Improved Q2 earnings for Weyerhaeuser, driven by significant real estate sales.
Weyerhaeuser, the American forest products company, has reported its Q2 earnings and adjusted EBITDA. Here's a breakdown of the key figures and an outlook for Q3.
Q2 Performance
- Net Sales: Weyerhaeuser reported net sales of $1.88B for Q2, a slight increase from the $1.76B in the previous quarter and slightly above the consensus estimate of $1.84B.
- Earnings Per Share (EPS): The company's EPS for Q2 was $0.12.
- Adjusted EBITDA: The adjusted EBITDA for Q2 stood at $336M, a decrease from the $410M reported in the same quarter last year and lower than the Visible Alpha consensus of $345M.
Divisional Performance
Timberlands Division
- The Timberlands unit's adjusted EBITDA decreased to $152M in Q2 from $167M in Q1.
Wood Products Division
- The Wood Products division's adjusted EBITDA for Q2 was $101M, down from $161M in the previous quarter, primarily due to decreased sales realizations for lumber and oriented strand board.
Real Estate, Energy & Natural Resources Division
- This division saw an increase in adjusted EBITDA in Q2, driven by the timing and mix of real estate sales. The Q2 adjusted EBITDA stood at $143M, a significant increase from $82M in the same quarter last year.
Q3 Outlook
Overall Outlook
- Weyerhaeuser anticipates its third-quarter earnings before special items to be approximately $60 million lower than the second quarter, largely due to the timing and mix of real estate sales.
- The company expects third-quarter adjusted EBITDA to be about $80 million lower than the second quarter for similar reasons.
- Despite these quarterly adjustments, Weyerhaeuser maintains its full-year 2025 adjusted EBITDA forecast at $350 million.
Divisional Outlook
Timberlands Division
- No specific outlook for the Timberlands division in terms of earnings or adjusted EBITDA changes for Q3 is detailed in the available information.
Wood Products Division
- No specific Q3 outlook for the Wood Products division is detailed in the search results.
Real Estate, Energy & Natural Resources Division
- The Q3 outlook for this division reflects a decrease in earnings and adjusted EBITDA due to the same factors—timing and mix of real estate sales.
Analysts' Views
- Analysts have reduced their Q3 EPS estimates for Weyerhaeuser, with Seaport Res Ptn now forecasting $0.09 EPS, down from $0.18.
A conference call is scheduled for July 25, 15 10:00 AM ET, where Weyerhaeuser will provide more details about its Q2 performance and Q3 outlook.
- In light of the Q2 performance, investors may want to consider the financial implications of investing in real estate, energy, and natural resources sectors, given the positive performance of Weyerhaeuser's Real Estate, Energy & Natural Resources Division.
- The anticipated decline in Weyerhaeuser's earnings before special items and adjusted EBITDA for Q3 could impact personal-finance planning for those with investments in the forest products company, specifically in the Timberlands and Real Estate, Energy & Natural Resources Divisions.
- The integration of technology might provide opportunities for efficiency improvements and enhanced financial reporting within Weyerhaeuser's business operations, potentially helping the company navigate the challenges arising from the timing and mix of real estate sales.
