Lumber prices drive profitability – The performance of lumber stocks is heavily tied to lumber prices, which are influenced by housing demand, interest rates, and supply chain disruptions.
Diversification matters – Companies with exposure beyond traditional lumber, like Stella-Jones’ utility poles or West Fraser’s engineered wood products, tend to have more stable earnings.
Long-term demand is strong – Despite short-term volatility, long-term demand for wood products remains solid due to housing construction, infrastructure projects, and sustainable building trends.
It can be said that the Canadian economy greatly relies on the lumber industry.
Lumber isn’t just tied to the housing market. The sector touches almost every area of the country and related companies are scattered amongst Canadian stocks. The Maritimes have a vibrant lumber industry, thanks to lush forests in rural New Brunswick.
Ontario and Quebec have seemingly limitless forests north of significant cities. Western Canada also has enormous pockets of lumber, which is especially valuable to British Columbia and Alberta.
According to Statista, more than 37,000 people were directly employed by the Canadian lumber industry in 2023.
Lumber is a big part of the Canadian economy. But with volatile prices, plenty of competition, perhaps weaker housing starts (caused by elevated mortgage rates) and other issues like the United States and Canada lumber trade wars impacting the industry, is it a safe place for investors?
I’ll take a closer look at some of the top lumber stocks in Canada in this article.
What are the best Canadian lumber stocks?
One of North America’s largest lumber producers
West Fraser Timber (TSE:WFG)
West Fraser Timber is a giant in the lumber industry, producing softwood lumber, engineered wood, and pulp & paper products. With mills across Canada, the U.S., and Europe, the company supplies key markets like home construction, industrial materials, and packaging. Its strong vertical integration and cost efficiency make it one of the most dominant players in the space.
P/E: –
5 Yr Revenue Growth: 10.6%
5 Yr Earnings Growth: -%
5 Yr Dividend Growth: 15.8%
Yield: 1.7%
A major Canadian softwood lumber producer
Canfor Corporation (TSE:CFP)
Canfor is a leading producer of softwood lumber, wood pellets, and pulp & paper. With operations in Canada, the U.S., and Sweden, the company benefits from a diversified supply base. It serves residential construction, industrial, and commercial markets, making it a key supplier to the global economy.
P/E: –
5 Yr Revenue Growth: 2.4%
5 Yr Earnings Growth: -%
5 Yr Dividend Growth: -%
Yield: -%
A specialty coastal lumber producer
Western Forest Products (TSE:WEF)
Western Forest Products specializes in high-value, specialty lumber from the coastal forests of British Columbia. The company serves niche markets like marine applications, custom homebuilding, and furniture manufacturing. While smaller than its peers, its focus on premium wood products gives it a competitive edge.
P/E: –
5 Yr Revenue Growth: 5.7%
5 Yr Earnings Growth: -%
5 Yr Dividend Growth: -100.0%
Yield: -%
A fast-growing lumber producer
Interfor is one of Canada’s fastest-growing lumber producers, expanding rapidly through acquisitions and organic growth. With operations across North America, it supplies lumber for home construction, industrial applications, and commercial projects. Its strategy focuses on scaling operations to improve efficiency.
P/E: –
5 Yr Revenue Growth: 10.0%
5 Yr Earnings Growth: -%
5 Yr Dividend Growth: -%
Yield: -%
A leader in utility poles and railway ties
Stella-Jones isn’t a typical lumber stock—it specializes in pressure-treated wood products for railroads, utilities, and industrial applications. This gives it a more stable revenue base compared to traditional lumber producers, making it a unique way to invest in the sector.
P/E: 12.0
5 Yr Revenue Growth: 9.6%
5 Yr Earnings Growth: 19.0%
5 Yr Dividend Growth: 14.9%
Yield: 1.7%
Lumber prices have been extremely volatile
Canadian lumber stocks have made international headlines over the last couple of years as the underlying commodity has spiked in price several times. After predictably dipping as the pandemic started, lumber prices spiked to more than US$900 in July 2020.
They spiked again in 2021, hitting a high of more than US$1500 and again in 2022, although the most recent spike peaked at around US$1250.
Lumber settled in early 2023 before trending slightly lower as the year went on. Now, fast forward to 2025 and we have volatile prices yet again due to the potential lumber trade wars with Canada and the United States.
As a result, it makes these lumber stocks extremely hard to hold over the long-term unless you focus on something like Stella Jones, which provides key infrastructure for companies that are typically expanding regardless of the economic circumstances (utilities and railways.)
Companies with high reliance on residential lumber sales are often ones that need to be bought and sold based on the ebbs and flows of the markets. For the most part, they’ll provide lackluster long-term returns because of the cyclical nature of the business and the volatile nature of lumber prices.