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1. Company Snapshot

1.a. Company Description

Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900.We own or control approximately 11 million acres of timberlands in the U.S. and manage additional timberlands under long-term licenses in Canada.We manage these timberlands on a sustainable basis in compliance with internationally recognized forestry standards.


We are also one of the largest manufacturers of wood products in North America.Our company is a real estate investment trust.In 2020, we generated $7.5 billion in net sales and employed approximately 9,400 people who serve customers worldwide.


We are listed on the Dow Jones Sustainability North America Index.Our common stock trades on the New York Stock Exchange under the symbol WY.

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1.b. Last Insights on WY

Weyerhaeuser Company's recent performance was driven by strong Q2 earnings and revenue beat, with GAAP earnings per share of $0.12, surpassing analysts' estimates by 20%. The company's wood products segment faced headwinds, but real estate gains softened the blow. Additionally, Weyerhaeuser's dividend yield of 3.2% and quarterly base cash dividend of $0.21 per share provided a stable return to shareholders. The company's exposure to rising wood demand for housing and exports, as well as its scale and operational excellence, contributed to its performance.

1.c. Company Highlights

2. Weyerhaeuser's Q3 2025 Earnings: A Review of Financial Performance

Weyerhaeuser reported third-quarter GAAP earnings of $80 million, or $0.11 per diluted share, on net sales of $1.7 billion. Excluding special items, the company earned $40 million, or $0.06 per diluted share, beating analysts' estimates of -$0.07. Adjusted EBITDA totaled $217 million for the quarter, reflecting solid execution by the company's teams against a challenging market backdrop.

Publication Date: Nov -11

📋 Highlights
  • GAAP Earnings Decline: Q3 GAAP earnings fell to $80 million ($0.11/share) from prior periods, with adjusted EBITDA at $217 million.
  • Timberlands Transactions: Recent acquisitions/divestitures totaled $459 million, boosting annual EBITDA by $50 million.
  • Real Estate & Natural Resources Strength: Segment contributed $69 million earnings ($91M EBITDA) and raised full-year adjusted EBITDA guidance to $390 million.
  • Wood Products Challenges: $48 million loss (excluding special items) and adjusted EBITDA dropped $93 million QoQ to $8 million.
  • Housing Market Weakness: Starts at 1.3M units/year (single-family <1M) with demand expected to remain subdued into 2026.

Segment-wise Performance

The Timberlands business contributed $80 million to earnings, with adjusted EBITDA of $148 million. The Real Estate and Natural Resources segment contributed $69 million to third-quarter earnings and $91 million to adjusted EBITDA. The Wood Products business reported a $48 million loss, excluding a special item associated with the sale of the Princeton mill. Adjusted EBITDA was $8 million, a $93 million decrease compared to the second quarter.

Cash Flow and Balance Sheet

Weyerhaeuser generated $210 million of cash from operations in the third quarter and ended the quarter with approximately $400 million of cash and total debt of just under $5.5 billion. The company's balance sheet, liquidity position, and financial flexibility remain solid, with a net debt-to-EBITDA ratio of 4.14.

Outlook and Guidance

The company expects its Timberlands business to report earnings before special items and adjusted EBITDA to be approximately $30 million lower than the third quarter of 2025. The Real Estate, Energy, and Natural Resources segment is increasing its guidance for full-year 2025 adjusted EBITDA to approximately $390 million. Weyerhaeuser anticipates lower sales volumes in the fourth quarter due to reduced lumber production.

Valuation and Growth Prospects

With a P/E Ratio of 49.44 and an EV/EBITDA of 17.51, the market seems to be pricing in significant growth prospects. Analysts estimate next year's revenue growth at 3.0%. David Wold mentioned that the company has done considerable work to align its strategy with the cyclicality of its businesses, resulting in a tremendous number of levers to drive optimal financial performance.

Operational Advantages

As an integrated producer, Weyerhaeuser has operational advantages such as adjusting log flow to mills for optimal log mix and optimizing ultimate product mix coming out of the lumber mill, as mentioned by Devin Stockfish. These advantages, combined with the company's focus on cost and OpEx, position Weyerhaeuser to navigate the current challenging market environment.

3. NewsRoom

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Weyerhaeuser Company $WY Shares Sold by Boston Partners

Dec -01

Source: defenseworld.net

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Creative Planning Lowers Holdings in Weyerhaeuser Company $WY

Nov -29

Source: defenseworld.net

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Charles Schwab Investment Management Inc. Raises Stock Holdings in Weyerhaeuser Company $WY

Nov -26

Source: defenseworld.net

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Barings LLC Lowers Stock Holdings in Weyerhaeuser Company $WY

Nov -23

Source: defenseworld.net

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Candriam S.C.A. Sells 20,434 Shares of Weyerhaeuser Company $WY

Nov -18

Source: defenseworld.net

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Weyerhaeuser Announces Appointment of Rick Beckwitt to Board of Directors

Nov -17

Source: prnewswire.com

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Weyerhaeuser Company Declares Dividend on Common Shares

Nov -14

Source: prnewswire.com

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Atlantic Union Bankshares Corp Purchases New Position in Weyerhaeuser Company $WY

Nov -11

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.60%)

6. Segments

Wood Products

Expected Growth: 4.5%

Weyerhaeuser's Wood Products segment growth of 4.5% is driven by increasing demand for single-family housing, repair and remodel activities, and rising prices for lumber and oriented strand board (OSB). Additionally, the company's focus on operational efficiency, cost reduction, and strategic capital investments in its mills and distribution networks contribute to the growth.

Timberlands

Expected Growth: 4.8%

Weyerhaeuser's Timberlands segment growth of 4.8% is driven by increasing demand for lumber and wood products, fueled by a strong housing market and rising construction activity. Additionally, the company's focus on operational efficiency, cost savings, and strategic capital allocation have contributed to the segment's growth.

Real Estate & Energy and Natural Resources

Expected Growth: 5.2%

Weyerhaeuser's 5.2% growth in Real Estate & Energy and Natural Resources is driven by increasing demand for timber and wood products, rising housing starts, and growing energy consumption. Additionally, strategic acquisitions, cost savings initiatives, and a strong balance sheet have contributed to the company's growth momentum.

7. Detailed Products

Timberlands

Weyerhaeuser's Timberlands segment manages millions of acres of timberland in the United States and Canada, providing a sustainable supply of logs for lumber, pulp, and energy production.

Wood Products

Weyerhaeuser's Wood Products segment manufactures and distributes a range of wood products, including lumber, engineered wood products, and composite decking.

Pulp and Paper

Weyerhaeuser's Pulp and Paper segment produces a range of cellulose fibers, fluff pulp, and specialty papers for use in consumer and industrial products.

Real Estate, Energy and Natural Resources

Weyerhaeuser's Real Estate, Energy and Natural Resources segment manages the company's non-timberland assets, including recreational and conservation lands, and develops and sells rural land and mineral rights.

8. Weyerhaeuser Company's Porter Forces

Forces Ranking

Threat Of Substitutes

Weyerhaeuser Company faces moderate threat from substitutes, as there are limited alternatives to timber and wood products. However, the company's focus on sustainable forestry practices and certification programs helps to differentiate its products and reduce the threat of substitutes.

Bargaining Power Of Customers

Weyerhaeuser Company's customers, including builders, contractors, and manufacturers, have limited bargaining power due to the company's large market share and diversified product offerings.

Bargaining Power Of Suppliers

Weyerhaeuser Company's suppliers, including logging contractors and transportation providers, have moderate bargaining power due to the company's dependence on these suppliers for raw materials and logistics.

Threat Of New Entrants

The threat of new entrants in the timber and wood products industry is low due to the high barriers to entry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The timber and wood products industry is highly competitive, with several large players competing for market share. Weyerhaeuser Company faces intense rivalry from companies such as International Paper and Georgia-Pacific.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 33.20%
Debt Cost 6.02%
Equity Weight 66.80%
Equity Cost 11.31%
WACC 9.55%
Leverage 49.71%

11. Quality Control: Weyerhaeuser Company passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Hannon Armstrong

A-Score: 6.5/10

Value: 9.1

Growth: 4.4

Quality: 6.4

Yield: 10.0

Momentum: 3.5

Volatility: 5.7

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Rayonier

A-Score: 6.5/10

Value: 5.1

Growth: 5.4

Quality: 7.7

Yield: 9.0

Momentum: 3.0

Volatility: 8.7

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Lamar

A-Score: 5.7/10

Value: 2.6

Growth: 5.1

Quality: 6.5

Yield: 8.0

Momentum: 3.5

Volatility: 8.7

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SBA Communications

A-Score: 5.2/10

Value: 3.9

Growth: 6.9

Quality: 6.6

Yield: 3.0

Momentum: 2.0

Volatility: 8.7

1-Year Total Return ->

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PotlatchDeltic

A-Score: 4.9/10

Value: 2.3

Growth: 2.1

Quality: 3.6

Yield: 9.0

Momentum: 4.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Weyerhaeuser

A-Score: 4.8/10

Value: 2.3

Growth: 3.0

Quality: 5.1

Yield: 8.0

Momentum: 2.0

Volatility: 8.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

21.94$

Current Price

21.94$

Potential

-0.00%

Expected Cash-Flows