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Weyerhaeuser's Q2 Earnings & Sales Top Estimates, Both Down Y/Y
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Key Takeaways
Weyerhaeuser's Q2 EPS of $0.12 beat estimates by 20%, but down 42.9% YoY on lower sales and higher costs.
Real Estate, Energy & Natural Resources revenue rose 41% YoY, offsetting weakness in Wood Products.
WY expects Q3 EBITDA to fall in Timberlands and Real Estate segments due to cost pressure and sales timing.
Weyerhaeuser Company (WY - Free Report) reported second-quarter 2025 results, wherein its earnings and net sales topped their respective Zacks Consensus Estimates.
On a year-over-year basis, the top and bottom lines declined due to lower domestic sales realizations with seasonally elevated per-unit log and haul costs, and forestry and road costs across its Timberlands segment. For oriented strand board, unit manufacturing costs were on the high side due to an increase in downtime for planned annual maintenance. Moreover, for engineered wood products, sales realizations were lower for most products, which were partially offset by higher sales volumes, mainly because of higher production of medium-density fiberboard (MDF).
Besides, increased contributions from the Real Estate, Energy & Natural Resources segment boded well for the quarter to some extent.
As the market uncertainties and inflation risks tend to continue for some time, WY remains optimistic about its business position on the back of its long-term demand fundamentals, stable balance sheet and flexible capital allocation framework. Also, the company aims to continue focusing on enhancing its operational excellence while catering to customer demands.
WY stock inched down 0.8% in Thursday’s after-hours trading session.
Inside WY’s Q2 Headlines
The company reported adjusted earnings of 12 cents per share, which topped the Zacks Consensus Estimate of 10 cents by 20%. Year over year, the reported figure decreased 42.9% from the year-ago earnings per share (EPS) of 21 cents.
Net sales of $1.88 billion also surpassed the consensus mark of $1.83 billion by 2.7% but declined 2.8% from $1.94 billion reported in the year-ago quarter.
Weyerhaeuser Company Price, Consensus and EPS Surprise
Adjusted EBITDA was $336 million, down 18% from $410 million in the year-ago period.
Weyerhaeuser’s Segment Details
Timberlands: Net sales (including inter-segment sales of $156 million) from the segment were $529 million, down from the year-ago figure of $555 million. We expected segment sales to decline 2% year over year to $544 million in the quarter. Adjusted EBITDA was $152 million, up 3.4% from $147 million in the year-ago quarter.
Real Estate, Energy and Natural Resources: For the reported quarter, the segment’s net sales amounted to $154 million, up 41.3% from $109 million in the year-ago period. We expected segment sales to grow 25.1% to $136.4 million in the quarter. Adjusted EBITDA was $143 million, indicating growth from $102 million reported in the year-ago period.
Wood Products: This segment’s sales totaled $1.357 billion, down 4.5% from $1.421 billion in the year-ago period. We expected segment sales to decline 4.4% year over year to $1.359 billion in the quarter. Adjusted EBITDA of $101 million was down 55.1% from $225 million in the year-ago period.
WY’s Financial Highlights
As of June 30, 2025, Weyerhaeuser had cash and cash equivalents of $592 million, down from $684 million at the end of 2024. Net long-term debt was $4.27 billion at the second-quarter end, down from $4.87 billion at 2024-end.
As of the first six months of 2025, net cash from operations was $466 million, down from $556 million reported in the comparable period a year ago.
Weyerhaeuser Provides Q3 Outlook
For the third quarter of 2025, under the Timberlands segment, Weyerhaeuser expects earnings (before special items) and adjusted EBITDA to be approximately $10 million lower than the second quarter. In the West, the company anticipates slightly higher fee harvest volumes, with higher per-unit log and haul costs and seasonally higher forestry and road costs. Sales realizations are expected to be moderately lower, mainly for domestic logs. In the South, fee harvest volumes are likely to be moderately higher, with comparable per-unit log and haul costs and higher forestry and road costs. Sales realizations are expected to be lower compared with the prior-quarter due to the mix.
Under the Real Estate, Energy and Natural Resources segment, WY expects earnings (before special items) to be approximately $60 million lower than the second quarter. Adjusted EBITDA is anticipated to be about $80 million lower sequentially, due to the timing and mix of real estate sales. For 2025, the company continues to expect adjusted EBITDA of $350 million. Besides, adjusted EBITDA (as a percentage of real estate sales) is still expected to be between 30% and 40%.
Within the Wood Products segment, the company expects earnings (before special items) and adjusted EBITDA to be comparable with the second-quarter levels, excluding the impact of changes in average sales realizations for lumber and oriented strand board prices.
WY anticipates sequentially comparable sales volumes and unit manufacturing costs in the third quarter for lumber and oriented strand board (OSB), with slightly lower log and fiber costs. For engineered wood products, sales volumes are anticipated to be sequentially lower, alongside raw material costs, mainly for OSB webstock. Sales realizations are expected to be slightly lower as well compared with the second quarter. The performance of Distribution is anticipated to stay comparable quarter over quarter.
WY’s Zacks Rank & Recent Construction Releases
Weyerhaeuser currently carries a Zacks Rank #5 (Strong Sell).
United Rentals, Inc. (URI - Free Report) reported second-quarter 2025 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. On a year-over-year basis, the top line increased, but the bottom line declined.
United Rentals reported record second-quarter revenues and adjusted EBITDA, driven by strong demand across construction and industrial end markets. This performance reflects continued momentum from the prior quarter. Growth in both general rentals and specialty segments supported the results. Customer optimism, healthy backlogs and seasonal activity contributed to the overall strength. Going forward, United Rentals anticipates continued growth in large projects and strong performance in the specialty segment. Based on these trends, the company has raised its 2025 outlook.
D.R. Horton, Inc. (DHI - Free Report) reported better-than-expected third-quarter fiscal 2025 (ended June 30, 2025) results, with earnings and total revenues topping the Zacks Consensus Estimate but decreasing on a year-over-year basis.
The continued housing market softness due to declining consumer confidence and affordability concerns marred the company’s quarterly performance, resulting in lower home closings, alongside decreased ASP. Nonetheless, D.R. Horton’s strong liquidity, low leverage and national scale offer significant operational and financial flexibility. Its disciplined approach to capital allocation, combined with its flexible lot supply and affordable product offerings, positions D.R. Horton to maximize returns across its communities while adapting to evolving market conditions.
PulteGroup Inc. (PHM - Free Report) has reported better-than-expected second-quarter 2024 results, wherein adjusted earnings and total revenues handily beat the Zacks Consensus Estimate.
During the quarter, home sale revenues decreased 4.1% year over year to $4.27 billion, with the number of homes closed dropping 5.7% to 7639 units from the year-ago level. Net new home orders declined 7.4% year over year to 7,083 units. Moreover, PulteGroup’s backlog, which represents orders yet to be closed, was 10,779 units, down from 12,982 units a year ago. Currently, PulteGroup is adjusting home production and land investments to current market conditions while preparing to capitalize on future demand growth.
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Weyerhaeuser's Q2 Earnings & Sales Top Estimates, Both Down Y/Y
Key Takeaways
Weyerhaeuser Company (WY - Free Report) reported second-quarter 2025 results, wherein its earnings and net sales topped their respective Zacks Consensus Estimates.
On a year-over-year basis, the top and bottom lines declined due to lower domestic sales realizations with seasonally elevated per-unit log and haul costs, and forestry and road costs across its Timberlands segment. For oriented strand board, unit manufacturing costs were on the high side due to an increase in downtime for planned annual maintenance. Moreover, for engineered wood products, sales realizations were lower for most products, which were partially offset by higher sales volumes, mainly because of higher production of medium-density fiberboard (MDF).
Besides, increased contributions from the Real Estate, Energy & Natural Resources segment boded well for the quarter to some extent.
As the market uncertainties and inflation risks tend to continue for some time, WY remains optimistic about its business position on the back of its long-term demand fundamentals, stable balance sheet and flexible capital allocation framework. Also, the company aims to continue focusing on enhancing its operational excellence while catering to customer demands.
WY stock inched down 0.8% in Thursday’s after-hours trading session.
Inside WY’s Q2 Headlines
The company reported adjusted earnings of 12 cents per share, which topped the Zacks Consensus Estimate of 10 cents by 20%. Year over year, the reported figure decreased 42.9% from the year-ago earnings per share (EPS) of 21 cents.
Net sales of $1.88 billion also surpassed the consensus mark of $1.83 billion by 2.7% but declined 2.8% from $1.94 billion reported in the year-ago quarter.
Weyerhaeuser Company Price, Consensus and EPS Surprise
Weyerhaeuser Company price-consensus-eps-surprise-chart | Weyerhaeuser Company Quote
Adjusted EBITDA was $336 million, down 18% from $410 million in the year-ago period.
Weyerhaeuser’s Segment Details
Timberlands: Net sales (including inter-segment sales of $156 million) from the segment were $529 million, down from the year-ago figure of $555 million. We expected segment sales to decline 2% year over year to $544 million in the quarter. Adjusted EBITDA was $152 million, up 3.4% from $147 million in the year-ago quarter.
Real Estate, Energy and Natural Resources: For the reported quarter, the segment’s net sales amounted to $154 million, up 41.3% from $109 million in the year-ago period. We expected segment sales to grow 25.1% to $136.4 million in the quarter. Adjusted EBITDA was $143 million, indicating growth from $102 million reported in the year-ago period.
Wood Products: This segment’s sales totaled $1.357 billion, down 4.5% from $1.421 billion in the year-ago period. We expected segment sales to decline 4.4% year over year to $1.359 billion in the quarter. Adjusted EBITDA of $101 million was down 55.1% from $225 million in the year-ago period.
WY’s Financial Highlights
As of June 30, 2025, Weyerhaeuser had cash and cash equivalents of $592 million, down from $684 million at the end of 2024. Net long-term debt was $4.27 billion at the second-quarter end, down from $4.87 billion at 2024-end.
As of the first six months of 2025, net cash from operations was $466 million, down from $556 million reported in the comparable period a year ago.
Weyerhaeuser Provides Q3 Outlook
For the third quarter of 2025, under the Timberlands segment, Weyerhaeuser expects earnings (before special items) and adjusted EBITDA to be approximately $10 million lower than the second quarter. In the West, the company anticipates slightly higher fee harvest volumes, with higher per-unit log and haul costs and seasonally higher forestry and road costs. Sales realizations are expected to be moderately lower, mainly for domestic logs. In the South, fee harvest volumes are likely to be moderately higher, with comparable per-unit log and haul costs and higher forestry and road costs. Sales realizations are expected to be lower compared with the prior-quarter due to the mix.
Under the Real Estate, Energy and Natural Resources segment, WY expects earnings (before special items) to be approximately $60 million lower than the second quarter. Adjusted EBITDA is anticipated to be about $80 million lower sequentially, due to the timing and mix of real estate sales. For 2025, the company continues to expect adjusted EBITDA of $350 million. Besides, adjusted EBITDA (as a percentage of real estate sales) is still expected to be between 30% and 40%.
Within the Wood Products segment, the company expects earnings (before special items) and adjusted EBITDA to be comparable with the second-quarter levels, excluding the impact of changes in average sales realizations for lumber and oriented strand board prices.
WY anticipates sequentially comparable sales volumes and unit manufacturing costs in the third quarter for lumber and oriented strand board (OSB), with slightly lower log and fiber costs. For engineered wood products, sales volumes are anticipated to be sequentially lower, alongside raw material costs, mainly for OSB webstock. Sales realizations are expected to be slightly lower as well compared with the second quarter. The performance of Distribution is anticipated to stay comparable quarter over quarter.
WY’s Zacks Rank & Recent Construction Releases
Weyerhaeuser currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
United Rentals, Inc. (URI - Free Report) reported second-quarter 2025 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. On a year-over-year basis, the top line increased, but the bottom line declined.
United Rentals reported record second-quarter revenues and adjusted EBITDA, driven by strong demand across construction and industrial end markets. This performance reflects continued momentum from the prior quarter. Growth in both general rentals and specialty segments supported the results. Customer optimism, healthy backlogs and seasonal activity contributed to the overall strength. Going forward, United Rentals anticipates continued growth in large projects and strong performance in the specialty segment. Based on these trends, the company has raised its 2025 outlook.
D.R. Horton, Inc. (DHI - Free Report) reported better-than-expected third-quarter fiscal 2025 (ended June 30, 2025) results, with earnings and total revenues topping the Zacks Consensus Estimate but decreasing on a year-over-year basis.
The continued housing market softness due to declining consumer confidence and affordability concerns marred the company’s quarterly performance, resulting in lower home closings, alongside decreased ASP. Nonetheless, D.R. Horton’s strong liquidity, low leverage and national scale offer significant operational and financial flexibility. Its disciplined approach to capital allocation, combined with its flexible lot supply and affordable product offerings, positions D.R. Horton to maximize returns across its communities while adapting to evolving market conditions.
PulteGroup Inc. (PHM - Free Report) has reported better-than-expected second-quarter 2024 results, wherein adjusted earnings and total revenues handily beat the Zacks Consensus Estimate.
During the quarter, home sale revenues decreased 4.1% year over year to $4.27 billion, with the number of homes closed dropping 5.7% to 7639 units from the year-ago level. Net new home orders declined 7.4% year over year to 7,083 units. Moreover, PulteGroup’s backlog, which represents orders yet to be closed, was 10,779 units, down from 12,982 units a year ago. Currently, PulteGroup is adjusting home production and land investments to current market conditions while preparing to capitalize on future demand growth.