West Fraser Timber Co. Ltd. · TSX:WFG
West Fraser Timber — Q4 2025 Earnings Presentation
54 slides from West Fraser Timber's earnings presentation, Feb 12, 2026
Slide 1: Investor Presentation
INVESTOR PRESENTATION February 2026 Photo: Sundre Forest Products, Sundre, Alberta, Canada
Slide 2: Financial Information and Forward Looking Statements
Financial Information: The financial information related to West Fraser contained in this Presentation is derived from our 2025 Annual Financial Statements, which have been prepared in accordance with International Financial Reporting Standards (“IFRS”) and is discussed in our Managements’ Discussio
Slide 3: Forward-looking statements risk factors
By their nature, these forward-looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, which contribute to the possibility that the predictions, forecasts, and other forward-looking statements will not occur. Factors that could cause actual resul
Slide 4: Q4 2025 Earnings Summary
Q4 2025 Earnings Summary
Slide 5: Consolidated Financial Results
Consolidated Financial Results US$ Millions US$ Millions Q4-25 Q3-25 Q4-25 Q3-25 Adjusted EBITDA* (except EPS) Sales $1,165 $1,307 Lumber $(57) $(123)1 Costs and expenses (1,384) (1,582) EWP - North America (24) (15) Restructuring and impairment (712) - Pulp & Paper (1) (6) Operating earnings (loss)
Slide 6: Q4-25 Consolidated Adjusted EBITDA Reconciliation
Q4-25 Consolidated Adjusted EBITDA Reconciliation $50 $67 million out-of- period duty expense for Q3-25 excluding out of period duty expense. Lower SPF log costs and SYP AR6 as reported in Q3. unit manufacturing costs; lower Positive net change in inventory OSB labour costs. write-downs. Lumber: $20
Slide 7: Q4-25 versus Q3-25
Q4-25 versus Q3-25 US$ millions unless Q4 2025 Q3 2025 Change Comments otherwise indicated Seasonally lighter demand and mill closures; production adjusted to meet demand Lumber Shipments (MMfbm) 1,192 1,302 (110) with SYP shipments down 6% Q/Q and SPF shipments down 10% Q/Q. NA OSB Shipments (MMsf
Slide 8: 2026 Outlook
2026 Outlook US$ unless indicated otherwise 2026F 2025 Commentary 100 Mile House (BC) mill closed in late 2025; another modest demand SPF Shipments (MMfbm) 2,400 – 2,700 2,664 year expected in 2026. Expecting moderate shipment increase with redistribution of production SYP Shipments (MMfbm) 2,400 –
Slide 9: Summary
Summary Q4 2025 Recap Looking Forward • Soft NA OSB demand carried over from the prior quarter, • Near-term demand for some of our wood products while supply/demand imbalances for lumber products remains challenging, though longer-term demand generally persisted fundamentals are favourable • Ongoing
Slide 10: Why Investors Should Own West Fraser Shares
Why Investors Should Own West Fraser Shares
Slide 11: Reasons to Invest in West Fraser
Reasons to Invest in West Fraser One of the world’s largest producers of sustainable wood-based building products Offers financial Serves markets Has a track record Has the scope, Is positioned to Has an attractive resilience through with attractive of disciplined and scale, and benefit from strong
Slide 12: Resilience from Product and Geographic Diversity
Resilience from Product and Geographic Diversity
Slide 13: Product & Geographic Diversification – Capacity
Product & Geographic Diversification – Capacity Lumber North America EWP Pulp & Paper UK and Europe EWP 28 facilities 21 facilities 2 facilities 3 facilities SPF 3.0 Bfbm OSB: 8,060 MMsf 3/8” NBSK: 340 Mtonnes OSB 1,515 MMsf 3/8” SYP 3.5 Bfbm Plywood: 760 MMsf 3/8” Newsprint: 135 Mtonnes Particleboa
Slide 14: Wide-ranging Wood Building Products Offering
Wide-ranging Wood Building Products Offering for Principal Homebuilder, Building Construction, and Pro-Dealer Customers 14
Slide 15: Operating Footprint on Two Continents
Operating Footprint on Two Continents 15
Slide 16: Diverse Industry End-Use Demand
Diverse Industry End-Use Demand with Majority Driven by New Residential and Lower-Volatility R&R Markets North America Lumber End Use 2024 North America OSB End Use 2024 Non-Residential & Other 6% Non-Residential 9% Industrial 10% New Industrial Residential 23% 32% New Residential 57% R&R 24% R&R 38
Slide 17: Lumber Capacity Shifting to Regions with Lower Duty/Tariff Risk
West Fraser Lumber Capacity Shifting to Regions with Lower Duty/Tariff Risk, Lower Fiber Costs • US South growth to ~54% of capacity (from ~11% in 2004); lower-cost region, not subject to US trade risk • Exposure to higher-cost B.C. fiber reduced to ~18% of capacity (from ~77% in 2004) 2004: 2.8 Bfb
Slide 18: Historic Adjusted EBITDA
Historic Adjusted EBITDA Proforma Historical Combined Adj EBITDA (US$ millions) Segment Adj EBITDA Mix (US$ millions, excl. Corporate) Lumber NA EWP EU EWP P&P 2 5,000 1,800 100% 3 2 Ainsworth 7 4,500 Norbord 80% 96 1,600 West Fraser 12 125 4,000 60% 68 1,400 127 U.S Housing starts (000s, RHS) 188 3
Slide 19: Serves Markets with Attractive Longer-term Fundamentals
Serves Markets with Attractive Longer-term Fundamentals
Slide 20: US Housing Starts
U.S. Housing Start Estimates (Thousands) 1,700 1,601 1,600 1,553 1,500 US Housing Starts (‘000s) 1,420 1,400 1,380 1,367 1,300 1,290 1,250 1,203 1,200 1,174 1,112 1,100 1,000 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025E 2026F 2027F Actual Forecast Range (ex-High & Low) Source: U.S. Census
Slide 21: Lumber and OSB Not Significant Cost Factors for Home Builders
Lumber and OSB are Not Typically Significant Cost Factors for Home Builders Lumber and OSB products generally comprise 15-20% of the total labour and materials costs to frame a SF house; combined, lumber and OSB costs are typically ~3% of total construction costs and ~2% of new home selling prices**
Slide 22: U.S. Leading Indicator of Remodeling Activity
U.S. Leading Indicator of Remodeling (R&R) Activity Predicting a modest recovery in 2026 550 Homeowner Improvement & Repairs 527 515 514 514 518 517 522 (US$ Billions) 513 511 510 512 501 500 512 508 507 490 498 500 458 450 428 407 400 350 300 250 200 150 100 50 0 2021:Q4 2022:Q1 2022:Q2 2022:Q3 202
Slide 23: Illustrative Ecosystem of U.S. South Lumber Mill
Illustrative Ecosystem of U.S. South Lumber Mill By building a new sawmill adjacent to an existing mill we are able to utilize existing infrastructure and skilled labour, enabling a faster ramp-up while reducing financial, operational and execution risks Approximate resources for 250 MMfbm U.S. sout
Slide 24: Serving a Broad Distribution Network and Customer Base
Serving a Broad Distribution Network and Customer Base West Fraser serves thousands of delivery points and customers across North America; the majority of product shipments use rail to transport Canadian SPF and OSB to U.S. markets and trucks to transport SYP and OSB from mills in the U.S. south. We
Slide 25: North American Lumber Supply at 10-year Lows
North American Lumber Supply at 10-year Lows BC Canada Other Canada US South Other US Offshore Imports US Housing Starts (R axis) Since the pandemic highs of production / 80 2.5 demand, 2024 marks the 3rd consecutive year of contraction in production. 70 U.S. Housing Starts (millions) 2.0 60 Reducti
Slide 26: North American OSB Capacity
North American OSB Capacity North America OSB Capacity and U.S. Housing Starts • One OSB mill was permanently closed in 2020 while a press fire at another competitor mill in spring 2022 30 2.5 kept that mill out of commission into H1-24 25 • West Fraser re-started its OSB mill in Chambord, 2.0 Quebe
Slide 27: Disciplined and Balanced Allocator of Capital
Disciplined and Balanced Allocator of Capital
Slide 28: Capital Allocation Priorities
Capital Allocation Priorities • Replace end-of-life assets • Maintain investment-grade rating • Maintain low-cost position • Maintain cash buffer to aid the • Strategically enhance pursuit of opportunistic M&A and product mix, productivity Reinvest Maintain larger-scale strategic growth and capacity
Slide 29: Capital Allocation Lookback
Capital Allocation Lookback • Multi-year history of cash flow generation is strong • Significant investments in maintaining, expanding and improving the business at ~44% of cash generated • Excess capital returned to shareholders of ~51% of cash flow, heavily weighted to buybacks, influenced by two
Slide 30: Share Repurchases
Share Repurchases Cumulative Investment in Repurchases* (US$ millions) Average repurchase price (CAD$): $5,000 $4,472 $4,596 2013 $44.60 $4,198 $4,327 $4,000 2014 $51.86 $3,000 $2,208 $2,000 2015 $55.57 $829 $890 $890 $1,000 $294 $307 2016 $44.06 $2 $104 $151 $0 2013 2014 2015 2016 2017 2018 2019 20
Slide 31: Lookback on Capital Reinvested (ROCE)
Lookback on West Fraser’s Capital Reinvested Return on Capital Employed (ROCE)* 66% 60% 33% 29% 26% 26% 16% 17% average 0% -4% -4% -20% -17% 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Source: FactSet, West Fraser analysis. 17% average ROCE through the cycle * ROCE defined as EBIT / Average ((
Slide 32: Liquidity
Liquidity ($millions) Available Liquidity* Scheduled Maturities 3,000 1,200 West Fraser Timber is 900 considered investment US$ Millions US$ Millions 2,000 600 grade by two leading 1,000 rating agencies. 300 0 0 Agency Rating Outlook '20 '21 '22 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2026 2027 2028 202
Slide 33: Softwood Lumber Duties
Softwood Lumber Duties Final Combined Countervailing and Anti-Dumping Cash Deposit Duty Rates (%) West Fraser – Duties Summary Current period * Cash on Deposit At Q4 / 25 47.6% with U.S. Department of Commerce (DoC) US $1,003MM 35.2% Duties Receivable (net, pre-tax) on US $308MM balance sheet 26.5%
Slide 34: Scope, Scale and Expertise to Unlock Growth
Scope, Scale and Expertise to Unlock Growth
Slide 35: West Fraser's Growth Strategy
West Fraser’s Growth Strategy • Our objective is to be the premier wood building products company in North America, resulting in long-term value creation. • Our strategy to achieve this objective is to develop and maintain a highly disciplined organization relentlessly focused on continuous improvem
Slide 36: Continuous Improvement Through Portfolio Evolution and Optimization
Continuous Improvement Through Portfolio Evolution and Optimization Actively seeking mill portfolio optimization through acquisitions, divestitures, curtailments/closures* and strategic capital West Fraser – Corporate Development Timeline (late 2021 thru 2025) +305MM FBM Angelina Forest Products saw
Slide 37: M&A Target Attributes – Seeking High Quality
M&A Target Attributes – Seeking “High Quality” As West Fraser develops its M&A pipeline and pursues opportunities, a primary focus is on identifying “high quality” assets/businesses that will lower costs or enhance margins, ideally while also moderating West Fraser’s overall EBITDA variability throu
Slide 38: Positioned to Benefit from Strong Sustainability Fundamentals
Positioned to Benefit from Strong Sustainability Fundamentals
Slide 39: 2024 Sustainability Report
2024 Sustainability Report Our report measures sustainability performance across a variety of environmental, social and governance goals and disclosed targets. Scan the QR code to get our Sustainability Report https://www.westfraser.com/sustainability/sustainability-reporting
Slide 40: 2024 Sustainability Highlights
2024 Sustainability Highlights E N V I R O N M E N TA L SOCIAL GOVERNANCE • Planted 72.4 million seedlings • Strengthened contractor safety • Developed our Biodiversity in Canada, where we manage management Policy forestland • Invested $4.3 million in • Implemented our Sustainable • Reduced Scope 1
Slide 41: Attractive Record of Creating Shareholder Value
Attractive Record of Creating Shareholder Value
Slide 42: Performance vs. Peers and Relevant Indices
Performance vs. Peers and Relevant Indices Enterprise Value (US$ billions) +161% $6 +131% $4 $2 -22% +172% $0 2005 YE Q3-25 YE West Fraser Peer 1 Peer 2 Peer 3 Source: Bloomberg, FactSet Annualized Total Shareholder Return (US$, dividends reinvested) Jan-01-06* to Feb-05-26 12% 10.9% 10% 8.5% 7.4% 8
Slide 43: Appendix
2 ngeoe os aang 35S
Slide 44: Broad Offering of Manufactured Wood Building Products
Broad Offering of Manufactured Wood Building Products SPF SYP OSB Plywood Spruce Pine Fir (SPF) is a species that includes Southern Yellow Pine (SYP), known for its Oriented Strand Board (OSB) is a versatile Plywood is made from multiple layers, or ply, of Engelmann spruce, white spruce, hybrid whit
Slide 45: West Fraser is North America's Largest Lumber Producer
West Fraser is North America’s Largest Lumber Producer West Fraser West Fraser 2025 Capacity 6.5 Billion feet 9% British Weyerhaeuser Columbia 8% 18% Interfor 7% 2024 N.A. Industry Other 50% Production 57 Bfbm 7% Canfor US South 54% 5% Alberta Sierra Pacific 28% 4% Georgia-Pacific Domtar Hampton Pot
Slide 46: West Fraser is the World's Largest OSB Producer
West Fraser is the World’s Largest OSB Producer West Fraser OSB Capacity by Region Europe 16% North American OSB Industry* European OSB Industry US 50% 10 Bsf-3/8" Canada Other Other 34% Smartply 6% West 12% Martco 4% Kronospan 9% Fraser Sonae- 46% 29% Huber Arauco 8% 4% Industry Egger Industry Capa
Slide 47: North America Lumber and EWP Adjusted EBITDA Margin
West Fraser North America Lumber and EWP Adjusted EBITDA Margin1 NA Lumber 10-year Average: 15% NA EWP* (proforma) 10-year Average: 29% 60% 50% 40% 30% 20% 10% 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021* 2022 2023 2024 2025 -10% North America Lumber North America EWP (proforma) N
Slide 48: Analyst Coverage
Analyst Coverage Organization Analyst Name Contact BMO Capital Markets Ketan Mamtora (212) 883-5121 ketan.mamtora@bmo.com CIBC World Markets Hamir Patel (604) 331-3047 hamir.patel@cibc.com ERA Forest Products John Cooney (604) 267-3021 jcooney@era-research.com Research Raymond James Daryl Swetlishof
Slide 49: Analyst Commodity Price Forecasts
Analyst Commodity Price Forecasts (SPF & SYP US$/Mfbm; OSB US$/Msf) SPF W 2x4 SYP W 2x4 OSB NC 7/16” $600 $475 $325 RJ RJ $425 BMO $475 $290 $595 $469 $325 RBC TD $431 RJ $540 $250 $550 $460 $325 BMO BMO $400 Scotia $500 $303 $540 $455 $320 ERA ERA $400 TD $510 $285 $531 $425 Scotia Scotia $438 CIBC
Slide 50: Modeling EBITDA
Modeling EBITDA Estimated Earnings Sensitivity to Key Variables (Based on 2025 annual shipment volumes - $ millions) Factor Variation Change in pre-tax earnings1 Lumber price $10 (per Mfbm) 51 NA OSB price $10 (per Msf) 54 Europe OSB price £10 (per Msf) 15 U.S. / CAD $ exchange rate2 $0.01 (per $ CA
Slide 51: Illustrative Variable Production Costs for Lumber Industry
Illustrative Variable Production Costs for North American Lumber Industry $USD/MBF Variable Lumber Costs (2021-2023) 400 0 B.C. Interior US West Coast Quebec Ontario US South Net Delivered Wood Costs Manufacturing Costs Source: FEA, West Fraser analysis. Lumber Manufacturing Costs (2021-2023) 100% M
Slide 52: Illustrative Variable Production Costs for OSB Industry
Illustrative Variable Production Costs for North American OSB Industry Variable OSB Costs (2021-2023) $USD/MSF 3/8” 200 0 US North US South Western Canada Eastern Canada Net Delivered Wood Costs Manufacturing Costs Source: FEA, West Fraser analysis. OSB Manufacturing Costs (2021-2023) 100% Misc. 21%
Slide 53: West Fraser Timber Co. Ltd.
West Fraser Timber Co. Ltd. These materials have been prepared by Management of the Company. No regulatory authority has approved or disapproved of the contents of these materials. These materials do not constitute an offer to sell or the solicitation of an offer to buy any securities of the Company
Slide 54: External Information, Currency and Terminology
External Information: Where this presentation quotes any information or statistics from any external source, it should not be interpreted that West Fraser has adopted or endorsed such information or statistics as being accurate. Some of the information presented herein is based on or derived from st