Sep 30, 2023

Weyerhaeuser Q3 2023 Earnings Report

Weyerhaeuser reported solid results across its businesses and achieved its first forest carbon credits in Maine.

Key Takeaways

Weyerhaeuser reported third quarter net earnings of $239 million, or 33 cents per diluted share, on net sales of $2.0 billion. Adjusted EBITDA for third quarter 2023 was $509 million.

Achieved net earnings of $239 million, or $0.33 per diluted share

Generated Adjusted EBITDA of $509 million, a 9 percent increase compared with second quarter 2023

Received approval for the company’s first forest carbon credits

Near-term market conditions have moderated, but the company remains constructive on the longer-term demand fundamentals.

Total Revenue
$2.02B
Previous year: $2.28B
-11.2%
EPS
$0.33
Previous year: $0.42
-21.4%
Gross Profit
$502M
Previous year: $582M
-13.7%
Cash and Equivalents
$1.17B
Previous year: $1.92B
-38.9%
Free Cash Flow
$424M
Total Assets
$17.6B
Previous year: $17.6B
-0.2%

Weyerhaeuser

Weyerhaeuser

Weyerhaeuser Revenue by Segment

Forward Guidance

Weyerhaeuser anticipates fourth quarter earnings and Adjusted EBITDA will be moderately lower than the third quarter, excluding the effect of changes in average sales realizations for lumber and oriented strand board.

Positive Outlook

  • For lumber, the company expects moderately higher sales volumes.
  • For lumber, the company expects comparable log costs.
  • For lumber, the company expects slightly lower unit manufacturing costs.
  • For oriented strand board, the company anticipates moderately higher sales volumes.
  • For oriented strand board, the company anticipates slightly lower unit manufacturing costs.

Challenges Ahead

  • For engineered wood products, the company expects lower sales realizations.
  • For engineered wood products, the company expects slightly higher raw material costs.
  • For engineered wood products, the company expects slightly lower sales volumes, primarily for solid section products.
  • For distribution, the company anticipates lower results compared to the third quarter, primarily driven by a decrease in commodity realizations.
  • For oriented strand board, the company anticipates slightly higher fiber costs.

Revenue & Expenses

Visualization of income flow from segment revenue to net income