Weyerhaeuser(WY) - 2025 Q2 - Quarterly Results

Consolidated Financial Results Consolidated Statement of Operations 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] Per Share Information 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] Adjusted EBITDA (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] Condensed Consolidated Balance Sheet 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 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] Segment Analysis Timberlands Segment 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] Real Estate, Energy & Natural Resources Segment 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] Wood Products Segment 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] - 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][21] Unallocated Items 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] 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) |