Weyerhaeuser Q1 Earnings Meet, Sales Beat Estimates, Both Fall Y/Y

Core Insights - Weyerhaeuser Company reported first-quarter 2025 results with earnings meeting consensus estimates and net sales exceeding expectations, although both metrics declined year-over-year due to lower export sales volumes, particularly to China [1][3] Financial Performance - Adjusted earnings were 11 cents per share, a decrease of 31.3% from 16 cents in the previous year [3] - Net sales for the quarter were $1.76 billion, surpassing the consensus mark of $1.75 billion by 0.7%, but down 1.8% from $1.80 billion in the same quarter last year [3] - Adjusted EBITDA was $328 million, down 6.8% from $352 million in the year-ago period [4] Segment Performance - Timberlands: Net sales increased to $534 million from $521 million year-over-year, with adjusted EBITDA rising to $167 million from $144 million [5] - Real Estate, Energy and Natural Resources: Net sales decreased to $94 million from $107 million year-over-year, with adjusted EBITDA declining to $82 million from $94 million [6] - Wood Products: Sales totaled $1.29 billion, down from $1.30 billion in the previous year, with adjusted EBITDA decreasing to $161 million from $184 million [7] Cash Flow and Debt - As of March 31, 2025, cash and cash equivalents were $560 million, down from $684 million at the end of 2024 [8] - Long-term debt increased to $5.02 billion from $4.87 billion at the end of 2024 [8] - Net cash from operations was $70 million, down from $124 million a year ago [8] Q2 Outlook - For Q2 2025, Timberland earnings and adjusted EBITDA are expected to be approximately $15 million lower than Q1 [9] - In the Real Estate, Energy and Natural Resources segment, earnings are anticipated to be about $40 million higher than Q1, with adjusted EBITDA expected to increase by about $50 million [11] - Within the Wood Products segment, earnings and adjusted EBITDA are expected to be slightly higher than Q1 levels, with anticipated increases in sales volumes and log costs [12][13]