Weyerhaeuser Company WY reported first-quarter 2025 results, wherein its earnings met the Zacks Consensus Estimate and net sales topped the same.
On a year-over-year basis, both metrics declined due to slightly lower export sales volumes, with reduced volumes to China. For oriented strand board, sales volumes were comparable, but unit manufacturing and fiber costs were slightly higher.
For engineered wood products, sales realizations were comparable to slightly higher for most products, but sales volumes were lower, primarily for medium density fiberboard (“MDF”) and solid section products. Unit manufacturing costs increased, mainly for MDF, and raw material costs were higher. MDF sales volumes and unit manufacturing costs were also affected by a multi-week operational disruption at the company’s Montana facility in the first quarter. Additionally, distribution results declined compared with the fourth quarter, impacted by lower sales volumes.
Weyerhaeuser’s Earnings & Sales Discussion
The company reported adjusted earnings of 11 cents per share, which met the consensus mark but decreased 31.3% from the year-ago reported figure of 16 cents. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Net sales for the quarter were $1.76 billion, which surpassed the consensus mark of $1.75 billion by 0.7% but declined 1.8% from $1.80 billion reported in the year-ago quarter.
Weyerhaeuser Company Price, Consensus and EPS Surprise
Weyerhaeuser Company Price, Consensus and EPS Surprise
Weyerhaeuser Company price-consensus-eps-surprise-chart | Weyerhaeuser Company Quote
Adjusted EBITDA was $328 million, down 6.8% from $352 million in the year-ago period.
WY’s Segment Details
Timberlands: Net sales (including inter-segment sales of $152 million) from the segment were $534 million, up from the year-ago figure of $521 million. We expected segment sales to decline to $520.8 million in the quarter. Adjusted EBITDA was $167 million, up from $144 million in the year-ago quarter.
Real Estate, Energy and Natural Resources: For the reported quarter, the segment’s net sales amounted to $94 million, down from $107 million in the year-ago period. We expected segment sales to decrease to $90.6 million in the quarter. Adjusted EBITDA was $82 million, indicating a decline from $94 million reported in the year-ago period.
Wood Products: In the first quarter, the segment’s sales totaled $1.29 billion, down from $1.30 billion in the year-ago period. We expected segment sales to decline 0.3% year over year to $1.30 billion in the quarter. Adjusted EBITDA was $161 million, down from $184 million in the year-ago period.
WY’s Financial Highlights
As of March 31, 2025, Weyerhaeuser had cash and cash equivalents of $560 million, down from $684 million at the end of 2024. Long-term debt was $5.02 billion at the first-quarter end, up from $4.87 billion at 2024-end.
Net cash from operations was $70 million in the first quarter, down from $124 million a year ago and $218 million in the prior quarter.
Weyerhaeuser’s Q2 Outlook
For second-quarter 2025, for Timberland, Weyerhaeuser expects earnings and adjusted EBITDA to be approximately $15 million lower than the first quarter. In the West, the company anticipates slightly higher fee harvest volumes and per-unit log and haul costs. Sales realizations are expected to be slightly lower due to the mix. In the South, fee harvest volumes and per-unit log and haul costs are likely to be moderately higher, while sales realizations are expected to remain comparable with the prior quarter. Forestry and road costs in both the West and South are anticipated to be seasonally higher.
In the Real Estate, Energy and Natural Resources segment, Weyerhaeuser expects second-quarter earnings before special items to be approximately $40 million higher than the first quarter. Adjusted EBITDA is anticipated to be about $50 million higher, driven by the timing and mix of real estate sales. For 2025, the company continues to expect adjusted EBITDA of $350 million. While adjusted EBITDA, as a percentage of real estate sales, is now expected to be between 30% and 40%.
Within the Wood Products segment, Weyerhaeuser expects its second-quarter earnings before special items and adjusted EBITDA to be slightly higher than first-quarter levels, excluding changes in lumber and oriented strand board prices. The company anticipates slightly higher sales volumes and log costs for lumber, with comparable unit manufacturing costs.
For OSB, Weyerhaeuser anticipates slightly higher sales volumes and fiber costs, with unit manufacturing costs expected to increase due to planned downtime for annual maintenance. For engineered wood products, the company anticipates a slight increase in sales volumes, while sales realizations are expected to remain steady. Raw materials and unit manufacturing costs are expected to be lower. In the distribution segment, Weyerhaeuser expects slightly higher results compared with the first quarter.
WY’s Zacks Rank & Recent Construction Releases
Weyerhaeuser currently sports a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
D.R. Horton, Inc. DHI reported dismal second-quarter fiscal 2025 (ended March 31, 2025) results, with earnings and total revenues missing the Zacks Consensus Estimate and decreasing on a year-over-year basis.
D.R. Horton now expects consolidated revenues to be in the range of $33.3-$34.8 billion, down from the previously expected band of $36-$37.5 billion. This compares with $36.8 billion in fiscal 2024. Homes closed are anticipated to be within 85,000-87,000 units, down from the previously expected range of 90,000-92,000 units. This compares with 89,690 homes closed in fiscal 2024.
KB Home KBH reported lackluster fiscal first-quarter 2025 results. The quarter’s earnings and total revenues missed the Zacks Consensus Estimate and tumbled year over year.
KB Home’s results reflect the softness in the housing market as homebuyers are still navigating through affordability concerns due to high mortgage rates. Besides, the ongoing macroeconomic uncertainties and other regulatory changes in the country are adding to the instability of the housing market. Owing to these market uncertainties and a lower net order level at the end of the quarter, KB Home lowered its fiscal 2025 guidance.
Lennar Corporation LEN reported first-quarter fiscal 2025 results, wherein its earnings and revenues surpassed the Zacks Consensus Estimate. On a year-over-year basis, the top line increased, but the bottom line declined.
Lennar’s performance was impacted by a challenging macroeconomic environment. Although demand remained strong, higher interest rates, inflation and weak consumer confidence made homeownership less accessible. A limited supply of affordable homes added to the difficulties, leading to a decline in the company's average sales price. Moving forward to fiscal 2025, to counter the market uncertainties, Lennar aims to focus on its volume-based strategy to drive sales and implement an asset-light, land-light business model.
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