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WY

Weyerhaeuser


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2026Q1 Review (Claude)

WY | Earnings Review

Weyerhaeuser Company | 2026 Q1 reported May 1, 2026 AMC | Analysis date: May 5, 2026 | Daloopa company_id 220
Revenue
$1.73B (slight miss)
vs ~$1.78B Street (-3%); -2% YoY; Real Estate/ENR record $207M (+120% YoY) on $94M FL conservation easement
Adj EPS (ex-special)
$0.11 (+120% surprise)
vs $0.05 FactSet; GAAP $0.22 boosted by $192M VA timberlands divestiture + $94M conservation + $21M insurance recovery; 75% L8Q EPS beat rate
Adj EBITDA
$308M (+120% QoQ)
vs $140M Q4'25 trough (-6% YoY vs $328M PY); Wood Products swung from -$20M Q4'25 to +$71M; Lumber +$84M EBITDA swing on +13% QoQ realizations
Q2'26 Guide
Comparable to Q1
Q2 lumber QTD "significantly higher" + OSB "slightly higher" but SLS step-down ~$70M on FL easement non-repeat — implies ~$280-290M Q2 EBITDA
Cyclical trough confirmed Q4'25; Q1'26 marks tentative inflection on Lumber price snap-back + outsized special items. Revenue $1.73B slight miss vs ~$1.78B Street (-3%, -2% YoY). GAAP EPS $0.22 (vs $0.11 PY); Adj EPS ex-special $0.11 beat $0.05 FactSet by +120% surprise. Adj EBITDA $308M (+120% QoQ from $140M Q4'25 trough; -6% YoY vs $328M). 75% L8Q EPS beat rate (100% L4Q ex one meet). Special items boost: $192M divestiture (108K acres VA non-core timberlands) + $94M FL conservation easement + $21M product remediation insurance — combined $79M after-tax benefit creates GAAP/Adj $0.11 bridge. Segment scorecard: Wood Products swung from -$20M Q4'25 to +$71M (Lumber from -$57M Q4 to +$27M on +13% QoQ realizations); Real Estate/ENR record $193M Adj EBITDA (vs ~$80-95M trend); Timberlands $120M (-28% YoY). Wood Products bottomed Q4'25; Lumber rebound is supply-driven (~50 mills shut/curtailed industry-wide), not demand-driven. Q2'26 guide: "Comparable to Q1" ex-specials and Adj EBITDA. Underneath: Q2 lumber QTD "significantly higher" + OSB "slightly higher" creates upside vs strict "comparable" framing; SLS steps down ~$70M on $94M FL easement non-repeat; net implies ~$280-290M Q2 Adj EBITDA. FY26 SLS $425M reaffirmed but 1H run-rate of ~$316M leaves ~$110M needed in 2H — back-loading risk; capex $400-450M + $300M Monticello reaffirmed (2027 startup; ~$100M EBITDA at full rate). Macro tone softened: mortgage rates back to 6.30-6.37%; weak consumer confidence; Middle East cost reflation ~$10M/month gross (mostly offset, in Q2 guide); Fannie Mae projects SF starts -6.2% YoY through Q3'26. EWP softer than expected (cleanest SF proxy). Small positives: March starts beat; mortgage applications ticking up. Key catalysts: (1) Section 232 + AR7 softwood duty reset (Aug/Oct 2026) — all-in Canadian duties currently ~45%; AR7 prelim takes them to ~35% (10 pt drop) → either way structurally less SPF in U.S. = durable share-shift to SYP and Doug fir, both core WY exposures; (2) Lumber/OSB pricing momentum + Monticello ramp (Q1 lumber +13% QoQ, $84M EBITDA swing; ~50 mills closed); (3) SF housing starts inflection / mortgage rate path (sub-6% mortgage = unlock for EWP and Western log pricing). Capital allocation: trailing leverage 5x at cyclical trough vs 3.5x mid-cycle target — buyback throttled to $10M Q1 (vs $100M Q2'25); IG protection prioritized; NO supplemental dividend despite special-items surge. 5 contradictions identified: (1) buyback cadence whipsaw — Q2'25 "highest pace since 2022" / "attractive lever" → fell to $25M / $35M / $10M as leverage hit ~5x; (2) lumber price outlook — Q2'25 said duties would push lumber up through fall; Q3'25 lumber EBITDA was -$48M on Canadian front-loading not flagged in Q2; (3) Wood Products operating posture — "we run more than others" Q2'25 reversed within one quarter (Q3 -3%, Q4 -14%; operating rate fell from high-80s% to mid-70s%); (4) SLS guidance $350M FY25 → actual $411M (lumpier than "consistent flow" framing); (5) housing catalysts (tax bill, trade deals, Fed) never materialized as tailwinds. Pattern: near-term forecasts on housing and lumber pricing have been consistently too optimistic; buyback rhetoric has run ahead of actual pace. Read: Q1'26 print is the "trough-and-turn" signal but underlying run-rate excluding $193M Real Estate/ENR is closer to ~$200M EBITDA. Direction positive, magnitude still early. Wood Products needs to keep climbing to validate cyclical turn. Stock dipped after-hours on revenue miss + EBITDA print quality questions.
Key Metrics Trends
Metric Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026
Total net sales $1.8B $1.9B $1.7B $1.7B $1.8B $1.9B $1.7B $1.5B $1.7B
Total net sales YoY % - - - - -1.8% -2.8% +2.1% -9.8% -2.0%
Timberlands net sales $521M $555M $493M $497M $534M $529M $536M $487M $492M
Timberlands net sales YoY % - - - - +2.5% -4.7% +8.7% -2.0% -7.9%
Wood Products net sales $1.3B $1.4B $1.2B $1.3B $1.3B $1.4B $1.2B $1.1B $1.2B
Wood Products net sales YoY % - - - - -1.2% -4.5% -0.6% -14.1% -9.6%
Real Estate / ENR net sales $107M $109M $89M $86M $94M $154M $103M $103M $207M
Real Estate / ENR net sales YoY % - - - - -12.1% +41.3% +15.7% +19.8% +120.2%
Total Adj EBITDA $352M $410M $236M $294M $328M $336M $217M $140M $308M
Total Adj EBITDA YoY % - - - - -6.8% -18.0% -8.1% -52.4% -6.1%
Timberlands Adj EBITDA $144M $147M $122M $126M $167M $152M $148M $114M $120M
Timberlands Adj EBITDA YoY % - - - - +16.0% +3.4% +21.3% -9.5% -28.1%
Wood Products Adj EBITDA $184M $225M $91M $161M $161M $101M $8M $-20M $71M
Wood Products Adj EBITDA YoY % - - - - -12.5% -55.1% -91.2% -112.4% -55.9%
Real Estate / ENR Adj EBITDA $94M $102M $77M $76M $82M $143M $91M $95M $193M
Real Estate / ENR Adj EBITDA YoY % - - - - -12.8% +40.2% +18.2% +25.0% +135.4%
Lumber Adj EBITDA $-5M $-8M $-29M $21M $40M $11M $-48M $-57M $27M
Lumber Adj EBITDA YoY % - - - - -900.0% -237.5% +65.5% -371.4% -32.5%
OSB Adj EBITDA $87M $122M $39M $63M $59M $30M $-3M $-10M $3M
OSB Adj EBITDA YoY % - - - - -32.2% -75.4% -107.7% -115.9% -94.9%
Adj Diluted EPS (ex-special) $0.16 $0.21 $0.05 $0.11 $0.11 $0.12 $0.06 $-0.09 $0.11
Adj Diluted EPS (ex-special) YoY % - - - - -31.2% -42.9% +20.0% -181.8% +0.0%
GAAP Diluted EPS $0.16 $0.24 $0.04 $0.11 $0.11 $0.12 $0.11 $0.10 $0.22
GAAP Diluted EPS YoY % - - - - -31.2% -50.0% +175.0% -9.1% +100.0%
_Trajectory: Trough confirmed Q4'25; Q1'26 marks tentative inflection. Classic housing-cycle bottom shape — false stabilization in late 2024 / early 2025, deeper second leg down through 2025 driven by Wood Products (collapsed from $225M Q2'24 EBITDA to -$20M Q4'25), then sharp Q1'26 rebound (Wood Products back to $71M; consolidated Adj EBITDA $308M; +120% QoQ accel). Lumber the swing factor: -$57M Q4'25 → +$27M Q1'26 = $84M sequential swing on +13% QoQ realizations; Q2 QTD "significantly higher." OSB still negative-trending: $87M Q1'24 → $3M Q1'26 (-97%); 2 new OSB mills could be delayed to 2027. EWP softer than expected (cleanest SF proxy): $86M Q1'24 → $39M Q1'26 (-55%). Caveat: Q1'26 consolidated print flattered by likely non-recurring Real Estate/ENR jump to $193M ($94M FL conservation easement non-repeat); underlying run-rate is closer to ~$200M. FY-level (2021→2025) shows revenue down 32% and Adj EBITDA down 75%, with OSB/EWP still softening YoY in Q1'26. Direction positive, magnitude still early — Wood Products needs to keep climbing to validate the cyclical turn._

Beat/Miss

Guidance

Catalysts

Street Q&A

Contradictions

Read-Throughs

This Quarter vs Consensus
MetricConsensusActualVarianceRead
Revenue~$1.78B$1.73B-$50M / -3%Slight Miss
Reported Revenue YoY-2%Down
GAAP Diluted EPS$0.22+100% YoYSpecial items boost
Adj EPS (ex-special)$0.05$0.11+$0.06 / +120% surpriseBeat — Lumber recovery + cost discipline
Special items (after-tax)$79M ($0.11 EPS)$192M VA divestiture + $94M conservation + $21M insurance
Adj EBITDA$308M+120% QoQ; -6% YoYTrough behind
Wood Products Adj EBITDA$71MSwung from -$20M Q4'25+$91M sequential swing
Lumber Adj EBITDA$27M+$84M from -$57M Q4'25+13% QoQ realizations
OSB Adj EBITDA$3Mvs $59M PYStill soft
EWP Adj EBITDA$39Mvs $53M PYSF proxy weak
Real Estate/ENR Adj EBITDA$193M+136% YoY (record)Inflated by $94M FL easement
L8Q EPS beat rate75% (100% L4Q ex 1 meet)Consistent
Stock reactionDipped after-hoursQuality of EBITDA + revenue miss
Pattern: Trough-and-turn signal but quality of beat is mixed. 75% L8Q EPS beat rate (100% L4Q ex one meet). Q1'26 Adj EPS surprise +120% is the highest in the window — but driven by (a) lumber price snap-back (+13% QoQ; supply-driven from ~50 mill closures, not demand), (b) cost discipline, and (c) $94M FL conservation easement (Real Estate/ENR record $193M). Revenue slight miss confirms underlying demand still soft. Mgmt's variance commentary: ~50 industry mill closures + lean dealer inventories drove sharp Q1 lumber rally; Q2 QTD prices "significantly higher" than Q1 average. EWP softer than WY expected (cleanest SF proxy); only slight March uptick. Middle East conflict adds ~$10M/month gross cost (mostly offset). Trough confirmed Q4'25: Wood Products went from $225M Q2'24 EBITDA peak to -$20M Q4'25 trough — back to $71M Q1'26 = +$91M sequential swing. OSB still soft ($3M Q1'26 vs $59M PY) and EWP weak ($39M vs $53M PY). FY24 → FY25 revenue down 32% / EBITDA down 75% across the cycle.
Guidance Deep Dive
MetricPriorNew (May'26)ΔRead
Q2'26 Earnings ex-specialsComparable to Q1Conservative; lumber price upside not reflected
Q2'26 Adj EBITDAComparable to Q1 (~$280-290M implied)Q1 was $308M; SLS step-down ~$70M; lumber upside
Q2'26 Lumber pricing QTD"Significantly higher" than Q1 avgTailwind
Q2'26 OSB pricing QTD"Slightly higher" than Q1 avgModest tailwind
FY26 SLS guide (Real Estate/ENR)$425M$425M reaffirmedMaintainedBack-loaded — 1H ~$316M means ~$110M needed in 2H
FY26 Capex (base)$400-450M$400-450M reaffirmedMaintained
FY26 Capex (Monticello)$300M$300M reaffirmedMaintained$500M total project
Monticello startup20272027 reaffirmedMaintained~$100M EBITDA at full rate
Mortgage rate environmentHopefulBack to 6.30-6.37%WorseSF housing softer than expected
SF housing starts (Fannie projection)-6.2% YoY through Q3'26NegativeEWP demand pressure
Middle East cost inflation~$10M/month gross (mostly offset)HeadwindIn Q2 guide
Section 232 + AR7 duty resetAll-in 45%AR7 prelim → ~35% (Aug 2026)-10 pt cutModest relief; structural SYP shift continues
Buyback (Q1'26)$25M / $35M Q3-Q4'25$10M Q1'26Throttled furtherTrough valuation; IG protection priority
Supplemental dividendPossibleNOT declaredNone despite special itemsLeverage 5x at trough
Trailing net leverage~5x (vs 3.5x mid-cycle target)Cyclical pressure
Renewables/solar pipeline4-6 facilities under construction by YE'26AcceleratingENR optionality
Tone: macro softened, commodity firmed, tone arc has been consistently too optimistic on housing. Mgmt threaded "comparable to Q1" Q2 guide despite lumber QTD "significantly higher" — implies sandbag, but SLS $94M FL easement non-repeat creates ~$70M segment headwind. Risk caveats: (1) SF housing starts -6.2% YoY through Q3'26 per Fannie; (2) mortgage rates back to 6.30-6.37% (sub-6% would be unlock); (3) EWP softer than expected (cleanest SF proxy); (4) Middle East ~$10M/month gross cost (mostly offset, in Q2 guide); (5) AR7 softwood duty step-down ~10pp around August (45% → ~35%) — modest relief but structurally less SPF; (6) two new OSB mills could be delayed to 2027 = supply-side floor; (7) FY26 SLS $425M reaffirmed but 1H ran ~$316M — back-loaded; (8) buyback throttled to $10M Q1 vs $100M Q2'25 (IG protection at ~5x leverage). 5 contradictions identified — pattern is persistent over-optimism on housing/lumber and buyback rhetoric running ahead of pace. Watch: Q2 lumber realizations vs guide framing; June rate path; SF starts seasonality; supplemental dividend signal at next call.
Upcoming Catalysts
#CatalystTimingWhat to WatchRead
1Section 232 + AR7 softwood duty resetAug/Oct 2026All-in Canadian duties ~45%; AR7 prelim takes them to ~35% (-10 pt drop); structurally less SPF in U.S.Durable share-shift to SYP and Doug fir (core WY)
2Lumber/OSB pricing momentum + Monticello rampQ2-Q3 2026 → 2027 startupQ1 lumber realizations +13% QoQ ($84M EBITDA swing); Q2 QTD "significantly higher"; ~50 mills closed industry-wide; $500M Monticello ($300M 2026 capex) targets 2027 ~$100M EBITDA at full rateSupply-driven floor; mid-2027 capacity addition
3SF housing starts inflection / mortgage rate path2H'26 → FY27Rates 6.30-6.37%, Fannie projects SF starts -6.2% YoY through Q3'26; sub-6% mortgage = unlock for EWP and Western log pricingHighest-beta lever
4Two new OSB mills delayed to 2027Industry-wideSupply-side floor; OSB still negative through Q1'26Supportive of OSB pricing recovery
5Real Estate / ENR transactions cadenceFY26Record Q1 $193M EBITDA on $94M FL easement; FY26 SLS $425M (1H $316M ahead of pace, but back-loaded vs FL non-repeat)Lumpy but well-telegraphed
6Renewables/solar pipelineThrough YE'264-6 facilities under construction by YE'26; multi-project pipeline rampingENR optionality
7Carbon credits / Natural Climate SolutionsMulti-year$94M FL conservation easement signals market depthOptionality
8Repair/Remodel cycleOngoing FY26EWP demand softer than expected; HD relatively favored over LOW given Pro skewMixed
9Builders FirstSource (BLDR) inventoriesOngoing FY26Lean dealer inventories drove the Q1 lumber scrambleRestock dynamic
10Capital allocation / supplemental dividendQ4'26 / FY27Trailing leverage 5x at trough vs 3.5x mid-cycle target; buyback throttled to $10M Q1; no supplemental signaledConstrained until cycle recovers
11Q2'26 printLate July 2026Lumber realizations vs "significantly higher" framing; SLS step-down vs FL easement non-repeat; ~$280-290M EBITDA expectedValidates trough-and-turn
12Mortgage rate path / Fed cutsOngoingSub-6% would unlock SF demandAsymmetric upside
Street Q&A
#Analyst (Firm)TopicMgmt ResponseQuality
1Susan Maklari (Goldman)Lumber pricing trajectory + ~50 mill closures sustainabilityQ1 +13% QoQ realizations; Q2 QTD "significantly higher"; supply-driven; lean dealer inventories drove Q1 scrambleWell Answered
2George Staphos (BofA)Single-family housing demand into springMortgage rates back to 6.3%; weak consumer confidence; March starts beat slightly; mortgage applications ticking up; EWP softer than expectedWell Answered
3Mark Wilde (BMO)OSB pricing trajectory + supply dynamicsTwo new mills could be delayed to 2027; OSB still soft Q1'26 ($3M EBITDA); modest QTD improvementWell Answered
4Mark Wilde follow-upAR7 softwood duty timeline + impactPrelim ~10pp cut around August (45% → ~35%); structurally less SPF in U.S. = durable share-shiftWell Answered
5Kurt Yinger (D.A. Davidson)Real Estate/ENR FY26 cadence post-Q1 record$94M FL conservation easement non-repeat in Q2; FY26 SLS $425M reaffirmed; 1H ~$316M ahead of pace, but back-loadedWell Answered
6Mike Roxland (Truist)Wood Products operating posture / production decisionsOperating rates from high-80s% to mid-70s% through cycle; "we run more than others" framing softened; demand-driven curtailmentsWell Answered
7Anthony Pettinari (Citi)Capital allocation / buyback at trough valuationBuyback throttled to $10M Q1 vs $100M Q2'25; IG protection priority; leverage at ~5x at troughWell Answered
8Anthony Pettinari follow-upSupplemental dividend at next signaling windowNot declared; leverage at trough; no signal yetPartial — no commit
9Phil Ng (Jefferies)Middle East cost inflation impact~$10M/month gross; mostly offset; in Q2 guideWell Answered
10VariousEWP demand trajectory (SF proxy)Softer than WY expected; only slight March uptick; cleanest SF proxy under pressureWell Answered
11Hamir Patel (CIBC)Monticello capex + 2027 startup risk$500M total ($300M 2026); ~$100M EBITDA at full rate; on scheduleWell Answered
12Devin (Seaport)OSB mill startup delays — risk to 2027 timingDeclined to speculateDeflected
13VariousRenewables/solar pipeline ramp4-6 facilities under construction by YE'26; multi-project rampWell Answered
14VariousSection 232 final ruling / impactModest relief but structural SYP shift continues; permanently less SPFWell Answered
15VariousLumber inventory at dealersLean — drove Q1 scramble; restock dynamic supportiveWell Answered
16VariousFY26 EBITDA glide path / 2H back-loadingQ2 ~$280-290M; SLS back-loaded; lumber tailwind continuesWell Answered
Contradictions
#TopicSeverityStatement AStatement BWhy it's a tension
1Buyback cadence whipsawLOW-MEDIUMQ2'25: "highest pace since 2022" ($100M); buyback as "attractive lever"Q1'26: $10M (throttled to deleveraging); leverage at ~5x; no supplemental dividend declared in any quarterBuyback rhetoric ran ahead of actual pace. Don't model steady programmatic buybacks. IG protection prioritized at cyclical trough.
2Lumber price outlookMEDIUMQ2'25: Said duties would push lumber prices up through fallQ3'25: Lumber EBITDA -$48M loss because Canadian producers front-loaded shipments ahead of duty step-up — pull-forward NOT flagged in Q2Near-term forecasts on lumber pricing have been consistently too optimistic. Pull-forward dynamics mis-anticipated. Discount confidence in directional commodity calls.
3Wood Products operating postureLOW-MEDIUMQ2'25: "We run more than others" stanceQ3'25: Production cut 3%; Q4'25: Production cut 14%; operating rate fell from high-80s% to mid-70s%Operating posture reversed within one quarter. Demand-driven curtailments. Discounts "we run more than others" forward framing.
4SLS guidance trajectory (LOW)LOWQ2'25: Guided $350M FY25 SLSActual FY25 SLS: $411M; Q4'25 record per-acre; Q1'26 $94M FL easementSegment visibility is lumpier than "consistent flow" framing implies. Concentrated tx events drive variance. Bull-leaning misses.
5Housing catalysts that didn't materializeLOWQ2'25 enumerated near-term catalysts: tax bill, trade deals, Fed policyEach subsequent quarter substituted new headwinds: shutdown, Middle East conflict, mortgage rates back to 6.3%Pattern of optimistic forward catalysts being overtaken by exogenous headwinds. Risk to base case from compounding macro drag.
Indirect Read-Throughs
NameRelationshipWhat WY signaledRead-through
Louisiana-Pacific (LPX)OSB peerOSB still soft Q1'26; two new mills delayed to 2027 = supply floorPOSITIVE — supply discipline supports OSB pricing
West Fraser (WFG)Lumber peer (Canadian-heavy)AR7 softwood duty step-down ~10pp (45% → ~35%); structurally less SPF; modest relief but durable SYP/Doug fir share-shiftMIXED — duty relief positive; share loss to U.S. negative
Canfor (CFP)Lumber peer (Canadian)Same — modest duty relief but structural shiftMIXED
Boise Cascade (BCC)EWP/Lumber peerQ1 lumber realizations +13% QoQ; ~50 mills closed industry-wide; supply-driven recoveryPOSITIVE — wood-products cycle inflection
PotlatchDeltic (PCH)Timberland REIT peerAR7 SYP share-shift positive; lumber recovery supportivePOSITIVE — SYP-heavy mix benefits
Rayonier (RYN)Timberland REIT peerReal Estate/ENR transactions strong; carbon credit market depthPOSITIVE
D.R. Horton (DHI) / Lennar (LEN) / KB Home (KBH) / PulteGroup (PHM)SF buildersSF starts -6.2% YoY through Q3'26 per Fannie; mortgage rates 6.30-6.37%; EWP softer than expectedNEGATIVE — SF demand softer than expected
NVR / Toll Brothers (TOL)SF buildersSame — SF macro under pressureNEGATIVE
Builders FirstSource (BLDR)Lumber distributorLean dealer inventories drove Q1 lumber scramble; restock dynamic supportive; most directly implicatedPOSITIVE — restock + price tailwind
Home Depot (HD)Repair/remodel customerHD relatively favored over LOW given Pro-vs-DIY skew; lumber price tailwindFAVORED OVER LOW
Lowe's (LOW)Repair/remodel customerDIY skew less favored; same lumber price tailwindNEUTRAL — relative pressure
International Paper (IP)Containerboard / packagingAdjacency to Wood Products cycle; freight/mills exposureNEUTRAL
Beacon Roofing / GMS / Carlisle (CSL)Building products distributionLean dealer inventories supportive of restock dynamicPOSITIVE — restock tailwind
Carbon credits / NCS marketENR optionality$94M FL conservation easement signals market depthPOSITIVE — optionality
Solar/wind renewable land-lease developersENR optionalityMulti-project pipeline ramping; 4-6 facilities under construction by YE'26POSITIVE

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