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]

Core Viewpoint - Weyerhaeuser (WY) is expected to report a quarterly earnings decline of 25% year-over-year, with earnings per share (EPS) projected at $0.12 and revenues estimated at $1.76 billion, reflecting a decrease of 1.9% compared to the previous year [1] Earnings Estimates - The consensus EPS estimate has been revised 3.8% lower in the last 30 days, indicating a reevaluation by analysts [1][2] - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate revisions and short-term stock performance [2] Revenue Projections - Analysts estimate 'Revenue- Wood Products' to be $1.29 billion, indicating a year-over-year decline of 0.9% [3] - 'Revenue- Real Estate & ENR' is projected at $88.20 million, suggesting a significant year-over-year decrease of 17.6% [4] Segment Performance - The 'Wood Products Segment- Structural lumber- Third party net sales' is expected to reach $508.94 million, reflecting a year-over-year increase of 9.7% [4] - 'Wood Products Segment- Oriented Strand Board (square feet 3/8')- Third party net sales' is forecasted at $235.78 million, indicating a decline of 7.5% year-over-year [5] Sales Realizations - 'Delivered Logs Third Party Sales Realizations (per ton) - West' is expected to be $120.89, slightly down from $121.06 year-over-year [5] - 'Wood Products - Medium Density Fiberboard (square feet 3/4') - Third party sales realizations' is projected at $1,170.68, down from $1,183 year-over-year [6] Sales Volumes - 'Delivered Logs Third Party Sales Volumes (tons) - West' is estimated at 1,469.10 KTon, up from 1,452 KTon in the same quarter last year [7] - 'Delivered Logs Third Party Sales Volumes (tons) - South' is projected at 4,091.78 KTon, slightly up from 4,089 KTon year-over-year [7] - 'Delivered Logs Third Party Sales Volumes (tons) - North' is expected to be 176.12 KTon, up from 175 KTon in the same quarter last year [8] Overall Market Performance - Over the past month, Weyerhaeuser shares have declined by 11.6%, compared to a 5.6% decline in the Zacks S&P 500 composite [10] - The company holds a Zacks Rank 3 (Hold), suggesting it will likely perform in line with the overall market in the near term [10]

Group 1 - The Hecht Commodity Report is recognized as one of the most comprehensive commodities reports available, covering market movements of over 29 different commodities [1] - The report provides various market calls including bullish, bearish, and neutral, along with directional trading recommendations and actionable ideas for traders and investors [1][2] - The investing group associated with the report emphasizes its extensive coverage and actionable insights for traders [2] Group 2 - The author maintains positions in commodities markets through futures, options, ETF/ETN products, and commodity equities, with these positions subject to change on an intraday basis [3]

Core Points - Weyerhaeuser Company will release its first quarter 2025 results on April 24, 2025, after market close, followed by a live webcast and conference call on April 25, 2025, at 7 a.m. PT (10 a.m. ET) to discuss the results [1] - The earnings release, live webcast, and presentation can be accessed through the Investor Relations section of Weyerhaeuser's website [2] - For the conference call, North American participants can dial 877-407-0792, while international participants should call 201-689-8263, with replays available for two weeks [3] 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 its timberlands on a fully sustainable basis in compliance with recognized forestry standards [4] - In 2024, Weyerhaeuser generated $7.1 billion in net sales and employed around 9,400 people, operating as a real estate investment trust with its common stock traded on the NYSE under the symbol WY [4]

Core Insights - The Hecht Commodity Report is recognized as one of the most comprehensive commodities reports available, covering market movements of over 29 different commodities [1] - The report provides various market calls including bullish, bearish, and neutral, along with directional trading recommendations and actionable ideas for traders and investors [1][2] - A free trial and discount are currently being offered to new subscribers for a limited time [1] Group 1 - The Hecht Commodity Report includes coverage of market movements for 20 different commodities, providing insights and recommendations for traders [2] - The author maintains positions in commodities markets through futures, options, ETF/ETN products, and commodity equities, with positions that can change on an intraday basis [3] Group 2 - The report emphasizes that past performance is not indicative of future results, and no specific investment recommendations are provided [4]

Environmental Impact and Sustainability - In 2023, the company's scope 1 carbon emissions were 0.4 million metric tons of CO2 equivalent, while scope 2 emissions were 0.5 million and 0.4 million metric tons, respectively[26]. - The company's scope 3 emissions totaled 9.3 million metric tons of CO2 equivalent, primarily from customers purchasing wood fiber and end-of-life emissions of sold products[27]. - Direct carbon removals in 2023 amounted to 9 million metric tons of CO2 equivalent, attributed to forest growth and management practices[28]. - The company has a target to reduce scope 1 and 2 emissions by 42% and scope 3 emissions by 25% per ton of production by 2030, based on a 2020 baseline[30]. - The company plants more than 100 million tree seedlings annually, averaging about 190 trees per minute throughout the year[22]. - The company operates 16 mitigation banks and projects primarily in the U.S. South, focusing on habitat preservation and enhancement[34]. - Approximately 99% of the company's wood residuals are utilized to create other products or generate energy, minimizing waste[36]. - The company is committed to improving energy efficiency at manufacturing facilities by 10% between 2020 and 2030 as part of the DOE's Better Plants Program[31]. - The company is advancing its participation in natural climate solutions, including carbon credits and carbon capture and storage initiatives[119]. Workforce and Employee Engagement - In 2024, the company employed 9,440 employees, with 7,206 in Wood Products, 1,315 in Timberlands, and 72 in Real Estate & ENR[39][41]. - The Recordable Incident Rate for the company decreased from 3.85 in 2000 to 1.99 in 2024, indicating improved safety performance[42]. - In 2024, employees logged over 65,000 hours of training in the online learning management system[44]. - 84% of employees agreed that their work environment is inclusive, based on feedback surveys conducted in 2024[48]. - The overall engagement favorability score from the 2024 employee engagement survey was 86%, with a response rate of 81%[50]. - Voluntary turnover decreased to 10% in 2024, down from 11% in 2023[50]. - The company invested in developing leadership, with over 350 leaders participating in signature development programs in 2024[47]. Financial Performance and Sales - Net sales to unaffiliated customers were $1.5 billion in 2024, down from $1.7 billion in 2023, representing a decrease of approximately 12.0%[107]. - Total net sales for Timberlands in 2024 were $2.066 billion, a decline of 7.2% compared to $2.226 billion in 2023[107]. - Log sales volumes to unaffiliated customers decreased to 22,855 thousand tons in 2024 from 24,061 thousand tons in 2023, a reduction of about 5.0%[111]. - Real Estate segment net sales increased to $280 million in 2024 from $237 million in 2023, marking an increase of approximately 18.1%[129]. - Average price per acre sold in Real Estate decreased to $2,682 in 2024 from $3,494 in 2023, a decline of about 23.2%[130]. - The Energy and Natural Resources segment generated $111 million in net sales in 2024, down from $126 million in 2023, a decrease of approximately 11.9%[129]. - Wood Products net sales decreased to $5.2 billion in 2024 from $5.7 billion in 2023, representing a decline of approximately 8.1%[139]. Timberland Management and Operations - The Timberlands segment manages 10.4 million acres of private commercial timberlands in the U.S.[66]. - The company has renewable, long-term licenses on 14.1 million acres of Canadian timberlands[66]. - The company aims to maximize returns from timberlands through delivered logs and stumpage sales[67]. - The total timber inventory as of December 31, 2024, is approximately 594 million tons, with 81% being Douglas-fir, 12% whitewood, and 7% hardwood[78]. - For the year ended December 31, 2024, the company harvested 34,356 thousand tons of timber, a slight decrease from 34,872 thousand tons in 2023[104]. - The average age of timber harvested from Western timberlands in 2024 was 47 years, with an average annual harvest and replanting rate of 2%[88]. - The company operates 10,439 thousand acres of timberlands across the U.S. and Canada, with 9,788 thousand acres in the U.S. and 14,107 thousand acres in Canada[80][102]. - The company manages its Canadian forestlands under long-term licenses, with an Annual Allowable Cut (AAC) regulated by provincial governments[101]. - The company follows sustainable forestry practices, ensuring that annual harvest schedules target financially mature timber and align with reforestation activities[103]. Market Conditions and Risks - Market demand for timber products is influenced by economic conditions, including housing starts and interest rates[187]. - The company's financial condition and operating results are significantly influenced by supply and demand for timber, which is affected by various factors including economic conditions, new construction activity, interest rates, and weather conditions[216]. - The U.S. housing market's health is critical for the company's business, with demand for new homes and remodeling being sensitive to employment levels, consumer confidence, and interest rates[196]. - The Federal Reserve's policy of incrementally raising interest rates since Q1 2022 has impacted homebuyers' ability to obtain affordable mortgages, which could negatively affect demand for housing and, consequently, the company's wood products[199]. - Catastrophic events such as severe weather, pest infestations, and health pandemics pose risks that could adversely affect the company's operations and financial results[198]. - The company faces risks related to the availability and cost of third-party logging and transportation services, which are critical for its operations[206]. - Changes in regulations regarding tax deductions for mortgage interest and real estate taxes could adversely impact future sales and earnings[202]. - The company's profitability is influenced by market dynamics, with commodity product pricing being largely determined by supply and demand, which can be volatile[204]. - An oversupply of logs and wood products in the market could lead to downward pressure on prices and margins for the company[205]. - The accuracy of timber inventory and growth estimates is crucial for forecasting anticipated harvests and revenues, with potential inaccuracies posing risks to financial performance[215]. - The company is subject to various risks including international trade restrictions, raw material availability, and competition from domestic and foreign producers, which could affect its business operations[192].

Core Points - Weyerhaeuser Company announced a quarterly base cash dividend of $0.21 per share, marking a 5% increase from the previous dividend of $0.20 per share [1] - The dividend will be payable on March 21, 2025, to shareholders of record as of March 7, 2025 [1] Company Strategy - The company aims to grow its sustainable base dividend by 5% annually through 2025, as part of a commitment made in 2021 [2] - Weyerhaeuser's cash return framework targets a total return to shareholders of 75 to 80 percent of annual Adjusted Funds Available for Distribution (Adjusted FAD) [2] - The company has the flexibility to return additional cash through supplemental dividends or share repurchases [2] Financial Overview - Weyerhaeuser generated $7.1 billion in net sales in 2024 and employs approximately 9,400 people [4] - The company operates as a real estate investment trust and is one of the largest private owners of timberlands, controlling about 10.4 million acres in the U.S. [4]