Fighting Fires Together campaign raises awareness and helps address mental health challenges of wildland firefightingSEATTLE, May 28, 2025 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) and Firefighter Behavioral Health Alliance (FBHA) today announced an extension of their Fighting Fires Together campaign, a partnership that provides specialized mental health support for wildland firefighters and their families across the Pacific Northwest.Fighting Fires Together, now in its fourth year, addresses the ofte ...

Core Strategy and Acquisition - Weyerhaeuser Company is making a significant move by acquiring 117,000 acres of timberlands in North Carolina and Virginia for $375 million, enhancing its presence in the U.S. South where demand for sawlogs and fiber is strong [1] - The acquisition is expected to unlock immediate and long-term cash flow advantages by integrating these mature, high-yield timberlands with existing assets [1][2] Financial and Operational Impact - The newly acquired land is expected to yield an average annual harvest of 860,000 tons over the next five years, with 81% of the land covered in planted pine [2] - Weyerhaeuser anticipates a 5.1% average timber free cash flow yield during this period, reinforcing its Southern Timberlands business as a cash flow leader [2] Long-Term Value Creation - The acquisition offers potential for additional value creation through real estate, carbon credits, and broader resource development, aligning with Weyerhaeuser's strategy of monetizing natural climate solutions [3] - Since 2022, Weyerhaeuser has acquired over $1.1 billion in high-quality land holdings, supporting its multi-year timberland growth target set in 2021 [3] Financial Discipline and Shareholder Value - The $375 million acquisition will be funded primarily through tax-efficient divestitures of non-core assets, ensuring minimal impact on the balance sheet [4] - Weyerhaeuser's management emphasizes a commitment to disciplined capital allocation, having returned substantial capital via dividends and buybacks [4] Market Performance and Challenges - Weyerhaeuser's stock has decreased by 15.7% in the past three months, contrasting with a 1.7% rise in the Zacks Building Products - Wood industry [5] - The company has faced challenges due to lower export sales volumes, particularly to China, impacting overall performance [5][7] Future Outlook - Despite recent challenges, Weyerhaeuser's focus on expanding its facility and strategic long-term investments is expected to enhance its business portfolios and shareholder value [8] - The acquisition is viewed as a strategic move that positions the company well for sustainable value delivery, appealing to long-term investors [8]

Core Viewpoint - Weyerhaeuser Company has announced an agreement to acquire approximately 117,000 acres of high-quality timberlands in North Carolina and Virginia for $375 million, enhancing its Southern Timberlands portfolio and expected to deliver immediate cash flows [1][2]. Acquisition Details - The acquisition includes mature, productive timberlands that will integrate well with existing operations in North Carolina and expand into southeastern Virginia markets [1][2]. - This transaction is part of a broader strategy, with Weyerhaeuser having acquired over $1.1 billion in timberlands since early 2022, aligning with its growth targets [2]. Financial Aspects - The cash for the acquisition will primarily come from divestitures of non-core timberlands, which are expected to be completed in a tax-efficient manner [2]. - Upon completion, Weyerhaeuser will manage approximately 744,000 acres in North Carolina and 150,000 acres in Virginia, along with three mills and two distribution centers [2]. Operational Insights - The acquired timberlands are located in strong markets, with 81% planted pine acreage and an expected average annual harvest of 7.4 tons per acre over the first five years [4]. - The anticipated average annual timber free cash flow yield from the acquisition is projected to be 5.1% over the same period [4]. Company Background - Weyerhaeuser is one of the largest private owners of timberlands, managing approximately 10.4 million acres in the U.S. and has been a leader in sustainable forestry for over a century [3]. - In 2024, the company reported $7.1 billion in net sales and employed around 9,400 people [3].

Core Points - Weyerhaeuser Company has agreed to sell its lumber mill in Princeton, British Columbia, to the Gorman Group for approximately $120 million CAD, which includes the manufacturing facility, timber licenses, and working capital [1][3] - The transaction is expected to be completed in the third quarter of 2025, subject to customary closing conditions and regulatory review [3][7] - Weyerhaeuser anticipates recognizing a gain from the sale and incurring a tax liability of about $15 million CAD [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 generated $7.1 billion in net sales in 2024 and employs around 9,400 people [4] - Weyerhaeuser operates as a real estate investment trust and is recognized for its commitment to sustainability in timberland management [4] Gorman Group Overview - The Gorman Group is a family-owned company with over 75 years of experience in the wood products industry, operating multiple facilities in Southern British Columbia and Northern Washington [5] - The company employs approximately 900 people and focuses on high-value lumber products for home finishing and renovation markets [5] - Gorman Bros. Lumber, a division of the Gorman Group, is the largest customer of the Princeton mill, indicating a strong existing relationship [2][5]

Company Overview - Weyerhaeuser Company is one of the world's largest private owners of timberlands, controlling approximately 10.4 million acres in the U.S. and additional public timberlands in Canada [3] - The company has been a global leader in sustainability for over a century, managing 100% of its timberlands sustainably in compliance with recognized forestry standards [3] - In 2024, Weyerhaeuser generated $7.1 billion in net sales and employed around 9,400 people [3] Upcoming Event - Devin W. Stockfish, president and CEO, and David M. Wold, senior vice president and CFO, will represent Weyerhaeuser at the Nareit REITweek: 2025 Investor Conference on June 3, 2025 [1] - The presentation is scheduled for 3:15 p.m. Eastern, with webcast links and materials available on the company's investor website [2]

Core Points - Weyerhaeuser Company declared a quarterly base cash dividend of $0.21 per share, payable on June 13, 2025, to shareholders of record as of May 30, 2025 [1] - The board authorized a new share repurchase program of up to $1 billion, replacing the previous $1 billion program completed in September 2021 [2] - The company repurchased approximately $74 million of common shares in the second quarter of 2025 under the prior authorization [2] - Year to date, Weyerhaeuser has completed nearly $100 million in opportunistic share repurchases and has returned over $5.7 billion to shareholders since the beginning of 2021, including $1 billion in share repurchases [3] - The company aims to return 75 to 80 percent of annual Adjusted Funds Available for Distribution (Adjusted FAD) to shareholders through dividends and share repurchases [3][4] 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 [5] - The company generated $7.1 billion in net sales in 2024 and employs around 9,400 people [5] - Weyerhaeuser operates as a real estate investment trust and is listed on the New York Stock Exchange under the symbol WY [5]

Company Overview - Weyerhaeuser is a real estate investment trust and one of the largest private owners of timberlands globally, holding over 10.5 million acres across the United States [1] Investment Strategy - The investment strategy focuses on long-term wealth building, emphasizing the reinvestment of growing dividends from well-managed organizations and balancing current income with sustainable growth [1] - The approach includes seeking opportunities with substantial margin of safety and a wide moat, as well as taking advantage of short-term market fears to acquire quality assets at fair prices [1] Asset Management - The company manages personal and family assets with a goal of compounding wealth over multiple generations, typically holding investments for 10 years or longer [1] - A general rule for asset location involves holding dividend growth stocks in taxable brokerage accounts while utilizing Roth IRAs for REIT and BDC investments [1]

Financial Performance - For the quarter ended March 2025, total net sales were $1,763 million, a decrease of 1.8% from $1,796 million in the same quarter of 2024[28]. - The Timberlands segment generated net sales of $382 million, down from $387 million year-over-year, while the Wood Products segment saw a slight decrease from $1,302 million to $1,287 million[31]. - Gross margin for the quarter ended March 2025 was $335 million, compared to $355 million in the prior year, reflecting a decrease of approximately 5.6%[28]. - Net earnings for the quarter were $83 million, a decline of 27.2% from $114 million in the same quarter of 2024[29]. - The company’s basic earnings per share for the quarter were $0.11, compared to $0.16 in the same quarter of 2024, representing a decline of 31.3%[40]. Cash and Debt Management - The company repurchased 845,049 common shares for approximately $25 million during the first quarter of 2025, with remaining authorization for future repurchases totaling $74 million[38]. - Long-term debt decreased by $139 million in the first quarter of 2025 due to the repayment of debentures, while a new $300 million senior unsecured term loan was established[46]. - The company has no outstanding borrowings on its $1.5 billion revolving credit facility as of March 31, 2025[47]. - The fair value of total debt as of March 31, 2025, was estimated at $5,167 million, slightly above the carrying value of $5,131 million[48]. - The total cash, cash equivalents, and restricted cash decreased to $560 million as of March 31, 2025, from $903 million as of March 31, 2024[65]. Asset and Liability Management - Total assets as of March 31, 2025, were $16,520 million, slightly down from $16,536 million at the end of 2024[30]. - Accrued liabilities decreased to $430 million as of March 31, 2025, down from $512 million as of December 31, 2024, representing a 16% reduction[45]. - The weighted average interest rate for the company's variable-rate debt was 6.27 percent, excluding estimated patronage refunds[136]. Capital Expenditures and Expenses - Capital expenditures for the quarter were $93 million, compared to $79 million in the same quarter of 2024, indicating an increase of 17.7%[29]. - The company reported depreciation, depletion, and amortization expenses of $125 million for both quarters, remaining consistent year-over-year[29]. - Total net periodic benefit cost for pension increased to $22 million in March 2025 from $14 million in March 2024, reflecting a 57.1% increase[43]. - The company recorded environmental remediation charges of $4 million for the quarter ended March 31, 2025, compared to $2 million in the same quarter of 2024[62]. Other Financial Metrics - An unrealized gain of $2 million on forward contracts designated as cash flow hedging instruments was recognized in other comprehensive income for the quarter ended March 31, 2025[50]. - The estimated annual effective tax rate for 2025 differs from the U.S. federal statutory tax rate of 21% primarily due to state and foreign income taxes[64]. - The weighted average fair value of restricted stock units (RSUs) granted in 2025 was $29.92, with 981 thousand RSUs granted[59].

Financial Data and Key Metrics Changes - Weyerhaeuser reported first quarter GAAP earnings of $83 million or $0.11 per diluted share on net sales of $1.8 billion [6] - Adjusted EBITDA totaled $328 million, a 12% increase over the fourth quarter of 2022 [7] - The company ended the first quarter with $560 million of cash and total debt of just under $5.2 billion [31] Business Line Data and Key Metrics Changes - Timberlands contributed $102 million to first quarter earnings with adjusted EBITDA of $167 million, a $41 million increase compared to the fourth quarter [8] - Real Estate and Natural Resources contributed $56 million to first quarter earnings and $82 million to adjusted EBITDA, with a $6 million increase from the fourth quarter [16] - Wood Products contributed $106 million to first quarter earnings with adjusted EBITDA of $161 million, comparable to fourth quarter results [19] Market Data and Key Metrics Changes - Log demand was healthy in the first quarter, with pricing for grade logs increasing significantly compared to the fourth quarter [9] - In Japan, sales volumes for export logs increased significantly compared to the fourth quarter due to improved demand [11] - In China, log demand moderated significantly due to reduced consumption during the Lunar New Year holiday, leading to a decrease in sales volumes [12] Company Strategy and Development Direction - The company is focused on advancing its Carbon Capture and Sequestration (CCS) project, with a significant milestone achieved through a 25-year off-take agreement with Occidental Petroleum [18] - Weyerhaeuser aims to capitalize on steady demand and pricing for high-value real estate properties [16] - The company is strategically shifting logs to domestic customers in response to market conditions, particularly in light of the ban on U.S. log imports to China [10] Management's Comments on Operating Environment and Future Outlook - Management noted that the housing market remains uncertain, with homebuilder sentiment waning due to economic concerns [50] - The company remains optimistic about long-term housing demand supported by demographic trends and low existing home inventories [51] - Management expects a slight uptick in demand for engineered wood products as building activity increases in warmer months [72] Other Important Information - The company returned $152 million to shareholders through dividends, marking the fourth consecutive year of increasing the base dividend by 5% [32] - Capital expenditures for the quarter were $93 million, including $16 million for the construction of an engineered wood products facility [34] - The company anticipates adjusted EBITDA for the real estate segment to be approximately $50 million higher in the second quarter compared to the first quarter [43] Q&A Session Summary Question: What is the outlook for lumber demand as the building season begins? - Management indicated that overall lumber demand is steady, with some pullback noted in builder confidence levels [62] Question: How do you see the outlook for engineered wood products (EWP) pricing? - Management expects pricing for EWP to remain comparable in the near term, with volumes anticipated to increase due to seasonal building activity [72] Question: Have you adjusted your harvest profile given the softer demand? - Management stated that harvest levels are set to be within sustainable levels and do not anticipate changes unless a significant recession occurs [78] Question: Can you provide more details on the Occidental Petroleum agreement? - Management expressed excitement about the CCS project, noting it is a significant milestone and expects first injection to begin in 2029 [84] Question: How do you view the impact of potential tariffs on timberland valuations? - Management does not expect a meaningful impact on timberland valuations in the near term due to the long-term nature of the asset class [94] Question: What is the expected impact of planned maintenance on OSB pricing? - Management indicated that the planned maintenance would not have a meaningful impact on operating rates in the second quarter [102] Question: How are channel inventories characterized in the current market? - Management noted that inventories are lighter than usual for this time of year, but supply is currently meeting demand [114] Question: What is the outlook for repair and remodel (R&R) activity? - Management expects R&R activity to pick up later in the year, supported by high levels of home equity and an aging housing stock [141]

Core Insights - Weyerhaeuser Company reported first-quarter 2025 results with earnings meeting consensus estimates and net sales exceeding expectations, although both metrics declined year-over-year due to lower export sales volumes, particularly to China [1][3] Financial Performance - Adjusted earnings were 11 cents per share, a decrease of 31.3% from 16 cents in the previous year [3] - Net sales for the quarter were $1.76 billion, surpassing the consensus mark of $1.75 billion by 0.7%, but down 1.8% from $1.80 billion in the same quarter last year [3] - Adjusted EBITDA was $328 million, down 6.8% from $352 million in the year-ago period [4] Segment Performance - **Timberlands**: Net sales increased to $534 million from $521 million year-over-year, with adjusted EBITDA rising to $167 million from $144 million [5] - **Real Estate, Energy and Natural Resources**: Net sales decreased to $94 million from $107 million year-over-year, with adjusted EBITDA declining to $82 million from $94 million [6] - **Wood Products**: Sales totaled $1.29 billion, down from $1.30 billion in the previous year, with adjusted EBITDA decreasing to $161 million from $184 million [7] Cash Flow and Debt - As of March 31, 2025, cash and cash equivalents were $560 million, down from $684 million at the end of 2024 [8] - Long-term debt increased to $5.02 billion from $4.87 billion at the end of 2024 [8] - Net cash from operations was $70 million, down from $124 million a year ago [8] Q2 Outlook - For Q2 2025, Timberland earnings and adjusted EBITDA are expected to be approximately $15 million lower than Q1 [9] - In the Real Estate, Energy and Natural Resources segment, earnings are anticipated to be about $40 million higher than Q1, with adjusted EBITDA expected to increase by about $50 million [11] - Within the Wood Products segment, earnings and adjusted EBITDA are expected to be slightly higher than Q1 levels, with anticipated increases in sales volumes and log costs [12][13]