Canada's Western Forest Q2 revenue falls 17% on lower production, shipments

Overview

• Canada lumber producer's Q2 revenue declined yr/yr, with adjusted EBITDA flat at C$0.4 mln

• Net income turned positive, aided by C$31.3 mln insurance recovery from Columbia Vista sawmill fire

• Company took operating curtailments due to weak market conditions and high tariffs

Outlook

• Company expects North American lumber markets to remain stable through most of Q3 2026

• Cowichan Bay mill to remain curtailed for rest of 2026 due to weak market conditions

• 2026 capital expenditure spending anticipated at C$45-50 mln

Result Drivers

• OPERATING CURTAILMENTS - Co said sawmill curtailments in Q2 were in response to weak market conditions, high softwood lumber duties, and BC operating environment challenges

• LOWER PRODUCTION AND SHIPMENTS - Lumber production and shipments fell yr/yr, contributing to lower revenue

• HIGHER SELLING PRICES - Average lumber selling price rose yr/yr, partially offsetting lower volumes

Company press release: ID:nGNX3wFMjT

Key Details

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)