West Fraser expects to record $409M non-cash goodwill impairment in Q4

West Fraser Timber (WFG) announced that it will record an impairment of its Lumber segment goodwill in the fourth quarter of 2025 due to persistently challenging economic conditions. The company is also providing initial 2026 guidance for key product shipments, operational costs and capital expenditures. In Q4-2025, West Fraser expects to record an approximately $409M non-cash impairment of goodwill as a result of the protracted downcycle that has caused management to recalibrate certain assumptions used in its annual goodwill impairment test. Adjustments to these assumptions include, but are not limited to, species-specific product pricing trends, lower demand and pricing for wood chip residuals, and the depth and duration of the current downcycle and its expected recovery. The impairment represents the entire amount of goodwill associated with the company’s U.S. lumber operations.