Weyerhaeuser Profit Falls as Oregon Timberland Gain Does Not Repeat

The Tip Desk · October 31, 2026 · 4 min read

Third-quarter net earnings were $61 million, or 8 cents a share, on $1.86 billion of net sales, with Adjusted EBITDA of $248 million.

Weyerhaeuser Company (WY) reported third-quarter net earnings of $61 million, or 8 cents a share, after a $71 million after-tax gain on Oregon timberlands in the second quarter did not repeat. There were no special items in the third quarter.

Net sales were $1.862 billion, essentially unchanged from $1.867 billion in the second quarter. Adjusted EBITDA declined to $248 million from $310 million. Gross margin compressed to $257 million from $311 million, and operating income fell to $100 million from $223 million.

The timberland owner and wood-products manufacturer said its teams delivered solid operating performance against an increasingly challenging macroeconomic backdrop, according to President and Chief Executive Officer Devin W. Stockfish. The company said it remained confident in longer-term demand fundamentals and positioned to navigate the current environment given its portfolio, balance sheet and capital-allocation framework.

Timberlands net sales rose $13 million to $531 million. Pretax contribution before special items rose $8 million to $67 million, and Adjusted EBITDA rose $10 million to $133 million. In the West, fee harvest volumes and forestry and road costs were comparable to the second quarter. Sales volumes were lower primarily due to fiber logs and the timing of export vessels, and per-unit log and haul costs were also lower due to fewer export shipments. Sales realizations were slightly higher. In the South, fee harvest volumes were significantly higher than the second quarter due to more favorable weather. Sales realizations were slightly lower due to mix. Per-unit log and haul costs were also slightly lower, and forestry and road costs were seasonally higher.

Strategic Land Solutions net sales fell $41 million to $99 million. Pretax contribution fell $27 million to $67 million, and Adjusted EBITDA fell $43 million to $86 million. Earnings and Adjusted EBITDA decreased from the second quarter due to the timing and mix of Real Estate sales. The number of acres sold decreased significantly, and the average price per acre was moderately lower. The company said Real Estate results are typically more heavily weighted toward the first half of the year.

Wood Products net sales rose $25 million to $1.385 billion, but pretax contribution fell $39 million to $32 million and Adjusted EBITDA fell $38 million to $91 million. For lumber, delivered sales realizations were slightly higher compared with the second-quarter average. Sales volumes were moderately higher and log and unit manufacturing costs were slightly higher. For oriented strand board, sales realizations were 2 percent lower compared with the second-quarter average. Sales volumes were slightly lower, fiber costs were comparable, and unit manufacturing costs were moderately higher due to more extensive planned annual maintenance and elevated resin costs. For engineered wood products, sales volumes were slightly higher for most products. Raw material and unit manufacturing costs were also slightly higher. Sales realizations were lower overall, partially driven by a mix shift within solid section products, but were higher for plywood. For distribution, results were lower than the second quarter, primarily due to decreased sales volumes and margins on specialty products.

Net cash from operations fell to $193 million from $399 million in the second quarter. Adjusted FAD fell to $110 million from $323 million.

In October, Weyerhaeuser entered into an agreement to divest approximately 81,000 acres of non-core timberlands in Arkansas for $146 million. The transaction is expected to close in the fourth quarter and is subject to customary closing conditions. The company said it will continue to evaluate opportunities to optimize the return profile of its timberlands portfolio.

The company commenced construction on its first biocarbon facility in McComb, Mississippi, with site selection in progress for additional locations. It began construction on two additional solar sites, bringing the portfolio to two operational sites and five under construction, and signed a geothermal energy exploration agreement covering approximately 145,000 acres in Oregon and Washington. It said it had monetized approximately 340,000 forest carbon credits year-to-date through the third quarter and was on pace for the highest annual sales volume since the program’s inception.

Weyerhaeuser anticipates fourth-quarter Timberlands earnings before special items and Adjusted EBITDA will be comparable to the third quarter. Strategic Land Solutions earnings before special items are expected to be approximately $35 million lower than the third quarter, and Adjusted EBITDA approximately $45 million lower, due to the timing and mix of Real Estate sales. Wood Products earnings before special items and Adjusted EBITDA are expected to be moderately lower than the third quarter, excluding the effect of changes in average sales realizations for lumber and oriented strand board. The company continues to expect full-year 2026 Adjusted EBITDA to be approximately $450 million, a $25 million increase from the initial outlook, and basis as a percentage of Strategic Land Solutions sales to be 15 to 20 percent for the full year.