On January 30, 2025, Weyerhaeuser Co (WY, Financial) released its 8-K filing detailing the financial performance for the fourth quarter and full year of 2024. Weyerhaeuser, one of the world's largest forest product companies, operates in timberlands, wood products, and real estate. The company is structured as a real estate investment trust (REIT), which exempts it from federal income taxes on earnings from timber harvest activities.

Quarterly Performance Overview

Weyerhaeuser Co (WY, Financial) reported fourth-quarter net earnings of $81 million, or $0.11 per diluted share, on net sales of $1.7 billion. This earnings per share (EPS) exceeded the analyst estimate of $0.07. However, revenue fell slightly short of the estimated $1,713.03 million. Compared to the same period last year, net earnings decreased from $219 million, or $0.30 per diluted share, on net sales of $1.8 billion.

Annual Financial Highlights

For the full year 2024, Weyerhaeuser reported net earnings of $396 million, or $0.54 per diluted share, on net sales of $7.1 billion. This performance was above the annual estimate of $0.52 EPS but below the estimated $7,115.59 million in revenue. The company returned $735 million in cash to shareholders, including $153 million in share repurchases.

Key Achievements and Strategic Initiatives

Weyerhaeuser made significant strides in its Natural Climate Solutions business, generating $55 million in operating income and achieving an Adjusted EBITDA of $84 million, marking a 79% increase from 2023. The company also announced a strategic investment in a new engineered wood products facility in Arkansas and enhanced its Southern Timberlands portfolio with acquisitions in Alabama totaling approximately $244 million.

Segment Performance and Financial Metrics

In the Timberlands segment, fourth-quarter net sales were $497 million, with a contribution to pretax earnings of $62 million. Adjusted EBITDA for this segment was $126 million. The Real Estate, Energy & Natural Resources segment reported net sales of $86 million and a pretax earnings contribution of $46 million, with Adjusted EBITDA at $76 million. The Wood Products segment saw net sales of $1,263 million, with a significant increase in pretax earnings to $106 million and Adjusted EBITDA of $161 million.

Analysis and Outlook

Weyerhaeuser's performance in 2024 reflects solid execution amid challenging market conditions. The company's strategic acquisitions and investments, particularly in the Natural Climate Solutions and engineered wood products, position it well for future growth. However, the decline in net earnings and revenue compared to the previous year highlights ongoing challenges in the market.

“Our performance in 2024 reflects solid execution against a challenging market backdrop,” said Devin W. Stockfish, president and chief executive officer. “Our teams drove meaningful improvements across each of the value levers of our investment thesis in 2024, and we continued to demonstrate the durability of our portfolio and the flexibility of our capital allocation framework across market cycles.”

Weyerhaeuser anticipates improvements in its Timberlands and Wood Products segments in the first quarter of 2025, with expectations of higher sales volumes and improved cost management. The company remains focused on achieving its multi-year targets and delivering long-term value to shareholders.

Explore the complete 8-K earnings release (here) from Weyerhaeuser Co for further details.