West Fraser Timber (WFG) 40-F 2024 FY Annual report (Canada)

Exhibit 99.2

West Fraser Timber Co. Ltd.

Consolidated Financial Statements

December 31, 2024 and 2023

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RESPONSIBILITY OF MANAGEMENT

Management’s Report on the Consolidated Financial Statements

The accompanying consolidated financial statements and related notes are the responsibility of the management of West Fraser Timber Co. Ltd. (the “Company”). They have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”) and include amounts based on estimates and judgments. Financial information included elsewhere in this report is consistent with the consolidated financial statements.

The consolidated financial statements are approved by the Board of Directors on the recommendation of the Audit Committee. The Audit Committee, appointed by the Board of Directors, is composed entirely of independent directors. The Audit Committee reviews the Company’s consolidated financial statements and reports its findings to the Board of Directors for consideration before the consolidated financial statements are approved for issuance to shareholders and submitted to securities commissions and/or other regulatory authorities.

The Audit Committee’s duties also include reviewing critical accounting policies and significant estimates and judgments underlying the consolidated financial statements as presented by management and approving the fees of the Company’s independent registered public accounting firm.

The Company’s independent registered public accounting firm, PricewaterhouseCoopers LLP, performed an audit of the consolidated financial statements, the results of which are reflected in their Report of Independent Registered Public Accounting Firm for 2024. PricewaterhouseCoopers LLP has full and independent access to the Audit Committee to discuss their audit and related matters.

Management’s Report on Internal Control over Financial Reporting

Under our supervision, management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined under National Instrument 52-109 – Certification of Disclosure in Issuers’ Annual and Interim Filings in Canada and Rules 13a-15(f) and 15d-15(f) of the Securities Exchange Act of 1934, as amended, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external reporting purposes in accordance with IFRS Accounting Standards.

Under our supervision, management has assessed the effectiveness of the Company’s internal control over financial reporting as of December 31, 2024 based on the criteria set forth in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). Based on this assessment, management has concluded that the Company’s internal control over financial reporting was effective as of December 31, 2024.

The effectiveness of the Company’s internal control over financial reporting as of December 31, 2024 has been audited by PricewaterhouseCoopers LLP, the Company’s independent registered public accounting firm, as stated in their report which appears herein.

Due to its inherent limitations, internal control over financial reporting may not prevent or detect misstatements on a timely basis. Additionally, projections of any evaluation of the effectiveness of internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Sean McLaren	/s/ Chris Virostek
Sean McLaren	Chris Virostek
President and Chief Executive Officer	Senior Vice-President, Finance and Chief Financial Officer
February 12, 2025

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Report of Independent Registered Public Accounting Firm

To the Board of Directors and Shareholders of West Fraser Timber Co. Ltd.

Opinions on the Financial Statements and Internal Control over Financial Reporting

We have audited the accompanying consolidated balance sheets of West Fraser Timber Co. Ltd. and its subsidiaries (the Company) as of December 31, 2024 and 2023, and the related consolidated statements of loss and comprehensive loss, of changes in shareholders’ equity and of cash flows for the years then ended, including the related notes (collectively referred to as the consolidated financial statements). We also have audited the Company’s internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control ‒ Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and its financial performance and its cash flows for the years then ended in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control ‒ Integrated Framework (2013) issued by the COSO.

Basis for Opinions

The Company’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements.

Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

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Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Critical Audit Matters

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Goodwill Impairment Assessments

As described in note 9 to the consolidated financial statements, the Company’s goodwill balance was $1,879 million as of December 31, 2024. Management conducts an annual impairment assessment in the fourth quarter, or more frequently if an indicator of impairment is identified. Management assesses the recoverability of goodwill by comparing the carrying value of each cash generating unit (CGU) or group of CGUs associated with the goodwill balance to its estimated recoverable amount, which is determined based on the higher of its estimated fair value less costs of disposal and its value in use.

An impairment loss is recorded if the carrying value exceeds the estimated recoverable amount of the CGU or group of CGUs. Management has determined the recoverable amount of each CGU or group of CGUs based on their fair value less cost of disposal using discounted cash flow models. The key assumptions used in the discounted cash flow models include: production volume, product pricing, operating costs, terminal multiples and discount rates. With the exception of the Europe Engineered Wood Product (EWP) group of CGUs, the estimated recoverable amount of each CGU or group of CGUs exceeded its respective carrying amount in management’s goodwill impairment assessments, and as such, no impairment losses were recorded. For the Europe EWP group of CGUs, a goodwill impairment loss of $70 million was recorded by management.

The principal considerations for our determination that performing procedures relating to the goodwill impairment assessments is a critical audit matter are: i) the significant judgment by management when determining the recoverable amount of each CGU or group of CGUs, including the development of key assumptions; (ii) a high degree of auditor judgment, subjectivity and effort in performing procedures and evaluating management’s key assumptions in the discounted cash flow models related to production volume, product pricing, operating costs, terminal multiples and discount rates; and (iii) the audit effort involved the use of professionals with specialized skills and knowledge.

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Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements These procedures included testing the effectiveness of controls relating to management’s goodwill impairment assessments, including controls over the determination of the recoverable amount of each CGU or group of CGUs . These procedures also included, among others, testing management’s process for determining the recoverable amount of each CGU or group of CGUs, including evaluating the appropriateness of the discounted cash flow models, testing the completeness and accuracy of underlying data used in the models and evaluating the reasonableness of the key assumptions used by management. Evaluating the reasonableness of production volume, product pricing and operating costs involved considering the past performance of the CGU or group of CGUs, as well as economic and industry forecasts, as applicable. Professionals with specialized skill and knowledge were used to assist in the evaluation of the appropriateness of the discounted cash flow models, and the reasonableness of terminal multiples and discount rates.

/s/PricewaterhouseCoopers LLP

Chartered Professional Accountants

Vancouver, Canada

February 12, 2025

We have served as the Company’s auditor since 1973.

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West Fraser Timber Co. Ltd.

Consolidated Balance Sheets

(in millions of United States dollars, except where indicated)

		December 31,		December 31,
	Note	2024		2023
Assets
Current assets
Cash and cash equivalents	4	$	641	$	900
Receivables	23	294		311
Income taxes receivable		22		93
Inventories	5	844		851
Prepaid expenses		36		40
Assets held for sale	6	—		182
		1,837		2,377
Property, plant and equipment	7	3,842		3,835
Timber licences	8	358		376
Goodwill and other intangible assets	9	2,180		2,307
Export duty deposits	26	408		377
Other assets	10	129		137
Deferred income tax assets	20	7		6
		$	8,760	$	9,415
Liabilities
Current liabilities
Payables and accrued liabilities	11	$	604	$	620
Current portion of long-term debt	13	200		300
Current portion of reforestation and decommissioning obligations	12	55		60
Income taxes payable		75		7
Liabilities associated with assets held for sale	6	—		63
		934		1,050
Long-term debt	13	—		199
Other liabilities	12	264		260
Deferred income tax liabilities	20	609		683
		1,807		2,193
Shareholders’ Equity
Share capital	15	2,549		2,607
Retained earnings		4,726		4,913
Accumulated other comprehensive loss		(321)		(297)
		6,954		7,223
		$	8,760	$	9,415

The number of Common shares and Class B Common shares outstanding at February 11, 2025 was 79,689,597.

Approved by the Board of Directors

/s/ Gillian D. Winckler	/s/ Reid Carter
Gillian D. Winckler	Reid Carter
Director	Director

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West Fraser Timber Co. Ltd.

Consolidated Statements of Loss and Comprehensive Loss

(in millions of United States dollars, except where indicated)

		Years Ended
			December 31,		December 31,
			2024		2023
Sales			$	6,174	$	6,454
Costs and expenses
Cost of products sold			4,333		4,685
Freight and other distribution costs			815		894
Export duties, net	26		72		8
Amortization			549		541
Selling, general and administration			282		307
Equity-based compensation	16		14		25
Restructuring and impairment charges	17		102		279
			6,167		6,738
Operating earnings (loss)			7		(284)
Finance income, net	18		34		51
Other income (expense)	19		(2)		5
Earnings (loss) before tax			38		(228)
Tax recovery (provision)	20		(43)		61
Loss			$	(5)	$	(167)
Loss per share (dollars)
Basic	22		$	(0.06)	$	(2.01)
Diluted	22		$	(0.07)	$	(2.01)
Comprehensive loss
Loss			$	(5)	$	(167)
Other comprehensive earnings (loss)
Items that may be reclassified to earnings
Translation gain (loss) on operations with different functional currencies			(24)		34
Items that will not be reclassified to earnings
Actuarial gain (loss) on retirement benefits, net of tax	14		8		(35)
			(16)		—
Comprehensive loss			$	(21)	$	(167)

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West Fraser Timber Co. Ltd.

Consolidated Statements of Changes in Shareholders' Equity

(in millions of United States dollars, except where indicated)

		Share Capital			Retained Earnings		Accumulated Other Comprehensive Loss		Total Equity
	Note	Number of Shares Issued and Outstanding	Amount
Balance at December 31, 2022		83,555,414	$	2,667	$	5,283	$	(332)	$	7,619
Loss for the year		—	—		(167)		—		(167)
Other comprehensive earnings (loss):
Translation gain on operations with different functional currencies		—	—		—		34		34
Actuarial loss on retirement benefits, net of tax		—	—		(35)		—		(35)
Issuance of Common shares	15	383	—		—		—		—
Repurchase of Common shares for cancellation	15	(1,834,801)	(60)		(69)		—		(129)
Dividends declared1		—	—		(100)		—		(100)
Balance at December 31, 2023		81,720,996	$	2,607	$	4,913	$	(297)	$	7,223
Loss for the year		—	—		(5)		—		(5)
Other comprehensive earnings (loss):
Translation loss on operations with different functional currencies		—	—		—		(24)		(24)
Actuarial gain on retirement benefits, net of tax		—	—		8		—		8
Issuance of Common shares	15	12,550	1		—		—		1
Repurchase of Common shares for cancellation	15	(1,745,280)	(59)		(88)		—		(147)
Dividends declared1		—	—		(102)		—		(102)
Balance at December 31, 2024		79,988,266	$	2,549	$	4,726	$	(321)	$	6,954

1.Cash dividends declared during the year ended December 31, 2023 were $1.20 per share. Cash dividends declared during the year ended December 31, 2024 were $1.26 per share.

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West Fraser Timber Co. Ltd.

Consolidated Statements of Cash Flows

(in millions of United States dollars, except where indicated)

		Years Ended
			December 31,		December 31,
	Note		2024		2023
Cash provided by operating activities
Loss			$	(5)	$	(167)
Adjustments
Amortization			549		541
Restructuring and impairment charges	17		102		279
Finance income, net	18		(34)		(51)
Foreign exchange (gain) loss			(7)		7
Export duty	26		10		(45)
Retirement benefit expense	14		77		77
Net contributions to retirement benefit plans	14		(55)		(37)
Tax provision (recovery)	20		43		(61)
Income taxes received (paid)			3		(24)
Unrealized loss (gain) on electricity swaps			8		(13)
Other			(15)		8
Changes in non-cash working capital
Receivables			5		6
Inventories			11		132
Prepaid expenses			4		4
Payables and accrued liabilities			(35)		(131)
			661		525
Cash used for financing activities
Repayment of long-term debt			(300)		—
Repayment of lease obligations			(15)		(15)
Finance expense paid			(27)		(24)
Repurchase of Common shares for cancellation	15		(140)		(129)
Issuance of Common shares			1		—
Dividends paid			(101)		(100)
			(582)		(268)
Cash used for investing activities
Spray Lake Acquisition, net of cash acquired			—		(100)
Proceeds from sale of pulp mills	6		124		—
Additions to capital assets			(487)		(477)
Interest received			43		47
Other			2		—
			(318)		(530)
Change in cash and cash equivalents			(238)		(273)
Foreign exchange effect on cash and cash equivalents			(21)		10
Cash and cash equivalents - beginning of year			900		1,162
Cash and cash equivalents - end of year			$	641	$	900

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West Fraser Timber Co. Ltd.

Notes to Consolidated Financial Statements

For the years ended December 31, 2024 and December 31, 2023

(figures are in millions of United States dollars, except where indicated)

1.Nature of operations

West Fraser Timber Co. Ltd. ("West Fraser", the “Company”, "we", "us" or "our") is a diversified wood products company with more than 50 facilities in Canada, the United States, the United Kingdom, and Europe, which promotes sustainable forest practices in its operations. The Company produces lumber, engineered wood products (OSB, LVL, MDF, plywood, and particleboard), pulp, newsprint, wood chips, and other residuals. West Fraser's products are used in home construction, repair and remodelling, industrial applications, papers, tissue, and box materials. Our executive office is located at 885 West Georgia Street, Suite 1500, Vancouver, British Columbia. West Fraser was formed by articles of amalgamation under the Business Corporations Act (British Columbia) and is registered in British Columbia, Canada. Our Common shares are listed for trading on the Toronto Stock Exchange (“TSX”) and on the New York Stock Exchange (“NYSE”) under the symbol WFG.

2.Basis of presentation

These consolidated financial statements are prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”) and were approved by our Board of Directors on February 12, 2025.

Figures have been rounded to millions of dollars to reflect the accuracy of the underlying balances and as a result certain tables may not add due to rounding impacts.

As at December 31, 2023, the assets and liabilities subject to transfer as a result of the sales of the Hinton pulp mill, Quesnel River Pulp mill, and Slave Lake Pulp mill are presented as part of assets held for sale and liabilities held for sale respectively (see note 6) and are not included in the other December 31, 2023 balance sheet amounts presented throughout.

Material accounting policies

Material accounting policies that relate to the consolidated financial statements as a whole are incorporated in this note. Where a material accounting policy is applicable to a specific note disclosure, the policy is described within the respective note.

Basis of consolidation

These consolidated financial statements include the accounts of West Fraser and its wholly-owned subsidiaries after the elimination of intercompany transactions and balances.

Our material subsidiaries are West Fraser Mills Ltd. and Norbord Inc. Our 50%-owned joint operation, Alberta Newsprint Company, is accounted for by recognizing our share of the assets, liabilities, revenues, and expenses related to the joint operation.

Use of estimates and judgments

The preparation of these consolidated financial statements requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual amounts could differ materially from these and other estimates, the impact of which would be recorded in future periods. Management is also required to exercise judgment in the process of applying accounting policies. Information about the significant areas of estimation uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the consolidated financial statements is included in the following notes:

•Note 2 – Determination of functional currency

•Note 3 – Fair value of PPE and intangible assets acquired in business combinations

•Note 5 – Valuation of inventories

•Note 7-9, 17 – Recoverability of PPE, timber licences, and other intangible assets

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•Note 7 – Estimated useful lives of PPE

•Note 9 – Recoverability of goodwill

•Note 12 – Reforestation and decommissioning obligations

•Note 14 – Defined benefit pension plans

•Note 20 – Income taxes

•Note 26 – CVD and ADD duty dispute

Revenue recognition

Revenue is derived primarily from product sales and is recognized when a customer obtains control over the goods. The timing of transfer of control to customers varies depending on the individual terms of the sales contract and typically occurs when the product is loaded on a common carrier at our mill, loaded on an ocean carrier, or delivered to the customer. The amount of revenue recognized is net of our estimate for early payment discounts and volume rebates.

Revenue includes charges for freight and handling. The costs related to these revenues are recorded in freight and other distribution costs.

Reporting currency and foreign currency translation

The consolidated financial statements are presented in USD, which is determined to be the functional currency of our U.S. operations and the majority of our Canadian operations.

For these entities, all transactions not denominated in our U.S. functional currency are considered to be foreign currency transactions. Foreign currency denominated monetary assets and liabilities are translated using the rate of exchange prevailing at the reporting date. Gains or losses on translation of these items are included in earnings and reported as Other income (expense). Foreign currency denominated non-monetary assets and liabilities, measured at historic cost, are translated at the rate of exchange at the transaction date.

Our European operations have British pound sterling and Euro functional currencies. Our Spray Lake lumber mill and jointly-owned newsprint operation have Canadian dollar functional currency. Assets and liabilities of these entities are translated at the rate of exchange prevailing at the reporting date, and revenues and expenses at average rates during the period. Gains or losses on translation are included as a component of shareholders’ equity in Accumulated other comprehensive loss.

Impairment of capital assets

We assess property, plant and equipment, timber licences, and other definite-lived intangible assets for indicators of impairment at each reporting date and whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable.

Impairment testing is applied to individual assets or cash generating units (“CGUs”), the smallest group of assets that generates cash inflows that are largely independent of the cash inflows of other assets or groups of assets. We have identified each of our mills as a CGU for impairment testing unless there is economic interdependence of CGUs, in which case they are grouped for impairment testing.

When a triggering event is identified, the recoverability of an asset or CGU is assessed by comparing the carrying amount of the asset or CGU to the estimated recoverable amount, which is the higher of its estimated fair value less costs of disposal and its value in use.

Fair value less costs of disposal is determined by estimating the price that would be received to sell an asset in an orderly transaction between market participants under current market conditions, less incremental costs directly attributable to the disposal. Value in use is determined using a discounted cash flow model by estimating the pre-tax cash flows expected to be generated from the asset over its estimated useful life discounted by a pre-tax discount rate.

Where an impairment loss for an asset or CGU subsequently reverses, the carrying amount of the asset or CGU is increased to the lesser of the revised estimate of its recoverable amount and the carrying amount that would have been recorded had no impairment loss been previously recognized.

Fair value measurements

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or

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estimated using another valuation technique. Fair value measurements are categorized into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurement are observable and the significance of the inputs.

The three levels of the fair value hierarchy are:

Level 1

Values based on unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities.

Level 2

Values based on inputs other than quoted prices that are observable for the asset or liability, directly or indirectly.

Level 3

Values based on valuation techniques that require inputs which are both unobservable and significant to the overall fair value measurement.

Application of new and revised accounting standards

In January 2020, the IASB issued Classification of Liabilities as Current or Non-current (Amendments to IAS 1). The amendments clarify that the classification of liabilities as current or non-current should be based on rights that exist at the end of the reporting period. The amendments also clarify the definition of a settlement and provide situations that would be considered as a settlement of a liability. In October 2022, the IASB issued Non-current Liabilities with Covenants (Amendments to IAS 1). These further amendments clarify how to address the effects on classification and disclosure of covenants that an entity is required to comply with on or before the reporting date and covenants that an entity must comply with only after the reporting date. We have adopted these amendments effective January 1, 2024. These amendments did not have a material impact on our consolidated financial statements.

Accounting standards issued but not yet applied

IFRS 18, Presentation and Disclosure in Financial Statements

In April 2024, the IASB issued IFRS 18, Presentation and Disclosure in Financial Statements ("IFRS 18"), which replaces IAS 1, Presentation of Financial Statements. IFRS 18 introduces new requirements to improve comparability in the reporting of financial performance to give investors a better basis for analyzing and comparing entities. The standard impacts the presentation of the financial statements and notes, in particular the income statement where entities will be required to present separate categories of income and expense for operating, investing, and financing activities with prescribed subtotals for each new category. IFRS 18 will also require management-defined performance measures to be explained and included in a separate note within the financial statements. IFRS 18 is effective for reporting periods beginning on or after January 1, 2027. We are currently assessing the impact of this amendment on our consolidated financial statements.

Amendments to the Classification and Measurement of Financial Instruments – Amendments to IFRS 9 and IFRS 7

On May 30, 2024, the IASB issued targeted amendments to IFRS 9 and IFRS 7 to respond to recent questions arising in practice, and to include new requirements not only for financial institutions but also for corporate entities. These amendments:

•clarify the date of recognition and derecognition of some financial assets and liabilities, with a new exception for some financial liabilities settled through an electronic cash transfer system;

•clarify and add further guidance for assessing whether a financial asset meets the solely payments of principal and interest (SPPI) criterion;

•add new disclosures for certain instruments with contractual terms that can change cash flows (such as some financial instruments with features linked to the achievement of environment, social and governance targets); and

•update the disclosures for equity instruments designated at fair value through other comprehensive income (FVOCI).

These amendments are effective for reporting periods beginning on or after January 1, 2026. We are currently assessing the impact of these amendments on our consolidated financial statements.

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3.Business combinations

Accounting policies

Business combinations are accounted for using the acquisition method. We measure goodwill at the acquisition date as the fair value of the consideration transferred less the fair value of the identifiable assets acquired and liabilities assumed. The determination of the fair value of the assets acquired and liabilities assumed requires management to use estimates that contain uncertainty and critical judgments. Transaction costs in connection with business combinations are expensed as incurred.

Supporting information

Cariboo Pulp & Paper

We attained sole control of Cariboo Pulp & Paper (“CPP”) during Q1-24 in relation to an agreement (“the CPP agreement”) with Mercer International Inc. (“Mercer”) to dissolve our 50/50 joint venture in Cariboo Pulp & Paper (“CPP JV”). No termination or other amounts are payable by either company in connection with the CPP agreement.

CPP produces northern bleached softwood kraft (“NBSK”) pulp, related by-products, and energy. Prior to the CPP agreement, we accounted for the CPP JV under IFRS Accounting Standards by recognizing our share of the assets, liabilities, revenues, and expenses related to this joint operation.

Prior to the CPP agreement, the CPP JV was a joint operation under IFRS Accounting Standards that met the definition of a business. Accordingly, we applied the requirements for a business combination achieved in stages in accordance with IFRS 3, Business Combinations.

This required us to first remeasure the carrying value of our existing 50% interest in the CPP JV to fair value and then recognize an additional 50% interest in CPP at fair value in accordance with the requirements of IFRS 3.

The determination of the fair value of identifiable assets and liabilities required management to use estimates that contain uncertainty and critical judgments. We applied the income approach in determining the fair value of property, plant, and equipment. Cash flow forecasts were based on internal estimates for 2024 through 2027 and estimated mid-cycle earnings for subsequent years. Assumptions included production volume, product pricing, operating costs, terminal multiple, and discount rate. Key assumptions were determined using external sources and historical data from internal sources.

We recognized a net gain on the business combination as the estimated fair value of 100% of CPP’s identifiable assets and liabilities exceeded the carrying value of our 50% interest in the CPP JV prior to the CPP agreement.

Fair value of identifiable assets and liabilities (100% interest in CPP):
Cash	$	2
Accounts receivable	3
Inventories	35
Prepaid expenses	1
Property, plant and equipment	59
Payables and accrued liabilities	(39)
Other liabilities	(14)
Deferred income tax liabilities	(1)
	44
Less: Carrying value of our previously held 50% interest in the CPP JV	(43)
Net gain resulting from the CPP agreement	$	1

The net gain resulting from the CPP agreement was recognized as other income.

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Spray Lake Acquisition

On November 17, 2023, we acquired 100 percent of the shares in Spray Lake Sawmills (1980) Ltd., which operates a lumber mill located in Cochrane, Alberta, and the associated timber licenses (“Spray Lake Acquisition”) for cash consideration of $101 million (CAD$139 million). This acquisition has been accounted for as an acquisition of a business in accordance with IFRS 3 Business Combinations. We have allocated the purchase price based on our estimated fair value of the assets acquired and the liabilities assumed as follows:

West Fraser purchase consideration:
Cash consideration	$	101
Fair value of net assets acquired:
Cash	$	1
Accounts receivable	3
Inventories	24
Prepaid expenses	1
Income taxes receivable	1
Property, plant and equipment	58
Timber licenses	41
Payables and accrued liabilities	(8)
Other liabilities	(3)
Deferred income tax liabilities	(18)
	$	101

4.Cash and cash equivalents

Accounting policies

Cash and cash equivalents consist of cash on deposit and short‑term interest-bearing securities maturing within three months of the date of purchase.

Supporting information

	December 31,		December 31,
As at	2024		2023
Cash	$	389	$	513
Cash equivalents	252		387
	$	641	$	900

5.Inventories

Accounting policies

Inventories are valued at the lower of cost and net realizable value, with cost determined on an average cost basis. The cost of finished goods inventories includes direct material, direct labour, and an allocation of overhead.

Supporting information

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	December 31,		December 31,
As at	2024		2023
Manufactured products	$	344	$	363
Logs and other raw materials	255		257
Materials and supplies	245		231
	$	844	$	851

Inventories at December 31, 2024 were subject to a valuation reserve of $18 million (December 31, 2023 - $31 million) to reflect net realizable value being lower than cost.

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6.Disposal of pulp mills    

Accounting policies

Non-current assets, or disposal groups comprising assets and liabilities, are classified as held-for-sale if it is highly probable that they will be recovered primarily through sale rather than through continuing use. Such assets or disposal groups are generally measured at the lower of their carrying amount and fair value less costs to sell.

Any excess of carrying value over fair value less costs to sell is recognized as impairment loss. Impairment loss on a disposal group is allocated first to goodwill, if any, and then to the remaining non-current assets within the scope of the measurement requirements of IFRS 5 Non-current Assets Held for Sale and Discontinued Operations on a pro-rata basis. Impairment losses on initial classification as held-for-sale and subsequent gains and losses on remeasurement are recognized in earnings.

Once classified as held-for-sale, property, plant and equipment and timber licenses are no longer depreciated.

Supporting information

Sale of Hinton pulp mill

On July 10, 2023, we announced an agreement to sell our unbleached softwood kraft pulp mill in Hinton, Alberta to Mondi Group plc (“Mondi”). The transaction closed on February 3, 2024 following the completion of regulatory reviews and satisfaction of customary closing conditions.

Under the terms of the agreement, Mondi purchased specified assets, including property, plant and equipment and working capital, and assumed certain liabilities related to the Hinton pulp mill in exchange for a base purchase price of $5 million prior to working capital and other adjustments specified in the asset purchase agreement. Pursuant to the transaction, we will continue to supply fibre to the Hinton pulp mill under long-term contract, via residuals from our Alberta lumber mills.

An impairment reversal of $1 million in relation to the sale of the Hinton pulp mill is included in Restructuring and impairment charges for the year ended December 31, 2024 (loss of $121 million for the year ended December 31, 2023) (see note 17). The impairment amounts include remeasurements related to working capital adjustments specified in the asset purchase agreement.

Sale of Quesnel River Pulp mill and Slave Lake Pulp mill

On September 22, 2023, we announced an agreement to sell our two bleached chemithermomechanical pulp (“BCTMP”) mills, Quesnel River Pulp mill in Quesnel, B.C. and Slave Lake Pulp mill in Slave Lake, Alberta to an affiliate of a fund managed by Atlas Holdings (“Atlas”). The transaction closed on April 20, 2024 following the completion of regulatory reviews and satisfaction of customary closing conditions.

Under the terms of the agreement, Atlas purchased specified assets, including property, plant and equipment, working capital, and certain timber licenses in Alberta, and assumed certain liabilities related to the mills and timber licenses in exchange for a base purchase price of $120 million prior to working capital adjustments specified in the asset purchase agreement. Pursuant to the transaction, we will continue to supply fibre to the Quesnel River Pulp mill under long-term contract.

An impairment loss of $4 million in relation to the sale of the Quesnel River Pulp mill and Slave Lake Pulp mill is included in Restructuring and impairment charges for the year ended December 31, 2024 (loss of $20 million for the year ended December 31, 2023) (see note 17). The impairment amounts include remeasurements related to working capital adjustments specified in the asset purchase agreement.

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Carrying values of disposal groups

As at December 31, 2023, the disposal group comprised the following assets and liabilities:

Receivables	$	49
Inventories	72
Prepaid expenses	2
Property, plant and equipment	54
Timber licenses	3
Retirement assets	3
Assets held for sale	$	182
Payables and accrued liabilities	$	58
Reforestation and decommissioning obligations	2
Retirement liabilities	3
Liabilities associated with assets held for sale	$	63

7.Property, plant and equipment

Accounting policies

Property, plant and equipment are recorded at historical cost, less accumulated amortization and impairment losses. Expenditures for additions and improvements are capitalized. Specific and general borrowing costs are capitalized when the asset construction period exceeds 12 months. Expenditures for maintenance and repairs are charged to earnings. Upon retirement, disposal, or destruction of an asset, the cost and related amortization are derecognized and any resulting gain or loss is included in earnings.

Property, plant and equipment are amortized on a straight-line basis over their estimated useful lives as follows:

Buildings	10 - 30 years
Manufacturing plant, equipment and machinery	6 - 25 years
Fixtures, mobile and other equipment	3 - 10 years
Roads and bridges	Not exceeding 40 years
Major maintenance shutdowns	1 - 2 years

Construction-in-progress includes the purchase price and any costs directly attributable to bringing the asset to the location and condition necessary for its intended use. Construction-in-progress is not depreciated. Once the asset is complete and available for use, the construction-in-progress balance is transferred to the appropriate category of property, plant and equipment and depreciation commences.

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Supporting Information

	Manufacturing plant, equipment and machinery		Construction- in-progress		Roads and bridges		Other		Total
As at December 31, 2022	$	3,520	$	359	$	44	$	59	$	3,982
Acquisition (note 3)	23		—		—		36		58
Additions	257		244		13		1		516
Amortization1	(451)		—		(11)		(1)		(462)
Impairment (note 17)	(202)		(7)		—		—		(209)
Transfer to disposal groups held for sale (note 6)	(50)		—		(3)		(1)		(54)
Foreign exchange	17		1		—		2		19
Disposals	(8)		—		—		(1)		(9)
Transfers	217		(222)		2		(1)		(4)
As at December 31, 2023	$	3,319	$	376	$	46	$	94	$	3,835
As at December 31, 2023
Cost	$	6,524	$	376	$	156	$	95	$	7,151
Accumulated amortization	(3,205)		—		(110)		(1)		(3,316)
Net	$	3,319	$	376	$	46	$	94	$	3,835
As at December 31, 2023	$	3,319	$	376	$	46	$	94	$	3,835
CPP agreement (note 3)	12		2		—		—		15
Additions	73		411		11		—		495
Amortization1	(462)		—		(7)		(1)		(470)
Impairment (note 17)	(15)		—		—		—		(15)
Foreign exchange	(11)		—		—		(5)		(16)
Disposals	(2)		—		—		—		(2)
Transfers	343		(343)		—		—		—
As at December 31, 2024	$	3,259	$	445	$	49	$	89	$	3,842
As at December 31, 2024
Cost	$	6,939	$	445	$	165	$	91	$	7,641
Accumulated amortization	(3,680)		—		(116)		(2)		(3,798)
Net	$	3,259	$	445	$	49	$	89	$	3,842

1.Amortization of $462 million relates to cost of products sold and $8 million relates to selling, general and administration expense (2023 - $451 million and $11 million respectively).

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8.Timber licenses

Accounting policies

Timber licences, which are renewable or replaceable, are recorded at historical cost, less accumulated amortization and impairment losses. Timber licences are amortized on a straight-line basis over their estimated useful lives of 40 years.

Supporting information

	Timber licences
As at December 31, 2022	$	351
Acquisition (note 3)	42
Additions	—
Amortization1	(16)
Transfer to disposal groups held for sale (note 6)	(3)
Foreign exchange	2
As at December 31, 2023	$	376
As at December 31, 2023
Cost	$	673
Accumulated amortization	(297)
Net	$	376
As at December 31, 2023	$	376
Additions	—
Amortization1	(17)
Foreign exchange	(1)
As at December 31, 2024	$	358
As at December 31, 2024
Cost	$	672
Accumulated amortization	(314)
Net	$	358

1.Amortization relates to cost of products sold.

9.Goodwill and other intangibles

Accounting policies

Goodwill represents the excess purchase price paid for a business acquisition over the fair value of the net assets acquired. Goodwill is tested annually for impairment in the fourth quarter, or more frequently if an indicator of impairment is identified.

The customer relationship intangible assets relate to historical business combinations and are amortized straight-line over 3 to 10 years.

Other intangibles are recorded at historical cost less accumulated amortization and impairment losses. Other intangibles include software which is amortized over periods of up to five years and non‑replaceable finite term timber rights which are amortized as the related timber volumes are logged.

Goodwill is allocated to CGUs or groups of CGUs that are expected to benefit from the synergies of the business combination from which it arose. The allocation is based on the lowest level at which goodwill is monitored internally.

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Recoverability of goodwill is assessed by comparing the carrying value of the CGU or group of CGUs associated with the goodwill balance to its estimated recoverable amount, which is the higher of its estimated fair value less costs of disposal and its value in use.

An impairment loss is recorded if the carrying value exceeds the estimated recoverable amount. Goodwill impairment losses cannot be reversed.

Supporting information

	Goodwill		Customer Relationship Intangible		Other		Total
As at December 31, 2022	$	1,944	$	390	$	24	$	2,358
Additions	—		—		3		3
Amortization1	—		(53)		(9)		(62)
Foreign exchange	5		2		—		6
Transfers	—		—		4		4
Other	—		—		(2)		(2)
As at December 31, 2023	$	1,949	$	339	$	20	$	2,307
As at December 31, 2023
Cost	$	1,949	$	489	$	80	$	2,518
Accumulated amortization	—		(150)		(60)		(211)
Net	$	1,949	$	339	$	20	$	2,307
As at December 31, 2023	$	1,949	$	339	$	20	$	2,307
Additions	—		—		3		3
Amortization1	—		(53)		(9)		(63)
Impairment (note 17)	(70)		—		—		(70)
Foreign exchange	(1)		—		—		(1)
Other	—		—		2		2
As at December 31, 2024	$	1,879	$	285	$	16	$	2,180
As at December 31, 2024
Cost	$	1,879	$	489	$	81	$	2,448
Accumulated amortization	—		(203)		(65)		(268)
Net	$	1,879	$	285	$	16	$	2,180

1.Amortization of $63 million (2023 - $62 million) relates to selling, general and administration expense.

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Goodwill

For the purposes of impairment testing, goodwill has been allocated to the following CGU groups:

	December 31,		December 31,
As at	2024		2023
Canadian lumber	$	171	$	171
U.S. lumber	409		409
North America EWP	1,280		1,280
Europe EWP	19		89
Total	$	1,879	$	1,949

The recoverable amounts of the above CGU groups as at December 31, 2024 were determined based on their estimated fair value less costs of disposal using discounted cash flow models. The fair value measurements were classified as Level 3 fair value measurements.

Cash flow forecasts were based on internal estimates for 2025 through 2028 and a terminal value. Key assumptions include production volumes, product pricing, operating costs, terminal multiple, and discount rate. Key assumptions were derived using external sources and historical data from internal sources. Specifically, product pricing has been estimated by reference to average historical prices as well as third-party analyst projections of long-term product pricing. Production volume and operating costs have been estimated by reference to historical data from internal sources. The post-tax discount rate used ranged from 10.8% to 12.8% (2023 - 10.2%).

We recorded an impairment loss of $70 million in relation to Europe EWP goodwill during the year ended December 31, 2024. The impairment loss was driven primarily by an extension of the expected duration of the recovery to mid-cycle profitability and weaker macroeconomic conditions in the U.K. and Europe.

OSB comprises the most significant component of our Europe EWP segment. We forecasted OSB production volumes ranging from 1,045 MMsf 3/8” to 1,321 MMsf 3/8” in determining the recoverable amount. The post-tax discount rate used in determining the recoverable amount of the Europe EWP CGU group was 12.8% (2023 – 10.2%).

The recoverable amount of the Europe EWP CGU group was determined to be $391 million. Following the impairment loss recognized in the Europe EWP CGU group, the recoverable amount was equal to the carrying amount. Therefore, any adverse movement in a key assumption would lead to further impairment.

The following table lists the key assumptions and sensitivities:

Key assumptions	Sensitivity of recoverable amount to a 1% change in assumption
Product pricing	$37 million
Production volumes	$8 million
Operating costs	$33 million

The estimated recoverable amounts of all other CGU groups exceeded their respective carrying amounts.

As it relates to the U.S. lumber CGU group, a reasonably possible change in certain key assumptions could cause the carrying amount to exceed the recoverable amount. We forecasted U.S. lumber production volumes ranging from 2,785 MMfbm to 3,250 MMfbm in determining the recoverable amount. The post-tax discount rate used in determining the recoverable amount of the U.S. lumber CGU group was 10.8% (2023 – 10.2%).

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The estimated recoverable amount of the U.S. Lumber CGU group exceeded its carrying amount by approximately $140 million. The following table indicates the percentages by which key assumptions would need to change individually for the recoverable amount to equal the carrying amount:

Key assumptions	Change required for recoverable amount to equal carrying amount
Product pricing	1% decrease
Production volumes	5% decrease
Operating costs	1% increase

10.Other assets

		December 31,		December 31,
As at	Note	2024		2023
Retirement assets	14	$	61	$	83
Electricity swaps	23	12		18
Deposits		42		25
Other		13		12
		$	129	$	137

11.Payables and accrued liabilities

		December 31,		December 31,
As at	Note	2024		2023
Trade accounts		$	401	$	417
Accrued equity-based compensation	16	41		53
Compensation		56		66
Accrued export duties	26	8		5
Accrued dividends		26		25
Accrued interest		2		5
Electricity swaps		4		—
Current portion of lease obligations		10		13
Restructuring provision		5		3
Other		52		33
		$	604	$	620

12.Other liabilities

		December 31,		December 31,
As at	Note	2024		2023
Retirement liabilities		$	97	$	106
Non-current portion of reforestation obligations		47		53
Non-current portion of decommissioning obligations		24		16
Non-current portion of lease obligations		19		26
Export duties	26	46		24
Electricity swaps	23	8		12
Other		22		22
		$	264	$	260

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Reforestation and decommissioning obligations

Reforestation and decommissioning obligations relate to our responsibility for reforestation under various timber licences and our obligations related to landfill closure and other site remediation costs.

Accounting policies

Reforestation obligations are measured at the present value of the expected expenditures required to settle the obligations and are accrued and charged to earnings when timber is harvested. The reforestation obligation is accreted over time through charges to finance expense and reduced by silviculture expenditures. Changes to estimates are credited or charged to earnings.

We record a liability for decommissioning obligations in the period a reasonable estimate can be made. The liability is determined using estimated closure and/or remediation costs and discounted using an appropriate discount rate. On initial recognition, the carrying value of the liability is added to the carrying amount of the associated asset and amortized over its useful life, or expensed when there is no related asset. The liability is accreted over time through charges to finance expense and reduced by actual costs of settlement. Changes to estimates result in an adjustment of the carrying amount of the associated asset or, where there is no asset, they are credited or charged to earnings.

Reforestation and decommissioning obligations are discounted at the risk-free rate at the balance sheet date.

Supporting information

		Reforestation				Decommissioning
	Note	2024		2023		2024		2023
Beginning of year		$	92	$	93	$	37	$	35
Acquisition	3	—		3		1		1
Transfer to disposal groups held for sale	6	—		—		—		(2)
Liabilities recognized		49		46		9		3
Liabilities settled		(61)		(52)		(4)		(1)
Change in estimates		10		—		3		—
Foreign exchange		(7)		2		(3)		1
End of year		83		92		43		37
Less: current portion		(36)		(39)		(19)		(21)
		$	47	$	53	$	24	$	16

The total undiscounted amount of the estimated cash flows required to satisfy these obligations is $139 million (December 31, 2023 - $137 million). The cash flows have been discounted using risk-free rates ranging from 2.50% to 3.33% (2023 - 2.50% to 3.88%).

The timing of reforestation expenditures is based on the estimated period required to ensure the associated areas are well established and attain free to grow status, which is generally between 12 to 15 years. Payments relating to landfill closures and site remediation are expected to occur over periods ranging up to 50 years.

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13.Operating loans and long-term debt

Accounting policies

Transaction costs related to debt financing or refinancing are deferred and amortized over the life of the associated debt. When our operating loan is undrawn, the related deferred financing costs are recorded in other assets.

Supporting information

Operating loans

As at December 31, 2024, our credit facilities consisted of a $1 billion committed revolving credit facility which matures July 2028, $25 million of uncommitted revolving credit facilities available to our U.S. subsidiaries, a $20 million (£15 million) credit facility dedicated to our European operations, and a $11 million (CAD$15 million) demand line of credit dedicated to our jointly‑owned newsprint operation.

As at December 31, 2024, our revolving credit facilities were undrawn (December 31, 2023 - undrawn) and the associated deferred financing costs of $2 million (December 31, 2023 - $2 million) were recorded in other assets. Interest on the facilities is payable at floating rates based on Prime Rate Advances, Base Rate Advances, Bankers’ Acceptances, or Secured Overnight Financing Rate (“SOFR”) Advances at our option.

In addition, we have credit facilities totalling $130 million (December 31, 2023 - $133 million) dedicated to letters of credit. Letters of credit in the amount of $36 million (December 31, 2023 - $43 million) were supported by these facilities.

All debt is unsecured except the $11 million (CAD$15 million) jointly-owned newsprint operation demand line of credit, which is secured by that joint operation’s current assets.

As at December 31, 2024, we were in compliance with the requirements of our credit facilities.

Long-term debt

	December 31,		December 31,
As at	2024		2023
Senior notes due October 2024; interest at 4.35%	$	—	$	300
Term loan due July 2025; floating interest rate	200		200
	200		500
Less: deferred financing costs	—		(1)
Less: current portion	(200)		(300)
	$	—	$	199

On October 15, 2024, we repaid the principal and accrued interest on our $300 million senior notes on maturity with cash on hand.

Required principal repayments are disclosed in note 23.

Interest rate swap contracts

We have interest rate swap contracts that have the effect of fixing the interest rate on the $200 million term loan disclosed in the long-term debt table above. In January 2024, these interest rate swaps were amended to extend their maturity from August 2024 to July 2025. Following this amendment, the weighted average fixed interest rate payable under the contract was 2.61% (previously 0.91%).

The interest rate swap contracts are accounted for as a derivative, with the changes in their fair value included in other income or expense in our consolidated statements of earnings. For the year ended December 31, 2024, a loss of $4 million (year ended December 31, 2023 - a loss of $6 million) was recognized in relation to the interest rate swap

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contracts. The fair value of the interest rate swap contracts at December 31, 2024 was an asset of $2 million (December 31, 2023 - asset of $6 million).

14.Retirement benefits

We maintain defined benefit and defined contribution pension plans covering most of our employees. The defined benefit plans generally do not require employee contributions and provide a guaranteed level of pension payable for life based either on length of service or on earnings and length of service, and in most cases do not increase after commencement of retirement. We also provide group life insurance, medical and extended health benefits to certain employee groups.

The defined benefit pension plans are operated in Canada and the U.S. under broadly similar regulatory frameworks. The majority are funded arrangements where benefit payments are made from plan assets that are held in trust. Responsibility for the governance of certain of the plans, including investment and contribution decisions, resides with our Retirement Committees, Human Resources & Compensation Committee of the Board of Directors, and Board of Directors. For the registered defined benefit pension plans, regulations set minimum requirements for contributions for benefit accruals and the funding of deficits.

Starting January 1, 2022, defined benefit pension plans for certain employee groups were closed to new entrants and were replaced by defined contribution plans.

Accounting policies

We record a retirement asset or liability for our employee defined benefit pension and other retirement benefit plans by netting our plan assets with our plan obligations, on a plan-by-plan basis.

The cost of defined benefit pensions and other retirement benefits earned by employees is actuarially determined using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using market yields from high quality corporate bonds with cash flows that approximate expected benefit payments at the balance sheet date. Plan assets are valued at fair value at each balance sheet date.

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are credited or charged to equity through other comprehensive earnings in the period in which they arise.

Past service costs arising from plan amendments are recognized immediately. The finance amount on net retirement balances is included in finance income or expense in our consolidated statements of earnings.

A gain or loss on settlement is recognized in earnings, calculated as the difference between the present value of the defined benefit obligation being settled, as determined on the date of settlement, and the settlement amount.

For defined contribution plans, pension expense is the amount of contributions we are required to make in respect of services rendered by employees.

Supporting information

The actual return on plan assets for 2024 was a gain of $40 million (2023 - gain of $78 million). The total pension expense for the defined benefit pension plans was $43 million (2023 - $32 million). In 2024, we made $18 million net contributions to our defined benefit pension plans (2023 - nominal). We expect to make cash contributions of approximately $10 million to our defined benefit pension plans during 2025 based on the most recent valuation report for each pension plan. We also provide group life insurance, medical and extended health benefits to certain employee groups, for which we contributed $1 million in 2024 (2023 - $1 million).

In 2024, we entered into buy-out annuity purchase agreements to settle $101 million (2023 - $120 million) of our defined benefit obligations by purchasing annuities using our plan assets. These agreements transferred the pension obligations of retired employees under certain pension plans to financial institutions. The difference between the cost of the annuity

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purchases and the liabilities held for these pension plans was reflected as a settlement cost of $1 million (2023 - $6 million settlement gain) in Other income (expense) (see note 19).

The status of the defined benefit pension plans and other retirement benefit plans, in aggregate, is as follows:

	Defined benefit pension plans				Other retirement benefit plans
	2024		2023		2024		2023
Accrued benefit obligations
Benefit obligations - opening	$	791	$	838	$	17	$	18
CPP agreement (note 3)	10		—		3		—
Transfer to disposal groups held for sale (note 6)	—		(77)		—		(2)
Service cost	41		37		—		—
Finance cost on obligation	36		42		1		1
Benefits paid	(34)		(42)		(1)		(1)
Actuarial (gain) loss due to change in financial assumptions	(12)		63		—		1
Actuarial loss due to demography/experience	4		31		—		—
Settlement	(101)		(120)		—		—
Other	(3)		—		1		—
Foreign exchange1	(55)		17		(2)		—
Benefit obligations - ending	$	678	$	791	$	19	$	17
Plan assets
Plan assets - opening	$	786	$	927	$	—	$	—
CPP agreement (note 3)	11		—		—		—
Transfer to disposal groups held for sale (note 6)	—		(79)		—		—
Finance income on plan assets	35		46		—		—
Actual return on plan assets, net of finance income	5		32		—		—
Employer contributions	21		14		1		1
Benefits paid	(34)		(42)		(1)		(1)
Settlement	(102)		(115)		—		—
Other	(1)		(2)		—		—
Refund of excess contributions	(3)		(15)		—		—
Foreign exchange1	(55)		20		—		—
Plan assets - ending	$	664	$	786	$	—	$	—
Funded status2
Retirement assets	$	65	$	84	$	—	$	—
Impact of minimum funding requirement3	(3)		(1)		—		—
Retirement assets (note 10)	61		83		—		—
Retirement liabilities (note 12)	(78)		(89)		(19)		(17)
	$	(17)	$	(6)	$	(19)	$	(17)

1.Foreign currency translation relates to the foreign exchange impact of translating assets and liabilities of certain plans to U.S. dollars.

2.Plans in a surplus position are presented as assets and plans in a deficit position are presented as liabilities on our consolidated balance sheets.

3.Certain of our plans have a surplus that is not recognized on the basis that future economic benefits may not be available to us in the form of a reduction in future contributions or a cash refund.

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	Defined benefit pension plans				Other retirement benefit plans
	2024		2023		2024		2023
Expense
Service cost	$	41	$	37	$	—	$	—
Administration fees	2		4		—		—
Settlement loss (gain)	1		(6)		—		—
Curtailment gain related to disposal of pulp mills	(2)		—		—		—
Finance expense (income), net	1		(3)		1		1
	$	43	$	32	$	1	$	1

Assumptions and sensitivities

At December 31, 2024, the weighted average duration of the defined benefit pension obligations is 18 years (December 31, 2023 - 18 years). At December 31, 2024, the projected future benefit payments for the defined benefit pension plans, to be made from plan assets, are as follows:

	2025	2026	2027 to 2029	Thereafter	Total
Defined benefit pension plans	$24	$26	$93	$1,531	$1,674

Key assumptions used in determining defined benefit pension and other retirement pension benefit obligations include assumed rates of increase for future employee compensation and discount rates. These estimates are determined with the assistance of independent actuarial specialists.

The significant actuarial assumptions used to determine our balance sheet date retirement assets and liabilities and our retirement benefit plan expenses are as follows:

	Defined benefit pension plans		Other retirement benefit plans
	2024	2023	2024	2023
Benefit obligations:
Discount rate	4.83%	4.69%	4.78%	4.69%
Future compensation rate increase	3.66%	3.62%	n/a	n/a
Benefit expense:
Discount rate - beginning of year	4.69%	5.17%	4.69%	5.10%
Future compensation rate increase	3.62%	3.53%	n/a	n/a

Health-care benefit costs, shown under other retirement benefit plans, are funded on a pay-as-you-go basis.

The impact of a change in these assumptions on our retirement obligations as at December 31, 2024 is as follows:

	Increase		Decrease
Discount rate - 0.50% change	$	(56)	$	65
Compensation rate - 0.50% change	$	13	$	(12)

The sensitivities have been calculated on the basis that all other variables remain constant. When calculating the sensitivity of the defined benefit obligation, the same methodology is applied as was used to determine the retirement assets and liabilities.

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Plan assets

The assets of the defined benefit pension plans are invested predominantly in a diversified range of equities, pooled funds and bonds. The weighted average asset allocations of the defined benefit plans at December 31, by asset category, are as follows:

	Target range	2024		2023
Canadian equities	2% - 15%	5	%	6	%
Global equities	10% - 44%	16	%	18	%
Fixed income investments	30% - 75%	49	%	43	%
Alternative investments	0% - 57%	25	%	27	%
Cash and cash equivalents	N/A	5	%	6	%
		100	%	100	%

Alternative investments include real estate, private equity, and other investments.

Risk management practices

We are exposed to various risks related to our defined benefit pension and other retirement benefit plans:

•Uncertainty in benefit payments: The value of the liability for retirement benefits will ultimately depend on the amount of benefits paid and this in turn will depend on the level of future compensation increase and life expectancy.

•Volatility in asset value: We are exposed to changes in the market value of pension plan investments which are required to fund future benefit payments.

•Uncertainty in cash funding: Movement in the value of the assets and obligations may result in increased levels of cash funding, although changes in the level of cash funding required can be spread over several years. We are also exposed to changes in pension regulation and legislation.

Our Retirement Committees manage these risks in accordance with a Statement of Investment Policies and Procedures for each pension plan or group of plans administered under master trust agreements. The following are some specific risk management practices employed:

•Retaining and monitoring professional advisors including an outsourced chief investment officer (“OCIO”).

•Monitoring our OCIO’s adherence to asset allocation guidelines and permitted categories of investments.

•Monitoring investment decisions and performance of the OCIO and asset performance against benchmarks.

Defined contribution plans

The total pension expense and funding contributions for the defined contribution pension plans for 2024 was $35 million (2023 - $35 million).

15. Share capital

Authorized

400,000,000 Common shares, without par value

20,000,000 Class B Common shares, without par value

10,000,000 Preferred shares, issuable in series, without par value

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Issued and Outstanding

	December 31, 2024			December 31, 2023
As at	Number	Amount		Number	Amount
Common	77,706,788	$	2,549	79,439,518	$	2,607
Class B Common	2,281,478	—		2,281,478	—
Total Common	79,988,266	$	2,549	81,720,996	$	2,607

As of December 31, 2024, we held 53,937 Common shares as treasury shares for cancellation.

For the year ended December 31, 2024, we issued 12,550 Common shares under our share option plans (year ended December 31, 2023 - 383 Common shares).

Rights and restrictions of Common shares

The Common shares and Class B Common shares are equal in all respects, including the right to dividends, rights upon dissolution or winding up and the right to vote, except that each Class B Common share may at any time be exchanged for one Common share. Our Common shares are listed for trading on the TSX and NYSE under the symbol WFG, while our Class B Common shares are not. Certain circumstances or corporate transactions may require the approval of the holders of our Common shares and Class B Common shares on a separate class by class basis.

Share repurchases

On February 27, 2024, we renewed our normal course issuer bid (“2024 NCIB”) allowing us to acquire up to 3,971,380 Common shares for cancellation from March 1, 2024 until the expiry of the bid on February 28, 2025. On February 22, 2023, we renewed our normal course issuer bid (“2023 NCIB”) allowing us to acquire up to 4,063,696 Common shares for cancellation until the expiry of the bid on February 26, 2024.

For the year ended December 31, 2024, we repurchased for cancellation 1,799,217 Common shares at an average price of $80.26 per share under our 2023 NCIB and 2024 NCIB programs. For the year ended December 31, 2023, we repurchased for cancellation 1,834,801 Common shares at an average price of $70.24 per share under our 2023 NCIB.

16. Equity-based compensation

We have share option, phantom share unit (“PSU”) and directors’ deferred share unit (“DSU”) plans. The equity-based compensation expense for the year ended December 31, 2024 was $14 million (2023 - expense of $25 million).

Accounting policies

We estimate the fair value of outstanding share options using the Black-Scholes option-pricing model and the fair value of our PSU plan and directors’ DSU plan using an intrinsic valuation model at each balance sheet date. We record the resulting charge or recovery to earnings over the related vesting period.

If a share option holder elects to acquire Common shares, both the exercise price and the accrued liability are credited to shareholders’ equity.

Supporting information

Share option plan

Under our share option plan, officers and employees may be granted options to purchase up to 8,295,940 Common shares, of which 623,431 remain available for issuance.

The exercise price of a share option is determined in accordance with the plan and is generally the closing price of a Common share on the trading day immediately preceding the grant date. Our share option plans give the share option holders the right to elect to receive a cash payment in lieu of exercising an option to purchase Common shares. Options vest at 20% per year from the grant date and expire after 10 years.

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In 2024, we have recorded an expense of $6 million (2023 – expense of $11 million) related to the share option plans. The liability associated with the share option plan is tracked in Canadian dollars and is based on prices published by the TSX. A summary of the activity in the share option plans based on Canadian dollar prices is presented below:

	2024			2023
	Number	Weighted average price		Number	Weighted average price
		(CAD$)			(CAD$)
Outstanding - beginning of year	849,670	$	83.59	841,305	$	76.19
Granted	170,144	107.54		137,115	109.42
Exercised	(313,307)	69.42		(123,781)	59.81
Expired / Cancelled	(16,320)	105.12		(4,969)	85.54
Outstanding - end of year	690,187	$	95.42	849,670	$	83.59
Exercisable - end of year	366,732	$	85.47	568,481	$	75.63

The following table summarizes information about the share options outstanding and exercisable at December 31, 2024 in Canadian dollars:

Exercise price range	Number of outstanding options	Weighted average remaining contractual life	Weighted average exercise price		Number of exercisable options	Weighted average exercise price
(CAD$)	(number)	(years)	(CAD$)		(number)	(CAD$)
$40.97 - $56.00	69,577	3.1	$	52.12	69,577	$	52.12
$64.50 - $79.69	115,776	4.5	67.93		101,492	68.42
$81.42 - $92.79	116,699	5.4	90.91		81,953	90.11
$107.53 - $123.63	388,135	8.2	112.74		113,710	117.75
	690,187	6.6	$	95.42	366,732	$	85.47

The weighted average share price at the date of exercise for share options exercised during the year was CAD$123.05 per share (2023 - CAD$107.45 per share).

The accrued liability related to the share option plan was $21 million at December 31, 2024 (December 31, 2023 - $30 million). The weighted average fair value of the options used in the calculation was CAD$43.23 per option or USD$30.04 per option at December 31, 2024 (December 31, 2023 - CAD$46.17 per option or USD$34.21 per option).

The inputs to the Black-Scholes option-pricing model were as follows:

As at	December 31, 2024		December 31, 2023
Weighted-average share price on balance sheet date	CAD$123.56		CAD$113.45
Weighted average exercise price	CAD$95.42		CAD$83.59
Expected dividend	CAD$1.84		CAD$1.59
Expected volatility	42.58	%	42.22	%
Weighted average interest rate	2.87	%	3.57	%
Weighted average expected remaining life in years	4.35		4.07

The expected dividend on our shares was based on the annualized dividend rate at each period-end. Expected volatility was based on five years of historical data. The interest rate for the life of the options was based on the implied yield available on government bonds with an equivalent remaining term at each period-end. Historical data was used to estimate the expected life of the options and forfeiture rates.

The intrinsic value of options issued under the share option plans at December 31, 2024 was CAD$14 million or USD$10 million (December 31, 2023 - CAD$22 million or USD$16 million). The intrinsic value is determined based on the

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difference between the weighted-average share price on the last business day of the month and the exercise price, multiplied by the number of vested options.

Phantom share unit plan

Our PSU plan is intended to supplement, in whole or in part, or replace the granting of share options as long-term incentives for officers and employees. The plan provides for two types of units which vest on the third anniversary of the grant date. A restricted share unit pays out based on the volume weighted average price per Common share on the trading day immediately preceding its vesting date (the “vesting date value”). A performance share unit pays out at a value between 0% and 200% of its vesting date value contingent upon our performance relative to a peer group of companies over the three-year performance period. Officers and employees granted units under the plan are also entitled to additional units to reflect cash dividends paid on Common shares from the applicable grant date until payout.

We have recorded an expense of $7 million (2023 - expense of $12 million) related to the PSU plan. There were 168,775 performance share units outstanding as at December 31, 2024 (December 31, 2023 – 179,757).

Directors’ deferred share unit plans

We have DSU plans which provide a structure for directors, who are not our employees, to accumulate an equity-like holding in West Fraser. The DSU plans allow directors to participate in our growth by providing a deferred payment based on market pricing of our Common shares at the time of redemption. Each director receives deferred share units in payment of an annual equity retainer until a minimum equity holding is reached and may elect to receive units in payment of up to 100% of other fees earned. After a minimum equity holding is reached, directors may elect to receive the equity retainer in units or cash. The units are issued based on the market price of our Common shares at the time of issue. Additional units are issued to take into account the value of dividends paid on Common shares from the date of issue to the date of redemption. Units are redeemable only after a director retires, resigns or otherwise leaves the board. The redemption value is equal to the market price of our Common shares at the date of redemption. A holder of units may elect to redeem units in cash or receive Common shares having an equivalent value.

We have recorded an expense of $2 million (2023 - expense of $2 million) related to the DSU plan. The number of units outstanding as at December 31, 2024 was 91,450 (December 31, 2023 - 78,895).

17. Restructuring and impairment charges

	2024		2023
Impairment related to Europe EWP goodwill	70		—
Restructuring and impairment losses related to Canadian and U.S. lumber operations	28		128
Impairment loss related to Quesnel River Pulp mill and Slave Lake Pulp mill	4		20
Impairment loss (reversal) related to Hinton pulp mill	$	(1)	$	121
Impairment related to equity accounted investment	—		7
Other restructuring charges	2		3
	$	102	$	279

In the year ended December 31, 2024, we recorded restructuring and impairment charges of $102 million.

We recorded an impairment loss of $70 million in relation to Europe EWP goodwill during the year ended December 31, 2024. The impairment loss was driven primarily by an extension of the expected duration of the recovery to mid-cycle profitability and weaker macroeconomic conditions in the U.K. and Europe.

We recorded restructuring and impairment losses of $28 million associated with the permanent closures and indefinite curtailments of lumber mills to better align our capacity with expected future demand. This included restructuring and impairment charges of $8 million associated with the permanent closure of our Fraser Lake lumber mill, $17 million related to the indefinite curtailment of our lumber mill in Lake Butler, Florida, and $3 million related to the permanent closure of our lumber mill in Maxville, Florida and the indefinite curtailment of operations at our lumber mill in Huttig, Arkansas.

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We recorded an impairment loss of $4 million in relation to the sale of the Quesnel River Pulp mill and Slave Lake Pulp mill. In addition, we recorded an impairment reversal of $1 million in relation to the sale of the Hinton pulp mill (see note 6).

We also recorded restructuring charges of $2 million related to the restructuring of certain functions at our regional corporate offices.

In the year ended December 31, 2023, we recorded restructuring and impairment charges of $279 million.

We recorded restructuring and impairment charges of $128 million relating to facility closures and curtailments due to availability of economic fibre sources. We recorded charges of $81 million related to facility closures and curtailments due to availability of economic fibre sources in B.C. and charges of $47 million associated with the announcement of the permanent closure of our lumber mill in Maxville, Florida and the indefinite curtailment of operations at our lumber mill in Huttig, Arkansas.

In the year ended December 31, 2023, we recorded an impairment loss of $121 million in relation to the sale of the Hinton pulp mill (see note 6). In addition, we recorded an impairment loss of $20 million in relation to the sale of the Quesnel River Pulp mill and Slave Lake Pulp mill (see note 6).

18. Finance income, net

	2024		2023
Interest expense	$	(26)	$	(24)
Interest income on cash and cash equivalents	44		47
Net interest income on export duty deposits	19		27
Finance income (expense) on employee future benefits	(3)		1
	$	34	$	51

19. Other income (expense)

	2024		2023
Foreign exchange gain (loss)	$	7	$	(7)
Settlement gain (loss) on defined benefit pension plans	$	(1)	$	6
Gain resulting from the CPP agreement	1		—
Gain (loss) on electricity swaps	(9)		17
Loss on interest rate swap contracts	(4)		(6)
Other	4		(5)
	$	(2)	$	5

20. Tax recovery (provision)

Accounting policies

Tax recovery (provision) for the year is comprised of current and deferred tax. Tax recovery (provision) is recognized in earnings, except to the extent that it relates to items recognized in other comprehensive earnings in which case it is recognized in other comprehensive earnings.

Deferred taxes are provided for using the liability method. Under this method, deferred taxes are recognized for temporary differences between the tax and financial statement basis of assets, liabilities and certain carry-forward items.

Deferred tax assets are recognized only to the extent that it is probable that they will be realized. Deferred income tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of substantive enactment.

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International Tax Reform - Pillar Two Model Rules

The Organisation for Economic Co-operation and Development (OECD)/G20 Inclusive Framework on Base Erosion and Profit Shifting published the Pillar Two model rules designed to address the tax challenges arising from the digitalisation of the global economy. Pillar Two legislation has been enacted or substantively enacted in certain jurisdictions in which we operate, although some countries may have varying responses or adjustments to the initial model rules. We do not have a material exposure to Pillar Two top-up taxes.

Supporting information

The major components of income tax included in comprehensive earnings are as follows:

	2024		2023
Earnings:
Current tax	$	(118)	$	(61)
Deferred tax recovery (provision)	74		122
Tax recovery (provision) on earnings	$	(43)	$	61
Other comprehensive earnings:
Deferred tax recovery (provision) on retirement benefit actuarial loss (gain)	$	(3)	$	12
Tax recovery (provision) on comprehensive earnings	$	(46)	$	73

The tax provision differs from the amount that would have resulted from applying the British Columbia statutory income tax rate to earnings before tax as follows:

	2024		2023
Income tax recovery (expense) at statutory rate of 27%	$	(10)	$	62
Rate differentials between jurisdictions and on specified activities	(7)		(3)
Non-taxable amounts including goodwill impairment	(20)		—
Impact of functional currency differences	(6)		—
Income tax credits	5		—
Valuation allowance on deferred tax attributes	(2)		—
Other	(3)		2
Tax recovery (provision)	$	(43)	$	61

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Deferred income tax liabilities (assets) are made up of the following components:

	2024		2023
Property, plant, equipment and intangibles	$	681	$	737
Reforestation and decommissioning obligations	(27)		(30)
Employee benefits	(25)		(22)
Export duties	93		90
Tax loss carry-forwards1	(70)		(47)
Inventory	(16)		(12)
Other	(34)		(39)
	$	602	$	677
Represented by:
Deferred income tax assets	$	(7)	$	(6)
Deferred income tax liabilities	609		683
	$	602	$	677

1.We have $304 million of net operating loss carry-forwards in various jurisdictions (December 31, 2023 - $241 million), $227 million of U.S. state net operating loss carry-forwards (December 31, 2023 - $306 million), and $95 million of capital loss carry-forwards (December 31, 2023 - $83 million). A portion of these losses expire over various periods starting in 2025. The net operating losses that have not been recognized as of December 31, 2024 are $30 million in various jurisdictions (December 31, 2023 - $32 million) and $205 million for U.S. states (December 31, 2023 - $270 million). Capital losses that have not been recognized as of December 31, 2024 are $95 million (December 31, 2023 - $83 million).

21. Employee compensation

Our employee compensation expense includes salaries and wages, employee future benefits, bonuses and termination costs, but excludes restructuring charges. Total compensation expense for the year ended December 31, 2024 was $984 million (2023 - $989 million).

Key management includes directors and officers, and their compensation expense and balance sheet date payables are as follows:

	2024		2023
Expense
Salary and short-term employee benefits	$	7	$	8
Retirement benefits	1		2
Equity-based compensation1	10		19
	$	19	$	29

1.Amounts do not necessarily represent the actual value which will ultimately be paid.

	2024		2023
Payables and accrued liabilities
Compensation	$	—	$	—
Equity-based compensation1	27		39
	$	27	$	39

1.Amounts do not necessarily represent the actual value which will ultimately be paid.

22. Earnings (loss) per share

Basic earnings (loss) per share is calculated based on earnings (loss) available to Common shareholders, as set out below, using the weighted average number of Common shares and Class B Common shares outstanding.

Certain of our equity-based compensation plans may be settled in cash or Common shares at the holder’s option and for the purposes of calculating diluted earnings (loss) per share, the more dilutive of the cash-settled and equity-settled method is used, regardless of how the plan is accounted for. Plans that are accounted for using the cash-settled method

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will require adjustments to the numerator and denominator if the equity-settled method is determined to have a dilutive effect as compared to the cash-settled method.

The numerator under the equity-settled method is calculated based on earnings (loss) available to Common shareholders adjusted to remove the cash-settled equity-based compensation expense or recovery that has been charged or credited to earnings (loss) and deducting a notional charge using the equity‑settled method, as set out below. Adjustments to earnings (loss) are tax-effected as applicable. The denominator under the equity-settled method is calculated using the treasury stock method. Share options under the equity-settled method are considered dilutive when the average market price of our Common shares for the period exceeds the exercise price of the share option.

The equity-settled method was more dilutive for the year ended December 31, 2024 and an adjustment was required for the numerator and denominator. The cash-settled method was more dilutive for the year ended December 31, 2023 and therefore no adjustment was required for the numerator and denominator.

A reconciliation of the numerator and denominator used for the purposes of calculating diluted loss per share is as follows:

	2024		2023
Loss
Numerator for basic EPS	$	(5)	$	(167)
Cash-settled expense included in earnings	7		—
Equity-settled expense adjustment	(7)		—
Numerator for diluted EPS	$	(6)	$	(167)
Weighted average number of shares (thousands)
Denominator for basic EPS	80,859		83,199
Effect of dilutive equity-based compensation	265		—
Denominator for diluted EPS	81,124		83,199
Loss per share (dollars)
Basic	$	(0.06)	$	(2.01)
Diluted	$	(0.07)	$	(2.01)

23.      Financial instruments

Accounting policies

All financial assets and liabilities, except for derivatives, are initially measured at fair value and subsequently measured at amortized cost using the effective interest rate method. Derivatives are measured at fair value through profit or loss (“FVTPL”).

Supporting information

The following tables provide the carrying values and fair values of our financial instruments by category, as well as the associated fair value hierarchy levels as defined in note 2 under “Fair value measurements”. The carrying value is a reasonable approximation of fair value for cash and cash equivalents, receivables, and payables and accrued liabilities

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due to their short-term nature. The carrying values of long-term debt include any current portions and exclude deferred financing costs.

December 31, 2024	Level	Financial assets at amortized cost		Financial assets or financial liabilities at FVTPL		Financial liabilities at amortized cost		Carrying value		Fair value
Financial assets
Cash and cash equivalents	2	$	641	$	—	$	—	$	641	$	641
Receivables	3	292		—		—		292		292
Interest rate swaps2	2	—		2		—		2		2
Electricity swaps2	3	—		13		—		13		13
		$	933	$	15	$	—	$	948	$	948
Financial liabilities
Payables and accrued liabilities	3	$	—	$	—	$	600	$	600	$	600
Long-term debt1	2	—		—		200		200		200
Electricity swaps2	3	—		12		—		12		12
		$	—	$	12	$	800	$	812	$	812

1.The fair value of long-term debt is based on rates available to us at December 31, 2024 for long-term debt with similar terms and remaining maturities.

2.The value of our interest rate swap contracts is included in receivables in our consolidated balance sheet at December 31, 2024. The current portions of our electricity swap contracts are included in receivables and payables and accrued liabilities. The non-current portions of our electricity swap contracts are included in other assets and other liabilities.

December 31, 2023	Level	Financial assets at amortized cost		Financial assets or financial liabilities at FVTPL		Financial liabilities at amortized cost		Carrying value		Fair value
Financial assets
Cash and cash equivalents	2	$	900	$	—	$	—	$	900	$	900
Receivables	3	302		—		—		302		302
Interest rate swaps2	2	—		6		—		6		6
Electricity swaps2	3	—		22		—		22		22
		$	1,202	$	28	$	—	$	1,230	$	1,230
Financial liabilities
Payables and accrued liabilities	3	$	—	$	—	$	620	$	620	$	620
Long-term debt1	2	—		—		500		500		494
Electricity swaps2	3	—		12		—		12		12
		$	—	$	12	$	1,120	$	1,132	$	1,126

1.The fair value of long-term debt is based on rates available to us at December 31, 2023 for long-term debt with similar terms and remaining maturities.

2.The value of our interest rate swap contracts and the current portions of our electricity swap contracts are included in receivables in our consolidated balance sheet at December 31, 2023. The non-current portions of our electricity swap contracts are included in other assets and other liabilities.

Financial risk management

Our activities result in exposure to a variety of financial risks, and the main objectives of our risk management process are to ensure risks are properly identified and analyzed and to establish appropriate risk limits and controls. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and our activities. We

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are exposed to credit risk, liquidity risk, and market risk. A description of these risks and policies for managing these risks are summarized below.

The sensitivities provided in this section give the effect of possible changes in the relevant prices and rates on earnings. The sensitivities are hypothetical and should not be considered to be predictive of future performance or earnings. Changes in fair values or cash flows based on fluctuations in market variables cannot be extrapolated since the relationship between the change in the market variable and the change in fair value or cash flows may not be linear.

Credit risk

Credit risk is the risk of financial loss if a customer or counterparty to a financial instrument fails to meet its contractual obligations. We are exposed to credit risk with respect to cash and cash equivalents and receivables. The carrying amounts of these accounts represent the maximum credit exposure. We manage credit risk by holding cash and cash equivalents with major banks of high creditworthiness. Credit risk for trade and other receivables is managed through established credit monitoring activities such as:

•Establishing and monitoring customer credit limits;

•Performing ongoing evaluations of the financial conditions of key customers; and

•In certain market areas, undertaking additional measures to reduce credit risk including credit insurance, letters of credit and prepayments. At December 31, 2024, approximately 29% of trade accounts receivable was covered by at least some of these additional measures (December 31, 2023 - 26%).

Given our credit monitoring activities, the percentage of overdue accounts and our history of minimal customer defaults, we consider the credit quality of our trade accounts receivable at December 31, 2024 to be high and have recorded nominal expected credit losses on our trade accounts receivable. The aging analysis of trade accounts receivable is presented below:

As at	December 31, 2024		December 31, 2023
Trade accounts receivable
Current	$	175	$	215
Past due 1 to 30 days	62		28
Past due 31 to 60 days	2		4
Past due over 60 days	—		3
Trade accounts receivable	239		250
Sales taxes receivable	27		26
Other	28		35
Receivables	$	294	$	311

Liquidity risk

Liquidity risk is the risk we will encounter difficulty in meeting obligations associated with financial liabilities. We manage liquidity risk by maintaining adequate cash and cash equivalents balances and having lines of credit available. In addition, we regularly monitor forecasted and actual cash flows. Refinancing risks are managed by extending maturities through regular renewals and refinancing when market conditions are supportive.

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The following table summarizes the maturity profile of our financial liabilities based on contractual undiscounted payments:

December 31, 2024	Carrying value		Total		2025		2026		2027		2028		Thereafter
Long-term debt	$	200	$	200	$	200	$	—	$	—	$	—	$	—
Interest on long-term debt1	2		6		6		—		—		—		—
Lease obligations	29		38		11		6		4		3		14
Payables and accrued liabilities	590		590		590		—		—		—		—
Total	$	821	$	834	$	807	$	6	$	4	$	3	$	14

1.Assumes debt remains at December 31, 2024 levels and includes the impact of interest rate swaps terminating July 25, 2025.

In addition, we have contractual commitments for the acquisition of property, plant and equipment in the amount of $114 million in 2025.

Market risk

Market risk is the risk of loss that might arise from changes in market factors such as interest rates, foreign exchange rates, commodity, and energy prices. We aim to manage market risk within acceptable parameters and may, from time to time, use derivatives to manage market risk.

Interest rates

Interest rate risk relates mainly to floating interest rate debt. By maintaining a mix of fixed and floating rate debt along with interest rate swap contracts, we mitigate the exposure to interest rate changes.

As at December 31, 2024, we had the following floating rate financial instruments:

Financial instrument	Carrying value
Financial liability: Term loan	$	200
Financial asset: Interest rate swap contracts	$	2

We maintain a $200 million term loan due July 2025 where the interest is payable at floating rates based on Prime, Base Rate Advances, Bankers’ Acceptances or SOFR Advances at our option.

We have interest rate swap agreements to pay fixed interest rates and receive variable interest rates equal to 3-month SOFR on $200 million notional principal amount of indebtedness. These agreements have the effect of fixing the interest rate on the $200 million term loan floating rate debt. In January 2024, these interest rate swaps were amended to extend their maturity from August 2024 to July 2025.

In addition, interest on certain of our credit facilities is payable at floating rates including Prime Rate Advances, Base Rate Advances, Bankers’ Acceptances, or SOFR Advances at our option.

At December 31, 2024, the impact of a 100-basis point change in interest rate affecting our floating rate debt would not result in a change in annual interest expense (December 31, 2023 - no change).

Energy

We are party to arrangements with renewable power generators to purchase environmental attributes and receive settlements by reference to generation volumes and the spot price for electricity and pay settlements by reference to generation volumes and a fixed contractual price. These agreements act as a partial hedge against future electricity price increases in Alberta and will provide us with access to renewable energy credits that we may surrender to achieve a reduction in our greenhouse gas emissions. While these arrangements economically hedge the risk of changes in cash flows due to fluctuations in Alberta electricity prices, hedge accounting has not been applied to these instruments.

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A contract to receive renewable energy credits and the associated floating-for-fixed electricity swap are distinct units of account. We have selected this method as we believe the receipt of the renewable energy credits is an executory contract and the electricity swap meets the definition of an embedded derivative.

The electricity swaps are valued based on a discounted cash flow model, with the related changes in fair value included in Other income (expense). The valuation requires management to make certain assumptions about the model inputs, including future electricity prices, discount rates, and expected generation volumes associated with the contracts.

For the year ended December 31, 2024, a loss of $9 million was recognized in relation to the electricity swaps (2023 - gain of $17 million). The fair value of the electricity swaps at December 31, 2024 was a nominal asset (December 31, 2023 - an asset of $10 million). At December 31, 2024, the impact of a 10% increase (decrease) in future electricity prices would result in a gain (loss) of $16 million.

The following table summarizes the maturity profile of our net derivative asset based on contractual undiscounted payments:

December 31, 2024	Carrying value - asset (liability)		Total inflows (outflows)		2025		2026		2027		2028		Thereafter
Electricity swaps	$	—	$	5	$	(4)	$	(2)	$	(1)	$	(1)	$	14
Total	$	—	$	5	$	(4)	$	(2)	$	(1)	$	(1)	$	14

Currency risk

We are exposed to foreign currency risk because our Canadian operations incur a portion of their operating expenses in Canadian dollars. Therefore, an increase in the value of the CAD relative to the USD increases the value of expenses in USD terms incurred by our Canadian operations, which reduces operating margin and the cash flow available to fund operations.

In addition, foreign currency exposure arises from our net investment in our European operations, which have British pound sterling and Euro functional currencies, and from our Spray Lake lumber mill (note 3) and jointly-owned newsprint operation, which have Canadian dollar functional currency. The risk arises from the fluctuation in spot rates between these currencies and the U.S. dollar, which causes the amount of the net investment to vary with the resulting translation gains or losses being reported in other comprehensive earnings.

A $0.01 strengthening (weakening) of the USD against the CAD would increase (decrease) earnings by approximately $2 million. A $0.01 strengthening (weakening) of the USD against the CAD, British pound and Euro would result in an approximate $6 million translation loss (gain) on operations with different functional currencies included in other comprehensive earnings. These sensitivities assume that all other variables remain constant and ignores any impact of forecast sales and purchases.

24.Capital disclosures

Our business is cyclical and is subject to significant changes in cash flow over the business cycle. In addition, financial performance can be materially influenced by changes in product prices and the relative values of the Canadian and U.S. dollars. Our objective in managing capital is to ensure adequate liquidity and financial flexibility at all times, particularly at the lower points in the business cycle.

Our main policy relating to capital management is to maintain a strong balance sheet and otherwise meet financial tests that rating agencies commonly apply for investment-grade issuers of public debt. We are currently rated as an investment grade issuer by three major rating agencies.

We monitor and assess our financial performance to ensure that debt levels are prudent, taking into account the anticipated direction of the business cycle. When financing acquisitions, we combine cash on hand, debt, and equity financing in a proportion that is intended to maintain an investment-grade rating for debt throughout the cycle. Debt repayments are arranged, where possible, on a staggered basis that takes into account the uneven nature of anticipated cash flows. We have established committed revolving lines of credit that provide liquidity and flexibility when capital

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markets are restricted. In addition, as a normal part of our business, we have in the past and may from time to time seek to repurchase our outstanding securities through issuer bids or tender offers, open market purchases, privately negotiated transactions or otherwise. Such repurchases, if any, will depend on prevailing market conditions, our liquidity requirements, contractual and legal restrictions and other factors.

A strong balance sheet and liquidity profile, along with our investment-grade issuer rating, are key elements of our goal to maintain a balanced capital allocation strategy. Priorities within this strategy include: reinvesting in our operations across all market cycles to strategically enhance productivity, product mix, and capacity; optimizing our portfolio of assets to reduce the variability of cash flows across market cycles; maintaining a leading cost position; maintaining financial flexibility to capitalize on growth opportunities, including the pursuit of acquisitions and larger-scale strategic growth initiatives; and returning capital to shareholders through dividends and share repurchases.

Two key measurements used to monitor our capital position are total debt to total capital and net debt to total capital, calculated as follows:

	December 31,		December 31,
As at	2024		2023
Debt
Operating loans	$	—	$	—
Current and non-current lease obligation	29		39
Current and non-current debt	200		500
Derivative liabilities1	—		—
Open letters of credit1	36		43
Total debt	265		582
Shareholders’ equity	6,954		7,223
Total capital	$	7,219	$	7,805
Total debt to capital	4%		7%
Total debt	$	265	$	582
Cash and cash equivalents	(641)		(900)
Open letters of credit	(36)		(43)
Derivative liabilities	—		—
Cheques issued in excess of funds on deposit	—		—
Net debt	(412)		(361)
Shareholders’ equity	6,954		7,223
Total capital	$	6,542	$	6,862
Net debt to capital	(6%)		(5%)

1.Letters of credit facilities and the fair value of derivative liabilities are part of our bank covenants’ total debt calculation.

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25. Segment and geographical information

The segmentation of manufacturing operations into lumber, NA EWP, pulp and paper and Europe EWP is based on a number of factors, including similarities in products, production processes and economic characteristics. The EWP segments have been separated due to differences in the operating region, customer base, profit margins and sales volumes. Transactions between segments are at market prices and on standard business terms. The segments follow the accounting policies described in these consolidated financial statement notes, where applicable.

	Lumber		NA EWP		Pulp & Paper		Europe EWP		Corporate & Other		Total
Year ended December 31, 2024
Sales
To external customers	$	2,550	$	2,794	$	378	$	453	$	—	$	6,175
To other segments	42		9		11		—		(62)		—
	$	2,592	2,803		389		453		(63)		6,174
Cost of products sold	(2,080)		(1,634)		(309)		(375)		64		(4,333)
Freight and other distribution costs	(382)		(326)		(65)		(42)		—		(815)
Export duties, net	(72)		—		—		—		—		(72)
Amortization	(192)		(284)		(14)		(48)		(11)		(549)
Selling, general and administration	(142)		(99)		(11)		(29)		(1)		(282)
Equity-based compensation	—		—		—		—		(14)		(14)
Restructuring and impairment charges	(28)		(1)		(3)		(70)		(1)		(102)
Operating earnings (loss)	$	(303)	$	459	$	(13)	$	(110)	$	(26)	$	7
Total assets	3,641		3,943		187		561		429		$	8,760
Total liabilities	635		572		89		136		375		$	1,807
Capital expenditures	312		140		15		19		1		$	487

	Lumber		NA EWP		Pulp & Paper		Europe EWP		Corporate & Other		Total
Year ended December 31, 2023
Sales
To external customers	$	2,722	$	2,602	$	612	$	517	$	—	$	6,454
To other segments	72		6		11		—		(89)		—
	$	2,794	$	2,608	$	623	$	517	$	(89)	$	6,454
Cost of products sold	(2,215)		(1,594)		(555)		(409)		89		(4,685)
Freight and other distribution costs	(405)		(329)		(120)		(40)		—		(894)
Export duties, net	(8)		—		—		—		—		(8)
Amortization	(185)		(273)		(24)		(49)		(10)		(541)
Selling, general and administration	(164)		(96)		(25)		(21)		—		(307)
Equity-based compensation	—		—		—		—		(25)		(25)
Restructuring and impairment charges	(137)		—		(142)		—		—		(279)
Operating earnings (loss)	$	(319)	$	316	$	(242)	$	(3)	$	(35)	$	(284)
Total assets	3,606		4,338		333		691		446		$	9,415
Total liabilities	507		551		125		149		861		$	2,193
Capital expenditures	253		156		32		30		7		$	477

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The geographic distribution of non-current assets and external sales based on the location of product delivery is as follows:

	Non-current assets				Sales by geographic area
	2024		2023		2024		2023
United States	$	2,748	$	2,689	$	4,150	$	4,251
Canada	3,817		3,883		1,210		1,118
U.K and Europe	358		466		458		524
Asia	—		—		351		557
Other	—		—		5		4
	$	6,924	$	7,038	$	6,174	$	6,454

26. Countervailing (“CVD”) and antidumping (“ADD”) duty dispute

On November 25, 2016, a coalition of U.S. lumber producers petitioned the U.S. Department of Commerce (“USDOC”) and the U.S. International Trade Commission (“USITC”) to investigate alleged subsidies to Canadian softwood lumber producers and levy CVD and ADD duties against Canadian softwood lumber imports. The USDOC chose and continues to choose us as a “mandatory respondent” to both the countervailing and antidumping investigations, and as a result, we have received unique company-specific rates.

Accounting policies

The CVD and ADD rates apply retroactively for each period of investigation (“POI”). We record CVD as export duty expense at the cash deposit rate until an Administrative Review (“AR”) finalizes a new applicable rate for each POI. We record ADD as export duty expense by estimating the rate to be applied for each POI by using our actual results and a similar calculation methodology as the USDOC and adjust when an AR finalizes a new applicable rate for each POI. The difference between the cumulative cash deposits paid and cumulative export duty expense recognized for each POI is recorded on our balance sheet as export duty deposits receivable or payable.

The difference between the cash deposit amount and the amount that would have been due based on the final AR rate will incur interest based on the U.S. federally published interest rate. We record interest income on our duty deposits receivable, net of any interest expense on our duty deposits payable, based on this rate.

Developments in CVD and ADD rates

We began paying CVD and ADD duties in 2017 based on the determination of duties payable by the USDOC. The CVD and ADD cash deposit rates are updated upon the finalization of the USDOC’s Administrative Review (“AR”) process for each Period of Inquiry (“POI”), as summarized in the tables below.

On March 5, 2024, the USDOC initiated AR6 POI covering the 2023 calendar year. West Fraser was selected as a mandatory respondent, which will result in West Fraser continuing to be subject to a company-specific rate.

On September 24, 2024, the USDOC finalized the duty rate for AR5, resulting in the recognition of an export duty expense of $32 million plus interest expense in earnings, an increase in export duty deposits payable, and a decrease in export duty deposit receivable.

On December 9, 2024, the USDOC issued a tolling notice extending the deadlines for certain ADD and CVD proceedings, including softwood lumber, of up to 90 days. This extension affects the AR6 preliminary and final determination deadlines for both ADD and CVD cases. The preliminary determination decision for AR6 ADD and CVD were initially anticipated to be published February 6, 2025. The preliminary determination decision for AR6 ADD is now anticipated to be published February 20, 2025, and the preliminary determination decision for AR6 CVD is now anticipated to be published May 7, 2025.

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The respective Cash Deposit Rates, the AR POI Final Rate and the West Fraser Estimated ADD Rate for each period are as follows:

Effective dates for CVD	Cash Deposit Rate		AR POI Final Rate
AR1 POI1,2
April 28, 2017 - August 24, 2017	24.12	%	6.76	%
August 25, 2017 - December 27, 2017	—	%	—	%
December 28, 2017 - December 31, 2017	17.99	%	6.76	%
January 1, 2018 - December 31, 2018	17.99	%	7.57	%
AR2 POI3
January 1, 2019 - December 31, 2019	17.99	%	5.08	%
AR3 POI4
January 1, 2020 - November 30, 2020	17.99	%	3.62	%
December 1, 2020 - December 31, 2020	7.57	%	3.62	%
AR4 POI5
January 1, 2021 - December 1, 2021	7.57	%	2.19	%
December 2, 2021 - December 31, 2021	5.06	%	2.19	%
AR5 POI6
January 1, 2022 – January 9, 2022	5.06	%	6.85	%
January 10, 2022 – August 8, 2022	5.08	%	6.85	%
August 9, 2022 - December 31, 2022	3.62	%	6.85	%
AR6 POI7
January 1, 2023 - July 31, 2023	3.62	%	n/a
August 1, 2023 - December 31, 2023	2.19	%	n/a
AR7 POI8
January 1, 2024 - August 18, 2024	2.19	%	n/a
August 19, 2024 - December 31, 2024	6.85	%	n/a

1.On April 24, 2017, the USDOC issued its preliminary rate in the CVD investigation. The requirement that we make cash deposits for CVD was suspended on August 24, 2017, until the USDOC published the revised rate.

2.On November 24, 2020, the USDOC issued the final CVD rate for the AR1 POI.

3.On November 24, 2021, the USDOC issued the final CVD rate for the AR2 POI. On January 10, 2022, the USDOC amended the final CVD rate for the AR2 POI from 5.06% to 5.08% for ministerial errors. This table only reflects the final rate.

4.On August 4, 2022, the USDOC issued the final CVD rate for the AR3 POI.

5.On August 1, 2023, the USDOC issued the final CVD rate for the AR4 POI.

6.On August 19, 2024, the USDOC Issued the final CVD rate for the AR5 POI.

7.The CVD rate for the AR6 POI will be adjusted when AR6 is complete and the USDOC finalizes the rate, which is not expected until 2025.

8.The CVD rate for the AR7 POI will be adjusted when AR7 is complete and the USDOC finalizes the rate, which is not expected until 2026.

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Effective dates for ADD	Cash Deposit Rate		AR POI Final Rate		West Fraser Estimated Rate
AR1 POI1,2
June 30, 2017 - December 3, 2017	6.76	%	1.40	%	1.46	%
December 4, 2017 - December 31, 2017	5.57	%	1.40	%	1.46	%
January 1, 2018 - December 31, 2018	5.57	%	1.40	%	1.46	%
AR2 POI3
January 1, 2019 - December 31, 2019	5.57	%	6.06	%	4.65	%
AR3 POI4
January 1, 2020 - November 29, 2020	5.57	%	4.63	%	3.40	%
November 30, 2020 - December 31, 2020	1.40	%	4.63	%	3.40	%
AR4 POI5
January 1, 2021 - December 1, 2021	1.40	%	7.06	%	6.80	%
December 2, 2021 - December 31, 2021	6.06	%	7.06	%	6.80	%
AR5 POI6
January 1, 2022 - August 8, 2022	6.06	%	5.04%		4.52	%
August 9, 2022 - December 31, 2022	4.63	%	5.04%		4.52	%
AR6 POI7
January 1, 2023 - July 31, 2023	4.63	%	n/a		8.84	%
August 1, 2023 - December 31, 2023	7.06	%	n/a		8.84	%
AR7 POI8
January 1, 2024 - August 18, 2024	7.06	%	n/a		2.58	%
August 19, 2024 - December 31, 2024	5.04	%	n/a		2.58	%

1.On June 26, 2017, the USDOC issued its preliminary rate in the ADD investigation effective June 30, 2017.

2.On November 24, 2020, the USDOC issued the final ADD rate for the AR1 POI.

3.On November 24, 2021, the USDOC issued the final ADD rate for the AR2 POI.

4.On August 4, 2022, the USDOC issued the final ADD rate for the AR3 POI

5.On July 31, 2023, the USDOC issued the final ADD rate for the AR4 POI. On September 7, 2023, the USDOC amended the final ADD rate for the AR4 POI from 6.96% to 7.06% for ministerial errors. This table only reflects the final rate.

6.On August 19, 2024, the USDOC Issued the final ADD rate for the AR5 POI. An amended ADD rate was issued on September 24, 2024, and was retroactively applied to August 19, 2024.

7.The ADD rate for the AR6 POI will be adjusted when AR6 is complete and the USDOC finalizes the rate, which is not expected until 2025.

8.The ADD rate for the AR7 POI will be adjusted when AR7 is complete and the USDOC finalizes the rate, which is not expected until 2026.

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Impact on results

The following table reconciles our cash deposits paid during the year to the amount recorded in our statements of earnings:

($ millions)	2024	2023
Cash deposits1	(62)	(53)
Adjust to West Fraser Estimated ADD rate2	22	(17)
Export duties, net	(40)	(70)
Duty recovery attributable to AR43	—	62
Duty expense attributable to AR54	(32)	—
Export duty (expense) recovery	(72)	(8)
Net interest income on export duty deposits	19	27

1.Represents combined CVD and ADD cash deposit rate of 8.25% from January 1, 2023 to July 31, 2023, 9.25% from August 1, 2023 to December 31, 2023, 9.25% from January 1, 2024 to August 18, 2024 and 11.89% from August 19, 2024 to December 31, 2024.

2.Represents adjustment to the West Fraser Estimated ADD rate of 2.58% for 2024 and 8.84% for 2023.

3.$62 million represents the duty recovery attributable to the finalization of the AR4 duty rates for the 2021 POI. The final CVD rate was 2.19% and the final ADD rate was 7.06% for AR4.

4.$32 million represents the duty expense attributable to the finalization of AR5 duty rates for the 2022 POI. The final CVD rate was 6.85% and the final ADD rate was 5.04% for AR5.

As of December 31, 2024, export duties paid and payable on deposit with the USDOC were $898 million (December 31, 2023 - $836 million).

Impact on balance sheet

Each POI is subject to independent administrative review by the USDOC, and the results of each POI may not be offset but the results within a POI in respect of ADD and CVD may be offset.

Export duty deposits receivable is represented by:

Export duty deposits receivable	2024		2023
Beginning of year	$	377	$	354
Export duty deposit receivable on adjustment to estimated ADD rate	22		—
Export duty deposit receivable on adjustment to finalized rates	(16)		—
Interest income recognized on duty deposits receivable	25		23
End of year	$	408	$	377

Export duties payable is represented by:

Export duties payable	2024		2023
Beginning of year	$	24	$	73
Export duty deposit payable on adjustment to finalized rates	15		(62)
Export duty deposit payable on adjustment to estimated ADD rate	—		17
Interest expense (income) recognized on export duties payable	6		(4)
End of year	$	46	$	24

Appeals

On May 22, 2020, the North American Free Trade Agreement (“NAFTA”) panel issued its final decision on “Injury”. The NAFTA panel rejected the Canadian parties’ arguments and upheld the USITC remand determination in its entirety.

On August 28, 2020, the World Trade Organization’s (“WTO”) dispute-resolution panel ruled unanimously that U.S. countervailing duties against Canadian softwood lumber are inconsistent with the WTO obligations of the United States.

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The decision confirmed that Canada does not subsidize its softwood lumber industry. On September 28, 2020, the U.S. announced that it would appeal the WTO panel’s decision.

Under U.S. trade law, the International Trade Commission (“ITC”) must review antidumping and countervailing orders every 5 years from the date of issuance. This process is referred to as a "Sunset Review". On November 30, 2023, the ITC voted to maintain the ADD and CVD orders on softwood lumber from Canada on the grounds that the revocation would likely lead to the continuation or recurrence of material injury to the U.S. domestic industry within a reasonably foreseeable time.

The softwood lumber case will continue to be subject to NAFTA or the new Canada-United States-Mexico Agreement (“CUSMA”), WTO dispute resolution processes, and litigation in the U.S. In the past, long periods of litigation have led to negotiated settlements and duty deposit refunds. In the interim, duties remain subject to the USDOC AR process, which results in an annual adjustment of duty deposit rates.

Notwithstanding the deposit rates assigned under the investigations, our final liability for CVD and ADD will not be determined until each annual administrative review process is complete and related appeal processes are concluded.

27. Contingencies

We are subject to various investigations, claims and legal, regulatory and tax proceedings covering matters that arise in the ordinary course of business activities, including civil claims and lawsuits, regulatory examinations, investigations, audits and requests for information by governmental regulatory agencies and law enforcement authorities in various jurisdictions. Each of these matters is subject to uncertainties and it is possible that some of these matters may be resolved unfavourably. Certain conditions may exist as of the date the financial statements are issued, which may result in an additional loss. In the opinion of management none of these matters are expected to have a material effect on our results of operations or financial condition.

28. Subsequent events

On February 1, 2025, the new U.S. administration issued an executive order directing the United States to impose new tariffs on imports from Canada to take effect on February 4, 2025. The tariffs are an additional 25% rate of duty on all imports from Canada except Canadian energy resources exports, which are subject to a 10% tariff. On February 3, 2025, it was announced that the implementation of these tariffs would be paused for a 30-day period. The actual impact of these tariffs is subject to a number of factors including the effective date and duration of such tariffs, changes in the amount, scope and nature of the tariffs in the future, any countermeasures that the Canadian government may take, and any mitigating actions that may become available.

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