West Fraser Timber Co. Ltd. will record an estimated US$409 million non-cash goodwill impairment in the fourth quarter of 2025, reflecting prolonged weakness in lumber markets and revised long-term assumptions tied to its U.S. lumber operations.
The impairment represents the full amount of goodwill associated with the company’s U.S. lumber segment. Management cited persistently challenging economic conditions, including species-specific pricing trends, weaker demand and pricing for wood chip residuals, and updated expectations regarding the duration and recovery of the current market downturn.
While non-cash in nature, the charge highlights the ongoing pressure facing North American lumber producers amid subdued construction activity and volatile pricing.
2026 operational guidance
West Fraser also released preliminary operational guidance for 2026, projecting:
- SPF shipments of 2.4 to 2.7 billion board feet
- Southern Yellow Pine shipments of 2.4 to 2.7 billion board feet
- North American OSB shipments of 5.9 to 6.3 billion square feet (3/8-inch basis)
- European and U.K. OSB shipments of 1.0 to 1.25 billion square feet (3/8-inch basis)
Input costs, including resins and chemicals, are expected to remain relatively stable. The company also anticipates improved contractor availability and shorter lead times for capital equipment.
Capital spending outlook
Capital expenditures for 2026 are forecast at $300 million to $350 million, focused on maintenance-of-business investments, incremental improvements, and projects aimed at operational optimization and automation.
West Fraser cautioned that its outlook remains subject to market conditions and broader economic uncertainties, noting that further deterioration could lead to additional non-cash impairment charges.
With operations spanning more than 50 facilities across North America and Europe, West Fraser remains a major supplier of lumber, engineered wood products, pulp and residuals to construction, industrial and paper markets.
Source: West Fraser
