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Jun 30, 2023
Weyerhaeuser Q2 2023 Earnings Report
Weyerhaeuser reported second quarter results with solid performance across all businesses and strategic timberlands acquisition in Mississippi.
Key Takeaways
Weyerhaeuser reported second quarter net earnings of $230 million, or $0.31 per diluted share, on net sales of $2.0 billion. The company's Adjusted EBITDA for the second quarter was $469 million. In July, Weyerhaeuser acquired 22 thousand acres of timberlands in Mississippi for approximately $60 million.
Net earnings of $230 million, or $0.31 per diluted share, were achieved, and net earnings before special items were $238 million, or $0.32 per diluted share.
Adjusted EBITDA of $469 million was generated, a 19 percent increase compared with first quarter 2023.
A strategic timberlands acquisition in Mississippi was completed in July 2023.
The company is encouraged by recent improvements in the housing market and maintains a favorable longer-term outlook for demand fundamentals.
Weyerhaeuser
Weyerhaeuser
Weyerhaeuser Revenue by Segment
Revenue by Segment
Timberlands Revenue
CapyFin.comReal Estate & ENR Revenue
CapyFin.comWood Products Revenue
CapyFin.com Forward Guidance
Weyerhaeuser anticipates third quarter earnings and Adjusted EBITDA will be significantly higher than the second quarter due to higher average sales realizations for lumber and oriented strand board. Excluding the effect of those items, the company expects third quarter financial results will be slightly lower than the second quarter.
Positive Outlook
- The company expects moderately higher sales volumes for lumber.
- The company expects moderately lower log costs for lumber.
- The company expects slightly lower unit manufacturing costs for lumber.
- The company anticipates comparable sales volumes and fiber costs for oriented strand board.
- The company expects slightly higher sales volumes for engineered wood products.
Challenges Ahead
- Weyerhaeuser anticipates third quarter earnings and Adjusted EBITDA will be approximately $25 million lower than the second quarter for Timberlands.
- In the West, the company expects fee harvest volumes and sales realizations to be moderately lower for Timberlands.
- In the South, sales realizations are expected to be slightly lower for Timberlands.
- The company expects forestry and road costs in the West and South to be seasonally higher for Timberlands.
- The company anticipates comparable sales volumes and fiber costs and slightly higher unit manufacturing costs for oriented strand board.
Revenue & Expenses
Visualization of income flow from segment revenue to net income