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].

Core Insights - Weyerhaeuser (WY) is expected to report quarterly earnings of $0.13 per share, reflecting a 38.1% decline year over year, with revenues forecasted at $1.88 billion, a decrease of 3% compared to the previous year [1] - Over the past month, the consensus EPS estimate has been revised downward by 26.7%, indicating a significant reassessment by analysts [1][2] Earnings Estimates - Analysts predict 'Net Sales - Wood Products' to reach $1.32 billion, indicating a year-over-year decline of 7.1% [3] - The 'Net Sales - Real Estate & ENR' is expected to be $143.97 million, showing a year-over-year increase of 32.1% [4] - The consensus estimate for 'Wood Products Segment - Structural Lumber - Third party net sales' is $549.93 million, reflecting a year-over-year increase of 10.2% [4] Sales Realizations - 'Wood Products Segment - Oriented Strand Board (square feet 3/8) - Third party net sales' is projected at $214.20 million, indicating a year-over-year decline of 25.6% [5] - 'Delivered Logs Third Party Sales Realizations (per ton) - West' is estimated at $117.54, down from $123.15 year-over-year [5] - 'Wood Products - Medium Density Fiberboard (square feet 3/4) - Third party sales realizations' is expected to be $1152.11, compared to $1186.00 last year [6] Sales Volumes - 'Delivered Logs Third Party Sales Volumes (tons) - West' is projected at 1463 thousand tons, down from 1668 thousand tons in the same quarter last year [7] - 'Delivered Logs Third Party Sales Volumes (tons) - South' is expected to reach 4270 thousand tons, compared to 4154 thousand tons in the same quarter of the previous year [7] - 'Delivered Logs Third Party Sales Volumes (tons) - North' is estimated at 143 thousand tons, up from 118 thousand tons year-over-year [8] Additional Metrics - 'Wood Products - Structural Lumber (board feet) - Third party sales volumes' is expected to be 1.18 billion, slightly down from 1.19 billion in the same quarter last year [8] - 'Wood Products - Engineered Solid Section (cubic feet) - Third party sales volumes' is projected at 5.46 million, compared to 6.00 million year-over-year [9] Market Performance - Over the past month, Weyerhaeuser shares have declined by 3.3%, while the Zacks S&P 500 composite has increased by 5.4% [10] - Weyerhaeuser holds a Zacks Rank 4 (Sell), indicating a likely underperformance compared to the overall market in the upcoming period [10]

Core Viewpoint - The market anticipates a year-over-year decline in Weyerhaeuser's earnings due to lower revenues, with a focus on how actual results will compare to estimates [1][2]. Earnings Expectations - Weyerhaeuser is expected to report quarterly earnings of $0.15 per share, reflecting a year-over-year decrease of 28.6%. Revenues are projected to be $1.88 billion, down 3% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 26.67% over the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][12]. Earnings Surprise Prediction - The Most Accurate Estimate for Weyerhaeuser is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -36.67%. The stock currently holds a Zacks Rank of 4, complicating predictions of an earnings beat [12]. Historical Performance - In the last reported quarter, Weyerhaeuser met the expected earnings of $0.11 per share, resulting in no surprise. Over the past four quarters, the company has beaten consensus EPS estimates twice [13][14]. Conclusion - Weyerhaeuser does not appear to be a strong candidate for an earnings beat, and investors should consider additional factors when evaluating the stock ahead of its earnings release [17].

Financial Targets and Performance - The company aims to make disciplined investments of $1 billion from 2022 to 2025 in Timberlands growth[11] - The company targets to grow annual EBITDA to $100 million from Natural Climate Solutions[11], with $47 million achieved in 2023[60] - The company is committed to returning 75-80% of Adjusted Funds Available for Distribution (FAD) annually to shareholders[11] - The company increased its base dividend by >5% annually from 2022-2024[14] - The company targets to grow lumber production by 5% annually[11] Timberlands Portfolio - The company holds 10.5 million acres of timberlands in the U S and licenses 14 million acres in Canada[19] - The company invested approximately $775 million including acquisitions in Washington, Carolinas, Mississippi & Alabama[14] - The company's Western Timberlands Adjusted EBITDA accounts for 56% of the total, while the South accounts for 43%[31] Wood Products - The company is the 2nd largest lumber producer in North America with 19 lumber mills (5.5 BBF)[69] - The company is expanding Engineered Wood Products (EWP) capacity with a new TimberStrand facility, expecting $100+ million of annual Adjusted EBITDA at full capacity[73] - The company's wood residuals utilization rate is 98% to create other products or generate energy[92] Sustainability and Carbon - The company's forests store 10.2 million metric tons of CO2e in 2023[121] - The company removed 38 million metric tons of CO2e in 2023[121]

Core Points - Weyerhaeuser Company will release its second quarter 2025 results on July 24, 2025, after market close, followed by a live webcast and conference call on July 25, 2025, at 7 a.m. PT (10 a.m. ET) to discuss the results [1][2]. Company Overview - Weyerhaeuser Company is one of the world's largest private owners of timberlands, owning or controlling approximately 10.4 million acres of timberlands in the U.S. and additional public timberlands in Canada [4]. - 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 [4]. - In 2024, Weyerhaeuser generated $7.1 billion in net sales and employed around 9,400 people [4].

Core Viewpoint - Weyerhaeuser Company (NYSE: WY) is rated as a Hold for investors interested in real estate investment trusts (REITs) due to its business being subject to cyclical fluctuations as the world's largest private owner of timberlands [1]. Company Summary - Weyerhaeuser Company is recognized as the largest private owner of timberlands globally, which leads to a business model that experiences significant ups and downs [1]. Analyst Background - The analysis is provided by David A. Johnson, who has over 30 years of investment experience and holds multiple advanced degrees in finance and business [1].

Summary of Weyerhaeuser Company (WY) 2025 Conference Call Company Overview - Weyerhaeuser is the largest private owner of timberlands in North America, with approximately 10.5 million acres of high-quality timberlands across the Pacific Northwest, U.S. South, and Northeast [3] - The company is also one of the largest manufacturers of wood products, including lumber and engineered wood products [3][4] Key Business Segments - The company operates in timberland, wood products manufacturing, and real estate, energy, and natural resources [4] - Weyerhaeuser aims to maximize value from its timberlands through various initiatives, including its Natural Climate Solutions business [4] Financial Performance and Targets - Weyerhaeuser has achieved $1.1 billion in timberland acquisitions since 2021, surpassing its $1 billion target [5] - The company aims to grow its Natural Climate Solutions business to $100 million in annual EBITDA by the end of 2025, having delivered $84 million last year [5][6] - The company has returned approximately $5.7 billion in cash to shareholders through dividends and share repurchases [7] Recent Acquisitions - Weyerhaeuser announced a significant acquisition of 115,000 acres in North Carolina and Virginia for $375 million, expected to close in Q3 [11] - The acquired timberlands are projected to yield over 7 tons per acre and a cash flow yield of over 5%, enhancing the quality of Weyerhaeuser's portfolio [11][12] Market Dynamics - The timberland market remains strong, particularly for high-quality timberlands, with over $2 billion in transactions expected this year [14] - The company is actively divesting lower-quality timberlands to fund acquisitions and improve portfolio quality [12][17] Housing Market Insights - The housing market has been weaker than expected, primarily due to high mortgage rates and uncertainty around tariffs [22][23] - Single-family housing demand has been below expectations, while multifamily housing has shown signs of improvement [24][25] - Repair and remodel markets have remained steady, with potential for growth in the latter half of the year [26] Tariffs and Regulatory Environment - The U.S. administration is supportive of the timber industry, with upcoming duties on Canadian lumber expected to rise from 14% to 34% [32][33] - The increase in duties is anticipated to impact lumber prices, potentially benefiting Weyerhaeuser [34][39] OSB Market - The OSB market has faced challenges due to supply-demand imbalances and new capacity coming online [40] - Prices are expected to fluctuate based on demand and supply dynamics in the latter half of the year [41] New Projects - Weyerhaeuser is investing $500 million in a new Timber Strand facility in Arkansas, projected to generate $100 million in EBITDA [46][51] - The facility will utilize lower-cost pulp logs and is expected to enhance the company's market share in engineered wood products [44][49] Conclusion - Weyerhaeuser is strategically positioning itself for growth through acquisitions, new projects, and a focus on high-quality timberlands while navigating a challenging housing market and regulatory landscape [2][6][22]