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]

Financial Performance - Q1 2025 - Total Adjusted EBITDA reached $328 million, a $34 million increase compared to Q4 2024[6] - Net sales increased to $1.763 billion in Q1 2025 from $1.708 billion in Q4 2024[8] - Net earnings before special items were $83 million in Q1 2025, compared to $81 million in Q4 2024[8] - Diluted EPS before special items remained constant at $0.11 in both Q4 2024 and Q1 2025[8] Segment Performance - Q1 2025 - Timberlands Adjusted EBITDA increased to $167 million in Q1 2025, up from $126 million in Q4 2024[6] - Real Estate, Energy & Natural Resources (ENR) Adjusted EBITDA increased to $82 million in Q1 2025, compared to $76 million in Q4 2024[6] - Wood Products Adjusted EBITDA remained stable at $161 million in both Q4 2024 and Q1 2025[6] - Unallocated items resulted in a charge of $82 million to Adjusted EBITDA in Q1 2025, compared to a charge of $69 million in Q4 2024[6] Timberlands Key Drivers - Western Timberlands Adjusted EBITDA increased to $95 million in Q1 2025 from $53 million in Q4 2024, driven by higher domestic sales realizations and moderately higher fee harvest and domestic sales volumes[15, 17] - Southern Timberlands Adjusted EBITDA decreased slightly to $71 million in Q1 2025 from $74 million in Q4 2024, with comparable fee harvest volumes and sales realizations[15, 17] Financial Position - The company's ending cash balance decreased to $560 million in Q1 2025 from $684 million in Q4 2024[45] - Total debt increased to $5.167 billion in Q1 2025 from $5.076 billion in Q4 2024[45]

Core Insights - Weyerhaeuser reported $1.76 billion in revenue for Q1 2025, a year-over-year decline of 1.8%, with EPS of $0.11 compared to $0.16 a year ago, indicating a slight revenue surprise of +0.65% over estimates [1] - The stock has returned -14% over the past month, underperforming the Zacks S&P 500 composite's -5.1% change, and currently holds a Zacks Rank 3 (Hold) [3] Financial Performance - Delivered Logs Third Party Sales Realizations (per ton) in the West were $118.52, below the average estimate of $122.10 [4] - Wood Products revenue was $1.29 billion, slightly above the $1.28 billion estimate, but represented a -1.2% year-over-year change [4] - Real Estate & ENR revenue was $94 million, exceeding the $88.20 million estimate, but showing a -12.2% year-over-year decline [4] Segment Analysis - Structural lumber net sales in the Wood Products segment were $527 million, surpassing the $504.02 million estimate, reflecting a +13.6% year-over-year increase [4] - Oriented Strand Board net sales were $228 million, slightly below the $232.07 million estimate, indicating a -10.6% year-over-year decline [4] - Timberlands Segment reported $19 million in recreational and other lease revenue, close to the $19.91 million estimate, with no year-over-year change [4]

Company Performance - Weyerhaeuser reported quarterly earnings of $0.11 per share, matching the Zacks Consensus Estimate, but down from $0.16 per share a year ago [1] - The company posted revenues of $1.76 billion for the quarter, surpassing the Zacks Consensus Estimate by 0.65%, but down from $1.8 billion year-over-year [2] - Weyerhaeuser has exceeded consensus EPS estimates two times over the last four quarters and topped consensus revenue estimates once [1][2] Market Comparison - Weyerhaeuser shares have declined approximately 10.1% since the beginning of the year, compared to a decline of 8.6% for the S&P 500 [3] Future Outlook - The company's earnings outlook will be influenced by management's commentary during the earnings call, and current consensus EPS estimate for the next quarter is $0.21 on revenues of $1.96 billion [4][7] - The Zacks Rank for Weyerhaeuser is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Building Products - Wood industry, to which Weyerhaeuser belongs, is currently ranked in the bottom 24% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Core Viewpoint - Weyerhaeuser Company reported its first quarter 2025 financial results and will hold a conference call to discuss these results on April 25, 2025 [1][2]. Company Overview - Weyerhaeuser Company 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 for over a century, managing all its timberlands sustainably in compliance with recognized forestry standards [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 its common stock trades on the New York Stock Exchange under the symbol WY [4].

Financial Performance - Net sales for Q1 2025 were $1,796 million, a 4.0% increase from Q1 2024's $1,763 million[1] - Gross margin improved to $355 million in Q1 2025, up from $335 million in Q4 2024, reflecting a 5.9% increase[1] - Adjusted EBITDA for Q1 2025 was $352 million, representing a 19.6% increase from $294 million in Q4 2024[3] - Net earnings for Q1 2025 rose to $114 million, a significant increase of 37.3% compared to $83 million in Q1 2024[1] - Earnings per share (EPS) for Q1 2025 was $0.16, up from $0.11 in Q4 2024, marking a 45.5% increase[2] - Operating income for Q1 2025 was $196 million, an increase of 12.6% from $179 million in Q4 2024[1] Asset and Cash Management - Total assets decreased slightly to $16,520 million in Q1 2025 from $16,536 million in Q4 2024[5] - Cash and cash equivalents at the end of Q1 2025 were $560 million, down from $684 million at the end of Q4 2024[6] - Cash spent for capital expenditures in Q1 2025 was $67 million, a decrease from $117 million in Q4 2024[18] Segment Performance - The Timberlands segment reported total net sales of $534 million in Q1 2025, up from $497 million in Q4 2024[8] - Total net sales for Q1 2025 were $1,287 million, a slight increase from $1,263 million in Q4 2024, but a decrease from $1,302 million in Q1 2024[16] - Gross margin for Q1 2025 was $173 million, compared to $171 million in Q4 2024 and $195 million in Q1 2024, indicating a decline year-over-year[16] - Adjusted EBITDA for Q1 2025 was $161 million, unchanged from Q4 2024, but down from $184 million in Q1 2024[17] - Delivered logs total for Q1 2025 was 335,000 tons, a decrease from 340,000 tons in Q1 2024[12] - Real estate net sales in Q1 2025 were $69 million, down from $83 million in Q1 2024, with acres sold decreasing to 16,654 from 19,774[15] - Structural lumber third-party net sales increased to $527 million in Q1 2025 from $492 million in Q4 2024, while sales realizations rose to $463 from $442[19] Dividends and Charges - The company paid dividends of $0.21 per common share in Q1 2025, an increase from $0.20 in Q4 2024[2] - The basis as a percent of real estate net sales improved to 35% in Q1 2025 from 45% in Q4 2024[15] - The company reported a net charge to earnings of $99 million in Q1 2025, compared to $74 million in Q4 2024[22]

Core Insights - Weyerhaeuser Company (WY) is set to report its first-quarter 2025 results on April 24, with earnings expected to show a mixed performance due to various segment influences [1][2] Financial Performance - In the last reported quarter, Weyerhaeuser's earnings exceeded the Zacks Consensus Estimate by 57.1%, while net sales fell short by 2.1%. Adjusted earnings and net sales decreased by 31.3% and 3.7%, respectively [1] - The Zacks Consensus Estimate for the upcoming quarter's earnings per share (EPS) has decreased to 12 cents from 14 cents, indicating a 25% decline year-over-year. Revenue estimates are pegged at $1.76 billion, reflecting a 1.9% year-over-year decline [2] - The Wood Products segment is expected to see a revenue decline of 0.3% year-over-year but a sequential growth of 2.8% to $1.3 billion. Adjusted EBITDA is projected to decline by 31.1% year-over-year and 21.2% sequentially to $126.8 million [4] Segment Analysis - The Wood Products segment's EBITDA guidance was revised down by approximately $35 million compared to the fourth quarter of 2024, due to operational challenges and production disruptions [3] - The Timberlands segment is showing stronger-than-expected performance, with EBITDA guidance raised by $30 million quarter-over-quarter, driven by improved sales realizations. Expected EBITDA for this segment is approximately $156 million [5] - Timberlands net sales are anticipated to remain flat year-over-year but increase by 4.8% sequentially to $520.8 million, with adjusted EBITDA expected to grow by 8.1% year-over-year and 23.6% sequentially to $155.7 million [6] - The Real Estate, Energy and Natural Resources segment is expected to see net sales of $90.6 million, down 15.3% year-over-year but up 5.3% sequentially. Adjusted EBITDA is projected to decline by 18.9% year-over-year but increase by 0.3% sequentially to $76.2 million [7] Earnings Prediction - The current model does not predict an earnings beat for Weyerhaeuser, with an Earnings ESP of -18.31% and a Zacks Rank of 3 (Hold) [8][9]