Operating margins have deteriorated to -15.7% in 2026Q1, reflecting the inability of the firm to absorb fixed costs amid an 8.6% year-over-year revenue contraction.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 5.81B | 7.63B | 6.17B | 6.45B | 9.7B | 10.52B | 4.59B | 3.73B | 4.49B | 4.08B | 3.31B | 2.95B | 3.32B | 3.26B | 3.02B | 2.71B | 2.89B | 2.49B | 2.62B | 3.35B | 2.85B | 3.08B | 2B | 1.16B | 1.04B | 981.36M | 1.54B | 1.52B | 1.21B | 1.31B | 1.2B |
| Revenue Growth % | -3.32% | 23.51% | -4.34% | -33.47% | -7.77% | 129.27% | 22.88% | -16.88% | 10.02% | 23.32% | 12.06% | -11.05% | 1.81% | 8.19% | 11.47% | -6.24% | 15.68% | -4.8% | -21.75% | 17.34% | -7.35% | 54.26% | 71.66% | 12.17% | 5.65% | -36.28% | 1.2% | 25.66% | -7.32% | 9.06% | 9.53% |
| Cost of Goods Sold | 5.69B | 7.67B | 4.33B | 4.68B | 5.14B | 4.64B | 2.69B | 2.8B | 2.66B | 2.48B | 2.21B | 2.07B | 2.19B | 2.12B | 2.03B | 1.88B | 2.25B | 2.32B | 1.94B | 2.56B | 2.44B | 2.6B | 1.55B | 993.04M | 790.04M | 742.03M | 1.1B | 1.17B | 999.03M | 1.03B | 921.48M |
| COGS % of Revenue | - | 100.59% | 70.18% | 72.59% | 53% | 44.16% | 58.7% | 74.88% | 59.12% | 60.85% | 66.76% | 70.1% | 65.82% | 65.05% | 67.33% | 69.39% | 77.89% | 92.94% | 74.12% | 76.34% | 85.39% | 84.3% | 77.57% | 85.39% | 76.2% | 75.61% | 71.14% | 76.67% | 82.49% | 79.18% | 76.92% |
| Gross Profit | 116.37M | -44.68M | 1.84B | 1.77B | 4.56B | 5.87B | 1.89B | 937.78M | 1.84B | 1.6B | 1.1B | 883.48M | 1.14B | 1.14B | 985.09M | 828.11M | 637.9M | 176.2M | 678.06M | 792.32M | 416.97M | 483.48M | 447.89M | 169.96M | 246.76M | 239.33M | 444.42M | 355.1M | 212M | 271.98M | 276.56M |
| Gross Margin % | 2% | -0.59% | 29.82% | 27.41% | 47% | 55.84% | 41.3% | 25.12% | 40.88% | 39.15% | 33.24% | 29.9% | 34.18% | 34.95% | 32.67% | 30.61% | 22.11% | 7.06% | 25.88% | 23.66% | 14.61% | 15.7% | 22.43% | 14.61% | 23.8% | 24.39% | 28.86% | 23.33% | 17.51% | 20.82% | 23.08% |
| Gross Profit Growth % | - | -102.43% | 4.07% | -61.2% | -22.37% | 209.98% | 102.04% | -48.93% | 14.88% | 45.26% | 24.55% | -22.19% | -0.42% | 15.74% | 18.96% | 29.82% | 262.03% | -74.01% | -14.42% | 90.02% | -13.76% | 7.95% | 163.52% | -31.12% | 3.11% | -46.15% | 25.16% | 67.5% | -22.05% | -1.66% | 3.94% |
| Operating Expenses | 862.13M | 618.49M | 1.83B | 2.05B | 2B | 1.93B | 1.03B | 1.03B | 1.05B | 906.56M | 741.76M | 704.05M | 785.62M | 793.6M | 857.43M | 771.5M | 381.24M | 356.22M | 803.94M | 956.35M | 80.21M | 318.61M | 208.67M | 163.01M | 114.08M | 121.72M | 258.48M | 139.95M | 147.07M | 151.15M | 133.54M |
| OpEx % of Revenue | - | 8.11% | 29.71% | 31.81% | 20.62% | 18.33% | 22.53% | 27.7% | 23.36% | 22.2% | 22.4% | 23.83% | 23.65% | 24.32% | 28.43% | 28.52% | 13.21% | 14.28% | 30.69% | 28.56% | 2.81% | 10.35% | 10.45% | 14.02% | 11% | 12.4% | 16.78% | 9.2% | 12.14% | 11.57% | 11.15% |
| Selling, General & Admin | 1.42B | 1.42B | 1.11B | 1.23B | 1.33B | 1.2B | 758.34M | 711.95M | 712.17M | 701.39M | 595.19M | 545.51M | 639.18M | 634.88M | 656.39M | 550.73M | 140.38M | 102.95M | 528.27M | 603.88M | 96.66M | 98.72M | 80.68M | 53.29M | 43.94M | 44.28M | 161.34M | 46.81M | 51.67M | 54.86M | 48.45M |
| SG&A % of Revenue | - | 18.65% | 17.99% | 19% | 13.74% | 11.39% | 16.53% | 19.07% | 15.85% | 17.18% | 17.98% | 18.46% | 19.24% | 19.46% | 21.77% | 20.36% | 4.87% | 4.13% | 20.16% | 18.04% | 3.39% | 3.21% | 4.04% | 4.58% | 4.24% | 4.51% | 10.48% | 3.08% | 4.27% | 4.2% | 4.04% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | -2M | -803.49M | 723M | 827M | 667M | 730M | 275.26M | 322.29M | 6.61M | 205.17M | 7.44M | 2.16M | 2.58M | 939.17K | 1.01M | 6.17M | 8.5M | 46.51M | -25.55M | 352.46M | 379.84M | 219.89M | 127.99M | 109.72M | 70.14M | 77.44M | 97.14M | 93.14M | 95.41M | 96.3M | 85.08M |
| Operating Income | -745.76M | -663.17M | 7M | -284M | 2.56B | 3.94B | 929.36M | -101.82M | 787.06M | 691.85M | 358.6M | 179.43M | 349.74M | 324.01M | 127.66M | 56.61M | 256.66M | -374.65M | -125.88M | -164.02M | 336.73M | 164.87M | 239.21M | 6.95M | 132.67M | 117.61M | 185.94M | 215.14M | 64.92M | 120.82M | 143.02M |
| Operating Margin % | -12.84% | -8.7% | 0.11% | -4.4% | 26.38% | 37.51% | 20.26% | -2.73% | 17.52% | 16.95% | 10.83% | 6.07% | 10.53% | 9.93% | 4.23% | 2.09% | 8.89% | -15.02% | -4.8% | -4.9% | 11.8% | 5.35% | 11.98% | 0.6% | 12.8% | 11.98% | 12.07% | 14.14% | 5.36% | 9.25% | 11.94% |
| Operating Income Growth % | - | -9573.87% | 102.46% | -111.1% | -35.13% | 324.49% | 1012.77% | -112.94% | 13.76% | 92.93% | 99.85% | -48.69% | 7.94% | 153.81% | 125.5% | -77.94% | 168.51% | -197.62% | 23.25% | -148.71% | 104.24% | -31.08% | 3339.83% | -94.76% | 12.81% | -36.75% | -13.57% | 231.37% | -46.27% | -15.52% | -2.22% |
| EBITDA | -139.4M | 96.33M | 557M | 257M | 3.15B | 4.53B | 1.13B | 96.46M | 975.75M | 858.85M | 505.17M | 317.07M | 496.18M | 474.28M | 280.45M | 220.86M | 437.83M | -99.99M | 105.18M | 103.78M | 552.81M | 384.77M | 367.21M | 116.68M | 218.7M | 204.5M | 283.08M | 308.29M | 160.33M | 217.12M | 228.11M |
| EBITDA Margin % | -2.4% | 1.26% | 9.02% | 3.98% | 32.45% | 43.06% | 24.68% | 2.58% | 21.72% | 21.04% | 15.26% | 10.73% | 14.94% | 14.54% | 9.3% | 8.16% | 15.17% | -4.01% | 4.01% | 3.1% | 19.37% | 12.49% | 18.39% | 10.03% | 21.09% | 20.84% | 18.38% | 20.26% | 13.24% | 16.62% | 19.04% |
| EBITDA Growth % | -124.5% | -82.7% | 116.73% | -91.84% | -30.49% | 299.96% | 1073.94% | -90.11% | 13.61% | 70.01% | 59.32% | -36.1% | 4.62% | 69.11% | 26.98% | -49.56% | 537.87% | -195.07% | 1.35% | -81.23% | 43.68% | 4.78% | 214.72% | -46.65% | 6.95% | -27.76% | -8.18% | 92.28% | -26.16% | -4.82% | 4.02% |
| D&A (Non-Cash Add-back) | 606.36M | 759.51M | 550M | 541M | 589M | 584M | 203M | 198.27M | 188.69M | 167M | 146.57M | 137.64M | 146.44M | 150.27M | 152.79M | 164.25M | 181.17M | 274.66M | 231.06M | 267.8M | 216.09M | 219.89M | 127.99M | 109.72M | 86.03M | 86.89M | 97.14M | 93.14M | 95.41M | 96.3M | 85.08M |
| EBIT | -655.48M | -663.17M | 64M | -204M | 2.62B | 3.95B | 822M | -133.97M | 812.02M | 692.64M | 348.19M | 129.71M | 342.85M | 316.5M | 122.63M | 64.64M | 282.65M | -128.83M | -151.44M | -164.02M | 336.76M | 164.87M | 239.21M | 6.95M | 132.67M | 117.46M | 162.15M | 215.14M | 64.92M | 120.89M | 143.02M |
| Net Interest Income | -52.63M | 6.98M | 34M | 51M | 2.88M | -36.67M | -20.41M | -30.85M | -19.77M | -24M | -24M | -24M | -24M | -17.88M | -19.08M | -19.59M | -26.6M | -25.31M | -29.66M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 28.62M | 33.51M | 59.98M | 75.36M | 25.93M | 10.9M | 13.34M | 3.08M | 5.13M | 0 | 0 | 0 | 0 | 941.18K | 1M | 1.67M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 81.25M | 26.53M | 26M | 24.44M | 23.05M | 47.58M | 33.75M | 33.93M | 24.89M | 24M | 24M | 24M | 24M | 18.82M | 20.09M | 20.47M | 26.6M | 27.6M | 24.57M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -956.48M | -971.72M | 31M | 56M | 34M | -47M | -111.46M | -45.93M | 0 | -19.09M | -28.27M | -23.43M | -26.7M | -26.3M | -21.64M | -12.73M | -1.4M | -182.6M | -55.22M | 18.19M | 111.35M | -34.48M | 7.62M | 20.99M | -15M | -27.41M | -20.79M | -39.36M | -47.18M | -39.55M | -42.1M |
| Pretax Income | -1.7B | -1.63B | 38M | -228M | 2.59B | 3.9B | 817.15M | -167.65M | 787.06M | 672.76M | 330.33M | 112.42M | 323.04M | 297.72M | 115.6M | 43.98M | 238.56M | -355.74M | -181.1M | -145.83M | 448.08M | 130.39M | 246.83M | 27.95M | 117.67M | 90.05M | 141.36M | 175.79M | 17.74M | 81.34M | 100.92M |
| Pretax Margin % | -29.31% | -21.44% | 0.62% | -3.53% | 26.73% | 37.06% | 17.81% | -4.49% | 17.52% | 16.48% | 9.98% | 3.8% | 9.73% | 9.12% | 3.83% | 1.63% | 8.27% | -14.26% | -6.91% | -4.36% | 15.7% | 4.23% | 12.36% | 2.4% | 11.35% | 9.18% | 9.18% | 11.55% | 1.47% | 6.23% | 8.42% |
| Income Tax | -240.79M | -326.7M | 43M | -61M | 618M | 951M | 202M | -52.82M | 192.36M | 198.81M | 87.79M | 37.47M | 99.93M | -30.05M | 28.15M | 17.73M | 68.79M | -30.27M | -68.45M | -111.18M | 106.26M | 36.42M | 70.5M | -5.3M | 35.7M | 21.68M | 53.69M | 74.02M | 14.1M | 32.77M | 33.57M |
| Effective Tax Rate % | 14.15% | 19.98% | 113.16% | 26.75% | 23.83% | 24.4% | 24.72% | 31.51% | 24.44% | 29.55% | 26.58% | 33.33% | 30.93% | -10.09% | 24.35% | 40.31% | 28.83% | 8.51% | 37.79% | 76.24% | 23.71% | 27.93% | 28.56% | -18.98% | 30.34% | 24.08% | 37.98% | 42.11% | 79.49% | 40.29% | 33.26% |
| Net Income | -1.46B | -1.31B | -5M | -167M | 1.98B | 2.95B | 588M | -114.83M | 594.7M | 473.96M | 242.54M | 74.94M | 223.11M | 327.77M | 87.45M | 71.2M | 166.17M | -325.47M | -112.65M | -34.65M | 341.45M | 92.69M | 176.33M | 33.25M | 87.38M | 79.45M | 87.67M | 101.77M | 3.64M | 48.57M | 67.35M |
| Net Margin % | -25.15% | -17.15% | -0.08% | -2.59% | 20.36% | 28.02% | 12.82% | -3.08% | 13.24% | 11.61% | 7.33% | 2.54% | 6.72% | 10.05% | 2.9% | 2.63% | 5.76% | -13.05% | -4.3% | -1.03% | 11.97% | 3.01% | 8.83% | 2.86% | 8.43% | 8.1% | 5.69% | 6.69% | 0.3% | 3.72% | 5.62% |
| Net Income Growth % | -73122.13% | -26063.85% | 97.01% | -108.46% | -32.98% | 401.19% | 612.06% | -119.31% | 25.48% | 95.41% | 223.63% | -66.41% | -31.93% | 274.8% | 22.82% | -57.15% | 151.06% | -188.91% | -225.12% | -110.15% | 268.38% | -47.43% | 430.27% | -61.94% | 9.97% | -9.37% | -13.86% | 2696.38% | -92.51% | -27.89% | -4.11% |
| Net Income (Continuing) | -1.46B | -1.31B | -5M | -167M | 1.98B | 2.95B | 588M | -114.83M | 594.7M | 473.96M | 242.54M | 74.94M | 223.11M | 327.77M | 77.4M | 26.44M | 181.77M | -185.66M | -112.65M | -34.65M | 341.45M | 92.69M | 176.33M | 33.25M | 81.97M | 68.47M | 81.26M | 101.77M | 3.64M | 48.57M | 67.35M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4.67M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -18.65 | -16.56 | -0.07 | -2.01 | 20.86 | 27.03 | 8.87 | -1.66 | 7.92 | 6.07 | 2.90 | 0.64 | 2.64 | 3.82 | 0.90 | 0.72 | 2.17 | -3.80 | -1.32 | -0.40 | 3.96 | 1.07 | 2.23 | 0.45 | 1.18 | 1.16 | 1.38 | 1.64 | 0.02 | 0.80 | 1.13 |
| EPS Growth % | - | -22278.38% | 96.32% | -109.64% | -22.83% | 204.74% | 634.34% | -120.96% | 30.48% | 109.31% | 353.13% | -75.76% | -30.89% | 324.44% | 25% | -66.82% | 157.11% | -187.88% | -230% | -110.1% | 270.09% | -52.02% | 395.56% | -61.86% | 1.72% | -15.94% | -15.85% | 10023.46% | -97.97% | -29.2% | -12.4% |
| EPS (Basic) | - | -16.56 | -0.07 | -2.01 | 21.06 | 27.03 | 8.87 | -1.67 | 7.99 | 6.07 | 3.02 | 0.90 | 2.64 | 3.82 | 0.90 | 0.83 | 2.17 | -3.80 | -1.32 | -0.40 | 3.99 | 1.08 | 2.39 | 0.45 | 1.19 | 1.16 | 1.41 | 1.68 | 0.02 | 0.81 | 1.15 |
| Diluted Shares Outstanding | 78.3M | 78.98M | 81.12M | 83.2M | 94.17M | 109.56M | 68.67M | 69.17M | 75.1M | 78.95M | 81.1M | 84.4M | 86.17M | 87.34M | 86.83M | 86.82M | 86.5M | 85.62M | 85.61M | 86.16M | 86.25M | 86.47M | 79.09M | 74.2M | 74.17M | 60.9M | 60.67M | 61.81M | 52.8M | 58.26M | 57.75M |
| Basic Shares Outstanding | 78.3M | 78.98M | 80.86M | 83.2M | 93.76M | 109.02M | 68.67M | 68.88M | 74.45M | 78.1M | 80.24M | 83.1M | 84.74M | 85.71M | 85.71M | 85.71M | 85.65M | 85.62M | 85.61M | 85.58M | 85.5M | 85.44M | 73.73M | 73.63M | 73.51M | 60.71M | 60.67M | 60.16M | 52.8M | 58.01M | 56.84M |
| Dividend Payout Ratio | - | - | - | - | 4.81% | 2.52% | 7.34% | - | 4.57% | 4.7% | 6.75% | 22.12% | 9.27% | 6.88% | 27.59% | 33.01% | 4.63% | - | - | - | 6.02% | 22.24% | 9.74% | 47.86% | 13.62% | 13.44% | 12.92% | 11.4% | 325% | 24.46% | 16.79% |
Cyclical Commodity Price Volatility
As reported in recent financial filings, West Fraser's revenue trajectory has faced significant pressure, with the company recording an 8.6% year-over-year decline in 2026Q1, reflecting the broader volatility inherent in the North American lumber and engineered wood markets during this period of reduced residential construction activity.
The consistent revenue deceleration suggests that the company is struggling to maintain top-line momentum as benchmark commodity prices retreat from previous highs. Investors should monitor whether this trend represents a structural shift in demand or merely a temporary trough in the housing cycle.
Based on the company's income statement data, gross margins have experienced extreme volatility, collapsing to -9.1% in 2025Q4, which highlights the difficulty of maintaining profitability when input costs for fiber remain elevated while finished product prices face downward pressure in a softening housing market.
The inability to maintain positive gross margins in recent quarters suggests that the company's current cost structure is highly sensitive to commodity price fluctuations. This margin compression warrants further investigation into the company's ability to pass through rising log procurement costs to end-market customers.
According to the provided income statement, West Fraser's operating leverage has turned negative, with operating margins reaching -18.8% in 2025Q4, indicating that the company's fixed-cost base is currently not being adequately absorbed by the prevailing volume of sales across its manufacturing facilities.
The persistent negative operating income suggests that the company's SG&A and production overheads are currently misaligned with the current revenue environment. This may indicate that further production curtailments or structural cost-cutting measures are necessary to restore operational efficiency.
As indicated by the reported net margin of -17.15% over the observed period, the company's bottom line is currently heavily impacted by non-operating items and potential asset impairments, which may mask the underlying cash-generating capacity of the core OSB and lumber manufacturing assets during this cycle.
Short-sellers may focus on the recurring nature of these losses and the potential for further inventory write-downs if commodity prices remain depressed. However, the company's low debt-to-equity ratio suggests it possesses the financial flexibility to weather this downturn, provided the housing market recovers in the near term.
Quick answers to the most common questions about buying WFG stock.
For fiscal year 2025, West Fraser Timber Co. Ltd. (WFG) reported total revenue of $7.63B. This represents a 536.5% increase compared to $1.20B in 1996.
West Fraser Timber Co. Ltd. (WFG) reported a net loss of $1.31B for the fiscal year ending 2025.
West Fraser Timber Co. Ltd. (WFG) reported an operating income of $-663.2M, resulting in an operating profit margin of -8.7%. This margin reflects the operational efficiency of the business before interest and taxes.
West Fraser Timber Co. Ltd. (WFG) generated $-44.7M in gross profit for the year, representing a gross profit margin of -0.6%. This demonstrates the company's core pricing power and production efficiency.