West Fraser Timber Co.Ltd

Latest Results (14.08.2024):

Sales and Earnings

West Fraser Timber Co. Ltd. reported first quarter 2024 (Q1-24) sales of $1.627 billion, an increase from $1.514 billion in the fourth quarter of 2023. The company achieved earnings of $35 million, or $0.42 per diluted share, a significant improvement compared to a loss of $153 million, or $(1.87) per diluted share, in the previous quarter.

Adjusted EBITDA

In Q1-24, West Fraser Timber Co. Ltd. recorded an Adjusted EBITDA of $200 million, representing 12% of sales. This is a notable increase from the $97 million Adjusted EBITDA reported in the fourth quarter of 2023. The Lumber segment contributed $10 million to the Adjusted EBITDA, while the North America Engineered Wood Products (NA EWP) segment added $188 million.

Dividends and Share Repurchase

During the first quarter of 2024, West Fraser Timber Co. Ltd. paid $24 million in dividends, equating to $0.30 per share. The company also declared a $0.30 per share dividend payable in the second quarter of 2024. Additionally, West Fraser repurchased 105,666 shares for an aggregate consideration of $8 million.

Liquidity and Capital Expenditures

As of March 29, 2024, West Fraser Timber Co. Ltd. had cash and short-term investments totaling $711 million, down from $900 million at the end of 2023. The company’s capital expenditures for the first quarter were $122 million, reflecting ongoing investments in modernizing mills and lowering costs across its platform.

Outlook and Market Trends

West Fraser Timber Co. Ltd. remains optimistic about medium and long-term demand for new home construction in North America, driven by factors such as improved housing affordability and an aging U.S. housing stock. However, the company acknowledges near-term uncertainties due to interest rates and potential economic slowdowns. Despite these challenges, West Fraser continues to focus on optimizing its asset portfolio and investing in capital improvements.