West Fraser Timber Co. Ltd., trading under the ticker WFG, reported a second-quarter revenue of $1.53 billion, slightly missing the consensus estimate of $1.54 billion. The company experienced a decline in demand for its wood-based building products during this period, particularly within the North American Engineered Wood Products (EWP) segment. This slowdown was attributed to weaker-than-expected spring construction activity, aligning with government data showing a decrease in U.S. new home construction.

CEO Sean McLaren commented on the ongoing challenges faced by the wood building products sector, including issues related to housing affordability and potential increases in lumber duties and tariffs. To address these uncertainties, the company is focusing on operational flexibility and cost management. Additionally, West Fraser Timber is considering mill upgrades to enhance its product portfolio and achieve returns that exceed its cost of capital. The company aims to maintain strong liquidity and a robust balance sheet to support strategic growth opportunities aligned with its long-term objectives.

Source: westfraser.com