Weyerhaeuser Company (WY) Q2 2024 earnings summary

Executive summary

• Q2 2024 net earnings were $173 million ($0.24 per diluted share), with adjusted earnings of $154 million ($0.21 per share), and net sales of $1.94 billion, up sequentially but down year-over-year.

• Adjusted EBITDA was $410 million, up 16% sequentially but down from $469 million in Q2 2023, driven by improvements in Wood Products and Real Estate, Energy & Natural Resources.

• Announced $244 million in Alabama timberland acquisitions, with $48 million closed in Q2 and the remainder expected to close in H2 2024, advancing toward a $1 billion growth target.

• $25 million product remediation recovery recognized as a special item in Q2 2024.

• $100 million in share repurchases completed in H1 2024; $394 million in dividends paid year-to-date.

Financial highlights

• Gross margin for Q2 2024 was $404 million, with operating income at $270 million and adjusted EBITDA margin at ~21%.

• Net cash from operations was $432 million in Q2 2024; cash and cash equivalents at quarter end were $997 million.

• Adjusted Funds Available for Distribution (FAD) was $316 million in Q2 2024.

• Net debt stood at $4.08 billion, with total debt at $5.07 billion and a weighted average interest rate of 5.25%.

• Returned $146 million to shareholders via dividends and $50–$100 million through share repurchases in Q2.

Outlook and guidance

• Q3 2024 Timberlands earnings and adjusted EBITDA expected to be $20–$30 million lower than Q2, mainly due to lower Western sales volumes and realizations.

• Real Estate, Energy & Natural Resources full-year 2024 adjusted EBITDA guidance raised to ~$330 million; Q3 earnings and adjusted EBITDA expected to be ~$10 million and ~$30 million lower, respectively, than Q2.

• Wood Products Q3 earnings and adjusted EBITDA expected to be lower than Q2, with lumber and OSB sales realizations and volumes under pressure.

• Lumber production to be reduced by 5–10% in Q3, including indefinite curtailment of the New Bern, NC mill.

• 2024 capital expenditures anticipated to be approximately $440 million.