NANAIMO – Western Forest Products Inc. posted net income of $13.8 million in the first quarter of 2025, compared to a net loss of $8 million in the first three months of 2024, and a net loss of $1.2 million in the fourth quarter of 2024.
First quarter revenue was $262.5 million, up from $239.5 million in the first quarter of 2024, but down slightly from the fourth quarter of 2024, which was $273.2 million.
The upswing was due to lumber shipments of 137 million board feet, up 6 from the first quarter of 2024, and the average lumber selling price of $1,533 per thousand board feet (mfbm) versus $1,351 mfbm in Q1 of 2024, along with a stronger U.S. dollar to Canadian dollar exchange rate. The average BC log sales price of $134 per cubic metre was also up over the $129 of the previous year.
Western continues to advance two continuous dry kilns, with site preparation underway and completion expected by early 2026, and the company has entered into an agreement through the BC Manufacturing Jobs Fund to reimburse eligible expenses related to kiln. And other capital. Projects up to a maximum of $7.5 million. They received their first payment of $1.4 million in April.
2025’s capital expenditure spending is anticipated to be between $60 and $65 million, which includes approximately $30 million of planned spending on the two continuous dry kilns and one thermal kiln. They may reduce 2025 planned capital expenditure spending depending on market and financial conditions.
Western also completed the sale of private timberlands on northern Vancouver Island to a Canadian affiliate of the Eastwood Climate Smart Forestry Fund I LP for gross proceeds of $69.2 million in February, resulting in a gain of $23.7 million, along with completing the sale of their Alberni Pacific Division for gross proceeds of $7.3 million in February, resulting in a gain of $0.2 million.
North American markets are expected to be volatile due to concerns around the economic impact caused by potential further US tariffs and retaliatory tariffs.
However, in Japan, the spring housing demand is stronger than expected and channel inventories have declined. An overall cautious approach continues as housing starts are expected to decline later in the year. Pricing has improved and the company is cautiously optimistic that pricing will strengthen further as the Japanese Yen strengthens relative to the USD.
Demand for Western’s Industrial lumber products in North America is expected to strengthen as supply remains tight across all species. In China, significant US tariffs on Chinese exports has caused some concerns within the economy. However, this may be partially offset by a Chinese ban on imported US logs that will reduce overall supply of softwood lumber into the market, which may lead to an increase in demand for Canadian lumber.
Business Examiner
