Weyerhaeuser Q2 Revenue Falls Short of Estimates; Company Acquires Timberlands in North Carolina and Virginia

Weyerhaeuser reported Q2 adjusted earnings of $0.12 per share, down from $0.11 a year ago. Revenue fell to $1.88 billion, missing the FactSet estimate of $1.83 billion. The company also announced the acquisition of 117,000 acres of timberland in North Carolina and Virginia for $380 million and the sale of its Princeton mill in British Columbia to Gorman Group for CAD 120 million.

Weyerhaeuser Company (WY) reported its second-quarter 2025 earnings on July 24, after the closing bell. The company's adjusted earnings per share (EPS) came in at $0.12, down from $0.11 a year ago, missing the FactSet estimate of $0.11. Revenue fell to $1.88 billion, also missing the FactSet estimate of $1.83 billion [2].

The company's Q2 earnings were influenced by a challenging demand environment for its Wood Products segment, which accounted for approximately 73% of first-quarter 2025 net sales. Additionally, higher-than-expected western log costs, manufacturing costs, and raw material costs, along with a one-time cost impact from a fire at an MDF plant, contributed to the earnings decline [1].

Weyerhaeuser also announced significant transactions. The company acquired approximately 117,000 acres of high-quality timberland in North Carolina and Virginia from Roanoke Timberlands LLC for approximately $380 million. This acquisition aims to boost Weyerhaeuser's Southern Timberlands portfolio and is expected to generate substantial cash flows [2]. Additionally, Weyerhaeuser sold its Princeton mill in British Columbia to Gorman Group for CAD 120 million [2].

Analysts have adjusted their price targets for Weyerhaeuser in response to the earnings report. DA Davidson lowered its price target to $35 from $36 while maintaining a Buy rating [3]. JPMorgan reduced its price target to $30, citing weaker-than-expected lumber and oriented strand board sales [2]. Citigroup also lowered its price target to $31 due to demand concerns, though they maintained a Buy rating [2].

Despite the near-term challenges, DA Davidson believes the fundamental factors that could support stronger lumber pricing remain intact for the forestry products company. The firm noted that Weyerhaeuser's current share price reflects "an already exaggerated discount" to its net asset value (NAV), providing downside protection at current trading levels [3].

References:
[1] https://finance.yahoo.com/news/heres-investors-must-know-ahead-150800441.html
[2] https://www.marketscreener.com/news/weyerhaeuser-q2-adjusted-earnings-revenue-fall-ce7c5fdada8cf42c
[3] https://www.investing.com/news/analyst-ratings/da-davidson-lowers-weyerhaeuser-stock-price-target-to-35-on-weak-pricing-93CH-4146423