Weyerhaeuser (WY) Q1 2025 earnings summary

Executive summary

• Q1 2025 net earnings were $83 million ($0.11 per diluted share) on net sales of $1.8 billion, down from $114 million ($0.16 per share) in Q1 2024 but up from $81 million in Q4 2024.

• Adjusted EBITDA rose 12% sequentially to $328 million, though down from $352 million year-over-year, driven by improved Timberlands and Real Estate, Energy & Natural Resources performance.

• All major segments—Timberlands, Real Estate, Energy & Natural Resources, and Wood Products—contributed positively, with Timberlands showing the largest sequential EBITDA gain.

• The company increased its quarterly base dividend by 5% for the fourth consecutive year.

• Major CCS project advanced with Occidental Petroleum, including a 25-year offtake agreement for 2.3 million metric tons CO2/year.

Financial highlights

• Q1 2025 net sales: $1.8 billion; Adjusted EBITDA: $328 million; Net cash from operations: $70 million.

• Gross margin for Q1 2025 was $335 million, down from $355 million year-over-year.

• Cash at quarter end: $560 million; total debt just under $5.2 billion.

• Returned $152 million to shareholders via dividends and repurchased $25 million in shares in Q1.

• Capital expenditures: $93 million, including $16 million for EWP facility construction in Arkansas.

Outlook and guidance

• Q2 2025 Timberlands earnings and Adjusted EBITDA expected to be ~$15 million lower due to seasonal cost increases and lower sales realizations in the West.

• Real Estate, Energy & Natural Resources Q2 adjusted EBITDA expected to be ~$50 million higher, with full-year segment guidance reaffirmed at ~$350 million and basis as a percentage of real estate sales forecast at 30–40%.

• Wood Products Q2 earnings and Adjusted EBITDA anticipated to be slightly higher, with seasonal volume increases and stable/lower costs in most categories.

• Company targets returning 75–80% of annual Adjusted FAD to shareholders via dividends and share repurchases.

• Housing and R&R markets expected to remain choppy near term but supported by long-term fundamentals.