Weyerhaeuser Reports Fourth Quarter, Full Year Results

Weyerhaeuser Company reported fourth quarter net earnings of $81 million, or 11 cents per diluted share, on net sales of $1.7 billion. This compares with net earnings of $219 million, or 30 cents per diluted share, on net sales of $1.8 billion for the same period last year and net earnings of $28 million for third quarter 2024. There were no special items in fourth quarter 2024. Net earnings before special items was $121 million for the same period last year and $35 million for third quarter 2024. Adjusted EBITDA for fourth quarter 2024 was $294 million, compared with $321 million for the same period last year and $236 million for third quarter 2024.

For full year 2024, Weyerhaeuser reported net earnings of $396 million, or 54 cents per diluted share, on net sales of $7.1 billion. This compares with net earnings of $839 million on net sales of $7.7 billion for full year 2023. Full year 2024 includes a total after-tax benefit of $12 million for special items. Excluding these items, the company reported net earnings of $384 million, or 53 cents per diluted share. This compares with net earnings before special items of $749 million for full year 2023. Adjusted EBITDA for full year 2024 was $1.3 billion, compared with $1.7 billion for full year 2023.

In 2024, the company delivered strong results from its Natural Climate Solutions business, generating $55 million of operating income. Adjusted EBITDA was $84 million, a 79 percent increase compared to 2023. The company is encouraged by continued market development and demand for its climate solutions offerings and remains on track to reach $100 million of Adjusted EBITDA by year end 2025.

“Our performance in 2024 reflects solid execution against a challenging market backdrop,” said Devin W. Stockfish, president and chief executive officer. “Our teams drove meaningful improvements across each of the value levers of our investment thesis in 2024, and we continued to demonstrate the durability of our portfolio and the flexibility of our capital allocation framework across market cycles. Notably, we grew our timberlands through strategic acquisitions in Alabama, announced an investment to expand our EWP portfolio, advanced our Natural Climate Solutions business and captured additional operational excellence improvements. We also increased our base dividend by 5.3 percent and repurchased $153 million of our shares. Entering 2025, our balance sheet is strong, and we are well positioned to capitalize as market conditions improve. We remain focused on achieving our multi-year targets, serving our customers and driving long-term value for our shareholders.”

• Generated full year net earnings of $396 million and Adjusted EBITDA of $1.3 billion
• Returned $735 million in total cash back to shareholders based on 2024 results and actions, including $153 million of share repurchase completed in 2024
• Delivered a significant year-over-year increase in Natural Climate Solutions results
• Received approval for company’s second forest carbon project and monetized approximately 50,000 credits in the fourth quarter
• Announced strategic investment to build new engineered wood products facility in Arkansas
• Enhanced company’s Southern Timberlands portfolio with strategic transactions in Alabama totaling approximately $244 million in 2024

Timberlands

Financial Highlights

Q4 2024 Performance – In the West, fee harvest volumes were slightly lower than the third quarter. Domestic sales volumes were moderately higher and export volumes were lower as the company shifted volumes from China to domestic customers. Sales realizations were slightly lower due to mix, per unit log and haul costs were comparable, and forestry and road costs were seasonally lower. In the South, fee harvest volumes and forestry and road costs were higher as operating activities in certain regions shifted from the prior quarter due to wet weather conditions. Sales realizations were slightly higher due to mix, while per unit log and haul costs were comparable.

Q1 2025 Outlook – Weyerhaeuser anticipates first quarter earnings before special items and Adjusted EBITDA will be approximately $20 million higher than the fourth quarter. In the West, the company expects fee harvest volumes and per unit log and haul costs to be slightly higher. Sales volumes and realizations are expected to be moderately higher, primarily for domestic logs. Forestry and road costs are expected to be seasonally lower. In the South, the company expects fee harvest volumes, sales realizations and forestry and road costs to be comparable. Per unit log and haul costs are expected to be slightly higher.

Real Estate, Energy & Natural Resources

Financial Highlights

Q4 2024 Performance – Earnings decreased from the third quarter, while Adjusted EBITDA was comparable. The number of acres sold increased due to the timing of transactions. The average price per acre was comparable and the average basis as a percentage of real estate sales was higher due to the mix of properties sold.

Q1 2025 Outlook – Weyerhaeuser anticipates first quarter earnings before special items and Adjusted EBITDA will be comparable to the fourth quarter due to the timing and mix of real estate sales. The company expects full year 2025 Adjusted EBITDA for the segment will be approximately $350 million.

Wood Products

Financial Highlights

Q4 2024 Performance – Sales realizations for lumber and oriented strand board increased 9 percent and 5 percent, respectively, compared with third quarter averages. Production volumes for lumber were moderately higher as the company returned to a more normal operating posture. Sales volumes and unit manufacturing costs were comparable, and log costs were slightly lower. For oriented strand board, production and sales volumes were higher, and unit manufacturing costs were moderately lower, given less downtime for planned annual maintenance. Fiber costs were comparable. For engineered wood products, sales realizations were moderately lower for solid section and I-joist products and slightly higher for plywood. Sales volumes were slightly higher, primarily for solid section products. Raw material and unit manufacturing costs were slightly lower. Distribution results were lower than the third quarter due to seasonally lower sales volumes.

Q1 2025 Outlook – Weyerhaeuser anticipates first quarter earnings before special items and Adjusted EBITDA will be slightly higher than the fourth quarter, excluding the effect of changes in average sales realizations for lumber and oriented strand board. For lumber, the company expects higher sales volumes, slightly higher log costs, and lower unit manufacturing costs. For oriented strand board, the company anticipates moderately higher sales volumes and slightly higher fiber and unit manufacturing costs. For engineered wood products, the company expects slightly higher sales volumes, comparable sales realizations, and slightly higher raw material costs, primarily for oriented strand board webstock. For distribution, the company anticipates slightly higher results compared to the fourth quarter.

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About Weyerhaeuser

Weyerhaeuser Company, one of the world’s largest private owners of timberlands, began operations in 1900 and today owns or controls approximately 10.5 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 real estate, climate solutions, energy and natural resources, among others. In 2023, the company generated $7.7 billion in net sales and employed approximately 9,300 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.

Contact:

Nancy Thompson – Media Contact – nancy.thompson@wy.com – (919) 861-0342

Source: Weyerhaeuser Company