Weyerhaeuser Q4 Earnings Beat Estimates, Revenues Lag, Stock Down

Core Viewpoint - Weyerhaeuser Company reported mixed results for the fourth quarter of 2024, with earnings exceeding estimates but net sales falling short, leading to a 0.4% drop in shares during after-hours trading [1][4]. Financial Performance - Adjusted earnings were 11 cents per share, surpassing the Zacks Consensus Estimate of 7 cents, but down 31.3% from 16 cents in the previous year [4]. - Net sales for the quarter were $1.71 billion, missing the consensus mark of $1.74 billion by 2.1% and declining 3.7% from $1.77 billion year-over-year [4]. - Adjusted EBITDA was $294 million, down 8.4% from $321 million in the year-ago period [4]. Segment Performance - Timberlands: Net sales were $497 million, down from $534 million year-over-year, with adjusted EBITDA at $126 million, down from $143 million [5]. - Real Estate, Energy and Natural Resources: Net sales increased to $86 million from $77 million a year ago, with adjusted EBITDA rising to $76 million from $67 million [6]. - Wood Products: Sales totaled $1.26 billion, down from $1.30 billion year-over-year, while adjusted EBITDA increased to $161 million from $159 million [7]. Annual Highlights - For the full year 2024, adjusted earnings were 53 cents per share, a decrease of 48% from $1.02 in 2023. Revenues were $7.12 billion, down 7.2% from $7.67 billion [8]. - Adjusted EBITDA for the year was $1.29 billion, an increase of 23.7% from 2023 [8]. Cash and Debt Position - As of December 31, 2024, cash and cash equivalents were $684 million, down from $1.16 billion at the end of 2023. Long-term debt was $4.87 billion, reduced from $5.07 billion [9]. Operational Cash Flow - Net cash from operations for the fourth quarter was $218 million, and for the full year 2024, it was $1,008 million, compared to $288 million and $1,433 million in the respective year-ago periods [10]. Q1 2025 Outlook - For Q1 2025, Weyerhaeuser expects Timberland earnings and adjusted EBITDA to be approximately $20 million higher than Q4 2024, with slightly higher fee harvest volumes anticipated [11]. - In the Real Estate, Energy and Natural Resources segment, earnings and adjusted EBITDA are expected to be comparable sequentially [12]. - Within the Wood Products segment, earnings and adjusted EBITDA are expected to slightly exceed Q4 levels, with higher sales volumes anticipated [13].