Weyerhaeuser Company · NYSE:WY
Weyerhaeuser — Q4 2024 Earnings Presentation
39 slides from Weyerhaeuser's earnings presentation, Jan 31, 2025
Slide 1: Earnings Results Fourth Quarter 2024
EARNINGS RESULTS FOURTH QUARTER 2024
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains statements concerning the company's future results and performance that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, but not limited to, with respect to: our first quarter 20
Slide 3: 2024 Consolidated Results
2024 CONSOLIDATED RESULTS $ Millions 2023 2024 $ Millions (except EPS) 2023 2024 Adjusted EBITDA FY FY Change Consolidated Statement of Operations FY FY Timberlands $ 646 $ 539 $ (107) Net sales $ 7,674 $ 7,124 Real Estate, Energy & Natural Resources 320 349 29 Costs of sales 5,992 5,811 Wood Produc
Slide 4: 2024 Q4 Consolidated Results
2024 Q4 CONSOLIDATED RESULTS $ Millions 2024 2024 $ Millions (except EPS) 2024 2024 Adjusted EBITDA Q3 Q4 Change Consolidated Statement of Operations Q3 Q4 Timberlands $ 122 $ 126 $ 4 Net sales $ 1,681 $ 1,708 Real Estate, Energy & Natural Resources 77 76 (1) Costs of sales 1,431 1,404 Wood Products
Slide 5: Earnings Before Special Items
EARNINGS BEFORE SPECIAL ITEMS $ Millions (except EPS) 2024 Q3 2024 Q4 Pretax After-Tax Diluted Pretax After-Tax Diluted Earnings Earnings EPS Earnings Earnings EPS Earnings Before Special Items $ 23 $ 35 $ 0.05 $ 74 $ 81 $ 0.11 Special Items: Restructuring, impairments and other charges1 (10) (7) (0
Slide 6: Adjusted EBITDA
ADJUSTED EBITDA1 TOTAL COMPANY2 REAL ESTATE & ENR $600 $120 $509 $102 $500 $469 $100 $94 $94 $89 $395 $410 $400 $80 $77 $76 $ Millions $352 $ Millions $70 $67 $321 $294 $300 $60 $236 $200 $40 $100 $20 $0 $0 Q1.23 Q2.23 Q3.23 Q4.23 Q1.24 Q2.24 Q3.24 Q4.24 Q1.23 Q2.23 Q3.23 Q4.23 Q1.24 Q2.24 Q3.24 Q4.
Slide 7: Timberlands Segment
TIMBERLANDS SEGMENT TIMBERLANDS ($ Millions) 2024 2024 TIMBERLANDS ($ Millions) 2024 2024 Adjusted EBITDA by Region Q3 Q4 Segment Statement of Operations Q3 Q4 West $ 54 $ 53 Third-party sales $ 357 $ 359 South 72 74 Intersegment sales 136 138 North (1) 1 Total Sales 493 497 Other (3) (2) Costs of s
Slide 8: Timberlands Key Drivers: 2024 Q4 vs. 2024 Q3
TIMBERLANDS KEY DRIVERS: 2024 Q4 vs. 2024 Q3 REGION KEY DRIVERS WEST • Fee Harvest Volumes: Slightly lower, given fewer working days in the fourth quarter • Domestic Sales Volumes: Moderately higher, shifted volumes from China to domestic customers • Export Sales Volumes: Lower, primarily for China
Slide 9: Sales Volumes, Realizations and Export Revenue
SALES VOLUMES, REALIZATIONS AND EXPORT REVENUE 3rd-Party Log Sales and Realizations - West1 3rd-Party Log Sales and Realizations - South 3,600 $200 7,000 $45 $38.23 $37.49 $37.26 $36.92 $37.15 $36.93 $36.89 $36.68 Volumes (Thousands of tons) Volumes (Thousands of tons) 3,000 5,600 $36 $160 $137.10 R
Slide 10: Fee Harvest Volumes and Intersegment Sales Volumes
FEE HARVEST VOLUMES AND INTERSEGMENT SALES VOLUMES FEE HARVEST VOLUMES INTERSEGMENT LOG SALES VOLUMES 7,500 1,500 6,432 6,430 1,304 6,293 6,161 6,146 6,169 6,070 1,225 1,222 1,207 5,990 1,188 6,250 1,172 1,151 1,200 Thousands of tons Thousands of tons 1,098 5,000 859 855 900 793 821 813 753 779 745
Slide 11: Real Estate, Energy & Natural Resources (ENR) Segment
REAL ESTATE, ENERGY & NATURAL RESOURCES (ENR) SEGMENT REAL ESTATE & ENR ($ Millions) 2024 2024 REAL ESTATE & ENR ($ Millions) 2024 2024 Adjusted EBITDA by Business Q3 Q4 Segment Statement of Operations Q3 Q4 Real Estate $ 51 $ 53 Total sales $ 89 $ 86 Energy & Natural Resources 26 23 Costs of sales
Slide 12: Real Estate, ENR: Average Price per Acre and Acres Sold
REAL ESTATE, ENERGY & NATURAL RESOURCES (ENR) SEGMENT AVERAGE PRICE PER ACRE $10,000 $8,000 $6,316 Price per acre $6,000 $5,550 $5,046 $4,790 $4,385 $4,202 $4,005 $3,785 $3,629 $4,000 $2,808 $2,806 $3,803 $1,992 $3,227 $3,215 $3,241 $1,501 $3,033 $2,000 $2,062 $1,381 $0 Q1.20 Q2.20 Q3.20 Q4.20 Q1.21
Slide 13: Wood Products Segment
WOOD PRODUCTS SEGMENT WOOD PRODUCTS ($ Millions) 2024 2024 WOOD PRODUCTS ($ Millions) 2024 2024 Adjusted EBITDA by Business Q3 Q4 Segment Statement of Operations Q3 Q4 Lumber $ (29) $ 21 Total sales $ 1,235 $ 1,263 OSB 39 63 Costs of sales 1,132 1,092 Engineered Wood Products 61 69 Gross margin 103
Slide 14: Wood Products Key Drivers: 2024 Q4 vs. 2024 Q3
WOOD PRODUCTS KEY DRIVERS: 2024 Q4 vs. 2024 Q3 BUSINESS KEY DRIVERS LUMBER • Sales Realizations: Increased 9% • Production Volumes: Moderately higher, returned to a more normal operating posture • Sales Volumes: Comparable • Unit Manufacturing Costs: Comparable • Log Costs: Slightly lower ORIENTED •
Slide 15: Third-Party Sales Volumes and Realizations
THIRD-PARTY SALES VOLUMES AND REALIZATIONS1 Lumber OSB 2,800 $600 2,400 $500 $416 $407 Volumes (Millions of Square Ft.) $479 $481 2,000 Volumes (Millions of Board Ft.) $450 $442 $400 $429 $359 2,100 $419 $450 $344 Realizations ($/M 3/8") $413 $404 Realizations ($/MBF) $321 1,600 $299 $305 $269 $300
Slide 16: Unallocated Items
UNALLOCATED ITEMS UNALLOCATED ITEMS ($ Millions)1 1 2024 2024 UNALLOCATED ITEMS ($ Millions) 2024 2024 Q3 Q4 Q3 Q4 Unallocated corporate function expenses and Costs of sales 3 $ 6 $ (5) $ (32) $ (47) variable compensation expense 4 G&A expense (51) (53) Liability classified share-based compensation
Slide 17: Financial Items
FINANCIAL ITEMS KEY FINANCIAL METRICS ($ Millions) 2024 2024 Cash Flow from Operations $750 Q3 Q4 Ending cash balance $ 877 $ 684 $600 $523 $496 Total debt $ 5,074 $ 5,076 $ Millions $432 $450 Net debt to Adjusted EBITDA (LTM) 1 3.2 3.4 $288 $300 $234 Net debt to enterprise value 2 15% 18% $218 $150
Slide 18: Adjusted Funds Available for Distribution
ADJUSTED FUNDS AVAILABLE FOR DISTRIBUTION Allocation Framework and Cash Return Calculation ADJUSTED FUNDS AVAILABLE FOR DISTRIBUTION1 TARGETED RETURN OF Allocation Framework CASH TO SHAREHOLDERS Calculated on an Annual Basis Return 75-80% of Adjusted FAD to Shareholders SUSTAINABLE BASE DIVIDEND Adj
Slide 19: 2024 Cash Return Summary
2024 CASH RETURN SUMMARY Returned $735 Million of Cash to Shareholders CASH RETURNS • Reinforcing the durability of our BASED ON 2024 RESULTS AND ACTIONS portfolio and flexible approach to cash returns across market cycles Quarterly Share Total Base Dividends Repurchase2 Cash Return • Quarterly base
Slide 20: Returning Cash to Shareholders
RETURNING CASH TO SHAREHOLDERS Demonstrating The Power of Our Cash Return Framework ALLOCATION OF CASH RETURNS OVER BASED ON 2021-2024 RESULTS $5.3 BILLION ~$2.2 Billion ~$2.2 Billion $927 Million RETURNED Base Dividends Supplemental Dividends1 Share Repurchase TO SHAREHOLDERS THROUGH DIVIDENDS AND
Slide 21: 2025 Year-End Targets
2025 YEAR-END TARGETS Making Progress Against Our Multi-Year Targets INVESTMENT THESIS TARGETS ACCOMPLISHMENTS Invested ~$775 million Grow Timberlands Portfolio including announced acquisitions in Washington, UNMATCHED by $1 billion of disciplined investments Carolinas, Mississippi and Alabama (2022
Slide 22: Timberlands Growth Strategy Update
TIMBERLANDS GROWTH STRATEGY UPDATE Disciplined Approach to Growing the Value of Our Timberlands ANNOUNCED ACQUISITIONS Approximate Location of Transaction Activity TARGET Western Timberlands Southern Timberlands $1 Billion of Disciplined Investments from 2022 to 2025 PROGRESS ~$775 Million1 Includin
Slide 23: Natural Climate Solutions
NATURAL CLIMATE SOLUTIONS Leveraging Our Scale and Growing EBITDA as Markets Develop KEY UPDATES GROWING OUR CURRENT BUSINESSES BUILDING A $100 MILLION BUSINESS • Initial growth primarily from Mitigation, Conservation and Renewable Energy BY YEAR-END 2025 businesses Adjusted EBITDA1 • Future upside
Slide 24: Expanding Engineered Wood Products Portfolio
EXPANDING ENGINEERED WOOD PRODUCTS PORTFOLIO Strategic Investment to Build New TimberStrand® Facility in Monticello, Arkansas • Expanding Weyerhaeuser's EWP offerings in the U.S. South New facility addresses underserved and growing market for TimberStrand in the U.S. South and serves the company’s
Slide 25: Outlook: 2025 Q1
OUTLOOK: 2025 Q1 EXPECTED EARNINGS1 SEGMENT KEY DRIVERS & ADJUSTED EBITDA TIMBERLANDS Approximately $20 million West South North higher than 2024 Q4 Fee Harvest Volumes: Fee Harvest Volumes: Fee Harvest Volumes: Slightly higher Comparable Slightly lower Sales Volumes: Sales Realizations: Sales Reali
Slide 26: Outlook: Full Year 2025
OUTLOOK: FULL YEAR 2025 DRIVER FY 2025 OUTLOOK Approximately 35.5 million tons • South: Slightly higher than 2024 FEE HARVEST VOLUMES • West: Comparable to 2024 • North: Slightly higher than 2024 REAL ESTATE & ENR ADJUSTED EBITDA Approximately $350 million BASIS OF REAL ESTATE SOLD 35-45% of Real Es
Slide 27: Wood Products Sales Realizations: Current vs. 2024 Q4
WOOD PRODUCTS SALES REALIZATIONS: CURRENT VS. 2024 Q4 WEYERHAEUSER’S AVERAGE SALES REALIZATIONS Approximate Change As of January 24, 2025 LUMBER1 Q1 QTD vs. WY’s +$20/MBF HIGHER SENSITIVITY Q4 AVERAGE CHANGE IN REALIZATIONS $10/MBF ≈ $50 million CURRENT vs. EBITDA +$15/MBF HIGHER ANNUALLY Q4 AVERAGE
Slide 28: Supplemental Timberlands Information
SUPPLEMENTAL TIMBERLANDS INFORMATION Adjusted EBITDA1 Per Acre WESTERN TIMBERLANDS 2022 2023 2024 SOUTHERN TIMBERLANDS 2022 2023 2024 FY FY FY FY FY FY 1 1 Adjusted EBITDA ($ Millions) $ 473 $ 344 $ 262 Adjusted EBITDA ($ Millions) $ 307 $ 306 $ 285 Acres (Thousands) 2,546 2,539 2,510 Acres (Thousan
Slide 29: Earnings Summary
EARNINGS SUMMARY $ Millions (except EPS) 2023 2024 Adjusted EBITDA by Segment Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Timberlands $ 188 $ 172 $ 143 $ 143 $ 144 $ 147 $ 122 $ 126 Real Estate, Energy & Natural Resources 89 70 94 67 94 102 77 76 Wood Products 148 270 328 159 184 225 91 161 Unallocated Items (30) (43)
Slide 30: Earnings per Share Reconciliation
EARNINGS PER SHARE RECONCILIATION 2023 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Diluted EPS Before Special Items $ 0.21 $ 0.32 $ 0.33 $ 0.16 $ 0.16 $ 0.21 $ 0.05 $ 0.11 Special Items (Income Tax Affected): Environmental remediation charge — (0.01) — — — — — — Gain on sale of timberlands — — — 0.12 — — — — Insur
Slide 31: Earnings Before Special Items Reconciliation
EARNINGS BEFORE SPECIAL ITEMS RECONCILIATION $ Millions (except EPS) 2023 2024 Pretax After-Tax Diluted Pretax After-Tax Diluted Earnings Earnings EPS Earnings Earnings EPS Earnings Before Special Items $ 852 $ 749 $ 1.02 $ 412 $ 384 $ 0.53 Special Items: Environmental remediation charge (11) (8) (0
Slide 32: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION By Segment $ Millions 2021 2022 2023 2024 FY FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Timberlands $ 693 $ 784 $ 188 $ 172 $ 143 $ 143 $ 646 $ 144 $ 147 $ 122 $ 126 $ 539 Real Estate & ENR 296 329 89 70 94 67 320 94 102 77 76 349 Wood Products 3,357 2,737 148 270 328 159 905 18
Slide 33: Adjusted EBITDA Reconciliation: Timberlands
ADJUSTED EBITDA RECONCILIATION Timberlands $ Millions 2023 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 West $ 105 $ 94 $ 72 $ 73 $ 76 $ 79 $ 54 $ 53 South 81 79 73 73 69 70 72 74 North 4 — 1 1 2 1 (1) 1 Other (2) (1) (3) (4) (3) (3) (3) (2) 1 Total Timberlands Adjusted EBITDA $ 188 $ 172 $ 143 $ 143 $ 144 $ 147 $
Slide 34: Adjusted EBITDA Reconciliation: Real Estate, ENR
ADJUSTED EBITDA RECONCILIATION Real Estate, Energy & Natural Resources $ Millions 2023 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Real Estate $ 63 $ 40 $ 71 $ 32 $ 73 $ 70 $ 51 $ 53 Energy & Natural Resources 26 30 23 35 21 32 26 23 1 Total Real Estate & ENR Adjusted EBITDA $ 89 $ 70 $ 94 $ 67 $ 94 $ 102 $ 77 $ 7
Slide 35: Adjusted EBITDA Reconciliation: Wood Products
ADJUSTED EBITDA RECONCILIATION Wood Products $ Millions 2023 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Lumber $ 8 $ 51 $ 58 $ (34) $ (5) $ (8) $ (29) $ 21 OSB 22 37 118 73 87 122 39 63 EWP 82 144 125 104 86 92 61 69 Distribution 22 34 31 16 20 18 14 10 Other 14 4 (4) — (4) 1 6 (2) 1, 2 Total Wood Products Adjust
Slide 36: Adjusted EBITDA Reconciliation: Unallocated
ADJUSTED EBITDA RECONCILIATION Unallocated $ Millions 2023 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Total Unallocated Adjusted EBITDA1 $ (30) $ (43) $ (56) $ (48) $ (70) $ (64) $ (54) $ (69) Total depletion, depreciation & amortization (2) (1) (2) (2) (2) (1) (3) (4) Special items included in operating loss — (
Slide 37: Net Debt to Adjusted EBITDA Reconciliation
NET DEBT TO ADJUSTED EBITDA RECONCILIATION $ Millions 2023 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1, 2 Net Debt to Adjusted EBITDA (LTM) 1.7 2.2 2.2 2.3 2.5 2.6 3.2 3.4 Total debt $ 5,053 $ 5,797 $ 5,679 $ 5,069 $ 5,071 $ 5,072 $ 5,074 $ 5,076 Less: cash and cash equivalents and short-term investments 797 1,7
Slide 38: Funds Available for Distribution Reconciliation
FUNDS AVAILABLE FOR DISTRIBUTION RECONCILIATION ADJUSTED FUNDS AVAILABLE FOR DISTRIBUTION ($ Millions) 2021 2022 2023 2024 FY FY FY Q1 Q2 Q3 Q4 FY Net cash from operations $ 3,159 $ 2,832 $ 1,433 $ 124 $ 432 $ 234 $ 218 $ 1,008 Capital expenditures (441) (468) (447) (79) (91) (97) (149) (416) Funds
Slide 39: Adjusted EBITDA Reconciliation: Natural Climate Solutions
ADJUSTED EBITDA RECONCILIATION Natural Climate Solutions $ Millions 2020 2021 2022 2023 2024 FY FY FY FY FY Total Natural Climate Solutions Adjusted EBITDA1 $ 22 $ 38 $ 43 $ 47 $ 84 Depletion, depreciation & amortization (1) (1) (1) (1) (1) Basis of real estate sold (9) (10) (10) (11) (28) Operating