Weyerhaeuser Company Stock Price: Quote, Forecast, Splits & News (WY)

Perplexity Finance

Weyerhaeuser Company

NYSE

Market Closed

Monday, May 19, 2025

$26.50

-$0.22

0.82%

At close: May 19, 8:00:02 PM UTC

$26.74

+$0.24

0.91%

After hours: 11:23:16 PM UTC

Change

-$0.22

0.82%

Financial Profile

Prev Close

$26.72

Market Cap

$19.22B

Day Range

$26.33 - $26.65

Open

$26.32

P/E Ratio

54.1

52W Range

$24.10 - $34.03

24H Volume

$67.59M

Dividend Yield

3.06%

EPS

0.49

Earnings

Report Date

Apr 24, 2025

Reported Revenue

1.8B

Miss -0.23%

Avg 1d Change

2.27%

Report Period

Q1 2025

Reported EPS

0.11

Miss -0%

Implied Move 1d

5.44%

Transcript

10m 25s

On the call this morning are Devon Stockfish, Chief Executive Officer and Davey Wold, Chief Financial Officer. I will now turn the call over to Devin Stockfish.

10m 34s

Thanks, Andy. Good morning, everyone, and thank you for joining us. Yesterday, Weyerhaeuser reported first quarter GAAP earnings of $83,000,000 or $0.11 per diluted share, on net sales of $1,800,000,000 Adjusted EBITDA totaled $328,000,000 a 12% increase over the fourth quarter of twenty twenty four, These are solid results considering elevated macro macroeconomic uncertainty in the first quarter, and I'm pleased with operational performance delivered by our teams. Turning now to our first quarter business results. I'll begin with Timberlands on pages five through eight, of our earnings slides. Timberlands contributed $102,000,000 to first quarter earnings.

11m 21s

Adjusted EBITDA was $167,000,000 a $41,000,000 increase compared to the fourth quarter largely driven by stronger domestic sales realizations in the West. Turning to the domestic market in the West. Log demand was healthy in the first quarter, as mills responded to strengthening lumber prices seasonally lower log supply. As a result, pricing for our grade logs increased and our average domestic sales realizations were significantly higher compared to the fourth quarter. Our domestic sales volumes increased moderately as we strategically shifted logs to domestic customers, and paused shipments to China given the recent ban on U. S. Log imports. Fee harvest volumes were moderately higher, and per unit log and haul cost decreased as we made the seasonal transition to lower elevation lower cost harvest operations. Forestry and road costs were seasonally lower. Moving to our Western export business. In Japan, demand for our logs improved in the first quarter. This was largely driven by a recent decrease in shipments and inventory, of imported European lumber, which has allowed our customers to increase market share. As a result, our sales volumes for export logs to Japan were significantly higher compared to the fourth quarter and average sales realizations were slightly higher.

12m 47s

In China, log demand moderated in the first quarter in response to reduced consumption during the Lunar New Year holiday. Given this dynamic, coupled with improving Western domestic market conditions, we elected to significantly reduce volumes into China during the quarter. In early March, we paused all shipments in response to Chinese regulators announcing an immediate ban on log imports from The U. S. As a result, our sales volumes decreased significantly compared to the fourth quarter and average realizations were moderately lower. It's worth noting that the log ban had a minimal impact on our first quarter results. And we don't anticipate this being a material headwind to our Western business in the near term. Given our diverse customer base, we were able shift volumes to other buyers for our Western Logs. I'll Also Note That We Had Reduced Our China program in the quarters leading up to the log band primarily due to ongoing consumption headwinds in the region and improving Western domestic market conditions.

13m 49s

Turning to the South, Adjusted EBITDA for Southern Timberlands decreased by $3,000,000 as log markets were largely stable compared to the fourth quarter. Southern sawlog demand remained muted in response to ample log supply and mills continuing to align capacity with lower takeaway of finished goods. In contrast, Southern fiber markets were generally balanced. In general, takeaway for our logs remained steady in the first quarter, given our delivered programs across the region. As a result, our average sales realizations were comparable to the fourth quarter. Our fee harvest volumes and per unit log in haul costs were also comparable. Forestry and road costs were slightly higher. In the North, adjusted EBITDA increased slightly compared to the fourth quarter, due to slightly higher sales realizations and volumes. Turning now to Real Estate Energy, and Natural Resources. On pages nine and ten. Real estate and ENR contributed $56,000,000 to first quarter earnings and $82,000,000 to adjusted EBITDA. First quarter EBITDA was $6,000,000 higher than the fourth quarter, largely driven by the timing and mix of real estate sales. Real estate markets have remained solid year to date and we continue to capitalize on steady demand and pricing for HBU properties. With significant premiums to timber value.

15m 14s

I'll now turn to our Natural Climate Solutions business and cover some exciting news on one of our previously announced carbon capture and sequestration agreement. Earlier this month, Occidental Petroleum announced an important milestone associated with our CCS project in Livingston Parish, Louisiana. They've signed a twenty five year off take agreement for approximately 2,300,000 metric tons of CO2 per year from a third party facility that's being constructed in the region. The emitting facility is expected to be operational in 2029 and subsurface injection of CO2 should commence around that time. This is an important step for our CCS project with Oxy, and represents tangible progress in advancing Weyerhaeuser's growth in the CCS space. In addition, this underscores the importance of selecting sophisticated with strong technical, commercial and project development expertise.

16m 14s

Now moving on to Wood Products on pages 11 through 13. Wood Products contributed $106,000,000 to first quarter earnings. Adjusted EBITDA was $161,000,000 which was comparable to our fourth quarter results. Starting with lumber, first quarter adjusted EBITDA was $40,000,000 a $19,000,000 improvement compared to the fourth quarter. Although buyer sentiment remained cautious, the framing lumber composite increased moderately in the first quarter, largely driven by supply constraints. From previously enacted curtailments and closures across the North American market combined with a slight seasonal improvement in building activity into the spring months. Pricing was further supported by concerns and speculation around tariff Canadian supply. Particularly SPF lumber products. I'll also note that we've seen a steady increase in Southern Yellow Pine lumber prices since January. For our lumber business, average sales realizations increased by 5% in the first quarter. Largely in line with the framing lumber composite. Our sales volumes increased slightly compared to the fourth quarter and unit manufacturing costs were slightly lower as production levels increased. It is worth noting that both sales volumes and unit manufacturing costs were slightly unfavorable to our initial outlook for the quarter. This was primarily driven by temporary operational impacts from winter weather in January and a somewhat softer demand environment in the more uncertain macro backdrop.

17m 49s

Our log costs were moderately higher, primarily for Western logs. Turning to OSB, First quarter adjusted EBITDA was $59,000,000 a $4,000,000 decrease compared to the fourth quarter. Benchmark pricing for OSB entered the first quarter on a downward trajectory, largely in response to elevated channel inventories, and slower building activity in the winter months. As the quarter progressed, demand and pricing improved slightly in anticipation of the spring building season. But later reversed as buyers weighed the potential impacts of tariffs on the economy and housing demand. This dynamic has persisted into April. For our OSB business, average sales realizations decreased by 1% in the first quarter, which was favorable to the OSB This is largely due to the length of our order file which results in a lag effect for OSB realizations. Given the softer demand environment, our sales volumes were comparable to the fourth Unit manufacturing costs and fiber costs were slightly higher. Engineered Wood Products adjusted EBITDA was $53,000,000 a $16,000,000 decrease compared to the prior quarter. I'll note that we experienced a multi week outage at our MDF facility facility in Montana as a result of a fire event in February. This impacted our first quarter EWP results by approximately $11,000,000 The facility resumed partial production in mid March and is now back to a more normal operating posture.

19m 24s

We plan to make up most of the lost volume over the course of 2025. Moving to our full EWP segment. Average sales realizations for most products were comparable to to slightly higher than fourth quarter averages. Our sales volumes decreased in the first quarter, primarily for MDF and solid section products, whereas I joist volumes were comparable. Unit manufacturing costs were lower for most product categories, excluding MDF, and raw material costs were higher. Turning to the overall demand environment, although our EWP sales volumes and pricing held up reasonably well in the first quarter, demand was softer than our initial expectations. That said, we have seen a slight uptick in our order files over the last several weeks, and we do expect our sales volumes to increase seasonally in the second quarter. Moving forward, demand for EWP products will remain closely aligned with new home construction activity, particularly in the single family segment. In Distribution, adjusted EBITDA decreased by $4,000,000 compared to the fourth quarter, largely driven by lower sales volumes. With that, I'll turn the call over to Davey to discuss some financial items and our second quarter outlook. Thanks, Devin, and good morning, everyone. I'll begin with key financial items, which are summarized on page 15.

20m 48s

We ended the first quarter with $560,000,000 of cash, and total debt of just under $5,200,000,000 First quarter share repurchase activity totaled approximately $25,000,000 and as of quarter end, we had completed approximately $925,000,000 of repurchase under our $1,000,000,000 authorization. We returned $152,000,000 to shareholders through the payment of our quarterly base dividend, which we increased by 5% to $0.21 per share during the quarter. This marked the fourth consecutive year of increasing our sustainable base dividend by 5% or more. We continue to believe that our dividend framework, combined with opportunistic share repurchase, enhances our ability to drive long term value by returning meaningful and appropriate amounts of cash back to shareholders across market cycles. Capital expenditures for the quarter were $93,000,000 which includes $16,000,000 related to the construction of our EWP facility in Arkansas. As we previously communicated, CapEx associated with this project will be excluded for purposes of calculating adjusted FAD as used in our flexible cash return framework. In the first quarter, we generated $70,000,000 of cash from operations. It's worth noting that the first quarter is usually our lowest operating cash flow quarter due to seasonal inventory and other working capital build. During the quarter, we refinanced $210,000,000 of high coupon debt at maturity by issuing a $300,000,000 variable rate term loan.

22m 28s

We have no additional debt maturing in 2025. Our balance sheet, liquidity position, and financial flexibility remain strong, and we are well positioned to navigate a range of market conditions. Unallocated items are summarized on page 14. Adjusted EBITDA for unallocated decreased by $13,000,000 compared to the fourth quarter primarily attributable to changes in intersegment profit elimination and LIFO. Looking forward, key outlook items for the second quarter are presented on page 17. In our Timberlands business, we expect second quarter earnings and adjusted EBITDA to be approximately $15,000,000 lower compared to the first quarter of twenty twenty five, primarily due to the seasonal increase in forestry and road costs in our Western operations. Turning to the West, we anticipate steady log demand in the domestic market in the second quarter as mills respond to improving lumber takeaway as we get deeper into the spring building season. At the same time, log supply is expected to increase as weather conditions improve seasonally. Given these dynamics, we expect a fairly balanced domestic log market, and stable pricing for Douglas fir logs. That said, we anticipate our average domestic sales realization will be slightly lower compared to the first quarter, largely due to mix.

23m 52s

We expect our Fee Harvest volumes to be slightly higher, given seasonally favorable operating conditions. Forestry and road costs are expected to be higher as we enter the spring and summer months, and per unit log in haul costs are expected to increase slightly as we move to higher elevation sites. Briefly on our log export program to Japan, as Devin mentioned, shipments and inventories of imported European lumber have decreased, which has allowed our customers to take market share.

24m 21s

As a result, we expect steady demand for our logs in the second quarter. That said, we anticipate lower sales volumes compared to the first quarter, due to the timing of vessels. Our average sales realizations are expected to increase moderately. Turning to the South, On balance, we're expecting Southern log prices to be relatively stable during the quarter, and our average sales realizations to be comparable to the first quarter. Log inventories were ample at the outset of the second quarter, but we expect a slight improvement in sawlog demand as mills respond to the recent uptick in pricing and takeaway of lumber. In addition, we anticipate improving fiber demand through the quarter as mills transition from spring maintenance outages. Our Fee Harvest Volumes and Forestry and Road Costs are expected to be higher due to drier weather conditions that are typical in the second quarter. And we anticipate moderately higher per unit log in haul costs. In the North, our sales realizations are expected to be moderately higher compared to the first quarter, and Fee harvest volumes are expected to be significantly lower given spring breakup conditions. Moving to our Real Estate, Energy, and Natural Resources segment. We continue to see solid demand for real estate properties and expect a consistent flow of HBU transactions with significant premiums to timber value.

25m 46s

For the second quarter, we expect adjusted EBITDA will be approximately $50,000,000 higher. And earnings will be approximately $40,000,000 higher than the first quarter of twenty twenty five due to the timing and mix of real estate sales.

26m 1s

For the full year, we maintain our adjusted EBITDA guidance of approximately $350,000,000 for the segment, which includes our target to reach $100,000,000 of EBITDA in our Natural Climate Solutions business. We now expect basis as a percentage of real estate sales to be 30% to 40% for the full year. In our Wood Products segment, we expect second quarter earnings and adjusted EBITDA to be slightly higher than the first quarter of twenty twenty five, excluding the effect of changes in average sales realization for lumber and OSB, as sales volumes increased seasonally across our wood products businesses. After a slower than expected start to the spring building season, I'll note that we are seeing signs of improving demand in certain end markets, particularly from the treater segment in The US South. In addition, order files for our EWP products have improved over the last several weeks. As shown on page 18, our current and quarter to date average sales realizations for lumber are moderately higher than the first quarter average. This is largely in response to the steady increase in pricing for southern yellow pine lumber products. Conversely, for OSB, our current and quarter to date realizations are moderately lower compared to the first quarter average.

27m 19s

For our lumber business, we expect slightly higher sales volumes and log costs compared to the first quarter, Unit manufacturing costs are expected to be comparable. For our oriented strand board business, we anticipate slightly higher sales volumes in fiber costs, Unit manufacturing costs are expected to increase due to more downtime for planned annual maintenance compared to the first quarter. Turning to our engineered wood products business, we anticipate slightly higher sales volumes for all products in the second quarter and comparable average sales realizations. Unit manufacturing costs are expected to be lower, primarily driven by increased production at our MDF facility in Montana, which has returned to more normal operating levels. And raw material costs are expected to be moderately lower. For our distribution business, we expect adjusted EBITDA to be slightly higher compared to the first quarter, as sales volumes increase seasonally. With that, I'll now turn the call back to Devin and look forward to your questions. Thanks, Davey.

28m 24s

Before wrapping up this morning, I'll make a few comments on the housing and repair and remodel markets. Starting with housing.

28m 31s

For the first quarter, housing held up reasonably well with total starts average averaging nearly 1,400,000 units on a seasonally adjusted basis and single family starts averaging around 1,000,000 units in the quarter. However, homebuilder sentiment waned somewhat as the quarter progressed and prospective buyers turned more cautious in response to elevated uncertainty surrounding tariffs in the broader economy. This cautious sentiment continued into April as trade policy accelerated and markets experienced elevated volatility.

29m 4s

Given these dynamics, the spring building season has gotten off to a softer start than we were expecting at the outset of 2025.

29m 12s

Moving forward, the housing market will ultimately be determined by the state of the economy, and whether the employment picture remains healthy. If The U. Economy and employment hold up reasonably well, there is no reason we cannot still experience a solid housing market in 2025. Further, if mortgage rates move down over the course of the year, we could even see some upside in housing activity. In the near term, however, I suspect we'll see some choppiness in the activity as trade negotiations continue and the economy adjusts to these policies. But putting the current environment aside, we remain bullish on housing over the long term.

29m 50s

Supported by strong demographic tailwinds, a vastly under built housing stock and historically low existing home inventories. Turning to the repair and remodel market.

30m 1s

Despite the seasonal decrease in activity that's typical in the winter months, R and R activity held up reasonably well in the first quarter.

30m 9s

Underlying demand fundamentals remain solid and we're seeing the tip typical pickup in activity as the weather improves. That said, we are still experiencing some headwinds in this market. Namely higher interest rates and fewer existing home transactions due to the lock in effect, and more recently, weakening consumer confidence.

30m 27s

As we look forward, while repair and remodel activity may experience a little turbulence here in the near term as the economy adjusts to tariff actions, we do expect demand to pick up as the year progresses.

30m 39s

And as we look out over the medium to long term, many of the drivers for R and R activity are still very much in place. Including significantly increased levels of home equity, and an aging housing stock. In addition, we've largely worked through the pull forward of projects that occurred during the pandemic and, in fact, are now seeing project deferrals for R and R projects.

31m 1s

So, this should be a tailwind for repair and remodel activity as the macro environment improves. In closing, we delivered solid results across our businesses in the first quarter. In addition, we increased our quarterly base dividend for the fourth consecutive year and recently reached an important milestone in our CCS agreement with Occidental in Louisiana.

31m 23s

Looking forward, we're well positioned to navigate a range of market conditions in the near term. And we remain confident in the longer term demand fundamentals that support our businesses.

31m 33s

Our balance sheet is strong and we continue to focus on driving operational excellence, serving customers, capitalizing on strategic opportunities, and creating long term value for our shareholders, through our disciplined and flexible capital allocation framework. With that, I think we can go ahead and open it up for Thank you. We will now be conducting a and answer session. If you'd like to ask a question, please press 1 on your telephone keypad. You may press 2 if you like to withdraw your question. Participants using speaker equipment, may be necessary to pick up your handset before pressing the star keys. One moment, please while we poll for questions. Our first question comes from Susan Maklari with Goldman Sachs. Please proceed with your question. Good morning, everyone. This is Charles Perronin for Susan. Thanks for taking my question.

32m 35s

Good Charles.

32m 37s

Good morning. Just first, I want to talk a bit about what you're hearing on for lumber as we enter the building season. I think, we've heard from the builders taking down their closing skies for the year and you know, the chop choppy DIY demand in your prepared remarks. But what are you hearing from retailer through the spring and their willingness to ramp inventory given the demand uncertainty against the expectations for higher tariffs later this summer, and specifically given the risks of tariffs on Canadian lumber, do you see any shift in order patterns between SPF and Southern New York pine that could sustain over time. Sure. Yeah, let me unpack there a few questions in there. You know, just in terms of overall lumber demand, you know, I would say it's steady right now. You noted there has been a little bit of pullback and you've seen that in the builder confidence levels here recently. And so, you know, I would say it's not maybe as strong as we had anticipated heading into the year. But the flip side of that is we saw somewhere in the neighborhood 4,000,000,000 board feet of capacity come out of the system last year.

33m 40s

And so that did balance the supply demand a little bit. We're seeing that in today's environment even with a little bit more muted demand overall. But that being said, as we roll into spring, we're seeing the typical increase in demand and we're starting to see the R and R market move up a little bit. As Davey noted, we've seen a little bit more interest from the treater environment here of late. So, you know, as we think about this in the broader sense, you know, I do think with just the lack of clarity around where housing's going to go, We've seen this in lumber, OSB, to some extent EWP. Not seeing people build inventories to the same level you ordinarily would see heading into the spring. And so, you know, I think that's partially uncertainty just around what's going to play out over the next several months. Right now, there is sufficient supply to meet that demand, it's not causing any significant disruptions in the supply chain. I will just note, and we've seen this many times in the past, to the extent that you don't have meaningful heading into this time of year, we do see an uptick in building activity, that typically will cause some short term supply shocks that will cause pricing to go up.

34m 55s

So, that's something that we're watching. There's a lot going on with tariffs and duties obviously. That's certainly on the mind of a lot of the buyers. Think there's we're in this period of you know, I think we're going to wait and see here for a little bit. The softwood lumber duties, increase will not come until a little bit later this summer and so don't know that that's necessarily driving a lot of buying activity today. Obviously there's a lot going on besides the softwood lumber duties tariffs, including the two thirty two investigation. But I'm not sure that's driving a lot of activity today. That probably will more so be the case you get toward the end of the quarter. I will say, you know, just the whole dynamic with with duties but also just with the amount of Southern Yellow Pine production that's been put in place all across the South over the last several years. Southern yellow pine is a bigger percentage of the overall pie these days. And so you are starting to see more inquiries around transition from SPF to Southern Yellow Pine Still early days I would say there, but we are getting somewhat more inquiries around that just in anticipation of what's to come.

36m 7s

Got it. That's helpful.

36m 9s

And then second, I want to talk a bit about EWP. It was encouraging to see that you were able to get a little bit of pricing lift sequentially across both solid section and I joists this quarter, despite the builders you know, trying to, you know, cut cost and and find savings wherever they given the affordability issues. How do you see, you know, the the outlook for, you realization for EWP going forward? I know I think you guided for comparable for the second quarter, but considering the dynamics with the builders looking for savings, against rising inflation in some of the raws and overall the market, what do you see the impact for realization? And the expectations for volume for those products going forward as well?

36m 56s

Yeah, I mean as we said, you know, our our view here in the near term is that, you know, pricing is more or less gonna be comparable here in the near term. We are expecting to see volumes go up somewhat in the second quarter just primarily as a function of just the pickup in building activity as you get into warmer months. As you look out over time, I mean, you know, it all comes down to the value proposition for the home builders. And, you know, we do provide a lot of support around our product. We have a very high quality product that's typically in pretty high demand and so that's a conversation that's ongoing. At all times with our customers. You have to create value ultimately if you're going to be satisfying your customer base. So to the extent that housing holds up reasonably well and or improves, you know, that will a tailwind for pricing and you know the converse is also true. But that'll be an ongoing discussion. Ultimately it's about providing value and supporting your customers.

37m 53s

That's what we're focused on every day.

38m 4s

Our next question comes from George Staphos with Bank of America. Please proceed with your question.

38m 10s

Hi, everyone. Good morning. Thanks for the detail. Good morning.

38m 13s

How are you, Devin? So, I guess the first question I had for you given what's been the softer pickup to the summer building season, demand being a little bit soft just given the uncertainties that you mentioned, have you adjusted your harvest profile at all or should we still be expecting a 5,500,000 tons? And can you give us a bit more color in terms of what you're seeing? In terms of the profile and what you're gonna do relative to what you might have been looking two, three months ago.

38m 42s

Yeah, you know George, really outside of a very meaningful type environment, our harvest levels are what they are. We set those to to really be within sustainable harvest levels over time. So I wouldn't anticipate any change to our full year harvest levels. You know, we don't typically have an issue moving volume, you know, sometimes around the margins, there can be some pricing dynamics given what's going on in our end markets, whether that's lumber, pulp and paper. But generally, you know, we set our harvest plans you know, that are pretty stable over time.

39m 18s

Okay, fair enough, appreciate that. And then you mentioned the Occidental Petroleum agreement Can you give us a bit more color relative to what we should be expecting in terms of cash flows, milestones, timing, in that regard. And I'll turn it over with that. Thank you.

39m 37s

Yeah, thanks for the question. We're really excited about this As we've said for a number of years, I think CCS is going to be a very big opportunity for us over time. It's progressed more slowly than we had originally anticipated. Think just as the industry is trying to figure out what are the economics behind some of these offtake agreements, the permitting process has been much more extended I think than anyone had expected. I think this is a concrete data point that this is going to happen. We're really excited about this project. I believe this is one of the largest, if not the largest, offtake agreement in the CCS Space In North America. So really excited about that. Again, I just reiterate that's why you pick partners like Oxy because they're very sophisticated and they know how to do this. We're not providing the specific economics on a deal by deal basis, George, and really the rationale there is we're out trying to sign more CCS agreements. And we wanna make sure we're getting the best economics that we can. We will obviously provide more detail about that as these things start coming online. From a timing standpoint, you know, I think they're in the process of getting their permits through the process.

40m 51s

I think it's making its way through the process is what we understand and I expect they will start building out the infrastructure here over the next couple of years to be ready first injection in 2029.

41m 3s

Okay, Devin. So in terms of just the cash flows, recognize you're not going to quantify. We're looking at sort of '29 and then next decade in terms of when we'll start seeing it actually show up in the P and L then? Thanks. I'll turn it over. Yep. Our next question comes from Matthew McKellar with RBC Capital Markets. Please proceed with your question. Hi, good morning. Thanks for taking my questions. Maybe first, if we do see some meaningful Section two thirty two tariffs on wood products [indiscernible] how do you think about the likely impact to timberland valuations over the medium term? Yeah, I mean, that's a great question. Know, first, what I would say is just with respect to the two thirty two investigation, really not a whole lot of clarity on how that's going to shake out. What products that's going to cover, what level of tariffs they would cover if that does end up being the result. So hard to make any sort of real definitive determinations around that until we get more information. That being said, in terms of Timberland valuations, I don't expect that would have a meaningful impact in the near term.

42m 27s

And that's just primarily because unless and until you have good clarity on how long those kinds of tariffs would be in place, I suspect people are not going to be building that meaningfully into the valuation of Timberlands because again, it's just a very long term asset class and people tend to look out over the course of decades rather than, you know, in two and three year increments. So I don't know that it would necessarily have an impact on timberlands values or at least not anything material.

42m 58s

Okay, thanks for that color. And last for me, just in the OSB business, you mentioned some planned annual maintenance in the quarter. I recognize this is planned maintenance, but you been intending to perform this maintenance in Q2 for some time? Or are you pulling forward any maintenance maybe based on what you're seeing in the market?

43m 17s

No. I mean, this was part of our annual plan As a general matter, we plan the annual maintenance work well in advance if you have to order equipment, you have to schedule outside contractors, and so we typically come up with a plan to cover the year and absent something really meaningful changing in the environment, we typically stick with those plans. It's just you typically incur some extra costs if you start moving that around late in the season.

43m 49s

Okay, thanks very much. I'll turn it back.

43m 51s

Alright. Thank you. Our next question comes from Mark Weintraub with Seaport Research Partners. Please proceed with your question. Thank you. Few quick thoughts. One, on that OS annual plan maintenance outage, order of magnitude, how much impact would you expect that to have in 2Q? Yes, Mark. Not a meaningful impact. I mean, think we're still expecting that operating rates would be in the kind of the low to mid-90s, which is consistent with where we were in the first quarter. So maybe $10,000,000 or something or less? No, no, no. Less than that. Less than that. Okay.

44m 30s

Not not a huge amount.

44m 32s

Okay. Then, in terms of the EWP the fire impact, so that was $11,000,000 in the first quarter. So does that $11,000,000 disappear in the second quarter And then you actually hope to recoup some of it with stronger volumes in the back half of the year all else equal. Yes, Mark. So the $11,000,000 was the impact to the first quarter. We have largely returned to more normal operating levels at this point. There's going to be a small impact on the second quarter, But as we said, we do expect to get most of that volume back over the course of the year. So, of that will come back in Q2 potentially. But likely over the second half of the year. Okay. And then lastly, just so you have a 16% tax rate in the first quarter. Which I assume means that you are expecting a healthy share of your income to come from your TRS this year. Which presumably would mean that you're still pretty optimistic on how the wood products business is going to turn out for the rest of the year. Is that fair? And if it ends up being a little bit weaker, just the tax rate go down for the balance of the year?

45m 47s

Is that how it would play out? Yeah, Mark. I think you're right on the mechanics. The full year projected tax rate that's primarily driven by the mix between REIT and TRS earnings with the TRS earnings being most significantly driven by the Wood Products business Though, of course, there's other items that go into that from time to time, whether that be regional mix of earnings in Timberlands or real estate energy and natural resources. Of course, challenging to predict where commodity prices are going to move over the course of the year. In an environment like this, it gets even more challenging. So, that's why we're not giving full year guidance there. But, yeah, I mean, to your point, the strength of lumber prices we've seen to date, prospect of increased duties later in the year, all the things that Devin walked through earlier, If the employment and broader macro environment holds on, no reason this can't be a solid year in Wood Products.

46m 38s

Got you. Thanks a lot.

46m 43s

Our next question comes from Ketan Mamtora with BMO Capital Markets. Please proceed with your question. Good morning and thanks for taking my question. First question, can you talk a little bit about you know, the channel inventories as you guys see it in in lumber, OSB and EWP? In the context of what we've discussed today, you know, with slower sort of, you know, start of the spring season, home builders sounding a little more cautious cautious. How would you characterize inventories Lean, more balanced, or probably a little bit, you know, kind of more than balanced at this point.

47m 20s

Yeah, I mean, so, relative to what you would normally see this time of year, I would say the inventories are a little lighter than you would expect. Now that being said, it's currently by and large the supply is meeting the demand So there's not a tremendous urgency on the part of the buyer community to build meaningful inventories on balance right now. So again, I think things are fine as long as building activity continues along the current path. If things were to pick up, as I mentioned earlier, I think what that typically results in is you'd see a little bit of a spike in pricing as people try to get out from under lean inventories.

48m 7s

Got it. That's helpful. And then second question, good to see the progress on the CCS side. I'm just curious on forest carbon, Devin, last quarter you talked about a pretty meaningful jump over 2024. Is that still on track for 2025?

48m 23s

It is. Yep. So, we've got two projects that have already been approved. We've got seven more in the pipeline in various stages of review by either the third party auditors or several of those are in for final approval with ACR. So everything is progressing. I mean it's always hard to predict exactly when these things come through the process, we're still looking forward to a pretty meaningful increase in forest carbon this year, somewhere in the 5x to 10x depending on how how quickly we can get these things through the audits. But I think we're heading in the right direction. Seems to be good demand from the that we're talking to. So, it should be a nice pickup in forest carbon this year.

49m 9s

Perfect. That's very helpful. I'll jump back in the queue. Good luck. All right. Thanks.

49m 15s

Our next question comes from Hong Hang with JPMorgan. Please proceed with your question.

49m 21s

Yeah. Hey, thanks for taking my questions. I guess my first question, you've a little bit about the supply and demand dynamics there. Causing weakness in OSB pricing. I guess in the near term, what do you think needs to change for us to see stabilization in prices?

49m 41s

Yeah. I mean, would say it's by and large pretty stable right now. It's obviously a little lower price than we saw a little while ago. But I think right now the supply demand dynamic is pretty balanced. We started the year in OSB with pretty light buying activity particularly from the home improvement warehouse segment. And so that kept it pretty light. You saw that pick up a little bit over the course of of Q1, but it's come back down here over the last several weeks. Feels like it's sort of stabilizing right now from a pricing standpoint. I would expect as we get deeper into the building season, remember even though we had 1,400,000 starts in Q1 that is on a seasonally adjusted basis. So in terms of the actual number of units that are going to get built, it will be higher as we get into Q2 and the summer months. And so you'll see that activity pick up here and I think all things being equal, even on the current path, things are probably in a pretty stable range right now. Obviously, if you saw interest rates go down to have buying activity pick up, obviously that would have some tailwind effect for pricing.

50m 55s

But overall, it feels pretty stable right now.

50m 58s

Got it. And I guess my second question, the administration signed a lot of executive actions trying to increase timber production, and has recently opened up parkland for public land for timber harvests. How do you expect that to kind of play out in the the timber market Well, yeah. So, you know, first, just a reminder here, we don't do any logging on federal lands with the exception of a very, very small amount of wood in Montana. We don't buy timber off federal lands. We procure logs from our own timber lands and other private landowners. So that's not an area that we really participate in. In terms of how this plays out, I think it's a little hard to say. I will say at the outset, and I think most people agree with this, there is an opportunity to make the federal forest more resilient to fire risk by doing some active management. And so to the extent that through these executive orders that helps the Forest Service be a little bit more proactive on some of these things to make sure that we don't see the number of acres burned every year. That's a positive for everyone, including warehouse Now beyond that, I'm not sure you're gonna see a dramatic in logging activity on federal lands, at least not in the West.

52m 25s

Because the mill infrastructure really isn't built for those larger logs, I think there's some other practical challenges. That could limit a meaningful increase just logging capacity, trucking capacity, etcetera. So, I'm not sure that's going to have a big impact here in the near term. Obviously, the administration is focused on manufacturing jobs in the US. And so, that's a positive overall in we certainly agree with the administration on that front. But whether the opening up federal forests means meaningfully more logs coming out in the near term, I'm not sure about that. But we'll watch it and others that are deeper in the space of logging on federal lands may have more insight there. That's just not something we typically do.

53m 10s

Got it. Thank you. Our next question comes from Hamir Patel with CIBC.

53m 18s

Capital Markets. Please proceed with your question.

53m 22s

Hi, good morning.

53m 24s

Devin, you mentioned more inquiries around transitioning to customers looking to transition to Southern Yellow Pine from SPF. Can you speak more to perhaps where you're seeing that interest?

53m 36s

Is that more larger public builders versus a privates? And any maybe differences across regions?

53m 45s

Yeah. I mean, I would say regionally, it's kind of those Midwest regions where they've traditionally been SPF markets and you've had a little bit of Southern Yellow Pine moving in there but primarily in SPF market. So regionally that's kind of where you're seeing. It's across the board though. From dealers, to even the home improvement warehouse customers. You know, as you look forward, it's clear that you know, there is going to be less SPF on the market whether that's because of beetle infestation fires, government policy, trade issues, etcetera. You know, that seems to be the case and obviously been a lot of Southern Yellow Pine lumber capacity that's been coming into the market. So ultimately that is going to happen and I think people are seeing the future and realizing that this may be the time to start dipping your toe in the water and getting your arms around Southern Yellow Pine. Again, it's not I wouldn't say we're all that far down that road, but we're in the early innings I think and you're starting to see more inquiries on that.

54m 53s

Thanks. That's helpful. And you also indicated you're expected R and R activity to pick up later this year.

55m 1s

Do you think that end market for Wood Products experiences growth this year just given the sluggish pace year to date?

55m 9s

Yes. Mean, it's puts and takes, right? Because from a housing standpoint, obviously, it's hard to know. We're still early in the year. But just given the general commentary that we've heard from some of the builders, you know, whereas we were thinking initially maybe housing was up slightly maybe that's perhaps down to flat or even slightly down overall. From an R and R standpoint, you know, I think where we're coming from is we've got massive amounts of home equity out there. I do think, you know, we've seen a little bit of a headwind activity during the pandemic. Was a little bit of a drag, but I think we've worked through that. That pull forward, and so that should open up a little bit more And as interest rates particularly on the short end, open up a little bit more financing activity, I think that could be another tailwind as well. And so you know, we are expecting things to pick up. All things being equal, obviously, if we're in a recession or there's some other meaningful impact to the economy, then of that would impact our view. But if things stay relatively stable, then I that can be some upside over the course of the year.

56m 21s

And you know, just whether that balances out slightly softer housing, I think it's hard to say. It really depends on how much uptick you get on R and R. But again, we're, you know, there's a lot of negativity out in the market right now. I that. There's uncertainty clearly. But sitting here today, I mean we're still looking at having a good year this year. And so views on that haven't really changed. There may be some bumps in the road along the way but businesses are operating well, the pricing environment is still reasonably good and so we're not maybe as pessimistic as some other folks.

56m 56s

Yeah, fair enough. That's all I had, I'll turn it over, thanks.

57m

Thank you. Our next question comes from Mike Roxland with Truist Securities. Please proceed with your question.

57m 10s

Yeah. Thank thank you, Devin, Davey, and Andy for taking my questions. Devin, I just wanted to follow-up on the sense of what's driving the slight uptick in order files in EWP over the last several weeks. Is that you mentioned seasonality. I mean, have you seen a pickup in building activity? Because it certainly doesn't sound for your comments that there's been much in the way of restocking. So the seasonality of pickup and billing activity that's led to better order files in EWP And can you remind us the operating rate you ran at an EWP in 1Q and what you expect for 2Q?

57m 46s

Yeah. I mean, I think it's largely seasonality. Right? And it's what are you comparing it to? So Q1 is always the slowest season of the year. Just because of the weather and as the weather improves you see a pickup in building activity. And so maybe it's not you know, as strong as we had thought it would be coming into the year, but it's still stronger than Q3. And so that's, I think that's really what's driving the uptick right now. From an operating rate standpoint on EWP, were sort of in that low 70s, 70 range. We do expect that to improve as we go into Q2.

58m 23s

Got it. Okay. And then just congrats on the Occidental progress and the progress overall for CCS. Just on a recent conference, mentioned that, and you said it again today here, that CCS is a big opportunity, but not as big as you originally planned. Can you give us a sense of the scale of the opportunity as you now see it? How that compares to your original outlook? And why the change in expectations. Is that solely due to the permitting process? And Yeah. So just losses.

58m 54s

Oh, sorry. I got Just to be clear, I do not view it as less overall opportunity. In fact, I think the opportunity set for CCS is fairly significant. So our views on the of the opportunity haven't changed. Only thing that's really changed is just the timeline. We had originally thought we would start seeing injections in kind of twenty six 'twenty seven timeframe. And that's been pushed back by a few years. So you know, the timeline to get these things up and running is a brand new business. For everybody involved, and it's just taking longer to come fruition. But the magnitude of the opportunity, we still think is fairly significant.

59m 34s

Any heavy manufacturing is going to need CCS if you're going to reduce your CC greenhouse gas emissions. There's just really no other way to do this cost effective So I think this is going to happen. It's going to happen in a big way. It's just going to to fruition over a little bit longer timeline.

59m 54s

Got it. I appreciate the clarity there. And then just one last thing is in terms of CCS, does it tend to be higher margin relative to wind, solar and carbon credits and mitigation banking? Is that CCS typically highest margin product that you have in natural climate solutions?

1h 11s

Yeah. I mean, the margin is incredible. Right? Because you're leasing subsurface space. We're not we're not putting any of our own money into building out the infrastructure. We're not really managing it. There are very little in terms of cost from our standpoint around employees who've got We've got people managing the program, it's a really, really low cost. It's virtually all upside because it's on top of the Timberlands above ground. So it is it's like wind in the sense that this is just pure upside to managing the land base.

1h 46s

Got it. Thank you very much. Yep. Great. Our next question comes from Buck Horne with Raymond James. Please proceed with your question.

1h 59s

Wanted to maybe zoom out a little bit, just take stock of where we're at in terms of the stock price performance and, obviously, the discount [indiscernible] Probably one of the widest discounts since the pandemic. Does that strategically give you any thoughts about are there any maybe non core timber positions you would think about monetizing or could monetize in the near term and maybe accelerate some share repurchase activity to maybe close this NAV gap or take advantage of the dislocation?

1h 1m 36s

Yeah, Buck. I mean, we're we're always looking at levers to create shareholder value. We've been balanced in our capital allocation approach. So it's for us, it's not really a matter of having to choose between the various outcomes We're not in a position where we've got to get to an appropriate leverage. Place or meet dividend requirements. We feel really good about about those. So really, we're able to think about the various components and opportunities that are available to us separately. So on the Timberland side, as we've said, we've got a high degree of confidence that the value is going to go up over time. So going to continue to be active there. But that said, it is critical to be disciplined in our approach as we look at those so we don't overpay. And we haven't been afraid to make adjustments to our when we can find more efficient uses of capital whether that be through the real estate program, whether that be through, swap like transactions like we did late in 2023, really looking to to improve the quality of our portfolio, the cash flow generation capability. And we've been active in share repurchase. We've nearly completed that $1,000,000,000 authorization.

1h 2m 42s

We'll continue to lean in and be opportunistic there. But as always, it's a matter of looking at all the opportunities that are available to us and allocating our capital in a way that creates the most value for shareholders.

1h 2m 54s

Got you. Appreciate that. Thanks, Davey. And I just have a follow-up on solar leasing. Is there any update in terms of market momentum in terms of option conversions? Or how do you view kind of the opportunity set for solar uptake in the next couple of years?

1h 3m 11s

Yeah. Well, I mean, we're making great progress. We've got our first operating solar site. At this point, we got two more that are currently under construction that I suspect will be online. Later this year or at the latest early next year. The pipeline continues to grow. We're continuing to sign new agreements We're really focused on you know, signing up with counterparties that are big and sophisticated and can navigate, you know, whether it's the permitting process or, you know, ultimately with some of the challenges here, a supply chain standpoint, the folks that can navigate that. So we feel good about the conversion rate in terms of the pipeline that we've developed and my expectation is we'll be adding several of these every year really over the next decade. So we're expecting this to continue to become a bigger and bigger component of our NCS business over time, so very positive.

1h 4m 7s

Thanks, guys. Appreciate it.

1h 4m 9s

Yep.

1h 4m 12s

Our next question is from George Staphos with Bank of America. Please proceed with your question.

1h 4m 18s

Thanks. A couple quick follow ons just on tariffs. So to the extent you can comment and I know it's really hard to parse this Devin and Davey, and recognizing that tariffs are a moving target, has there been much from what you see and what you talk to in terms of the field impact from tariffs built into lumber pricing as you see it right now And the related question, given the fact that there's been so much capacity that's gone to The U. S. Over the last number of years, and that gap between supply and demand has diminished. Recognize in a stronger housing market that gap would widen out again. Do you think tariffs would have had much effect on lumber pricing as we sit here today?

1h 5m 2s

Guys and good luck in the quarter.

1h 5m 5s

Yeah, in terms of today, I don't think it's having a meaningful impact on pricing. It can, and I think we saw that around the April 2 announcement, there was clearly some impact to lumber pricing in anticipation of that. And you kind of saw the run up and then it was determined that wood products would be exempted from the across the board tariff, saw those price come back down. I do think, you know, as you get closer to the AugustSeptember timeframe where the new duty structure will come into place, I suspect you'll see some impact there. And you know, the wild card too is, you know, what happens in the broader tariff environment. Whether that's the $2.32 or just, you the broad based tariffs to the extent that those come into play I mean it will impact pricing around the margins. For sure. Is it going to have a material impact? I think that your point, George, is really just a function of where we are in the demand cycle. If demand is strong, that'll push pricing up, tariffs maybe put a little bit on top of that. If demand is weak, you know, really what it does is just adjust where the cost floor is and so that ultimately can impact, you know, capacity decisions.

1h 6m 22s

So, you know, I think this will play out over time. There's a lot of uncertainty around it and I think, you know, to some degree, you may see some hesitancy, people building inventories, not knowing necessarily what's going to happen on tariffs at least till we get closer to a more certain date on those new duties.

1h 6m 40s

Thanks, Kevin.

1h 6m 42s

Have a good quarter.

1h 6m 43s

All right. Thank you.

1h 6m 47s

There are no further questions at this time. I'd like to turn the floor back over to Devin Stockfish for closing comments.

1h 6m 54s

Okay. Well, thank you everyone for joining us this morning. Thank you for your continued interest in Weyerhaeuser. Have a great day.

1h 7m 4s

This concludes today's teleconference. You may disconnect your lines at this time, and we thank you for your participation.

Key Insights

Weyerhaeuser reported Q1 GAAP earnings of $83 million ($0.11 per diluted share) on $1.8 billion in net sales, with adjusted EBITDA of $328 million, a 12% increase over Q4 2024; strong operational performance was noted despite macroeconomic uncertainty.
Timberlands saw improved results, especially in the West due to higher domestic log prices and volumes, while the China log import ban had minimal impact; Southern Timberlands remained stable, and Real Estate, Energy & Natural Resources (RE&NR) contributed $56 million to earnings with solid HBU property demand.
Wood Products delivered $106 million in Q1 earnings and $161 million in adjusted EBITDA; lumber sales realizations rose 5% with slightly higher volumes, while OSB and EWP faced softer demand and operational impacts, including a fire at the Montana MDF facility (impacting Q1 by ~$11 million).
The company ended Q1 with $560 million in cash and just under $5.2 billion in total debt; $152 million was returned to shareholders via dividends (increased by 5% to $0.21/share), and share repurchases neared completion of the $1 billion authorization.
For Q2 2025, WY expects Timberlands earnings/EBITDA to be ~$15 million lower due to seasonal costs, RE&NR EBITDA to be ~$50 million higher (earnings up ~$40 million), and Wood Products earnings/EBITDA to be slightly higher; full-year RE&NR EBITDA guidance is ~$350 million, including $100 million from Natural Climate Solutions, with CCS projects progressing but major cash flows expected from 2029 onward.

Recent Transcripts

Q1 results solid with 12% EBITDA growth, dividend raised, and CCS milestone achieved.

Weyerhaeuser delivered resilient 2024 results, increased dividends, and announced a major EWP investment.

Income Statement

Revenue

	2020	2021	2022	2023	2024
Revenue	$7.5B	$10B	$10B	$7.7B	$7.1B
Cost of Revenue	$5.4B	$6.1B	$6.6B	$6B	$5.8B
Gross Profit	$2.1B	$4.1B	$3.6B	$1.7B	$1.3B
Gross Profit %	28%	40%	36%	22%	18%
R&D Expenses	$5M	$5M	$6M	$7M	$7M

2020

2021

2022

2023

2024

Revenue

$7.5B

$10B

$7.7B

$7.1B

Cost of Revenue

$5.4B

$6.1B

$6.6B

$6B

$5.8B

Gross Profit

$2.1B

$4.1B

$3.6B

$1.7B

$1.3B

Gross Profit %

28%

40%

36%

22%

18%

R&D Expenses

$5M

$6M

$7M

Cash Flow

Net Income

	2020	2021	2022	2023	2024
Net Income	$797M	$2.6B	$1.9B	$839M	$396M
Dep. & Amort.	$757M	$577M	$480M	$500M	$502M
Def. Tax	-$56M	$14M	-$30M	-$6M	$0
Stock Comp.	$30M	$30M	$33M	$36M	$0
Chg. in WC	-$122M	$53M	-$112M	-$22M	-$78M

2020

2021

2022

2023

2024

Net Income

$797M

$2.6B

$1.9B

$839M

$396M

Dep. & Amort.

$757M

$577M

$480M

$500M

$502M

Def. Tax

-$56M

$14M

-$30M

-$6M

Stock Comp.

$30M

$33M

$36M

Chg. in WC

-$122M

$53M

-$112M

-$22M

-$78M

Balance Sheet

Cash

	2020	2021	2022	2023	2024
Cash	$495M	$1.9B	$1.6B	$1.2B	$684M
ST Investments	$0	$0	$0	$0	$0
Cash & ST Inv.	$495M	$1.9B	$1.6B	$1.2B	$684M
Receivables	$532M	$507M	$399M	$364M	$306M
Inventory	$443M	$520M	$550M	$566M	$607M

2020

2021

2022

2023

2024

Cash

$495M

$1.9B

$1.6B

$1.2B

$684M

ST Investments

Cash & ST Inv.

$495M

$1.9B

$1.6B

$1.2B

$684M

Receivables

$532M

$507M

$399M

$364M

$306M

Inventory

$443M

$520M

$550M

$566M

$607M

Go Deeper

Financial information provided by Financial Modeling Prep. Options data provided by Unusual Whales. Live transcripts provided by Quartr. Reported revenue and EPS data from Earnings powered by FinChat.io. All data is provided for informational purposes only, and is not intended for trading purposes or financial, investment, tax, legal, accounting or other advice.

Market Cap: $19B
IPO Date: 5/3/73
CEO: Mr. Devin W. Stockfish Esq., J.D.
Fulltime Employees: 9.4K
Sector: Real Estate
Industry: REIT - Specialty
Country: US
Exchange: New York Stock Exchange

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Watchlist

Earnings

Report Date

Apr 24, 2025

Reported Revenue

1.8B

Miss -0.23%

Avg 1d Change

2.27%

Report Period

Q1 2025

Reported EPS

0.11

Miss -0%

Implied Move 1d

5.44%

Transcript

10m 25s

On the call this morning are Devon Stockfish, Chief Executive Officer and Davey Wold, Chief Financial Officer. I will now turn the call over to Devin Stockfish.

10m 34s

11m 21s

12m 47s

13m 49s

15m 14s

16m 14s

17m 49s

19m 24s

20m 48s

22m 28s

23m 52s

24m 21s

25m 46s

26m 1s

27m 19s

28m 24s

Before wrapping up this morning, I'll make a few comments on the housing and repair and remodel markets. Starting with housing.

28m 31s

29m 4s

Given these dynamics, the spring building season has gotten off to a softer start than we were expecting at the outset of 2025.

29m 12s

29m 50s

Supported by strong demographic tailwinds, a vastly under built housing stock and historically low existing home inventories. Turning to the repair and remodel market.

30m 1s

Despite the seasonal decrease in activity that's typical in the winter months, R and R activity held up reasonably well in the first quarter.

30m 9s

30m 27s

30m 39s

31m 1s

31m 23s

Looking forward, we're well positioned to navigate a range of market conditions in the near term. And we remain confident in the longer term demand fundamentals that support our businesses.

31m 33s

32m 35s

Good Charles.

32m 37s

33m 40s

34m 55s

36m 7s

Got it. That's helpful.

36m 9s

36m 56s

37m 53s

That's what we're focused on every day.

38m 4s

Our next question comes from George Staphos with Bank of America. Please proceed with your question.

38m 10s

Hi, everyone. Good morning. Thanks for the detail. Good morning.

38m 13s

38m 42s

39m 18s

39m 37s

40m 51s

41m 3s

42m 27s

42m 58s

43m 17s

43m 49s

Okay, thanks very much. I'll turn it back.

43m 51s

44m 30s

Not not a huge amount.

44m 32s

45m 47s

46m 38s

Got you. Thanks a lot.

46m 43s

47m 20s

48m 7s

48m 23s

49m 9s

Perfect. That's very helpful. I'll jump back in the queue. Good luck. All right. Thanks.

49m 15s

Our next question comes from Hong Hang with JPMorgan. Please proceed with your question.

49m 21s

49m 41s

50m 55s

But overall, it feels pretty stable right now.

50m 58s

52m 25s

53m 10s

Got it. Thank you. Our next question comes from Hamir Patel with CIBC.

53m 18s

Capital Markets. Please proceed with your question.

53m 22s

Hi, good morning.

53m 24s

Devin, you mentioned more inquiries around transitioning to customers looking to transition to Southern Yellow Pine from SPF. Can you speak more to perhaps where you're seeing that interest?

53m 36s

Is that more larger public builders versus a privates? And any maybe differences across regions?

53m 45s

54m 53s

Thanks. That's helpful. And you also indicated you're expected R and R activity to pick up later this year.

55m 1s

Do you think that end market for Wood Products experiences growth this year just given the sluggish pace year to date?

55m 9s

56m 21s

56m 56s

Yeah, fair enough. That's all I had, I'll turn it over, thanks.

57m

Thank you. Our next question comes from Mike Roxland with Truist Securities. Please proceed with your question.

57m 10s

57m 46s

58m 23s

58m 54s

59m 34s

59m 54s

1h 11s

1h 46s

Got it. Thank you very much. Yep. Great. Our next question comes from Buck Horne with Raymond James. Please proceed with your question.

1h 59s

1h 1m 36s

1h 2m 42s

1h 2m 54s

1h 3m 11s

1h 4m 7s

Thanks, guys. Appreciate it.

1h 4m 9s

Yep.

1h 4m 12s

Our next question is from George Staphos with Bank of America. Please proceed with your question.

1h 4m 18s

1h 5m 2s

Guys and good luck in the quarter.

1h 5m 5s

1h 6m 22s

1h 6m 40s

Thanks, Kevin.

1h 6m 42s

Have a good quarter.

1h 6m 43s

All right. Thank you.

1h 6m 47s

There are no further questions at this time. I'd like to turn the floor back over to Devin Stockfish for closing comments.

1h 6m 54s

Okay. Well, thank you everyone for joining us this morning. Thank you for your continued interest in Weyerhaeuser. Have a great day.

1h 7m 4s

This concludes today's teleconference. You may disconnect your lines at this time, and we thank you for your participation.

Key Insights

Weyerhaeuser reported Q1 GAAP earnings of $83 million ($0.11 per diluted share) on $1.8 billion in net sales, with adjusted EBITDA of $328 million, a 12% increase over Q4 2024; strong operational performance was noted despite macroeconomic uncertainty.
Timberlands saw improved results, especially in the West due to higher domestic log prices and volumes, while the China log import ban had minimal impact; Southern Timberlands remained stable, and Real Estate, Energy & Natural Resources (RE&NR) contributed $56 million to earnings with solid HBU property demand.
Wood Products delivered $106 million in Q1 earnings and $161 million in adjusted EBITDA; lumber sales realizations rose 5% with slightly higher volumes, while OSB and EWP faced softer demand and operational impacts, including a fire at the Montana MDF facility (impacting Q1 by ~$11 million).
The company ended Q1 with $560 million in cash and just under $5.2 billion in total debt; $152 million was returned to shareholders via dividends (increased by 5% to $0.21/share), and share repurchases neared completion of the $1 billion authorization.
For Q2 2025, WY expects Timberlands earnings/EBITDA to be ~$15 million lower due to seasonal costs, RE&NR EBITDA to be ~$50 million higher (earnings up ~$40 million), and Wood Products earnings/EBITDA to be slightly higher; full-year RE&NR EBITDA guidance is ~$350 million, including $100 million from Natural Climate Solutions, with CCS projects progressing but major cash flows expected from 2029 onward.

Earnings

Report Date

Reported Revenue

Avg 1d Change

Report Period

Reported EPS

Implied Move 1d

Transcript

Key Insights

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Income Statement

Cash Flow

Balance Sheet

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Recent Transcripts

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Reported Revenue

Avg 1d Change

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Reported EPS

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