Canada's Western Forest Q4 revenue declines, hurt by fall in lumber shipments
Overview
Canada forest products firm's Q4 revenue declined yr/yr
Adjusted EBITDA for Q4 was negative, reflecting operational challenges
Company plans sawmill curtailments due to weak market conditions and strike
Outlook
Western Forest anticipates 2026 capital expenditure spending between C$45 and C$50 mln
Company expects operating curtailments at several sawmills in Q1 2026
Comapny sees continued weak lumber demand in early 2026
Result Drivers
LUMBER SHIPMENTS - Co reported a 26% decline in total lumber shipments yr/yr, with U.S. shipments down 64%
MARKET CONDITIONS - Weak market conditions and higher duties impacted results
PRODUCTION CURTAILMENTS - Co plans sawmill curtailments due to weak market conditions and log supply issues
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Miss | C$201.90 mln | C$211 mln (1 Analyst) |
Q4 EPS |
| -C$1.55 |
|
Q4 Net Income |
| -C$17.50 mln |
|
Q4 Adjusted EBITDA |
| -C$6.20 mln |
|
Q4 Adjusted EBITDA Margin |
| -3.00% |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the forest & wood products peer group is "buy."
Wall Street's median 12-month price target for Western Forest Products Inc is C$13.50, about 19.5% below its February 10 closing price of C$16.78
Press Release: ID:nGNX76bQhN
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