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Weyerhaeuser Q4 Loss Narrower Than Estimates, Revenues Miss, Stock Down
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Key Takeaways
WY reported an adjusted loss of 9 cents in Q4 while net sales fell 9.9% year over year and missed estimates.
Weyerhaeuser faced weaker Wood Products pricing, volatile demand, and a 52.4% drop in adjusted EBITDA.
WY saw strength in Real Estate and Climate Solutions, but the stock slipped 2.2% in after-hours trading.
Weyerhaeuser Company (WY - Free Report) reported mixed fourth-quarter 2025 results, wherein its earnings topped the Zacks Consensus Estimate, but net sales missed the same. Meanwhile, on a year-over-year basis, both the top and bottom lines decreased.
Weyerhaeuser’s fourth-quarter results were impacted by persistent market headwinds across key markets, characterized by softened pricing and volatile demand dynamics within the Wood Products segment. While the company maintained its commitment to operational excellence, overall adjusted EBITDA declined year over year. This performance reflects sustained margin compression driven by subdued housing activity and elevated cost volatility, which partially offset the gains from internal efficiency initiatives.
Despite these challenges, Weyerhaeuser continued to optimize its portfolio through disciplined, capital-efficient transactions. During the quarter, the company successfully closed the divestiture of 28,000 acres in Oregon for $190 million and approximately 86,000 acres across Georgia and Alabama for $216 million.
Overall results were bolstered by significant momentum in the Real Estate, Energy & Natural Resources segment and a standout performance from Climate Solutions, which exceeded its 2025 financial targets. Looking ahead, Weyerhaeuser is well-positioned to navigate the current environment, supported by a strong balance sheet and flexible capital allocation framework as it executes its refreshed 2030 strategy to drive growth and capitalize on durable long-term demand fundamentals.
Following the release, WY stock inched down 2.2% yesterday in the after-hours trading session.
Inside WY’s Q4 Headlines
The company reported adjusted loss per share of 9 cents, which beat the Zacks Consensus Estimate of 13 cents. In the year-ago period, the company reported an earnings per share (EPS) of 11 cents.
Weyerhaeuser Company Price, Consensus and EPS Surprise
Net sales of $1.54 billion missed the consensus mark of $1.58 billion by 2.7% and decreased 9.9% from the $1.71 billion reported in the year-ago quarter.
Adjusted EBITDA was $140 million, down 52.4% from $294 million in the year-ago period.
Weyerhaeuser’s Segment Details
Timberlands: Net sales (including inter-segment sales of $134 million) from the segment were $487 million, down from the year-ago figure of $497 million. We expected segment sales to increase 2.9% year over year to $511.4 million in the quarter. Adjusted EBITDA was $114 million, down 9.5% from $126 million in the year-ago quarter.
Real Estate, Energy and Natural Resources: For the reported quarter, the segment’s net sales amounted to $103 million, up 19.8% from $86 million in the year-ago period. We expected segment sales to decline 4.9% to $81.8 million in the quarter. Adjusted EBITDA was $95 million, indicating growth from the $76 million reported in the year-ago period.
Wood Products: This segment’s sales totaled $1.1 billion, down 14.1% from $1.26 billion in the year-ago period. We expected segment sales to decline 9.7% year over year to $1.14 billion in the quarter. Adjusted EBITDA was a loss of $20 million against earnings of $161 million in the year-ago period.
Weyerhaeuser’s 2025 Highlights
Net sales for 2025 came in at $6.91 billion compared with $7.12 billion reported in 2024.
Adjusted EBITDA in 2025 came in at $1.02 billion compared with $1.29 billion reported in 2024.
In 2025, adjusted EPS came in at $0.20 compared with $0.53 reported in the previous year.
WY’s Financial Highlights
As of Dec. 31, 2025, Weyerhaeuser had cash and cash equivalents of $464 million, down from $684 million at the end of 2024. Net long-term debt was $5.1 billion at 2025-end, up from $4.87 billion at 2024-end.
In 2025, net cash from operations was $562 million, down from $1 billion reported in the comparable period a year ago.
Weyerhaeuser’s Q1 2026 Outlook
For the first quarter of 2026, under the Timberlands segment, Weyerhaeuser expects Timberlands earnings (before special items) and adjusted EBITDA to be comparable to fourth-quarter levels. In the West, fee harvest volumes, along with forestry and road costs, are expected to remain largely unchanged. Sales volumes are expected to edge higher, while per-unit log and haul costs are anticipated to decline slightly. Overall sales realizations are projected to be modestly lower due to product mix, though domestic log realizations should remain broadly stable. In the South, fee harvest volumes and per-unit log and haul costs are expected to be slightly lower, with sales realizations also pressured by mix. Forestry and road costs in the region are expected to increase at a moderate pace.
Under the Real Estate, Energy and Natural Resources segment, the company expects earnings (before special items) to increase by approximately $75 million sequentially, with adjusted EBITDA rising by about $90 million from the fourth quarter. This improvement primarily reflects the timing and mix of real estate transactions, including a significant conservation easement sale. For full-year 2026, Weyerhaeuser anticipates adjusted EBITDA of approximately $425 million, with EBITDA margins (as a percentage of real estate sales) expected to remain in the 25%–35% range.
Within the Wood Products segment, earnings (before special items) and adjusted EBITDA are expected to be slightly higher than fourth-quarter levels, excluding the impact of changes in average lumber and oriented strand board (OSB) pricing. For lumber, the company expects an increase in sales volumes, alongside slightly lower log costs and reduced per-unit manufacturing expenses. In oriented strand board, sales volumes and fiber costs are projected to rise modestly, while unit manufacturing costs are expected to edge lower. For engineered wood products, sales volumes are anticipated to be broadly in line across most offerings, with slightly lower realizations and largely stable raw material costs. Distribution results are expected to improve compared with the fourth quarter.
D.R. Horton, Inc. (DHI - Free Report) reported better-than-expected first-quarter fiscal 2026 (ended Dec. 31, 2025) results, with earnings and total revenues beating the Zacks Consensus Estimate. However, on a year-over-year basis, both metrics declined.
D.R. Horton’s quarterly performance was pressured by continued housing market softness, driven by weakening consumer confidence and affordability challenges, resulting in lower home closings. The company expects affordability constraints and cautious consumer sentiment to continue to impact new housing demand. It expects consolidated revenues to be in the range of $33.5-$35 billion, with homes closed within 86,000-88,000.
KB Home (KBH - Free Report) reported fourth-quarter fiscal 2025 results. The quarter’s earnings and total revenues surpassed the Zacks Consensus Estimate but decreased on a year-over-year basis.
KB Home’s quarterly performance remained under pressure amid a challenging economic and geopolitical environment, with low consumer confidence, affordability concerns and a still-high mortgage rate continuing to constrain demand. In response to these headwinds, management has adopted a measured outlook for the first quarter and full fiscal year 2026. For the first quarter of fiscal 2026, the company is expecting housing revenues to be in the $1.05-$1.15 billion band, down from $1.39 billion reported in the year-ago period. It expects deliveries to be in the range of 2,300-2,500 homes compared with 2,770 homes delivered in the year-ago period.
Lennar Corporation (LEN - Free Report) reported mixed results for the fourth quarter of fiscal 2025, wherein its adjusted earnings missed the Zacks Consensus Estimate, while total revenues beat the same. Meanwhile, both metrics tumbled on a year-over-year basis.
Lennar’s quarterly performance was hurt by a still-challenging housing market, as affordability issues and buyer uncertainty kept demand weak. A six-week government shutdown and softer market conditions added further pressure. In response, the company remained focused on maintaining volumes, adapting to evolving conditions, reducing costs and supporting long-term housing demand rather than reacting to short-term volatility. For the first quarter of fiscal 2026, Lennar expects deliveries to be in the range of 17,000-18,000 homes compared with 17,834 homes delivered in the year-ago period.
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Weyerhaeuser Q4 Loss Narrower Than Estimates, Revenues Miss, Stock Down
Key Takeaways
Weyerhaeuser Company (WY - Free Report) reported mixed fourth-quarter 2025 results, wherein its earnings topped the Zacks Consensus Estimate, but net sales missed the same. Meanwhile, on a year-over-year basis, both the top and bottom lines decreased.
Weyerhaeuser’s fourth-quarter results were impacted by persistent market headwinds across key markets, characterized by softened pricing and volatile demand dynamics within the Wood Products segment. While the company maintained its commitment to operational excellence, overall adjusted EBITDA declined year over year. This performance reflects sustained margin compression driven by subdued housing activity and elevated cost volatility, which partially offset the gains from internal efficiency initiatives.
Despite these challenges, Weyerhaeuser continued to optimize its portfolio through disciplined, capital-efficient transactions. During the quarter, the company successfully closed the divestiture of 28,000 acres in Oregon for $190 million and approximately 86,000 acres across Georgia and Alabama for $216 million.
Overall results were bolstered by significant momentum in the Real Estate, Energy & Natural Resources segment and a standout performance from Climate Solutions, which exceeded its 2025 financial targets. Looking ahead, Weyerhaeuser is well-positioned to navigate the current environment, supported by a strong balance sheet and flexible capital allocation framework as it executes its refreshed 2030 strategy to drive growth and capitalize on durable long-term demand fundamentals.
Following the release, WY stock inched down 2.2% yesterday in the after-hours trading session.
Inside WY’s Q4 Headlines
The company reported adjusted loss per share of 9 cents, which beat the Zacks Consensus Estimate of 13 cents. In the year-ago period, the company reported an earnings per share (EPS) of 11 cents.
Weyerhaeuser Company Price, Consensus and EPS Surprise
Weyerhaeuser Company price-consensus-eps-surprise-chart | Weyerhaeuser Company Quote
Net sales of $1.54 billion missed the consensus mark of $1.58 billion by 2.7% and decreased 9.9% from the $1.71 billion reported in the year-ago quarter.
Adjusted EBITDA was $140 million, down 52.4% from $294 million in the year-ago period.
Weyerhaeuser’s Segment Details
Timberlands: Net sales (including inter-segment sales of $134 million) from the segment were $487 million, down from the year-ago figure of $497 million. We expected segment sales to increase 2.9% year over year to $511.4 million in the quarter. Adjusted EBITDA was $114 million, down 9.5% from $126 million in the year-ago quarter.
Real Estate, Energy and Natural Resources: For the reported quarter, the segment’s net sales amounted to $103 million, up 19.8% from $86 million in the year-ago period. We expected segment sales to decline 4.9% to $81.8 million in the quarter. Adjusted EBITDA was $95 million, indicating growth from the $76 million reported in the year-ago period.
Wood Products: This segment’s sales totaled $1.1 billion, down 14.1% from $1.26 billion in the year-ago period. We expected segment sales to decline 9.7% year over year to $1.14 billion in the quarter. Adjusted EBITDA was a loss of $20 million against earnings of $161 million in the year-ago period.
Weyerhaeuser’s 2025 Highlights
Net sales for 2025 came in at $6.91 billion compared with $7.12 billion reported in 2024.
Adjusted EBITDA in 2025 came in at $1.02 billion compared with $1.29 billion reported in 2024.
In 2025, adjusted EPS came in at $0.20 compared with $0.53 reported in the previous year.
WY’s Financial Highlights
As of Dec. 31, 2025, Weyerhaeuser had cash and cash equivalents of $464 million, down from $684 million at the end of 2024. Net long-term debt was $5.1 billion at 2025-end, up from $4.87 billion at 2024-end.
In 2025, net cash from operations was $562 million, down from $1 billion reported in the comparable period a year ago.
Weyerhaeuser’s Q1 2026 Outlook
For the first quarter of 2026, under the Timberlands segment, Weyerhaeuser expects Timberlands earnings (before special items) and adjusted EBITDA to be comparable to fourth-quarter levels. In the West, fee harvest volumes, along with forestry and road costs, are expected to remain largely unchanged. Sales volumes are expected to edge higher, while per-unit log and haul costs are anticipated to decline slightly. Overall sales realizations are projected to be modestly lower due to product mix, though domestic log realizations should remain broadly stable. In the South, fee harvest volumes and per-unit log and haul costs are expected to be slightly lower, with sales realizations also pressured by mix. Forestry and road costs in the region are expected to increase at a moderate pace.
Under the Real Estate, Energy and Natural Resources segment, the company expects earnings (before special items) to increase by approximately $75 million sequentially, with adjusted EBITDA rising by about $90 million from the fourth quarter. This improvement primarily reflects the timing and mix of real estate transactions, including a significant conservation easement sale. For full-year 2026, Weyerhaeuser anticipates adjusted EBITDA of approximately $425 million, with EBITDA margins (as a percentage of real estate sales) expected to remain in the 25%–35% range.
Within the Wood Products segment, earnings (before special items) and adjusted EBITDA are expected to be slightly higher than fourth-quarter levels, excluding the impact of changes in average lumber and oriented strand board (OSB) pricing. For lumber, the company expects an increase in sales volumes, alongside slightly lower log costs and reduced per-unit manufacturing expenses. In oriented strand board, sales volumes and fiber costs are projected to rise modestly, while unit manufacturing costs are expected to edge lower. For engineered wood products, sales volumes are anticipated to be broadly in line across most offerings, with slightly lower realizations and largely stable raw material costs. Distribution results are expected to improve compared with the fourth quarter.
WY’s Zacks Rank & Recent Construction Releases
Weyerhaeuser currently carries 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 - Free Report) reported better-than-expected first-quarter fiscal 2026 (ended Dec. 31, 2025) results, with earnings and total revenues beating the Zacks Consensus Estimate. However, on a year-over-year basis, both metrics declined.
D.R. Horton’s quarterly performance was pressured by continued housing market softness, driven by weakening consumer confidence and affordability challenges, resulting in lower home closings. The company expects affordability constraints and cautious consumer sentiment to continue to impact new housing demand. It expects consolidated revenues to be in the range of $33.5-$35 billion, with homes closed within 86,000-88,000.
KB Home (KBH - Free Report) reported fourth-quarter fiscal 2025 results. The quarter’s earnings and total revenues surpassed the Zacks Consensus Estimate but decreased on a year-over-year basis.
KB Home’s quarterly performance remained under pressure amid a challenging economic and geopolitical environment, with low consumer confidence, affordability concerns and a still-high mortgage rate continuing to constrain demand. In response to these headwinds, management has adopted a measured outlook for the first quarter and full fiscal year 2026. For the first quarter of fiscal 2026, the company is expecting housing revenues to be in the $1.05-$1.15 billion band, down from $1.39 billion reported in the year-ago period. It expects deliveries to be in the range of 2,300-2,500 homes compared with 2,770 homes delivered in the year-ago period.
Lennar Corporation (LEN - Free Report) reported mixed results for the fourth quarter of fiscal 2025, wherein its adjusted earnings missed the Zacks Consensus Estimate, while total revenues beat the same. Meanwhile, both metrics tumbled on a year-over-year basis.
Lennar’s quarterly performance was hurt by a still-challenging housing market, as affordability issues and buyer uncertainty kept demand weak. A six-week government shutdown and softer market conditions added further pressure. In response, the company remained focused on maintaining volumes, adapting to evolving conditions, reducing costs and supporting long-term housing demand rather than reacting to short-term volatility. For the first quarter of fiscal 2026, Lennar expects deliveries to be in the range of 17,000-18,000 homes compared with 17,834 homes delivered in the year-ago period.