Weyerhaeuser(US:WY)2025-10-31 20:16Financial Performance - For the quarter ended September 2025, total net sales reached $1,717 million, an increase from $1,681 million in the same quarter of 2024, representing a growth of 2.1%[27] - The gross margin for the quarter ended September 2025 was $204 million, compared to $250 million in the same quarter of 2024, indicating a decrease of 18.4%[27] - Year-to-date net sales for 2025 totaled $5,364 million, slightly down from $5,416 million in 2024, reflecting a decline of 1%[27] - The net contribution to earnings for the quarter ended September 2025 was $110 million, up from $82 million in the same quarter of 2024, marking a growth of 34.1%[28] - The net earnings for the quarter ended September 2025 were $80 million, compared to $28 million in the same quarter of 2024, showing a significant increase of 185.7%[28] - Basic earnings per share for Q3 2025 were $0.11, compared to $0.04 in Q3 2024, reflecting a 175% increase[32] Assets and Liabilities - Total assets as of September 30, 2025, amounted to $16,668 million, an increase from $16,536 million at the end of 2024, representing a growth of 0.8%[29] - As of September 30, 2025, the total long-term debt amounted to $5,470 million, with a fair value of $5,501 million[47] - The company reported a total net periodic benefit cost for pension plans of $23 million in Q3 2025, compared to $15 million in Q3 2024[41] - The company has variable-rate debt obligations totaling $1.350 billion, with a weighted average interest rate of 5.49%[176] Capital Expenditures and Investments - Capital expenditures for the quarter ended September 2025 were $125 million, compared to $97 million in the same quarter of 2024, indicating an increase of 29%[28] - The company completed the purchase of 117 thousand acres of timberlands for $364 million, recorded as timberland assets on the balance sheet[71] - The company announced acquisitions totaling 84 thousand acres of Alabama timberlands for $244 million, with the first transaction of 13 thousand acres completed for $48 million[73] - The second transaction involved 32 thousand acres for $82 million, and the third transaction comprised 39 thousand acres for $114 million[73] Debt Management - The company entered into an $800 million senior unsecured term loan agreement during Q3 2025, maturing in August 2028[44] - The company amended its senior unsecured revolving credit facility in June 2025, increasing borrowing capacity from $1.5 billion to $1.75 billion[46] - The company entered into interest rate swaps to convert variable rate debt obligations of $800 million into fixed rate payments, designated as cash flow hedging instruments[49] - Interest rate swaps were entered into to convert $800 million of variable rate debt into fixed rate payments at a rate of 3.414%[177] Inventory and Sales - Total inventories as of September 30, 2025, were $588 million, a decrease from $607 million as of December 31, 2024[40] - Net sales attributable to the Timberlands segment reached $386 million in Q3 2025, up from $357 million in Q3 2024, representing an 8.1% increase[30] - The Wood Products segment generated net sales of $1,228 million in Q3 2025, slightly down from $1,235 million in Q3 2024[30] Shareholder Actions - The company repurchased 980,114 common shares for approximately $25 million in Q3 2025, with a total of 5,714,095 shares repurchased for about $150 million year-to-date[37] - As of September 30, 2025, the company had $948 million remaining for future share repurchases under the 2025 Repurchase Program[37] Other Financial Metrics - The total other operating (income) costs, net for the year-to-date period ended September 30, 2025, was $(25) million[65] - The company recorded an unrealized gain of $6 million on forward contracts designated as cash flow hedging instruments for the year-to-date period ended September 30, 2025[53] - The company reported interest expense of $71 million for the quarter ended September 2025, slightly higher than $69 million in the same quarter of 2024[28] - The depreciation, depletion, and amortization expense for the quarter ended September 2025 was $130 million, compared to $125 million in the same quarter of 2024, reflecting a 4% increase[28] Asset Sales - The company announced an agreement to sell 86 thousand acres of timberlands for approximately $220 million, expected to close in Q4 2025[69] - The sale of the Princeton lumber mill was completed for approximately $85 million, resulting in a gain of $29 million recognized in the Wood Products segment[74] - The total purchase price for the Princeton lumber mill includes mill assets, timber licenses, and working capital[74] - The company expects the transfer of timber licenses in British Columbia to be approved in the ensuing months following the sale of the lumber mill[74] Stock Compensation - The weighted average fair value of restricted stock units (RSUs) granted in 2025 was $29.77, with 1,022 thousand RSUs granted[62] - The weighted average grant date fair value of performance share units (PSUs) granted in 2025 was $32.50, with 479 thousand PSUs granted[63] Environmental Liabilities - The total accrual for future estimated remediation costs on active Superfund sites was approximately $78 million as of September 30, 2025[57] - An unrealized loss of $2 million on interest rate swaps was recognized in "Other comprehensive income" for the quarter ended September 30, 2025[50]