Western Forest Products Q2 2026 profit exceeds estimates

Western Forest Products Inc. on Tuesday reported second-quarter 2026 net income that surpassed analyst expectations, citing improved lumber pricing and steady demand across North American markets.

The Vancouver-based forest products company said net income rose to $42.3 million in Q2 2026, up from $31.7 million in the same period a year earlier. Adjusted earnings per share totaled 28 cents, exceeding the consensus estimate of 22 cents among analysts surveyed by Refinitiv.

Revenue for the quarter increased 14% year-over-year to $412 million, driven by higher average realized lumber prices and increased shipments. Western Forest Products attributed the pricing improvement to reduced North American supply following seasonal inventory drawdowns and steady demand from residential construction and repair sectors.

Chief Executive Officer Don Demens noted that operational efficiencies and cost controls contributed to the earnings beat. "We are seeing stabilization in lumber markets, which supports our view of a measured recovery in housing activity," Demens said in a statement. The company maintained its full-year 2026 guidance, projecting net income between $120 million and $140 million, unchanged from prior guidance issued in February.

Analysts at RBC Capital Markets reiterated a Sector Perform rating on the stock, citing the earnings beat but warning that macroeconomic uncertainty could pressure future results. Shares of Western Forest Products closed 1.8% higher on Tuesday at $12.45, outperforming the S&P/TSX Composite Index.