Track market-moving stories before they get noisy

vav63/iStock via Getty Images

Weyerhaeuser (WY) is priced at an extreme discount at roughly 66% of net asset value (NAV). This is likely due to the market correctly seeing the challenging conditions in both timber and lumber. However, the market could be underestimating natural market forces that restore equilibrium. As the vertical adjusts, WY’s position as the market share and margin leader should result in substantial EBITDA growth which will make WY’s free cash flow oversized relative to the market price. As earnings improve, I think WY will trade up toward NAV for about 50% upside.

Specifically, this article will examine:

Factors making timber and lumber businesses challenging. Mechanisms of equilibrium restoration – curtailments, utilization, consolidation. Margin and market share gains Incremental sources of EBITDA Valuation by assets and earnings Fair value Challenged industry conditions

The margin difficulties of the lumber vertical are not immediately apparent looking at lumber prices.

tradingeconomics

$631 is low compared to the extreme lumber prices of 2021 and 2022, but still reasonably fine compared to pre-pandemic levels. Adjusting for inflation, lumber prices are fairly normal presently.

So why are mills struggling right now?

The low profitability of the wood products vertical in recent years has come from a mismatch of supply and demand. Supply had ramped up to meet the demand spike of 2021- 2022.

Building of single family homes was the largest driver as these are primarily wooden structures, but there was also outsized building of apartments and all kinds of CRE. Thus, the image below of the decline in housing starts only captures a portion of the demand drop off.

FRED

As of 1Q26, housing starts are low by historical standards, but not that low. Perhaps somewhere around the 40th percentile. The bigger damage, in my opinion, is in other CRE.

Office construction is nearly zero. Most large offices are big boxes of metal and glass so they are not often considered drivers of lumber, but the interiors use a variety of wood products.

Apartment construction dropped off substantially since 2024. Apartments use more wood than office, but less than single family homes.

Repair and remodel demand for wood products is stimulated by housing turnover. Owners will fix up their homes before selling in an attempt to get a better price. Sales of existing homes have been sluggish since 2023.

tradingeconomics

So while lumber pricing is decent, sales volume is weakened by low CRE construction, low existing home sales and the somewhat low homebuilding activity.

This shows up in the receipts.

FRED

Adjusted for inflation, net sales receipts of wood products are dismal.

In addition to weak quantity demanded, the supply situation has not been helpful. Production capacity ramped up to try to meet the demand of 2021-2022 and it has taken a while to come back down.

Equilibrium restoring mechanisms.

Milling capacity operates with a lag. It takes as much as a few years to open new mills or shut down existing mills. Note how capacity continued to climb in 2023 and 2024.

University of Georgia

This is clearly lagged capacity intending to capitalize on the extreme demand of 2022. The demand did not last as long as industry participants expected, so this extra capacity came online at a time when profitability was already low and supply was already too high.

There are essentially 2 levers through which overall capacity changes:

Utilization of existing mills Construction and curtailment of mills Marginal cost curves suggest there is a sweet spot for utilization. If utilization goes too high, marginal cost of production rises because crews have to work overnight shifts or overtime pay. At too low utilization, marginal cost per unit is high because the overhead of the capital expense of the mill is divided over too few units.

It was worth it for mills to pay overtime in 2022 because lumber prices were so high. Thus a certain portion of the extra supply was related to high mill utilization. Since then, mill utilization has dropped.

According to a University of Georgia field report,

“U.S. softwood lumber mill utilization rates declined from 81% in Q2 2021 to 78% in Q2 2025”

I was unable to locate utilization data for 2026, but all indications are that it has continued to drop. Utilization has dropped to a point where it becomes very inefficient to lower it further. Marginal costs have already increased due to low utilization and it gets worse if they produce less.

Utilization declines have moved to or near their limit. It was not enough, so lower profitability mills have been forced to close.

In a 2025 Weyerhaeuser article we compiled a list of mill closures/curtailments

2MC

More closures have followed. Forisk tabulates the 2026 closures below.

Forisk

Notably, many of these are in Canada. Canada’s lumber production is far too large for domestic use with these producers largely relying on exports, especially to the U.S.

Thus, the combination of duties and tariffs is materially hurting profit margins of Canadian mills resulting in substantial curtailments.

With less lumber imported into the U.S., our sawmills get to service a higher portion of demand. However, that is a longer term tailwind while low demand in the immediate term has forced many lower margin mills to shut down or reduce production.

As more and more mills close, supply and demand equilibrium will be restored. Closure will continue until such a point that sawmills can generate a normal economic profit. Therefore, one of the following must happen:

Demand will pick back up Mills will continue to close That is just how economic equilibrium works and with the substantial curtailments already in place, I believe we are in the 8th inning of equilibrium restoration.

In the bouncing around of supply and demand 3 significant changes have occurred:

Consolidation within the vertical Market share is shifting to larger producers Market share is shifting to lower cost producers To see the consolidation, one can simply look at the public markets. Today’s Rayonier (RYN) is a consolidation of 4 public companies:

Potlatch Deltic Catchmark Rayonier (the persisting name and ticker) Weyerhaeuser previously bought Plum Creek.

What were 6 good-sized companies have become 2 enormous companies.

Attrition of the weak

2023 through 2026 has been an extended period of minimal and sometimes negative margins for wood products companies. The weak have died off while the strong captured market share.

Weyerhaeuser, in my opinion, is the biggest beneficiary. WY has the highest operating margin in the space.

WY

For reference the companies they are comparing themselves to are Canfor, Interfor, Louisiana Pacific, Boise Cascade and West Fraser.

The higher margins come from a few sources:

Vertical integration with their timberlands feeding their sawmills A continuous focus on operating efficiency Scale Market access – WY is a major supplier of logs to Japan from their Pacific northwest timberland and mills, and one of few to ship out of the Gulf due to proximity to key ports. As equilibrium returns WY will have a healthy profit margin on a substantially higher market share.

Timing of full equilibrium restoration

If demand picks back up in some combination of housing starts, repair and remodel, and CRE construction, higher margins could happen very quickly.

If the restoration is more through supply curtailments it will take a bit longer. Either way, the forward trajectory is positive. While waiting for the industry headwinds to cycle into tailwinds, WY is not sitting idly. At REITweek, WY announced a plan to increase annual EBITDA by $1B even at flat lumber and wood products pricing.

1B incremental EBITDA plan

The slide below breaks down the intended components of EBITDA growth.

WY

To put this into perspective, $1B is $1.38 per share which is quite a bit of growth for a stock trading at $24.79.

Lets examine some of these buckets to get a sense for how likely this growth is to manifest.

Strategic land solutions Owning millions of acres of land comes with benefits in that certain subsets of that land become valuable, often in unanticipated ways. I am not referring to the regular HBU land sales that have been a part of the timber REIT business for decades. Rather there are some bulkier opportunities.

WY is actively exploring sale of land to data centers, or power companies that would use the land to build power infrastructure for data centers. Such sales would be at lucrative premiums to the value of the land as timberland.

Additionally, WY’s 100 million dollar CCS contract with Occidental is getting closer to completion.

I think it is likely we will see growth in this bucket by 2030, but the magnitude will vary.

Timberland and wood products One of the struggles of timberland lately has been that the demand for pulp seems to be permanently impaired due to digital replacing a large portion of paper use. Indeed the demand for pulp has declined markedly in recent years.

University of Georgia

A potential substitute demand for pulp is biocarbon. Traditional wood pellets have been around for a while but their limitation is that they primarily work in facilities designed to buy biocarbon. WY is working with Aymium on a denser wood pellet that can substitute for metallurgical coal. This would expand the use to coal plants and manufacturing facilities.

My hunch is that coal is cheaper than this proprietary wood product where coal is legal, but in areas such as Europe where carbon is heavily taxed/regulated the carbon neutral wood pellet could serve as a great replacement to keep the factories running where they would otherwise have to close. At REITweek WY’s CEO, Devin Stockfish guided to 7 million tons:

“It's part of our 2030 growth program to build out up to 7 million tons of production or 7 million tons of fiber usage, which would convert into 1.5 million tons of biocarbon to sell to steel, silicon manufacturers. There's a lot going on globally, particularly in Europe and Japan, where they're putting new taxes on carbon-intensive industries.”

Such alternative uses are great strategically as pulp would otherwise be very low value due to dwindling pulp prices down almost 50% from 10 years ago.

TimberMart-South

Arguably the largest single source of incremental EBITDA will be TimberStrand which is a high quality wood product made from lower quality sawlogs. The economics on it look strong with an anticipated 20% EBITDA yield.

Devin Stockfish discussed the TimberStrand manufacturing facility economics at REITweek:

“It's a $500 million investment. When that mill comes online, we expect that to generate over $100 million annually of EBITDA.”

Overall, I think the $1B EBITDA growth plan is ambitious, but possible. Some of the buckets are more certain than others. I think $500 million is easily achievable with the rest requiring certain things to play out the right way.

The Value Proposition

I think WY is demonstrably undervalued from both an earnings perspective and an asset value perspective.

WY has averaged $2.15B annual EBITDA over the past 7 years. It was lumpy due to the cyclicality described earlier.

S&P Global Market Intelligence

With an Enterprise value of $23B, WY is trading at about 10.69X cycle adjusted EBITDA.

That is a cheap multiple.

I think the market is not using a cycle adjusted multiple and instead assuming the challenging timber/lumber macro environment is a permanent condition. Thus, the market might be looking at 2026 EBITDA estimates of $1.14B. That would mean they are trading at 20X EBITDA.

If WY can achieve its $1B incremental EBITDA growth that brings the base EBITDA north of $2B, even if the difficult environment remains. $2B base EBITDA with upside from either lumber price increase or volume increase would make WY far too cheap at $23B enterprise value.

A 10X-12 EBITDA multiple might be normal for some business categories, but it is wildly cheap for an asset class like timberland where a substantial portion of return comes from land value appreciation.

As land appreciates, that gain does not show up in the earnings or EBITDA. It is a real gain of value, but often remains unrealized. As a result, appreciation based asset classes usually trade at far higher EBITDA multiples.

The anomaly at the moment is that timberland currently trades at far higher multiples. Private timberland values have been rising steadily with average value per acre up to $2,300 at the end of 2025.

Forisk

These are actual transactions.

You can even observe it in WY’s asset sales.

S&P Global Market Intelligence

3 dispositions total $598 million for 222,000 acres. That equates to $2,693 per acre.

This was not HBU or some special event. These were sold to private timberland investors. Further, this was among WY’s lower quality land.

Devin Stockfish at REITweek:

“It's not just about the number of acres, it's about the quality of those acres, and we've really been focused over the last several years on selling off the lower-performing assets and redeploying that capital into higher-performing assets.”

His comments check out in the numbers. These acres were lower productivity and margin.

WY has 9.740 million owned acres in the U.S.

If we multiply that by the sale price per acre of their non-core land that would be timberland value of $26.229 billion.

That already is more than WY’s EV of $23.129B.

The land alone justifies the entirety of WY’s EV, but they also have billions of dollars of other assets:

Sawmills 0.649 million controlled acres (not included in owned acres) EWP, OSB, TimberStrand, and other manufacturing facilities These things are hard to value, but the cost basis is enormous. The single TimberStrand facility cost $500 million. Sawmills can be around that range too.

Adding up all the assets, net asset value is clearly much higher than EV.

The current Wall Street consensus estimate for NAV is$37.22 implying that WY trades at 66% of NAV.

S&P Global Market Intelligence

Either the private equity buying timberland is consistently wrong to be buying it well north of $2k per acre or WY is deeply undervalued.

The valuation dislocation will eventually close. It is just a matter of direction. The private timberland investors might suffer if the doomsayers are right that the lumber industry is permanently impaired. However, if you are like me and believe that free market economics has a tendency to return to equilibrium, then WY is deeply undervalued.

It is not often that a long tenured, well managed, investment grade, large cap company trades at 66% of asset value. The market is extrapolating the downside of a cyclical business while I think a business that has always been cyclical will continue to be cyclical.

We are long WY and buying more while it trades at such an extreme discount.

Program provides grants for rural fire districts, offers firefighter mental health resources

, /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today announced the fifth year of its Fighting Fires Together campaign, combining the company's wildfire management and community support efforts across Oregon. The campaign unifies support for rural fire districts, wildfire response partnerships, and resources that strengthen firefighter and community resilience in fire-prone areas of the state.

The campaign addresses the realities of wildfire response in rural Oregon, where communities and agencies often face limited resources to protect both residents and wildland firefighters. The campaign focuses on:

Financial support for Rural Fire Protection Districts (RFPDs), including nearly $25,000 through the company's recent Giving Fund grants to four fire districts serving Oregon's vulnerable rural communities. Wildfire response partnerships with the Oregon Department of Forestry and local agencies to fight active wildfires on the company's forestlands and nearby public and private lands, including a $10,000 investment in Lane Community College's Wildland Fire Management Program. Mental health resources from Firefighter Behavioral Health Alliance designed for wildland firefighters. "Wildfire response isn't just a seasonal concern — it's a year-round commitment that requires collaboration," says Shane Conway, vice president of Western Timberlands for Weyerhaeuser. "Our fifth year of the Fighting Fires Together campaign highlights the fact that preparedness is built on strong partnerships and ongoing support. Working closely with our rural communities and firefighters is essential to keeping Oregon's forests and communities safe from wildfire."

Rural Fire Protection Grants
Across Oregon, grants from the company's Giving Fund help rural fire protection districts secure critical rescue, medical and wildland firefighting tools, along with expanded training to support faster, safer responses when wildfires occur. These grants build on Weyerhaeuser's 38-acre land donation to the Row River RFPD in 2025. The site will house a new emergency substation and strengthen early suppression efforts in an area of rural Lane County where emergency resources are often stretched thin.

"In rural communities, we're often the first responders on the scene," says Kathleen Istudor, executive director at Row River Valley Community Partnership. "Support from Weyerhaeuser helps us strengthen our response and better protect our firefighters and the people who live here in the Dorena, Culp Creek, and Disston areas. It's an investment in our community that makes a real difference when it matters most."

Wildfire Response Partnerships
Weyerhaeuser continues to play an active role in fire prevention by collaborating with state and local agencies, including the Oregon Department of Forestry, and providing operational support during wildfire response, including aerial wildfire coordination and suppression efforts when fires occur.

Additionally, Weyerhaeuser is supporting the next generation of wildland firefighters and forestry professionals. A recent $10,000 grant to Lane Community College's Wildland Fire Management Program will support funding for tools and safety equipment that expands hands-on training and prepares students to enter the workforce. The investment enhances field-based learning in fuels reduction, use of wildland firefighting tools, and evaluating fire behavior in real-world conditions.

"This investment will help students safely gain real-world skills used in prescribed burns and wildland firefighting. It's a critical investment that will make our community safer and open new workforce opportunities for students," said Rick Glover, Wildland Fire Management Program Coordinator.

Mental Health Support for Wildland Firefighters
The campaign also offers free and accessible online tools from Firefighter Behavioral Health Alliance (FBHA) specifically designed to address the unique mental health challenges that wildland firefighters may face during their lifesaving work. Wildland firefighters experience increased risk of post-traumatic stress disorder (PTSD), depression, anxiety and suicide risk. The campaign's online resource hub offers videos and educational articles, links to regional peer groups and access to behavioral health providers who are trained in supporting wildland firefighters and their families.

Through Fighting Fires Together, Weyerhaeuser brings together investments, partnerships and on-the-ground resources that support wildfire preparedness, response and recovery across Oregon. Learn more at: https://www.weyerhaeuser.com/timberlands/fighting-fires-together.

ABOUT WEYERHAEUSER
Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900 and today owns or controls more than 10 million acres of timberlands in the U.S., as well as additional public timberlands managed under long-term licenses in Canada. Weyerhaeuser has been a global leader in sustainability for more than a century and manages 100 percent of its timberlands on a fully sustainable basis in compliance with internationally recognized sustainable forestry standards. Weyerhaeuser is also one of the largest manufacturers of wood products in North America and operates additional business lines around product distribution, climate solutions, real estate, energy and natural resources, among others. In 2025, the company generated $6.9 billion in net sales and employed approximately 9,500 people who serve customers worldwide. Operated as a real estate investment trust, Weyerhaeuser's common stock trades on the New York Stock Exchange under the symbol WY. Learn more at www.weyerhaeuser.com.

For more information contact:
Analysts – Andy Taylor, 206-539-3907
Media – Kyleigh Gill, 206-539-4516

SOURCE Weyerhaeuser Company

Weyerhaeuser (WY) is upgraded to a BUY with a $27/share price target, reflecting a 15% annualized upside from current levels. WY's valuation is compelling, trading at a >40% NAV discount, with timberland assets undervalued at sub-$2,000/acre despite cyclical headwinds. Current headwinds—weak US housing demand, low lumber prices, and elevated leverage—are seen as transitory, not indicative of long-term value.

The market expects Weyerhaeuser (WY - Free Report) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended March 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on April 30. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis timber and paper products company is expected to post quarterly earnings of $0.04 per share in its upcoming report, which represents a year-over-year change of -63.6%.

Revenues are expected to be $1.73 billion, down 1.6% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Weyerhaeuser?For Weyerhaeuser, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +38.46%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination indicates that Weyerhaeuser will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Weyerhaeuser would post a loss of$0.13 per share when it actually produced a loss of -$0.09, delivering a surprise of +30.77%.

Over the last four quarters, the company has beaten consensus EPS estimates three times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Weyerhaeuser appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Weyerhaeuser Company remains a Buy at ~$25, offering a unique REIT structure with leveraged exposure to lumber price recovery. WY's share price has underperformed due to high interest rates and declining lumber prices, but upside potential exists as rates and wood prices normalize. Dividend yield stands at 3.39%, attractive versus equities but low for REITs; future dividend growth depends on lumber demand and rate cuts.

, /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today reported its first quarter 2026 financial results. The company's earnings release and associated materials are available on the Investors section of the company's website, www.weyerhaeuser.com. In addition, the earnings release has been furnished on a Form 8-K with the U.S. Securities and Exchange Commission and is available at www.sec.gov.

EARNINGS CALL INFORMATION

The company will hold a live webcast and conference call at 7 a.m. Pacific (10 a.m. Eastern) on May 1, 2026, to discuss first quarter results. To access the live webcast and presentation online, visit the Investors section on www.weyerhaeuser.com on May 1, 2026.

To join the conference call from within North America, dial 877-407-0792 (access code: 13755107) at least 15 minutes prior to the call. Those calling from outside North America should dial 201-689-8263 (access code: 13755107). Replays will be available for two weeks at 844-512-2921 (access code: 13755107) from within North America, and at 412-317-6671 (access code: 13755107) from outside North America.

ABOUT WEYERHAEUSER
Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900 and today owns or controls more than 10 million acres of timberlands in the U.S., as well as additional public timberlands managed under long-term licenses in Canada. Weyerhaeuser has been a global leader in sustainability for more than a century and manages 100 percent of its timberlands on a fully sustainable basis in compliance with internationally recognized sustainable forestry standards. Weyerhaeuser is also one of the largest manufacturers of wood products in North America and operates additional business lines around product distribution, climate solutions, real estate, and energy and natural resources, among others. In 2025, the company generated $6.9 billion in net sales and employed approximately 9,500 people who serve customers worldwide. Operated as a real estate investment trust, Weyerhaeuser's common stock trades on the New York Stock Exchange under the symbol WY. Learn more at www.weyerhaeuser.com.

For more information contact:
Analysts – Andy Taylor, 206-539-3907
Media – Nancy Thompson, 919-861-0342

SOURCE Weyerhaeuser Company

For the quarter ended March 2026, Weyerhaeuser (WY - Free Report) reported revenue of $1.73 billion, down 2% over the same period last year. EPS came in at $0.11, compared to $0.11 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $1.73 billion, representing a surprise of -0.42%. The company delivered an EPS surprise of +154.04%, with the consensus EPS estimate being $0.04.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Weyerhaeuser performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Wood Products - Structural Lumber (board feet) - Third party sales realizations: $443.00 compared to the $435.31 average estimate based on three analysts.Delivered Logs Third Party Sales Realizations (per ton) - South: $37.26 compared to the $37.34 average estimate based on three analysts.Wood Products - Oriented Strand Board (square feet 3/8') - Third party sales realizations: $236.00 versus the three-analyst average estimate of $230.05.Wood Products - Oriented Strand Board (square feet 3/8') - Third party sales volumes: 707.00 Msq ft versus 747.88 Msq ft estimated by three analysts on average.Net Sales- Timberlands: $492 million compared to the $406.14 million average estimate based on three analysts. The reported number represents a change of -7.9% year over year.Wood Products Segment- Oriented Strand Board (square feet 3/8')- Third party net sales: $167 million versus $172.24 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -26.8% change.Wood Products Segment- Structural Lumber- Third party net sales: $478 million versus the three-analyst average estimate of $514.09 million. The reported number represents a year-over-year change of -9.3%.Net Sales- Wood Products: $1.16 billion versus $1.21 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -9.6% change.Timberlands Segment- Third Party Net Sales- Recreational and other lease revenue: $20 million compared to the $19.75 million average estimate based on two analysts. The reported number represents a change of +5.3% year over year.Timberlands Segment- Third Party Net Sales- Other revenue: $20 million versus the two-analyst average estimate of $17.72 million. The reported number represents a year-over-year change of +11.1%.Wood Products Segment- Engineered Solid Section (cubic feet)- Third party net sales: $155 million versus $156.82 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -3.7% change.Wood Products Segment- Engineered I-joists (lineal feet)- Third party net sales: $72 million versus $73.75 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -18.2% change.View all Key Company Metrics for Weyerhaeuser here>>>

Shares of Weyerhaeuser have returned +0.2% over the past month versus the Zacks S&P 500 composite's +12.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Weyerhaeuser Company (WY) Q1 2026 Earnings Call Transcript

, /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today announced that its board of directors declared a quarterly base cash dividend of $0.21 per share on the common stock of the company, payable in cash on June 22, 2026, to holders of record of such common stock as of the close of business on June 5, 2026.

Under Weyerhaeuser's cash return framework, the company expects to supplement its quarterly base cash dividend, as appropriate, with an additional return of variable cash to achieve a targeted total return to shareholders of 75 to 80 percent of annual Adjusted Funds Available for Distribution (Adjusted FAD). The company has the flexibility in its capital allocation framework to return this additional cash in the form of a supplemental cash dividend, opportunistic share repurchase, or a combination of the two.

Adjusted FAD, a non-GAAP measure, is defined by Weyerhaeuser as net cash from operations adjusted for capital expenditures and significant non-recurring items.

ABOUT WEYERHAEUSER
Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900 and today owns or controls more than 10 million acres of timberlands in the U.S., as well as additional public timberlands managed under long-term licenses in Canada. Weyerhaeuser has been a global leader in sustainability for more than a century and manages 100 percent of its timberlands on a fully sustainable basis in compliance with internationally recognized sustainable forestry standards. Weyerhaeuser is also one of the largest manufacturers of wood products in North America and operates additional business lines around product distribution, climate solutions, real estate, energy and natural resources, among others. In 2025, the company generated $6.9 billion in net sales and employed approximately 9,500 people who serve customers worldwide. Operated as a real estate investment trust, Weyerhaeuser's common stock trades on the New York Stock Exchange under the symbol WY. Learn more at www.weyerhaeuser.com.

FORWARD-LOOKING STATEMENTS
This news release contains statements within the meaning of the Private Securities Litigation Reform Act of 1995 concerning the amount, timing and occurrence of future quarterly and supplemental cash dividends as well as the company's dividend framework and future share repurchases. Forward-looking statements are generally identified by words such as "expects" and "targeted," references to events occurring on specified future dates and other words and expressions referencing future events or occurrences. All forward-looking statements are based on our current expectations and assumptions and are not guarantees of future events or performance. The realization of our expectations and the accuracy of our assumptions are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include, but are not limited to, those identified in our 2025 Annual Report on Form 10-K, as well as those set forth from time to time in our other public statements, reports, registration statements, prospectuses, information statements and other filings with the SEC, and other factors not described herein or elsewhere because they are not currently known to us or because we currently judge them to be immaterial.

It is not possible to predict or identify all risks and uncertainties that might affect the accuracy of our forward-looking statements and, consequently, our descriptions of such risks and uncertainties should not be considered exhaustive. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise. Also included in this news release are references to Adjusted FAD, which is a non-GAAP financial measure. Adjusted FAD may not be comparable to similarly named or captioned non-GAAP financial measures of other companies due to potential inconsistencies in how such measures are calculated. Adjusted FAD should not be considered in isolation from, and is not intended to represent an alternative to, our GAAP results.

For more information contact:
Analysts – Andy Taylor, 206-539-3907
Media – Nancy Thompson, 919-861-0342

SOURCE Weyerhaeuser Company

Weyerhaeuser remains pressured by weak residential construction, with shares underperforming and macro headwinds limiting near-term upside. Timberlands and Wood Products segments face ongoing volume and pricing challenges, though lumber realizations have recently improved, and supply-side responses may stabilize markets. Balance sheet leverage is elevated at 5.1x, with free cash flow constrained by capex for a new EWP facility; dividend yield of 3.6% appears secure.

Weyerhaeuser Company (WY) Presents at Nareit REITweek: 2026 Investor Conference Transcript