[Part I – Financial Information](index=3&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) This section provides a comprehensive overview of the company's financial performance, statements, and disclosures [Financial Statements](index=3&type=section&id=Item%201.%20FINANCIAL%20STATEMENTS) Net sales and earnings decreased for Q2 and YTD 2025, with Q2 net earnings at **$87 million** and total assets slightly declining to **$16.48 billion** Consolidated Statement of Operations Highlights | DOLLAR AMOUNTS IN MILLIONS, EXCEPT PER-SHARE | Q2 2025 ($ millions) | Q2 2024 ($ millions) | YTD 2025 ($ millions) | YTD 2024 ($ millions) | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $1,884 | $1,939 | $3,647 | $3,735 | | **Operating income** | $178 | $270 | $357 | $466 | | **Net earnings** | $87 | $173 | $170 | $287 | | **Earnings per share, diluted** | $0.12 | $0.24 | $0.23 | $0.39 | Consolidated Balance Sheet Highlights | DOLLAR AMOUNTS IN MILLIONS | June 30, 2025 ($ millions) | Dec 31, 2024 ($ millions) | | :--- | :--- | :--- | | **Total current assets** | $1,758 | $1,748 | | **Total assets** | $16,478 | $16,536 | | **Total current liabilities** | $1,694 | $977 | | **Total liabilities** | $6,954 | $6,815 | | **Total equity** | $9,524 | $9,721 | Consolidated Statement of Cash Flows Highlights (Year-to-Date) | DOLLAR AMOUNTS IN MILLIONS | YTD June 2025 ($ millions) | YTD June 2024 ($ millions) | | :--- | :--- | :--- | | **Net cash from operations** | $466 | $556 | | **Net cash from investing activities** | $(208) | $(220) | | **Net cash from financing activities** | $(350) | $(503) | | **Net change in cash** | $(92) | $(167) | [Note 2: Business Segments](index=9&type=section&id=NOTE%202%3A%20BUSINESS%20SEGMENTS) Q2 2025 segment earnings: Timberlands **$88 million**, Real Estate & ENR **$106 million**, Wood Products **$46 million**, with notable shifts from Q2 2024 Net Contribution to Earnings by Segment (Q2 2025 vs Q2 2024) | DOLLAR AMOUNTS IN MILLIONS | Q2 2025 ($ millions) | Q2 2024 ($ millions) | | :--- | :--- | :--- | | **Timberlands** | $88 | $81 | | **Real Estate & ENR** | $106 | $59 | | **Wood Products** | $46 | $196 | | **Unallocated Items (Charge)** | $(75) | $(63) | Total Assets by Segment | DOLLAR AMOUNTS IN MILLIONS | June 30, 2025 ($ millions) | Dec 31, 2024 ($ millions) | | :--- | :--- | :--- | | **Timberlands and Real Estate & ENR** | $12,455 | $12,545 | | **Wood Products** | $3,278 | $3,116 | | **Unallocated items** | $745 | $875 | | **Consolidated** | $16,478 | $16,536 | [Note 4: Net Earnings Per Share and Share Repurchases](index=12&type=section&id=NOTE%204%3A%20NET%20EARNINGS%20PER%20SHARE%20AND%20SHARE%20REPURCHASES) The company completed its 2021 **$1 billion** share repurchase program and initiated a new **$1 billion** program in Q2 2025, repurchasing **$100 million** in shares - On May 8, 2025, the board approved a new **$1 billion** share repurchase program (the 2025 Repurchase Program), terminating the completed 2021 program[38](index=38&type=chunk) - During Q2 2025, the company repurchased **3.9 million** common shares for approximately **$100 million** Year-to-date 2025 repurchases totaled **4.7 million** shares for **$125 million**[39](index=39&type=chunk) [Note 8: Long-Term Debt and Line of Credit](index=14&type=section&id=NOTE%208%3A%20LONG-TERM%20DEBT%20AND%20LINE%20OF%20CREDIT) The company repaid **$210 million** in debentures, secured a new **$300 million** term loan, and expanded its revolving credit facility to **$1.75 billion** - In Q1 2025, repaid **$139 million** 8.50% debentures and **$71 million** 7.95% debentures at maturity[46](index=46&type=chunk) - Entered into a new **$300 million** senior unsecured term loan maturing in April 2030[46](index=46&type=chunk) - In June 2025, the revolving credit facility was amended, extending the expiration to June 2030 and increasing borrowing capacity to **$1.75 billion** No borrowings were outstanding as of June 30, 2025[47](index=47&type=chunk) [Note 15 & 16: Acquisitions and Divestitures](index=17&type=section&id=NOTE%2015%3A%20TIMBERLAND%20ACQUISITIONS) The company is acquiring **117,000 acres** of timberlands for **$375 million** and divesting the Princeton lumber mill for **$85 million** - Announced the acquisition of **117,000 acres** of timberlands in North Carolina and Virginia for approximately **$375 million**, expected to close in Q3 2025[65](index=65&type=chunk) - Agreed to sell the Princeton lumber mill for approximately **$85 million** As of June 30, 2025, assets held for sale related to this divestiture totaled **$65 million**[67](index=67&type=chunk)[68](index=68&type=chunk) [Management's Discussion and Analysis (MD&A)](index=18&type=section&id=Item%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS%20%28MD%26A%29) Q2 2025 performance decline attributed to lower Wood Products and Timberlands sales, partially offset by Real Estate & ENR gains, while maintaining strong liquidity [Economic and Market Conditions](index=19&type=section&id=ECONOMIC%20AND%20MARKET%20CONDITIONS%20AFFECTING%20OUR%20OPERATIONS) Q2 2025 saw a **5.3%** decrease in U.S. housing starts and lower lumber/OSB prices due to elevated mortgage rates, though long-term housing fundamentals remain favorable - U.S. housing starts for Q2 2025 averaged **1.3 million units**, a **5.3%** decrease from Q1 2025 Single-family starts, a key driver for the business, decreased **9.5%**[75](index=75&type=chunk) - In Q2 2025, the Random Lengths Framing Lumber Composite price averaged **$453/MBF**, and the OSB Composite averaged **$304/MSF**, with both decreasing through the quarter[77](index=77&type=chunk) - 30-year mortgage rates increased slightly from **6.7%** in Q1 2025 to **6.8%** in Q2 2025, impacting housing affordability[82](index=82&type=chunk) [Consolidated Results of Operations](index=20&type=section&id=CONSOLIDATED%20RESULTS) Q2 2025 consolidated net sales decreased 3% to **$1.88 billion** and net earnings dropped 50% to **$87 million**, driven by Wood Products and Timberlands declines Consolidated Results Summary (Q2 2025 vs Q2 2024) | DOLLAR AMOUNTS IN MILLIONS | Q2 2025 ($ millions) | Q2 2024 ($ millions) | Change ($ millions) | | :--- | :--- | :--- | :--- | | **Net sales** | $1,884 | $1,939 | $(55) | | **Operating income** | $178 | $270 | $(92) | | **Net earnings** | $87 | $173 | $(86) | - The **$92 million** decrease in operating income was primarily due to a **$79 million** decrease in consolidated gross income and a **$25 million** product remediation recovery recorded in Q2 2024[89](index=89&type=chunk) [Segment Performance: Timberlands](index=21&type=section&id=TIMBERLANDS) Timberlands segment earnings increased to **$88 million** in Q2 2025 despite a 9% decrease in net sales, driven by lower costs of sales Timberlands Segment Results (Q2 2025 vs Q2 2024) | DOLLAR AMOUNTS IN MILLIONS | Q2 2025 ($ millions) | Q2 2024 ($ millions) | Change ($ millions) | | :--- | :--- | :--- | :--- | | **Total sales** | $529 | $555 | $(26) | | **Costs of sales** | $416 | $450 | $(34) | | **Operating income** | $88 | $80 | $8 | - Net sales to unaffiliated customers decreased by **$36 million** (**9%**), primarily from a **14%** decrease in Western log sales volumes and a **4%** decrease in sales realizations[96](index=96&type=chunk) [Segment Performance: Real Estate, Energy & Natural Resources](index=23&type=section&id=REAL%20ESTATE%2C%20ENERGY%20AND%20NATURAL%20RESOURCES) Real Estate & ENR segment operating income surged 80% to **$106 million** in Q2 2025, driven by a 41% increase in net sales from higher per-acre prices Real Estate Sales Statistics (Q2 2025 vs Q2 2024) | | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **Acres sold** | 24,103 acres | 37,665 acres | (13,562) acres | | **Average price per acre** | $4,757 | $2,062 | $2,695 | - Net sales increased by **$45 million** (**41%**) primarily due to the higher average price per acre[106](index=106&type=chunk) [Segment Performance: Wood Products](index=24&type=section&id=WOOD%20PRODUCTS) Wood Products operating income fell 77% to **$46 million** in Q2 2025, mainly from lower OSB sales realizations, partially offset by structural lumber gains Wood Products Segment Results (Q2 2025 vs Q2 2024) | DOLLAR AMOUNTS IN MILLIONS | Q2 2025 ($ millions) | Q2 2024 ($ millions) | Change ($ millions) | | :--- | :--- | :--- | :--- | | **Total Net Sales** | $1,357 | $1,421 | $(64) | | **Operating income** | $46 | $196 | $(150) | - Oriented strand board sales decreased by **$83 million** due to a **31%** decrease in sales realizations[117](index=117&type=chunk) - Structural lumber sales increased by **$82 million**, driven by an **8%** increase in sales realizations and a **7%** increase in sales volumes[114](index=114&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) The company maintains strong liquidity with **$592 million** cash and a **$1.75 billion** credit facility, projecting **$400 million** in 2025 capital expenditures - As of June 30, 2025, the company had **$592 million** in cash and cash equivalents and **$1.75 billion** of availability on its line of credit[133](index=133&type=chunk) - Announced a plan to invest approximately **$500 million** to build a new TimberStrand® facility in Monticello, Arkansas, with construction beginning in 2025[137](index=137&type=chunk) - Anticipated capital expenditures for 2025 are approximately **$400 million**, excluding about **$130 million** for the Monticello facility investment[138](index=138&type=chunk) [Performance and Liquidity Measures (Non-GAAP)](index=30&type=section&id=PERFORMANCE%20AND%20LIQUIDITY%20MEASURES) Consolidated Adjusted EBITDA for Q2 2025 was **$336 million**, down from **$410 million**, primarily due to Wood Products, while Adjusted FAD was **$311 million** Adjusted EBITDA by Segment (Q2 2025 vs Q2 2024) | DOLLAR AMOUNTS IN MILLIONS | Q2 2025 ($ millions) | Q2 2024 ($ millions) | Change ($ millions) | | :--- | :--- | :--- | :--- | | **Timberlands** | $152 | $147 | $5 | | **Real Estate & ENR** | $143 | $102 | $41 | | **Wood Products** | $101 | $225 | $(124) | | **Unallocated Items** | $(60) | $(64) | $4 | | **Total Adjusted EBITDA** | $336 | $410 | $(74) | Adjusted FAD Reconciliation (Q2) | DOLLAR AMOUNTS IN MILLIONS | Q2 2025 ($ millions) | Q2 2024 ($ millions) | | :--- | :--- | :--- | | **Net cash from operations** | $396 | $432 | | **Capital expenditures** | $(107) | $(91) | | **Adjustments** | $22 | $(25) | | **Adjusted FAD** | $311 | $316 | [Quantitative and Qualitative Disclosures About Market Risk](index=33&type=section&id=Item%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company's primary market risk is interest rate exposure on its **$5.2 billion** long-term debt, comprising **$4.66 billion** fixed-rate and **$550 million** variable-rate Long-Term Debt Obligations as of June 30, 2025 | DOLLAR AMOUNTS IN MILLIONS | Total ($ millions) | Fair Value ($ millions) | | :--- | :--- | :--- | | **Fixed-rate debt** | $4,655 | $4,606 | | **Variable-rate debt** | $550 | $550 | [Controls and Procedures](index=33&type=section&id=Item%204.%20CONTROLS%20AND%20PROCEDURES) As of June 30, 2025, disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - The company's principal executive and financial officers concluded that disclosure controls and procedures were effective as of June 30, 2025[166](index=166&type=chunk) - No material changes occurred in the company's internal control over financial reporting during Q2 2025[167](index=167&type=chunk) [Part II – Other Information](index=33&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) This section provides additional disclosures including legal proceedings, risk factors, equity security purchases, and other relevant information [Legal Proceedings](index=33&type=section&id=Item%201.%20LEGAL%20PROCEEDINGS) Management believes no current legal proceedings will have a material adverse effect on the company's financial condition or operations - Management does not believe any current legal proceedings will have a material adverse effect on the company's consolidated financial statements[53](index=53&type=chunk) [Risk Factors](index=33&type=section&id=Item%201A.%20RISK%20FACTORS) No material changes were reported regarding the risk factors disclosed in the 2024 Annual Report on Form 10-K - No material changes were reported with respect to the risk factors disclosed in the 2024 Annual Report on Form 10-K[169](index=169&type=chunk) [Issuer Purchases of Equity Securities](index=34&type=section&id=Item%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) In Q2 2025, the company repurchased **3.9 million** shares for **$100 million**, completing its 2021 program and initiating a new **$1 billion** repurchase program Share Repurchases During Q2 2025 | Period | Total Shares Purchased | Average Price Paid ($) | | :--- | :--- | :--- | | April 1 – April 30 | 2,671,016 | $25.64 | | May 1 – May 31 | 944,400 | $25.90 | | June 1 – June 30 | 273,516 | $26.13 | | **Total** | **3,888,932** | **$25.74** | - A new **$1 billion** share repurchase program was approved on May 8, 2025 As of June 30, 2025, **$974 million** remained authorized for repurchases[171](index=171&type=chunk)[172](index=172&type=chunk) [Other Information](index=34&type=section&id=Item%205.%20OTHER%20INFORMATION) No director or officer adopted, modified, or terminated a Rule 10b5-1 trading plan during Q2 2025 - No director or officer adopted, modified, or terminated a Rule 10b5-1 trading plan in Q2 2025[173](index=173&type=chunk) [Exhibits](index=35&type=section&id=Item%206.%20EXHIBITS) The report includes key exhibits such as the Amended and Restated Revolving Credit Facility Agreement, CEO/CFO certifications, and XBRL data files - Key exhibits include the Amended and Restated Revolving Credit Facility Agreement (10.1), CEO and CFO certifications (31.1, 31.2), and XBRL filings[174](index=174&type=chunk)

Core Insights - Weyerhaeuser Company (WY) reported second-quarter 2025 results with earnings and net sales exceeding Zacks Consensus Estimates [1][5] - Year-over-year, both earnings and net sales declined due to lower domestic sales realizations and increased costs in the Timberlands segment [2][10] Financial Performance - Adjusted earnings were 12 cents per share, beating the consensus estimate of 10 cents by 20%, but down 42.9% from 21 cents in the previous year [5][10] - Net sales reached $1.88 billion, surpassing the consensus mark of $1.83 billion by 2.7%, but down 2.8% from $1.94 billion in the same quarter last year [5][10] - Adjusted EBITDA was $336 million, an 18% decrease from $410 million in the year-ago period [5] Segment Performance - Timberlands segment net sales were $529 million, down from $555 million year-over-year, with adjusted EBITDA of $152 million, up 3.4% from $147 million [6] - Real Estate, Energy, and Natural Resources segment saw net sales of $154 million, a 41.3% increase from $109 million year-over-year, with adjusted EBITDA of $143 million, up from $102 million [7] - Wood Products segment sales totaled $1.357 billion, down 4.5% from $1.421 billion year-over-year, with adjusted EBITDA of $101 million, down 55.1% from $225 million [8] Outlook - For Q3 2025, the Timberlands segment is expected to see earnings and adjusted EBITDA approximately $10 million lower than Q2 due to cost pressures [12] - The Real Estate, Energy, and Natural Resources segment anticipates earnings to be about $60 million lower than Q2, with adjusted EBITDA expected to decrease by about $80 million [13] - Wood Products segment is expected to maintain comparable earnings and adjusted EBITDA levels to Q2, excluding changes in average sales realizations [14] Financial Position - As of June 30, 2025, Weyerhaeuser had cash and cash equivalents of $592 million, down from $684 million at the end of 2024, and net long-term debt of $4.27 billion, down from $4.87 billion [11]

Financial Data and Key Metrics Changes - Weyerhaeuser reported second quarter GAAP earnings of $87 million or $0.12 per diluted share on net sales of $1.9 billion, with adjusted EBITDA totaling $336 million, a slight increase over the first quarter of 2025 [5][24] - Cash from operations was $396 million, ending the quarter with approximately $600 million in cash and total debt of just under $5.2 billion [24][26] - Share repurchase activity totaled $100 million in the second quarter, marking the highest quarterly level since late 2022 [24] Business Line Data and Key Metrics Changes - Timberlands contributed $88 million to second quarter earnings, with adjusted EBITDA of $152 million, a $15 million decrease compared to the first quarter, primarily due to higher costs in Western operations [10] - Real Estate, Energy, and Natural Resources contributed $106 million to second quarter earnings and $143 million to adjusted EBITDA, with a $61 million increase from the prior quarter driven by the timing and mix of real estate sales [14] - Wood Products contributed $46 million to second quarter earnings and $101 million to adjusted EBITDA, with a $29 million decrease compared to the first quarter due to lower product pricing and slightly higher log costs [15][18] Market Data and Key Metrics Changes - Log demand in the Western domestic market was healthy at the start of the second quarter but weakened as the quarter progressed, leading to lower log prices [10] - In Japan, log markets remained stable, with average sales realizations for export logs increasing moderately compared to the first quarter [11] - Southern sawlog demand was muted in the second quarter, while demand for fiber logs improved as mills transitioned from spring maintenance outages [12] Company Strategy and Development Direction - The company is acquiring 117,000 acres of timberlands in North Carolina and Virginia for $375 million, expected to enhance its footprint in a growing sawlog and fiber market [6][8] - Weyerhaeuser aims to achieve a multi-year target of $1 billion in investments to grow its timberlands portfolio by the end of 2025 [8] - The company is committed to active portfolio management, including targeted acquisitions and divestitures of non-strategic acreage [7][9] Management's Comments on Operating Environment and Future Outlook - Management noted that the housing market has softened, with total housing starts averaging 1.3 million units in the second quarter, impacted by weaker consumer confidence and elevated mortgage rates [38] - There is optimism for potential catalysts for improvement in the second half of the year, including clarity on tax bills and possible Fed support on interest rates [39] - The long-term fundamentals for a strong housing market remain intact, supported by favorable demographic trends and an underbuilt housing stock [40] Other Important Information - The company expects third quarter earnings and adjusted EBITDA for Timberlands to be approximately $10 million lower compared to the second quarter, driven by lower sales realizations and higher costs [28] - Capital expenditures were $107 million in the second quarter, with a total investment for the new engineered wood products facility in Arkansas expected to be approximately $500 million through 2027 [26][27] Q&A Session Summary Question: Outlook for Wood Products segment and operational excellence - Management emphasized the importance of operational excellence and flexibility to navigate down cycles, focusing on cost control and production alignment with demand [50][52] Question: Timberland acquisition environment - The Timberlands market is described as solid, with expectations for continued strong demand for timberland packages despite a potential decrease in overall transaction volume [54][55] Question: EWP pricing trends and catalysts for reversal - The decline in EWP pricing is attributed to a slowdown in single-family construction, with potential catalysts for recovery including increased housing activity and repair and remodel demand [64][66] Question: Impact of the "big beautiful bill" on natural climate solutions - The bill is viewed as a net positive for Weyerhaeuser, with ongoing projects expected to align with new incentives for renewable energy [74][76] Question: Current market conditions for lumber - Lumber pricing dynamics are influenced by anticipated duties and production adjustments, with expectations for pricing to stabilize and potentially increase in the fall [81][84] Question: Divestiture funding for acquisitions - The acquisition will be funded primarily through divestitures of non-core timberlands, with a focus on completing transactions within a specified timeline [98][99]

Financial Data and Key Metrics Changes - Weyerhaeuser reported second quarter GAAP earnings of $87 million or $0.12 per diluted share on net sales of $1.9 billion, with adjusted EBITDA totaling $336 million, a slight increase over the first quarter of 2025 [4][23] - Cash from operations was $396 million, ending the quarter with approximately $600 million in cash and total debt of just under $5.2 billion [23] Business Line Data and Key Metrics Changes - Timberlands contributed $88 million to second quarter earnings, with adjusted EBITDA of $152 million, a $15 million decrease compared to the first quarter, primarily due to higher costs in Western operations [8][12] - Southern Timberlands adjusted EBITDA was $69 million, slightly down from the prior quarter, with muted sawlog demand due to wet weather conditions [11][12] - Real Estate, Energy, and Natural Resources contributed $106 million to second quarter earnings and $143 million to adjusted EBITDA, with a $61 million increase from the prior quarter driven by real estate sales [13] - Wood Products contributed $46 million to second quarter earnings and $101 million to adjusted EBITDA, with a $29 million decrease compared to the first quarter due to lower product pricing [15][20] Market Data and Key Metrics Changes - Log demand in the Western domestic market was healthy at the start of the quarter but weakened as the quarter progressed, leading to lower log prices [9][10] - In Japan, log markets remained stable, with average sales realizations for export logs increasing moderately compared to the first quarter [10] - The housing market showed signs of softening, with total housing starts averaging 1.3 million units in the second quarter, and single-family starts below 1 million units [37] Company Strategy and Development Direction - The company is acquiring 117,000 acres of timberlands in North Carolina and Virginia for $375 million, expected to enhance its footprint in a growing market [5][6] - Weyerhaeuser aims to grow its timberlands portfolio through $1 billion of investments by the end of 2025, while also focusing on active portfolio management [6][7] - The company plans to balance capital allocation activities to drive long-term value for shareholders, including share repurchases and strategic acquisitions [7][24] Management's Comments on Operating Environment and Future Outlook - Management noted that the current market conditions are challenging, with weaker consumer confidence and elevated mortgage rates impacting housing activity [37][38] - There is optimism for potential catalysts for improvement in the second half of the year, including clarity on tax bills and possible Fed support on interest rates [38] - The long-term fundamentals for a strong housing market remain intact, supported by favorable demographic trends and an underbuilt housing stock [39] Other Important Information - The company returned over $5.7 billion in cash to shareholders since the beginning of 2021 through dividends and share repurchases [24] - Capital expenditures in the second quarter were $107 million, with a total investment for the new engineered wood products facility in Arkansas expected to be approximately $500 million through 2027 [25] Q&A Session Summary Question: Outlook for Wood Products segment and balancing capacity - Management emphasized the importance of operational excellence and flexibility to navigate softer demand environments while maintaining cost efficiency [47][48] Question: Timberland acquisition environment and divestitures - The timberland market is solid, with expectations for continued strong demand for timberland packages, and divestitures are expected to deliver strong value [52][54] Question: EWP pricing trends and catalysts for reversal - The slowdown in single-family construction has pressured EWP pricing, but management expects a recovery as housing activity picks up [61][63] Question: Real estate prices per acre and future expectations - Prices per acre have been appreciating due to timing and mix, with expectations for continued interest in timberland assets over time [65][67] Question: Impact of the "big beautiful bill" on natural climate solutions - The bill is seen as a net positive, with ongoing projects expected to align with new incentives, although there are some near-term challenges [69][71] Question: Current market conditions for lumber - Lumber prices have stabilized recently, with expectations for pricing to increase in the fall due to upcoming duties and market dynamics [76][78] Question: Divestiture funding for acquisitions and timeline - The acquisition will be funded primarily through divestitures of non-core timberlands, with a focus on completing transactions within a 180-day timeline [92][94]

Financial Performance - The company's total Adjusted EBITDA for Q2 2025 was $336 million, compared to $328 million in Q1 2025, representing an increase of $8 million[6] - Net earnings for Q2 2025 were $87 million, with a diluted EPS of $0.12, compared to net earnings of $83 million and a diluted EPS of $0.11 in Q1 2025[8] - Adjusted Funds Available for Distribution (Adjusted FAD) for Q2 2025 was $311 million, and year-to-date Adjusted FAD was $304 million[43] Segment Performance - Real Estate, Energy & Natural Resources Adjusted EBITDA increased from $82 million in Q1 2025 to $143 million in Q2 2025, an increase of $61 million[6] - Wood Products Adjusted EBITDA decreased from $161 million in Q1 2025 to $101 million in Q2 2025, a decrease of $60 million[6] - Timberlands Adjusted EBITDA decreased from $167 million in Q1 2025 to $152 million in Q2 2025, a decrease of $15 million[6] Timberlands Key Drivers - In the West, fee harvest volumes and sales volumes were comparable between Q1 and Q2 2025, while sales realizations were comparable overall with moderately higher realizations for Japan[16] - In the South, fee harvest volumes and sales realizations were slightly higher in Q2 2025 compared to Q1 2025[16] - In the North, fee harvest volumes were significantly lower in Q2 2025 due to spring break-up conditions, while sales realizations were slightly higher[16] Real Estate, Energy & Natural Resources - Real Estate Adjusted EBITDA increased from $59 million in Q1 2025 to $113 million in Q2 2025, while Energy & Natural Resources Adjusted EBITDA increased from $23 million to $30 million[26] Wood Products Key Drivers - Lumber sales realizations decreased by 2% in Q2 2025 compared to Q1 2025[36] - Oriented Strand Board (OSB) sales realizations decreased by 12% in Q2 2025 compared to Q1 2025[36] - Engineered Wood Products (EWP) sales volumes were higher for all products, but sales realizations were lower for most products[36] Outlook - The company expects Timberlands earnings to be approximately $10 million lower in Q3 2025 compared to Q2 2025[51] - Real Estate, Energy & Natural Resources earnings are expected to be approximately $60 million lower in Q3 2025 than in Q2 2025, with Adjusted EBITDA approximately $80 million lower[51] - Wood Products earnings are expected to be comparable to Q2 2025, excluding the effect of changes in average sales realizations for lumber and oriented strand board[51]

Core Insights - Weyerhaeuser reported revenue of $1.88 billion for the quarter ended June 2025, a decrease of 2.8% year-over-year, with EPS at $0.12 compared to $0.21 in the same quarter last year, exceeding the Zacks Consensus Estimate for revenue by 2.72% and EPS by 20% [1][2] Financial Performance - Revenue of $1.88 billion represents a 2.8% decline from the previous year [1] - EPS decreased from $0.21 to $0.12 year-over-year [1] - The company’s revenue surpassed the Zacks Consensus Estimate of $1.83 billion [1] - EPS exceeded the consensus estimate of $0.10 [1] Key Metrics - Weyerhaeuser's stock returned -0.4% over the past month, underperforming the Zacks S&P 500 composite's +5.7% [3] - The company holds a Zacks Rank 4 (Sell), indicating potential underperformance in the near term [3] Sales Realizations - Delivered Logs Third Party Sales Realizations (per ton) - West: $117.69, slightly above the $117.54 estimate [4] - Wood Products - Medium Density Fiberboard (3/4') sales realizations: $1,195.00, exceeding the $1,152.11 estimate [4] - Delivered Logs Third Party Sales Realizations (per ton) - North: $74.30, above the $73.91 estimate [4] - Net Sales- Wood Products: $1.36 billion, compared to the $1.31 billion estimate, reflecting a -4.5% change year-over-year [4] - Net Sales- Real Estate & ENR: $154 million, surpassing the $143.97 million estimate, with a year-over-year increase of +41.3% [4] - Wood Products Segment- Structural Lumber: $581 million, exceeding the $542.21 million estimate, with a +16.4% year-over-year change [4] - Wood Products Segment- Oriented Strand Board: $205 million, slightly below the $207.92 million estimate, with a -28.8% year-over-year change [4] - Timberlands Segment- Third Party Net Sales- Recreational and other lease revenue: $19 million, matching the $19.78 million estimate [4] - Wood Products Segment- Engineered Solid Section: $169 million, below the $176.32 million estimate, with a -11.5% year-over-year change [4] - Wood Products Segment- Engineered I-joists: $95 million, below the $101.64 million estimate, with a -11.2% year-over-year change [4]

Company Performance - Weyerhaeuser reported quarterly earnings of $0.12 per share, exceeding the Zacks Consensus Estimate of $0.10 per share, but down from $0.21 per share a year ago, representing an earnings surprise of +20.00% [1] - The company posted revenues of $1.88 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.72%, although this is a decrease from year-ago revenues of $1.94 billion [2] - Over the last four quarters, Weyerhaeuser has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Outlook - Weyerhaeuser shares have declined approximately 7.8% since the beginning of the year, contrasting with the S&P 500's gain of 8.1% [3] - The current consensus EPS estimate for the upcoming quarter is $0.08 on revenues of $1.75 billion, and for the current fiscal year, it is $0.42 on revenues of $7.06 billion [7] - The estimate revisions trend for Weyerhaeuser was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Building Products - Wood industry, to which Weyerhaeuser belongs, is currently in the bottom 13% of over 250 Zacks industries, suggesting a challenging environment [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Weyerhaeuser's stock performance [5]

Core Viewpoint - Weyerhaeuser Company reported its second quarter 2025 financial results, with details available on its website and through the U.S. Securities and Exchange Commission [1] Financial Results - The company will hold a live conference call on July 25, 2025, at 7 a.m. Pacific (10 a.m. Eastern) to discuss the second quarter results [2] - Access to the live webcast and presentation will be available on the company's Investors section on the same date [2] Conference Call Information - For North American participants, the conference call can be joined by dialing 877-407-0792 with access code 13748397 [3] - International participants can join by dialing 201-689-8263 with the same access code [3] - Replays of the call will be available for two weeks through specific numbers for both North America and international callers [3] Company Overview - Weyerhaeuser is one of the largest private owners of timberlands, controlling approximately 10.4 million acres in the U.S. and additional public timberlands in Canada [4] - The company has been a leader in sustainability, managing all its timberlands on a fully sustainable basis [4] - In 2024, Weyerhaeuser generated $7.1 billion in net sales and employed around 9,400 people [4] - The company operates as a real estate investment trust and trades on the New York Stock Exchange under the symbol WY [4]

[Consolidated Financial Results](index=1&type=section&id=Consolidated%20Financial%20Results) [Consolidated Statement of Operations](index=1&type=section&id=Consolidated%20Statement%20of%20Operations) Q2 2025 net sales were $1,884 million and net earnings $87 million, both declining from Q2 2024, reflecting profitability pressure Consolidated Statement of Operations Summary (Millions) | | Q2 2025 (Millions) | Q2 2024 (Millions) | YTD 2025 (Millions) | YTD 2024 (Millions) | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $1,884 | $1,939 | $3,647 | $3,735 | | **Gross margin** | $325 | $404 | $660 | $759 | | **Operating income** | $178 | $270 | $357 | $466 | | **Net earnings** | $87 | $173 | $170 | $287 | - Both quarterly and year-to-date net sales experienced a slight decline compared to the previous year, while net earnings decreased substantially by approximately **49.7%** for the quarter and **40.8%** for the year-to-date period, indicating pressure on profitability[1](index=1&type=chunk) [Per Share Information](index=1&type=section&id=Per%20Share%20Information) Q2 2025 diluted EPS decreased 50% to $0.12, while dividends per share slightly increased, reflecting share repurchase activity Per Share Information Summary | | Q2 2025 ($) | Q2 2024 ($) | YTD 2025 ($) | YTD 2024 ($) | | :--- | :--- | :--- | :--- | :--- | | **Earnings per share, diluted** | $0.12 | $0.24 | $0.23 | $0.39 | | **Dividends paid per common share** | $0.21 | $0.20 | $0.42 | $0.54 | - The number of common shares outstanding decreased from **727.5 million** at the end of Q2 2024 to **721.8 million** at the end of Q2 2025, indicating the company has been returning capital to shareholders via buybacks[2](index=2&type=chunk) [Adjusted EBITDA (Non-GAAP)](index=1&type=section&id=Adjusted%20EBITDA%20(Non-GAAP)) Company-wide Adjusted EBITDA declined to $336 million in Q2 2025 from $410 million in Q2 2024, reflecting lower operating income Adjusted EBITDA Summary (Millions) | | Q2 2025 (Millions) | Q2 2024 (Millions) | YTD 2025 (Millions) | YTD 2024 (Millions) | | :--- | :--- | :--- | :--- | :--- | | **Net earnings** | $87 | $173 | $170 | $287 | | **Operating income** | $178 | $270 | $357 | $466 | | **Adjusted EBITDA** | $328 | $410 | $664 | $762 | - Adjusted EBITDA is a non-GAAP measure defined by the company as operating income adjusted for depreciation, depletion, amortization, basis of real estate sold, and special items[3](index=3&type=chunk) [Condensed Consolidated Balance Sheet](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheet) As of June 30, 2025, total assets were $16,478 million, slightly down from year-end 2024, while total liabilities increased and total equity decreased Condensed Consolidated Balance Sheet (Millions) | | June 30, 2025 (Millions) | Dec 31, 2024 (Millions) | | :--- | :--- | :--- | | **Total current assets** | $1,758 | $1,748 | | **Total assets** | $16,478 | $16,536 | | **Total current liabilities** | $1,694 | $977 | | **Long-term debt, net** | $4,268 | $4,866 | | **Total liabilities** | $6,954 | $6,815 | | **Total equity** | $9,524 | $9,721 | [Consolidated Statement of Cash Flows](index=4&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) Net cash from operations for the six months ended June 30, 2025, decreased to $466 million, with significant cash usage in investing and financing activities Consolidated Statement of Cash Flows (Millions) | in millions (Year-to-Date) | June 30, 2025 (Millions) | June 30, 2024 (Millions) | | :--- | :--- | :--- | | **Net cash from operations** | $466 | $556 | | **Net cash from investing activities** | $(208) | $(220) | | **Net cash from financing activities** | $(350) | $(503) | | **Net change in cash** | $(92) | $(167) | - Year-to-date capital return to shareholders included **$304 million** in cash dividends and **$125 million** in common share repurchases[8](index=8&type=chunk) [Segment Analysis](index=5&type=section&id=Segment%20Analysis) [Timberlands Segment](index=5&type=section&id=Timberlands%20Segment) Timberlands segment Q2 2025 operating income increased to $88 million and Adjusted EBITDA to $152 million, despite lower net sales, reflecting improved cost management Timberlands Segment Performance (Millions) | | Q2 2025 (Millions) | Q2 2024 (Millions) | YTD 2025 (Millions) | YTD 2024 (Millions) | | :--- | :--- | :--- | :--- | :--- | | **Total net sales** | $529 | $555 | $1,063 | $1,076 | | **Operating income** | $88 | $80 | $190 | $160 | | **Adjusted EBITDA** | $152 | $147 | $319 | $291 | - Third-party sales of delivered logs in the West decreased to **$169 million** in Q2 2025 from **$205 million** in Q2 2024, driving the overall decline in segment sales[13](index=13&type=chunk) [Real Estate, Energy & Natural Resources Segment](index=6&type=section&id=Real%20Estate%2C%20Energy%20%26%20Natural%20Resources%20Segment) Real Estate, Energy & Natural Resources segment Q2 2025 operating income nearly doubled to $106 million, driven by higher average real estate prices per acre Real Estate, Energy & Natural Resources Segment Performance (Millions) | | Q2 2025 (Millions) | Q2 2024 (Millions) | YTD 2025 (Millions) | YTD 2024 (Millions) | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $154 | $109 | $248 | $216 | | **Operating income** | $106 | $59 | $162 | $119 | | **Adjusted EBITDA** | $143 | $102 | $225 | $196 | - The average price per acre for real estate sold surged to **$4,757** in Q2 2025 from **$2,062** in Q2 2024, while acres sold decreased from **37,665** to **24,103**[17](index=17&type=chunk) [Wood Products Segment](index=7&type=section&id=Wood%20Products%20Segment) Wood Products segment Q2 2025 operating income plummeted to $46 million and Adjusted EBITDA to $101 million, driven by lower sales realizations Wood Products Segment Performance (Millions) | | Q2 2025 (Millions) | Q2 2024 (Millions) | YTD 2025 (Millions) | YTD 2024 (Millions) | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $1,357 | $1,421 | $2,644 | $2,723 | | **Operating income** | $46 | $196 | $152 | $324 | | **Adjusted EBITDA** | $101 | $225 | $262 | $409 | - Sales realizations for Oriented Strand Board (OSB) dropped to **$280** per thousand square feet in Q2 2025 from **$407** in Q2 2024, contributing significantly to the segment's lower profitability[22](index=22&type=chunk) - Capital expenditures for the segment YTD 2025 were **$155 million**, a notable increase from **$105 million** in YTD 2024, including **$38 million** for the Monticello engineered wood products facility[20](index=20&type=chunk)[21](index=21&type=chunk) [Unallocated Items](index=8&type=section&id=Unallocated%20Items) Unallocated items resulted in a net charge to earnings of $75 million in Q2 2025, higher than the prior year, with an operating loss of $62 million for the quarter - Unallocated items are gains or charges not related to, or allocated to, an individual operating segment, such as corporate overhead, share-based compensation, and intersegment profit elimination[24](index=24&type=chunk) Unallocated Items Summary (Millions) | | Q2 2025 (Millions) | Q2 2024 (Millions) | YTD 2025 (Millions) | YTD 2024 (Millions) | | :--- | :--- | :--- | :--- | :--- | | **Operating loss** | $(62) | $(65) | $(147) | $(137) | | **Net charge to earnings** | $(75) | $(63) | $(174) | $(130) |

Core Viewpoint - Weyerhaeuser Company (WY) is expected to report second-quarter 2025 results on July 24, with anticipated declines in earnings and net sales compared to the previous year [1][3][10]. Earnings Performance - In the last reported quarter, Weyerhaeuser's adjusted earnings were 11 cents per share, meeting the Zacks Consensus Estimate, while net sales exceeded expectations by 0.7% [1]. - The company has beaten consensus estimates in two of the last four quarters, with an average surprise of 50.7% [2]. Earnings Estimates - The Zacks Consensus Estimate for the upcoming quarter's EPS has decreased to 12 cents from 15 cents, indicating a 42.9% decline year-over-year [3]. - The consensus for net sales is projected at $1.88 billion, reflecting a 3% year-over-year decline [3]. Segment Performance - The Wood Products segment, which contributed approximately 73% of first-quarter 2025 net sales, is expected to see a decline in earnings and adjusted EBITDA due to soft demand and increased costs [4][6]. - The Timberlands segment is projected to maintain its outlook, with expected lower earnings and adjusted EBITDA quarter-over-quarter, influenced by higher costs and unfavorable sales realizations [8]. - The Real Estate, Energy, and Natural Resources segment is anticipated to show significant growth, with adjusted EBITDA expected to increase by 61.6% sequentially due to favorable sales timing [10][11]. Financial Projections - The Wood Products segment's net sales are expected to decline 4.4% year-over-year but grow 5.6% sequentially to $1.36 billion, with adjusted EBITDA forecasted to drop 37.3% year-over-year [7][10]. - The Timberlands segment's net sales are expected to decline 2% year-over-year but increase 1.9% sequentially to $544 million [9]. - The Real Estate, Energy, and Natural Resources segment's net sales are projected to be $136.4 million, up 25.1% year-over-year and 45.1% sequentially [11]. Earnings Prediction Model - The model indicates that Weyerhaeuser is unlikely to achieve an earnings beat this quarter, with an Earnings ESP of -18.10% and a Zacks Rank of 4 (Sell) [12].