📢 Earnings Summary — WY

Weyerhaeuser delivered modest profitability in a difficult market, with GAAP earnings of $80 million and adjusted EBITDA of $217 million, reflecting strong execution and cost discipline. Timberlands and RE&ENR held up well, supported by active portfolio management and high-value real estate sales, while Wood Products posted losses amid historically weak lumber and OSB pricing. Liquidity and the balance sheet remain solid, aided by an $800 million term loan and proactive debt prepayment, and the company continued to return cash via buybacks. Management raised full-year RE&ENR guidance and remains on track for $100 million of Natural Climate Solutions EBITDA in 2025, while advancing carbon and CCS initiatives. Near-term outlook is seasonally softer, especially in Wood Products and Western logs, though stabilized prices, leaner inventories, and tariff dynamics are expected to support pricing into the next building season. Overall tone is cautious near term but constructive on longer-term demand and growth initiatives.

📈 Growth Highlights

• Achieved the multiyear Timberlands growth target announced in September 2021
• Raised full-year 2025 Real Estate, Energy & Natural Resources (RE&ENR) adjusted EBITDA guidance to approximately $390 million (+$40 million vs prior)
• Natural Climate Solutions on track to deliver $100 million of adjusted EBITDA by year-end with a significant increase in 2025 credit generation and sales vs recent years
• Average real estate price per acre reached its highest quarterly level since late 2022
• Completed two high-quality timberland acquisitions totaling $459 million (NC/VA and WA), with planned divestitures expected to exceed acquisition cash outlay

🔨 Business Development

• Completed sale of Princeton, BC sawmill for $85 million; $61 million received at closing with remaining proceeds upon timber license transfers
• Acquired timberlands in North Carolina/Virginia and Washington; advanced three divestiture packages of non-core timberlands with ~$410 million expected proceeds by year-end and a third closing in early 2026
• Occidental announced a JV for CO2 pipeline infrastructure tied to WY’s Livingston Parish, LA CCS storage project (first injection expected 2029)
• Forest carbon: 4th project approved; 5 additional projects under development
• Progressing construction of new EWP facility in Monticello, Arkansas (total ~$500 million through 2027; ~$130 million in 2025); Monticello CapEx excluded from adjusted FAD
• Canadian footprint streamlined; continue operating two Alberta sawmills (other Canadian operations unaffected by Princeton sale)

💵 Financial Performance

• GAAP net earnings of $80 million ($0.11/share) on net sales of $1.7 billion
• Earnings excluding special items of $40 million ($0.06/share)
• Adjusted EBITDA of $217 million
• Cash from operations of $210 million; period-end cash ~ $400 million; total debt just under $5.5 billion
• Q3 share repurchases of $25 million; ~$150 million repurchased YTD
• Q3 capital expenditures of $125 million, including $32 million for Monticello EWP
• Timberlands adjusted EBITDA of $148 million (down $4 million q/q); Southern Timberlands EBITDA $74 million (+$5 million q/q)
• RE&ENR contributed $69 million to earnings and $91 million adjusted EBITDA (down $52 million q/q; +$28 million vs initial outlook)
• Wood Products excluding special items posted a $48 million loss; adjusted EBITDA of $8 million (down $93 million q/q)
• Lumber adjusted EBITDA loss of $48 million; OSB adjusted EBITDA loss of $3 million; EWP adjusted EBITDA of $56 million (includes $7 million insurance benefit)

🏦 Capital & Funding

• Secured a 3-year $800 million term loan at an effective 4.3%; used $500 million to prepay 2026 maturities
• Lowered 2025 typical CapEx guidance (ex-Monticello) to $380–$390 million
• Maintained flexible capital allocation framework, balancing growth investments, shareholder returns, and liability management

🧠 Operations & Strategy

• Leveraging OpEx discipline and competitive cost structure to navigate cyclicality
• Moderated lumber production by ~3% in September amid softer demand; unit manufacturing costs increased; log costs moderately lower
• Aligned EWP and OSB production with softer Q3 demand; OSB and fiber costs were moderately lower; maintained pricing discipline
• Executed active portfolio management: strategic timberland acquisitions and divestitures to improve quality and returns
• Delivered log programs supported steady takeaway in the South despite localized mill closures
• West fee harvest volumes exceeded plan due to a light wildfire season; elevated-elevation harvesting increased per-unit log and haul costs seasonally

🌍 Market Outlook

• Q4 Timberlands adjusted EBITDA expected to be ~ $30 million lower q/q, primarily on lower West volumes and realizations
• West domestic logs: soft demand at quarter start; realizations to be moderately lower q/q; seasonal supply moderation may support pricing later in Q4
• Japan export logs: Q4 volumes to be lower on softer demand; realizations slightly higher driven by freight benefits; expect improvement as inventories normalize and as customers gain share vs European lumber
• South logs: Q4 sawlog demand muted but expected slight uptick as supply tightens seasonally; realizations comparable q/q; volumes and road/forestry costs decrease seasonally; per-unit haul costs higher
• RE&ENR: full-year 2025 adjusted EBITDA guidance raised to ~$390 million; Q4 EBITDA ~ $15 million lower than Q3 on timing/mix
• Wood Products: excluding price moves, Q4 earnings/EBITDA expected slightly lower q/q on seasonal housing and R&R moderation
• Lumber and OSB pricing stabilized late Q3/October; leaner inventories and higher Canadian duties plus new 232 tariffs expected to support pricing into next building season
• Natural Climate Solutions: on track for $100 million adjusted EBITDA by year-end; more details and multiyear targets planned for December Investor Day

⚠ Risks & Headwinds

• Historically low lumber and OSB prices (inflation-adjusted) during Q3
• Elevated mill log inventories and soft domestic log demand in the West
• Japanese housing consumption headwinds and elevated finished goods inventories
• Seasonal winter weather expected to reduce harvest activity and demand
• Localized fiber market disruptions from recent mill closures in the South
• Supply-demand imbalance exacerbated by Canadian lumber shipments ahead of duty increases

AI-generated earnings recap sourced from company results & conference call observations. Not investment advice — verify with official filings.