Weyerhaeuser — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net sales for Q3 2026 were $1.9 billion, compared to $1.7 billion in Q3 2025.
• Net earnings were $61 million ($0.08 per diluted share), down from $80 million ($0.11 per diluted share) in Q3 2025 and $162 million ($0.23 per diluted share) in Q2 2026.
• Net earnings before special items were $61 million ($0.08 per diluted share), compared to $40 million ($0.06 per diluted share) in Q3 2025 and $91 million ($0.13 per diluted share) in Q2 2026.
• Adjusted EBITDA was $248 million, a 14% increase compared to $217 million in Q3 2025, but down from $310 million in Q2 2026.
• Net cash from operations was $193 million in Q3 2026, compared to $210 million in Q3 2025 and $399 million in Q2 2026.
• Adjusted Funds Available for Distribution (Adjusted FAD) was $110 million in Q3 2026, compared to $117 million in Q3 2025 and $323 million in Q2 2026.

Guidance and Future Outlook:

• Fourth quarter 2026 earnings before special items and Adjusted EBITDA are anticipated to be comparable to the third quarter for the Timberlands and Wood Products segments.
• For Strategic Land Solutions, fourth quarter 2026 earnings before special items are expected to be approximately $35 million lower than Q3, and Adjusted EBITDA approximately $45 million lower than Q3.
• Full year 2026 Adjusted EBITDA is expected to be approximately $450 million, representing a $25 million increase from the initial outlook.
• Strategic Land Solutions basis as a percentage of sales is expected to be 15% to 20% for the full year 2026.
• Timberlands Q4 outlook includes slightly lower fee harvest volumes and slightly higher sales volumes in the West, with slightly lower sales realizations; in the South, moderately lower fee harvest volumes and slightly higher sales realizations are expected.
• Wood Products Q4 outlook includes slightly lower lumber sales volumes and higher costs, slightly higher oriented strand board sales volumes and fiber costs but lower unit manufacturing costs, and slightly higher engineered wood product realizations with lower volumes and higher raw material costs.

Business Segments and Product Lines:

• Timberlands: Net sales were $531 million in Q3 2026 (up $13 million from Q2). Net contribution to pretax earnings was $67 million (down $63 million from Q2). Adjusted EBITDA was $133 million (up $10 million from Q2). West fee harvest volumes were comparable to Q2; South fee harvest volumes were significantly higher due to favorable weather.
• Strategic Land Solutions: Net sales were $99 million in Q3 2026 (down $41 million from Q2). Net contribution to pretax earnings was $67 million (down $27 million from Q2). Adjusted EBITDA was $86 million (down $43 million from Q2). Sales volume decreased significantly and average price per acre was moderately lower.
• Wood Products: Net sales were $1,385 million in Q3 2026 (up $25 million from Q2). Net contribution to pretax earnings was $32 million (down $39 million from Q2). Adjusted EBITDA was $91 million (down $38 million from Q2). Lumber sales realizations were slightly higher; oriented strand board realizations were 2% lower; engineered wood product realizations were lower overall.
• New Projects: Construction commenced on the first biocarbon facility in McComb, Mississippi, with site selection in progress for additional locations. Construction began on two additional solar sites, bringing the portfolio to two operational and five under construction. A geothermal energy exploration agreement was signed covering approximately 145,000 acres in Oregon and Washington.
• Carbon Credits: Approximately 340,000 forest carbon credits were monetized year-to-date through Q3 2026, on pace for the highest annual sales volume since the program's inception.

Market and Competitive Landscape:

• The company manages over 10 million acres of timberlands in the U.S. and additional public timberlands in Canada.
• Weyerhaeuser operates as a real estate investment trust with common stock trading on the NYSE under the symbol WY.
• In 2025, the company generated $6.9 billion in net sales and employed approximately 9,500 people.

Risks and Challenges:

• Forward-looking statements are subject to risks including general economic conditions, interest rates, inflation, housing starts, and the strength of the U.S. dollar.
• Market demand for timberland properties and products is influenced by U.S. and international economic conditions.
• Currency exchange rate fluctuations, particularly against the Japanese yen, Chinese yuan, Canadian dollar, and euro, pose risks.
• U.S. trade policy, tariffs, and international trade restrictions may impact operations.
• Availability and cost of shipping, transportation, raw materials, energy, and labor are potential challenges.
• Performance of manufacturing operations, including maintenance and capital requirements, and potential disruptions are risks.
• Competition from domestic and foreign producers is a factor.
• Execution of strategic acquisitions, divestitures, and internal plans carries risks regarding timing, regulatory approvals, and integration.
• Weather, climate conditions, natural disasters (fires, floods, hurricanes), and pest infestations may affect results.
• Geopolitical conditions, health epidemics, and changes in federal tax policies or environmental regulations could impact the business.

Management Commentary and Tone:

• CEO Devin W. Stockfish stated that teams delivered solid operating performance against a challenging macroeconomic backdrop.
• Management highlighted progress in enhancing the timberlands portfolio value and advancing strategic growth initiatives.
• The company expressed confidence in longer-term demand fundamentals and noted being well-positioned due to portfolio strength, balance sheet, and flexible capital allocation framework.
• Management emphasized a focus on operational excellence, customer service, and creating superior long-term shareholder value.

Other Key Points:

• In October, Weyerhaeuser entered an agreement to divest approximately 81,000 acres of non-core timberlands in Arkansas for $146 million, expected to close in Q4 2026.
• The company continues to evaluate opportunities to optimize the return profile of its timberlands portfolio.
• No special items were recorded in Q3 2026.
• Q2 2026 included a $71 million pretax gain on the sale of Oregon timberlands in Timberlands operating income.
• Q3 2025 included a $29 million pretax gain on the sale of the Princeton lumber mill in Wood Products operating income and a $26 million insurance recovery in Unallocated Items.
• Q2 2026 included a $71 million pretax gain on the sale of Oregon timberlands and a $28 million product remediation insurance recovery in Wood Products operating income for the year-to-date period.