West Fraser Timber Co. Ltd. · TSX:WFG
West Fraser Timber — Q3 2026 Earnings Presentation
58 slides from West Fraser Timber's earnings presentation, Nov 2, 2026
Slide 1: Investor Presentation
INVESTOR PRESENTATION October 2026 Photo: Whitehouse Sawmill, Jacksonville, Florida, USA
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 Q3 2026 interim Financial Statements (“Q3 2026 Financial Statements”), which have been prepared in accordance with International Financial Reporting Standards (“IFRS”) and is di
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: Q3 2026 Earnings Summary
Q3 2026 Earnings Summary
Slide 5: Consolidated Financial Results
Consolidated Financial Results US$ Millions US$ Millions Q3-26 Q2-26 Q3-26 Q2-26 Adjusted EBITDA* (except EPS) Sales $1,363 $1,434 Lumber1 $34 $41 Costs and expenses (1,454) (1,513) EWP - North America (4) 13 Restructuring and impairment - 5 EWP - Europe 4 13 Operating earnings (loss) (92) (74) Othe
Slide 6: Q3-26 Consolidated Adjusted EBITDA Reconciliation
Q3-26 Consolidated Adjusted EBITDA Reconciliation 60 59 $182M Adjusted EBITDA increase vs Q3-25 Higher US logging, resin and 23 energy costs offset by lower SPF costs as we came out of breakup 38 1 5 30 4 Lower SYP and OSB Lumber: $(2) million 25 NA EWP: $(21) million 13 Positive NRV changes in NA E
Slide 7: Q3-26 versus Q2-26
Q3-26 versus Q2-26 US$ millions unless Q3 2026 Q2 2026 Change Comments otherwise indicated Lumber Shipments (MMfbm) 1,262 1,288 (26) Slightly lower NA Lumber production in Q3 NA OSB Shipments (MMsf 3/8”) 1,505 1,619 (114) Lower production as we actively managed inventory levels to match demand EU OS
Slide 8: 2026 Outlook
2026 Outlook US$ unless indicated otherwise 2026F 2025 Commentary SPF Shipments (MMfbm) 2,400 – 2,700 2,664 Expect to be at lower end of guidance SYP Shipments (MMfbm) 2,400 – 2,700 2,448 Expect to be at lower end of guidance N.A. OSB Shipments (MMsf 3/8”) 5,900 – 6,300 6,345 Expect to be at lower e
Slide 9: Summary
Summary Q3 2026 Recap Looking Forward • Demand challenged – U.S. housing starts 1.22M, U.S. • Guiding to lower end of shipment guidance in Lumber mortgage rates over 7% and NA OSB segments • Lumber shipments relatively stable from Q2 to Q3 • Nearing the end of significant investment cycle, with furt
Slide 10: West Fraser Investment Rationale
West Fraser Investment Rationale
Slide 11: West Fraser at a Glance
West Fraser at a Glance A leading producer of renewable building products with a diversified operating footprint, low-cost focus, strong balance sheet, and through-cycle financial resilience. SCALE & FINANCIAL POSITION INVESTMENT RATIONALE $5.5B >$1.2B $5.5B Offers financial resilience through a por
Slide 12: Resilience from Product and Geographic Diversity
Resilience from Product and Geographic Diversity
Slide 13: Product & Geographic Diversification – Capacity
Product & Geographic Diversification – Capacity Lumber North America EWP Pulp & Paper UK and Europe EWP 28 facilities 20 facilities 2 facilities 4 facilities SPF 3.0 Bfbm OSB: 8,060 MMsf 3/8” NBSK: 340 Mtonnes OSB 1,515 MMsf 3/8” SYP 3.5 Bfbm Plywood: 760 MMsf 3/8” Newsprint: 135 Mtonnes Particleboa
Slide 14: Wide-ranging Wood Building Products Offering
Wide-ranging Wood Building Products Offering for Principal Homebuilder, Building Construction, and Pro-Dealer Customers 14
Slide 15: Operating Footprint on Two Continents
Operating Footprint on Two Continents 15
Slide 16: Diverse Industry End-Use Demand
Diverse Industry End-Use Demand with Majority Driven by New Residential and Lower-Volatility R&R Markets North America Lumber End Use 2025 North America OSB End Use 2025 Non- Residenti Non- Residenti al & Industrial al 10% Other 7% 10% New Residenti al 31% New Industrial Residenti 23% al 56% R&R 25%
Slide 17: Lumber Capacity Shifting to Lower Duty/Tariff Risk Regions
West Fraser Lumber Capacity Shifting to Regions with Lower Duty/Tariff Risk, Lower Fiber Costs • US South growth to ~54% of capacity (from ~11% in 2004); lower-cost region, not subject to duty risk • Exposure to higher-cost B.C. fiber reduced to ~18% of capacity (from ~77% in 2004) 2004: 2.8 Bfbm 20
Slide 18: Historic Adjusted EBITDA
Historic Adjusted EBITDA Proforma Historical Combined Adj EBITDA (US$ millions) Segment Adj EBITDA Mix (US$ millions, excl. Corporate)(1) Lumber NA EWP EU EWP Other 5,000 1,800 100% Ainsworth 5 4,500 Norbord 80% 13 1,600 4 West Fraser 60% 13 4,000 1,400 U.S Housing starts (000s, RHS) 3,500 40% 1,200
Slide 19: Serves Markets with Attractive Longer-term Fundamentals
Serves Markets with Attractive Longer-term Fundamentals
Slide 20: U.S. Housing Start Estimates
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 1,356 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 2025 2026F 2027F Actual Forecast Range (ex-High & Low) Source: U.S. C
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 (R&R) Activity
U.S. Leading Indicator of Remodeling (R&R) Activity Flat inflation-adjusted spend 550 524 Homeowner Improvement & Repairs 516 513 512 (US$ Billions) 504 500 450 408 400 360 350 329 321 300 289 250 200 150 100 50 0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 - Predicted Source: Joint Center for
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: Lower N.A. Pulp & Paper Capacity Impacts Residual Outlets
Lower N.A. Pulp & Paper Capacity Impacts Residual Outlets Importance to sawmills: Approximately half Fewer buyers, longer hauls: Pulp mill closures reduce Mill economics: sawmills need reliable, of each log processed at a sawmill becomes nearby residual outlets, increasing chip-haul distances and ne
Slide 25: 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 26: North American Lumber Supply Continues to Decline
North American Lumber Supply Continues to Decline 2025 marks the 4th consecutive year of contraction in North American lumber supply since the highs of the Covid-19 pandemic Contracting Lumber Supply • Canada: higher log costs in B.C., BC Canada Other Canada US South Other US Offshore Imports US Hou
Slide 27: North American OSB Capacity
North American OSB Capacity Recent North American OSB North America OSB Capacity and U.S. Housing Starts Curtailments 35 2.5 30 • West Fraser indefinitely curtailed its High 2.0 Level, Alberta OSB mill in April 2026 and 25 announced an indefinite curtailment at its Huguley OSB mill in Lanett, Alabam
Slide 28: Disciplined and Balanced Allocator of Capital
Disciplined and Balanced Allocator of Capital
Slide 29: Capital Allocation Priorities
Capital Allocation Priorities • Replace end-of-life assets • Maintain investment-grade rating • Maintain low-cost position • Maintain liquidity buffer to aid the • Strategically enhance pursuit of opportunistic M&A and product mix, productivity Reinvest Maintain larger-scale strategic growth and cap
Slide 30: 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 ~46% of cash generated • Excess capital returned to shareholders of ~52% of cash flow, heavily weighted to buybacks, influenced by two
Slide 31: Share Repurchases
Share Repurchases Cumulative Investment in Repurchases* (US$ millions) Average repurchase price (CAD$): $4,596 $4,596 $5,000 $4,198 $4,327 $4,472 2013 $44.60 $4,000 2014 $51.86 $3,000 $2,208 $2,000 2015 $55.57 $829 $890 $890 $1,000 $151 $294 $307 2016 $44.06 $2 $104 $0 2013 2014 2015 2016 2017 2018
Slide 32: Lookback on West Fraser's Capital Reinvested
Lookback on West Fraser’s Capital Reinvested Return on Capital Employed (ROCE)* 66% 60% 33% 29% 26% 26% 16% 17% average 0% -4% -4% -20% -17% 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Source: FactSet, West Fraser analysis. 17% average ROCE through the cycle * ROCE defined as EBIT / Average ((
Slide 33: Liquidity
Liquidity ($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 23 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2026 2027 2028 202
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 Portfolio Optimization
Continuous Portfolio Optimization TIMING LUMBER (million board feet) EWP (million sq. feet 3/8”) PULP (thousand tonnes) 2021 +305 Angelina (TX) acquisition, Dec. +700 Allendale OSB (SC) acquisition, Dec. 2022 Henderson (TX) modernization announced, Oct. −85 Williams Lake Plywood (B.C.) Permanent shi
Slide 37: U.S. Lumber Portfolio Optimization Has Reduced the Cost Base
U.S. Lumber Portfolio Optimization Has Reduced the Cost Base Site count down 5, capacity largely preserved Continuous improvement delivering lower unit costs 2021 - 2025 -1% -5 sawmills 100 U.S. Lumber Portfolio 25 4.0 100 1,950 22 99 Optimization Production - MMfbm -2% capacity 1,800 Capacity - Bfb
Slide 38: Softwood Lumber Duties
Softwood Lumber Duties Final Combined Countervailing and Anti-Dumping Cash Deposit Duty Rates (%) West Fraser – Duties Summary 47.6% Cash on Deposit with U.S. At Q3 / 26 Q4/26 - effective rates Department of US $1,121 MM Commerce (DoC) 35.2% 31.1% 26.5% Risk Mitigators for West Fraser 24.8% 19.5% 20
Slide 39: West Fraser has Maintained its U.S. Export Market Position
West Fraser has Maintained its U.S. Export Market Position Weaker economics have reduced Canadian lumber exports to the U.S.; West Fraser has better preserved shipments and strengthened its relative position • Since 2021, weaker U.S. demand, higher Estimated Canada-U.S. Softwood Lumber Exports dutie
Slide 40: M&A Target Attributes – Seeking High Quality
M&A Target Attributes – Seeking “High Quality” As West Fraser develops its M&A pipeline and pursues opportunities, a primary focus is on identifying “high quality” assets/businesses that will lower costs or enhance margins, ideally while also moderating West Fraser’s overall EBITDA variability throu
Slide 41: Attractive Record of Creating Shareholder Value
Attractive Record of Creating Shareholder Value
Slide 42: Performance vs. Peers and Relevant Indices
Performance vs. Peers and Relevant Indices Enterprise Value (US$ billions) +165% +135% $6 $4 -6% $2 +224% $0 2005 YE Q2-26 QTD West Fraser Peer 1 Peer 2 Peer 3 Source: FactSet. Annualized Total Shareholder Return (US$, dividends reinvested) Jan-01-06* to Oct-23-26 12% 11.2% 10% 8.0% 8% 6.0% 6% 4.2%
Slide 43: Strong Sustainability Fundamentals
Strong Sustainability Fundamentals
Slide 44: 2025 Sustainability Highlights
2025 Sustainability Highlights Climate and Environment People and Communities Governance • 100% Sustainable Forest Initiative • 3% Y/Y reduction in Total Recordable • 42% women on the Board of Directors (SFI®) fibre sourcing certified Incident Rate (TRIR) • Completed double materiality • 25% improve
Slide 45: Our Carbon Story
Our Carbon Story Four distinct carbon flows illustrate the carbon stored, emitted, and potentially avoided across our forests, operations, and products Forest Carbon Wood Product 1 Stock Change 2 Operations Emissions 3 Stock Change 4 Avoided Emissions** (0.4)*M 6.6M (8.8)M (19.8)M tonnes CO₂e tonnes
Slide 46: 2025 Sustainability Report
2025 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 46
Slide 47: Appendix
Appendix
Slide 48: 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 49: 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% Weyerhaeuser British Columbia 8% 18% Interfor 6% 2025 N.A. Other 48% Industry Production 6% Canfor 56 Bfbm US South 54% 5% Sierra Pacific Alberta 4% 28% Georgia-Pacific Domtar Hampton Tol
Slide 50: 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% Kronospa Martco 4% 9% Fraser n Sonae- 29% 46% Huber Arauco 8% 4% Industry Egger Industry Cap
Slide 51: N.A. Lumber and EWP Adjusted EBITDA Margin
West Fraser N.A. 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) Note: Lumb
Slide 52: Analyst Coverage
Analyst Coverage Organization Analyst Name Contact BMO Capital Markets Ketan Mamtora (212) 883-5121 [email protected] CIBC World Markets Hamir Patel (604) 331-3047 [email protected] ERA Forest Products John Cooney (604) 267-3021 [email protected] Research Raymond James Daryl Swetlishof
Slide 53: 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” $520 $504 $300 Scotia TD* $501 RJ $479 $300 $516 $475 TD RJ $425 TD $279 $475 $245 $515 $455 BMO ERA $433 BMO $270 $475 $245 $500 $445 RJ BMO $265 $475 $429 RBC $240 $500 $435 ERA RBC $259 $474 $430
Slide 54: 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 55: Illustrative Variable Production Costs for North American Lumber
Illustrative Variable Production Costs for North American Lumber Industry $USD/MBF Variable Lumber Costs (2023-2025) 400 0 US West Coast B.C. Interior Quebec Ontario US South Net Delivered Wood Costs Manufacturing Costs Source: FEA, West Fraser analysis. Lumber Manufacturing Costs (2023-2025) 100% M
Slide 56: Illustrative Variable Production Costs for North American OSB
Illustrative Variable Production Costs for North American OSB Industry Variable OSB Costs (2023-2025) $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 (2023-2025) 100% Misc. 25%
Slide 57: 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 58: 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