West Fraser Timber Reports Q3 2024 Financial Results and Adjusted EBITDA

West Fraser Timber Co. Ltd. has released its financial results for the third quarter of 2024, detailing the company's Adjusted EBITDA and segment performance. Adjusted EBITDA is a financial metric used to evaluate a company's operational profitability by excluding certain non-operational items. For Q3 2024, West Fraser's Adjusted EBITDA stood at $62 million, a decrease from $272 million in the previous quarter.

The company's financial performance is broken down by segments, including Lumber, North America Engineered Wood Products (NA EWP), Pulp & Paper, Europe EWP, and Corporate & Other. The Lumber segment reported an operating loss of $126 million, while NA EWP showed an operating profit of $50 million. The Pulp & Paper segment had a minor loss of $2 million, Europe EWP recorded a loss of $11 million, and Corporate & Other reported a loss of $19 million.

Amortization and restructuring charges were significant factors in the financial results. Amortization accounted for $136 million, while restructuring and impairment charges amounted to $18 million. Equity-based compensation was recorded at $15 million.

West Fraser has also provided guidance on expected capital expenditures for 2024, focusing on improvement projects, maintenance, and initiatives to optimize manufacturing processes and reduce greenhouse gas emissions. The company anticipates that these expenditures will proceed as planned, assuming stable market conditions.

Overall, the financial results indicate a challenging quarter for West Fraser, with a notable decline in Adjusted EBITDA. The company continues to focus on operational improvements and strategic investments to enhance future performance.