West Fraser Announces Goodwill Impairment and Provides 2026 Outlook

VANCOUVER, B.C. — West Fraser Timber has announced that it will record an impairment of its lumber segment goodwill in the fourth quarter of 2025 due to persistently challenging economic conditions. The company is also providing initial 2026 guidance for key product shipments, operational costs and capital expenditures.

In Q4-2025, West Fraser expects to record an approximately $409 million non-cash impairment of goodwill as a result of the protracted downcycle that has caused management to recalibrate certain assumptions used in its annual goodwill impairment test. Adjustments to these assumptions include, but are not limited to, species-specific product pricing trends, lower demand and pricing for wood chip residuals, and the depth and duration of the current downcycle and its expected recovery. The impairment represents the entire amount of goodwill associated with the Company's U.S. lumber operations.

West Fraser is also providing the following operational guidance for 2026:

• SPF shipments are targeted to be 2.4 to 2.7 billion board feet.
• SYP shipments are targeted to be 2.4 to 2.7 billion board feet.
• N.A. OSB shipments are targeted to be 5.9 to 6.3 billion square feet (3/8-inch basis).
• European and U.K. OSB shipments are targeted to be 1.0 to 1.25 billion square feet (3/8-inch basis).
• Costs for inputs, including resins and chemicals, are expected to remain relatively stable, while contractor availability and capital equipment lead times are expected to continue to improve.
• Capital expenditures1 are expected to be $300 to $350 million.