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WY's third-quarter earnings rose 33.3% to 8 cents per share, while sales grew 8.4% to $1.86 billion.
Timberlands' strength boosted adjusted EBITDA 14.3% year over year to $248 million.
WY expects weaker Q4 results in Wood Products and Strategic Land Solutions.
Weyerhaeuser Company (WY - Free Report) reported better-than-expected third-quarter 2026 financial results, with adjusted earnings and net sales topping the Zacks Consensus Estimate. Year over year, both top and bottom lines increased.
The quarterly results reflect sequential improvement in Timberlands and higher Wood Products sales, partly offset by weaker profitability in Wood Products and Strategic Land Solutions. Adjusted EBITDA increased 14.3% year over year to $248 million.
Weyerhaeuser's Q3 Highlights
Third-quarter adjusted earnings were 8 cents per share, up 33.3% year over year and topping the Zacks Consensus Estimate of 5 cents by 60%.
Net sales of $1.86 billion increased 8.4% from the prior-year quarter and beat the consensus mark of $1.83 billion by 2%.
Weyerhaeuser Company Price, Consensus and EPS Surprise
Gross margin was $257 million, up from $204 million in the year-ago quarter but down from $311 million sequentially. Selling expenses increased to $26 million from $23 million a year ago, while general and administrative expenses rose to $115 million from $107 million. Operating income declined to $100 million from $123 million.
WY's Wood Products Segment Faces Margin Pressure
Wood Products net sales reached $1.39 billion, up 12.8% year over year. We expected segment sales to increase 11.1% year over year to $1.36 billion in the quarter. Operating income declined to $32 million from $71 million, while adjusted EBITDA fell to $91 million from $129 million. The segment's adjusted EBITDA margin contracted to 7% from 9%.
Lumber adjusted EBITDA decreased to $69 million from $73 million despite moderately higher sales volumes and slightly higher delivered realizations. Engineered Wood Products adjusted EBITDA declined to $41 million from $54 million, reflecting lower overall realizations and slightly higher costs. Oriented Strand Board posted an $18 million adjusted EBITDA loss compared with a $6 million loss in the preceding quarter, owing to lower realizations, extensive planned maintenance and elevated resin costs. Distribution adjusted EBITDA fell to $4 million from $8 million.
Weyerhaeuser's Timberlands Results Improve
Timberlands generated total net sales of $531 million, down 0.9% year over year but up $13 million sequentially. We expected segment sales to decrease 3% year over year to $519.9 million in the quarter. Net contribution to earnings decreased to $67 million from $130 million in the preceding quarter, which included a $71 million timberland sale gain. Adjusted EBITDA increased to $133 million from $123 million sequentially, although it declined from $148 million a year ago.
In the West, fee harvest volumes remained comparable sequentially, while sales volumes declined due to lower fiber log shipments and export vessel timing. Higher realizations and lower per-unit log and haul costs supported results. Southern fee harvest volumes increased significantly due to favorable weather conditions, while slightly lower realizations and seasonally higher forestry and road expenses partially offset the benefits.
WY's Strategic Land Solutions Sales Decline
Strategic Land Solutions recorded net sales of $99 million, down 3.9% year over year and $41 million sequentially. We expected segment sales to decline 2.3% to $100.6 million in the quarter. Operating income declined to $67 million from $94 million in the preceding quarter, while adjusted EBITDA decreased to $86 million from $129 million.
The sequential decline primarily reflected the timing and mix of Real Estate sales. Real Estate adjusted EBITDA fell to $43 million from $83 million, while Natural Resources adjusted EBITDA decreased to $24 million from $33 million. However, Climate Solutions adjusted EBITDA improved to $19 million from $13 million. Real Estate acres sold decreased significantly, while the average price per acre was moderately lower.
Weyerhaeuser's Cash Flow and Liquidity Weaken
Net cash from operations totaled $193 million, down from $210 million in the year-ago quarter and $399 million sequentially. Capital expenditures totaled $137 million, including $54 million related to the Monticello engineered wood products facility. Adjusted funds available for distribution declined to $110 million from $323 million sequentially.
WY ended the quarter with $349 million in cash and cash equivalents and total debt of $5.35 billion. The company repurchased $10 million of common stock and paid $151 million in cash dividends during the quarter.
WY Issues Cautious Q4 Segment Outlook
For the fourth quarter of 2026, Timberlands’ earnings before special items and adjusted EBITDA are expected to remain comparable sequentially. Management anticipates slightly lower Western harvest volumes and moderately lower Southern harvest volumes, partly offset by improved export sales volumes and seasonally lower Western forestry and road costs.
Strategic Land Solutions earnings are projected to decline approximately $35 million sequentially, while adjusted EBITDA is expected to decrease roughly $45 million due to the timing and mix of Real Estate sales. Full-year segment adjusted EBITDA is forecasted at approximately $450 million, unchanged from the previous outlook.
Wood Products earnings and adjusted EBITDA are expected to be moderately lower, excluding changes in lumber and oriented strand board realizations. Lower lumber volumes and higher log costs may pressure results, while engineered wood products could face lower volumes and higher raw material costs. The company also lowered its full-year capital expenditure outlook to approximately $375 million from $400-$450 million, excluding the Monticello facility investment.
WY Stock’s Zacks Rank & Recent Construction Releases
Weyerhaeuser currently carries a Zacks Rank #4 (Sell).
Masco Corporation (MAS - Free Report) reported third-quarter 2026 adjusted earnings of $1.19 per share, surpassing the Zacks Consensus Estimate of $1.01 by 17.8%. The bottom line increased 22.7% from 97 cents a year ago. Net sales rose 2.6% year over year to $1.97 billion, beating the consensus mark of $1.93 billion by 1.8%.
Masco raised its 2026 adjusted earnings guidance to $4.65-$4.75 per share from the previous range of $4.40-$4.60, citing strong operational performance year to date. Reported earnings are projected to be between $4.51 and $4.61 per share.
Comfort Systems USA, Inc. (FIX - Free Report) delivered impressive third-quarter 2026 results, with earnings and revenues surpassing the Zacks Consensus Estimate and increasing sharply year over year. The quarterly performance reflected robust demand across technology-related projects, strong execution and continued expansion in construction activity. Backlog reached $17.81 billion, reinforcing management's confidence in sustained growth and profitability.
Comfort Systems also paid dividends of 90 cents per share during the quarter compared with 50 cents a year ago. Share repurchases totaled $340.9 million, reflecting continued shareholder returns alongside investments in business expansion.
United Rentals, Inc. (URI - Free Report) reported third-quarter 2026 results, with adjusted earnings per share and total revenues beating the Zacks Consensus Estimate and increasing year over year. URI’s adjusted earnings of $15.55 per share topped the Zacks Consensus Estimate of $13.83 by 12.4% and grew 32.9% year over year from $11.70. URI’s total revenues rose 15.7% year over year to $4.89 billion and surpassed the consensus estimate of $4.69 billion by 4.3%.
United Rentals management raised its revenue outlook to $18-$18.2 billion from $17.5-$17.8 billion. Adjusted EBITDA is now projected to be $8.3-$8.4 billion compared with $7.98-$8.13 billion previously.
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Weyerhaeuser Q3 Earnings & Sales Top, Adjusted EBITDA Rises Y/Y
Key Takeaways
Weyerhaeuser Company (WY - Free Report) reported better-than-expected third-quarter 2026 financial results, with adjusted earnings and net sales topping the Zacks Consensus Estimate. Year over year, both top and bottom lines increased.
The quarterly results reflect sequential improvement in Timberlands and higher Wood Products sales, partly offset by weaker profitability in Wood Products and Strategic Land Solutions. Adjusted EBITDA increased 14.3% year over year to $248 million.
Weyerhaeuser's Q3 Highlights
Third-quarter adjusted earnings were 8 cents per share, up 33.3% year over year and topping the Zacks Consensus Estimate of 5 cents by 60%.
Net sales of $1.86 billion increased 8.4% from the prior-year quarter and beat the consensus mark of $1.83 billion by 2%.
Weyerhaeuser Company Price, Consensus and EPS Surprise
Weyerhaeuser Company price-consensus-eps-surprise-chart | Weyerhaeuser Company Quote
Gross margin was $257 million, up from $204 million in the year-ago quarter but down from $311 million sequentially. Selling expenses increased to $26 million from $23 million a year ago, while general and administrative expenses rose to $115 million from $107 million. Operating income declined to $100 million from $123 million.
WY's Wood Products Segment Faces Margin Pressure
Wood Products net sales reached $1.39 billion, up 12.8% year over year. We expected segment sales to increase 11.1% year over year to $1.36 billion in the quarter. Operating income declined to $32 million from $71 million, while adjusted EBITDA fell to $91 million from $129 million. The segment's adjusted EBITDA margin contracted to 7% from 9%.
Lumber adjusted EBITDA decreased to $69 million from $73 million despite moderately higher sales volumes and slightly higher delivered realizations. Engineered Wood Products adjusted EBITDA declined to $41 million from $54 million, reflecting lower overall realizations and slightly higher costs. Oriented Strand Board posted an $18 million adjusted EBITDA loss compared with a $6 million loss in the preceding quarter, owing to lower realizations, extensive planned maintenance and elevated resin costs. Distribution adjusted EBITDA fell to $4 million from $8 million.
Weyerhaeuser's Timberlands Results Improve
Timberlands generated total net sales of $531 million, down 0.9% year over year but up $13 million sequentially. We expected segment sales to decrease 3% year over year to $519.9 million in the quarter. Net contribution to earnings decreased to $67 million from $130 million in the preceding quarter, which included a $71 million timberland sale gain. Adjusted EBITDA increased to $133 million from $123 million sequentially, although it declined from $148 million a year ago.
In the West, fee harvest volumes remained comparable sequentially, while sales volumes declined due to lower fiber log shipments and export vessel timing. Higher realizations and lower per-unit log and haul costs supported results. Southern fee harvest volumes increased significantly due to favorable weather conditions, while slightly lower realizations and seasonally higher forestry and road expenses partially offset the benefits.
WY's Strategic Land Solutions Sales Decline
Strategic Land Solutions recorded net sales of $99 million, down 3.9% year over year and $41 million sequentially. We expected segment sales to decline 2.3% to $100.6 million in the quarter. Operating income declined to $67 million from $94 million in the preceding quarter, while adjusted EBITDA decreased to $86 million from $129 million.
The sequential decline primarily reflected the timing and mix of Real Estate sales. Real Estate adjusted EBITDA fell to $43 million from $83 million, while Natural Resources adjusted EBITDA decreased to $24 million from $33 million. However, Climate Solutions adjusted EBITDA improved to $19 million from $13 million. Real Estate acres sold decreased significantly, while the average price per acre was moderately lower.
Weyerhaeuser's Cash Flow and Liquidity Weaken
Net cash from operations totaled $193 million, down from $210 million in the year-ago quarter and $399 million sequentially. Capital expenditures totaled $137 million, including $54 million related to the Monticello engineered wood products facility. Adjusted funds available for distribution declined to $110 million from $323 million sequentially.
WY ended the quarter with $349 million in cash and cash equivalents and total debt of $5.35 billion. The company repurchased $10 million of common stock and paid $151 million in cash dividends during the quarter.
WY Issues Cautious Q4 Segment Outlook
For the fourth quarter of 2026, Timberlands’ earnings before special items and adjusted EBITDA are expected to remain comparable sequentially. Management anticipates slightly lower Western harvest volumes and moderately lower Southern harvest volumes, partly offset by improved export sales volumes and seasonally lower Western forestry and road costs.
Strategic Land Solutions earnings are projected to decline approximately $35 million sequentially, while adjusted EBITDA is expected to decrease roughly $45 million due to the timing and mix of Real Estate sales. Full-year segment adjusted EBITDA is forecasted at approximately $450 million, unchanged from the previous outlook.
Wood Products earnings and adjusted EBITDA are expected to be moderately lower, excluding changes in lumber and oriented strand board realizations. Lower lumber volumes and higher log costs may pressure results, while engineered wood products could face lower volumes and higher raw material costs. The company also lowered its full-year capital expenditure outlook to approximately $375 million from $400-$450 million, excluding the Monticello facility investment.
WY Stock’s Zacks Rank & Recent Construction Releases
Weyerhaeuser currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Masco Corporation (MAS - Free Report) reported third-quarter 2026 adjusted earnings of $1.19 per share, surpassing the Zacks Consensus Estimate of $1.01 by 17.8%. The bottom line increased 22.7% from 97 cents a year ago. Net sales rose 2.6% year over year to $1.97 billion, beating the consensus mark of $1.93 billion by 1.8%.
Masco raised its 2026 adjusted earnings guidance to $4.65-$4.75 per share from the previous range of $4.40-$4.60, citing strong operational performance year to date. Reported earnings are projected to be between $4.51 and $4.61 per share.
Comfort Systems USA, Inc. (FIX - Free Report) delivered impressive third-quarter 2026 results, with earnings and revenues surpassing the Zacks Consensus Estimate and increasing sharply year over year. The quarterly performance reflected robust demand across technology-related projects, strong execution and continued expansion in construction activity. Backlog reached $17.81 billion, reinforcing management's confidence in sustained growth and profitability.
Comfort Systems also paid dividends of 90 cents per share during the quarter compared with 50 cents a year ago. Share repurchases totaled $340.9 million, reflecting continued shareholder returns alongside investments in business expansion.
United Rentals, Inc. (URI - Free Report) reported third-quarter 2026 results, with adjusted earnings per share and total revenues beating the Zacks Consensus Estimate and increasing year over year. URI’s adjusted earnings of $15.55 per share topped the Zacks Consensus Estimate of $13.83 by 12.4% and grew 32.9% year over year from $11.70. URI’s total revenues rose 15.7% year over year to $4.89 billion and surpassed the consensus estimate of $4.69 billion by 4.3%.
United Rentals management raised its revenue outlook to $18-$18.2 billion from $17.5-$17.8 billion. Adjusted EBITDA is now projected to be $8.3-$8.4 billion compared with $7.98-$8.13 billion previously.