 2024 |
Q1 2025 |
YTD 2025 |
YTD 2024 |
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| Revenue | $ | 289.1 | $ | 309.5 | $ | 262.5 | $ | 551.6 | $ | 549.0 | ||||||||||
| Adjusted EBITDA (2) | 0.5 | 9.4 | 3.5 | 4.0 | 5.2 | |||||||||||||||
| Adjusted EBITDA margin (2) | 0 | % | 3 | % | 1 | % | 1 | % | 1 | % | ||||||||||
| Operating loss prior to restructuring and other items | $ | (12.3 | ) | $ | (4.3 | ) | $ | (9.2 | ) | $ | (21.5 | ) | $ | (21.6 | ) | |||||
| Net income (loss) | (17.4 | ) | (5.7 | ) | 13.8 | (3.6 | ) | (13.7 | ) | |||||||||||
| Earnings (loss) per share, diluted | (1.62 | ) | (0.40 | ) | 1.33 | (0.29 | ) | (1.13 | ) | |||||||||||
| Net debt (2), end of period | 27.3 | 84.0 | 21.2 | |||||||||||||||||
| Liquidity (2), end of period | 189.7 | 141.5 | 195.4 | |||||||||||||||||
| Net debt to capitalization (2) | 5 | % | 13 | % | 4 | % | ||||||||||||||
(1) Certain figures may not add due to rounding
(2) Refer to Adjusted EBITDA, Adjusted EBITDA margin, Liquidity and Net debt to capitalization in the Non-GAAP Financial Measures section.
Second Quarter 2025 Financial and Operational Summary
- Lumber production of 144 million board feet (versus 151 million board feet in Q2 2024).
- Lumber shipments of 149 million board feet (versus 173 million board feet in Q2 2024).
- Cedar lumber shipments of 32 million board feet (versus 39 million board feet in Q2 2024).
- Specialty lumber mix of 53% (versus 51% in Q2 2024).
- Average lumber selling price of $1,464 per mfbm (versus $1,363 per mfbm in Q2 2024).
- Average BC log sales price of $139 per m3 (versus $155 per m3 in Q2 2024).
Accelerating the Transition to Higher Value Products
- Continue to advance two continuous dry kilns, with site preparation completed and site construction commencing.
- Deferring spending on one continuous dry kiln from 2025 to 2026 to support maintaining a strong balance sheet in the near-term.
- Anticipate the first continuous dry kiln will be completed and commissioned in early 2026, while the completion and commissioning of the second continuous dry kiln has been deferred to mid-2026.
Balance Sheet and Cash Flow
- Extended the maturity of our $250 million credit facility to July 21, 2028.
- Ended the quarter with liquidity of $189.7 million and a net debt to capitalization ratio of 5%, compared to $141.5 million of liquidity and a net debt to capitalization ratio of 13% as at June 30, 2024.
- Reducing planned 2025 capital expenditure spending to between $35 to $40 million, down from our prior estimate of $60 to $65 million in May 2025, to support maintaining a strong balance sheet and financial flexibility.
- Received a $3.4 million income tax refund in July 2025.
Other Items
- Our Columbia Vista Sawmill sustained extensive damage in a fire in late June which rendered the mill inoperable. We are currently evaluating our plans related to the sawmill and are working with our insurers to determine available proceeds related to the damage and business interruption.
- Employees represented by the United Steelworkers Local 1-1937 commenced a strike at our La-kwa sa muqw Forestry Limited Partnership (“LFLP”). LFLP is actively working to resume bargaining and bring an end to the work stoppage.
- Plan to take various operating curtailments at our BC sawmills in the third quarter of 2025, including curtailing our Chemainus sawmill for the entire third quarter. We estimate these curtailments will reduce production by approximately 25 million board feet.
- Completed a share consolidation of one post-consolidation common share for every 30 pre-consolidation common shares on July 28, 2025. As a result of the share consolidation, earnings (loss) per share have been retrospectively adjusted for all periods presented.
Softwood Lumber Dispute
On July 24, 2025, the US Department of Commerce (“DoC”) published the final antidumping (“AD”) rates applicable to Western related to the sixth Administrative Review (“AR”) of 20.56%. Final countervailing duty (“CV”) rates related to the sixth AR are expected in the third quarter of 2025, with preliminary CV rates of 14.38% announced in April 2025.
If final CV rates are unchanged from preliminary rates, Western will record a non-cash export tax expense of USD$43.8 million, plus accrued interest of approximately USD$7.0 million, in the third quarter of 2025 related to the increase in AD and CV rates. This amount will be partially offset against the current long-term duty receivable of USD$58.9 million on the Company’s balance sheet as at June 30, 2025. Cash deposits …