Weyerhaeuser Raises Full Year Guidance as Wood Product Prices Rise
The timber and land manager raised its full-year Adjusted EBITDA guidance by $25 million to approximately $450 million.
Weyerhaeuser (WY) reported second-quarter net sales of $1.9 billion. The result was flat compared to the same period last year but marked an increase from the $1.727 billion recorded in the first quarter.
The company saw a shift in its earnings drivers as higher realizations in its Wood Products segment offset a decline in strategic land activity. Net earnings before special items rose to $91 million, up from $77 million in the first quarter and $87 million in the second quarter of 2024.
Adjusted EBITDA for the quarter was $310 million, a slight increase from the $308 million reported in the first quarter, though it remained lower than the $336 million achieved in the second quarter of 2024.
Growth in the Wood Products segment drove the sequential improvement. Sales realizations for lumber and oriented strand board increased 15% and 3%, respectively, compared with first-quarter averages. Consequently, Adjusted EBITDA for the segment rose to $129 million from $71 million in the prior quarter.
Other segments showed mixed results. Strategic Land Solutions Adjusted EBITDA fell to $129 million from $193 million in the first quarter due to a $94 million conservation easement transaction that did not recur. Timberlands Adjusted EBITDA remained relatively flat at $123 million compared to $120 million in the first quarter, though it declined from $152 million in the second quarter of 2024.
Cash flow metrics improved significantly as Adjusted FAD rose to $323 million from a negative $58 million in the first quarter.
Weyerhaeuser raised its full-year 2024 Adjusted EBITDA guidance by $25 million to approximately $450 million.
The company also completed the divestiture of 29,000 acres of non-core timberlands in Oregon for $114 million in June 2024, which resulted in a $71 million after-tax gain for the second quarter.