West Fraser to indefinitely curtail two mills after third-quarter loss

West Fraser Timber Co. Ltd. reported third-quarter 2026 sales of $1.363 billion and earnings of $(80) million, or $(1.03) per diluted share, and said Oct. 28 it will indefinitely curtail two mills. The company’s earnings release reported adjusted EBITDA of $38 million, equal to 3% of sales.

The planned curtailments affect the Huguley oriented strand board mill in Lanett, Alabama, and the lumber mill in Leola, Arkansas. West Fraser expects them to take effect in the fourth quarter after orderly wind-downs. The company said the decisions reflect continued weak demand for wood products used in new home construction and repair and renovation work.

The closures are expected to reduce West Fraser’s annual OSB capacity by 500 million square feet (3/8-inch) and its southern yellow pine capacity by 225 million board feet. The company expects to record an asset impairment loss between $200 million to $220 million in the fourth quarter of 2026 in connection with the curtailments, according to the release.

West Fraser said it now expects 2026 shipments of southern pine lumber, spruce-pine-fir lumber and North American OSB to be toward the lower end of its previously issued guidance ranges. It also reported issuing a $500M term loan due September 2029 to refinance an existing $300M term loan due May 2028. Available liquidity was $1.2B at quarter-end, and the company repaid $55 million of operating loans.

Chief Executive Sean McLaren said housing affordability remained a key constraint on wood products demand and that the company also faced higher energy-related input costs. West Fraser said it ran mills to demand, reduced inventory and controlled costs during the quarter. The release said its third-quarter sales compared with $1.434 billion in the second quarter, while earnings were $(61) million, or $(0.78) per diluted share, in that period.