Weyerhaeuser Reports Decline in Revenue and Net Earnings for Q1 2025

Weyerhaeuser Company reported its financial results for the first quarter of 2025, revealing a decline in both revenue and net earnings compared to the same period in 2024. The company generated net sales of $1.763 billion, a decrease of 2% from $1.796 billion in the prior year. This decline was primarily attributed to a $15 million drop in Wood Products sales due to decreased sales realizations across most product lines, alongside a $13 million decrease in the Real Estate & Energy and Natural Resources (ENR) segment, which was impacted by fewer acres sold. Operating income also fell by 9% to $179 million from $196 million, while net earnings decreased by 27% to $83 million, down from $114 million in the previous year.

In terms of operational metrics, Weyerhaeuser's basic and diluted earnings per share were reported at $0.11, down from $0.16 in the first quarter of 2024. The company’s total assets as of March 31, 2025, were not disclosed in the filing, but it reported a total equity of $9.645 billion, a decrease from $10.054 billion at the end of 2024. The company’s employee headcount and customer counts were not specified in the filing, but the company continues to focus on maintaining its operational efficiency amid fluctuating market conditions.

Weyerhaeuser's strategic developments included the initiation of a new TimberStrand® facility in Monticello, Arkansas, with an investment of approximately $500 million aimed at increasing engineered wood products capacity by about 10 million cubic feet. The construction is expected to commence in 2025, with operations projected to begin in 2027. Additionally, the company repurchased 845,049 shares for approximately $25 million during the first quarter under its ongoing share repurchase program, which has a remaining authorization of $74 million.

The filing also highlighted the impact of market conditions on Weyerhaeuser's performance. The U.S. housing market remains a critical driver for the company, with housing starts averaging 1.4 million units in the first quarter of 2025, a slight increase from the previous quarter. However, the company noted that elevated mortgage rates and reduced consumer confidence continue to pose challenges. The demand for wood products is closely tied to the strength of the housing market, particularly in single-family construction, which is expected to remain resilient despite current economic uncertainties.

Looking ahead, Weyerhaeuser anticipates a favorable long-term outlook for the U.S. housing construction market, supported by strong demographics and a decade of underbuilding. However, the company remains cautious about short-term fluctuations in demand and pricing, particularly in light of ongoing inflationary pressures and geopolitical factors affecting trade. The company plans to continue monitoring market conditions closely while executing its strategic initiatives to enhance operational performance and shareholder value.