Western Forest Products Inc. reported a net loss of $19.6 million in the Q3 2024, as compared to a net loss of $17.4 million in the Q3 2023, and a net loss of $5.7 million in the Q2 2024.

Q3 2024 revenue increased to $241.7 million from $ 231.1 million in Q3 2023 but down from $309.5 million in Q2 2024.

Adjusted EBITDA was negative $10.7 million in the Q3 2024, which included $1.0 million in export tax recovery, as compared to negative $11.6 million in the Q3 2023, which included $4.3 million in export tax recovery, and positive EBITDA of $9.4 million in the Q2 2024.

Market Outlook

Demand and prices for Cedar timber and premium appearance products are expected to remain stable as buyers begin to build inventories for the spring season. Demand for decking products has started to seasonally slow. Most US distribution and dealer customers are generally more cautious as we head towards year-end. Repair and renovation spending is expected to improve gradually in 2025 but remain below peak levels experienced over the last few years.

In Japan, continued softness in wooden home starts, well stocked inventories and a weaker Japanese yen to USD exchange rate are anticipated to impact lumber demand and prices in Japan into the first half of 2025.

Current improved demand and pricing for our Industrial lumber products is expected to continue through the first quarter 2025. For Commodity lumber, North American demand and prices are expected to remain flat with some fluctuations depending upon product line. In China, despite the weaker housing market, lumber prices have slightly improved on lower channel inventory levels, and we expect some modest pricing increases through the end of the year.

Western Forest Products is an integrated forest products company building a margin-focused log and lumber business to compete successfully in global softwood markets.