Weyerhaeuser delivered QQ2 2025 results that reflect both the cyclicality of the timber and wood products markets and the company’s ongoing focus on cash generation and balance sheet discipline. Revenue for the quarter was USD 1.884 billion, down 2.84% year over year but up 6.86% quarter over quarter, underscoring a modest sequential rebound amidst a softer annual comparison. Gross margin stood at 17.25%, with operating margin at 9.45% and net margin at 4.62%. Net income of USD 87 million and EPS of USD 0.12 illustrate a compatible profitability trajectory given the revenue backdrop and cost structure. EBITDA was USD 290 million, yielding an EBITDA margin of about 15.4%. Free cash flow generated was USD 288 million, and operating cash flow amounted to USD 396 million, supporting a robust balance sheet and a deleveraging signal through modest share repurchases and a dividend program.
Key Performance Indicators
Revenue
Decreasing
1.88B
QoQ: 6.86% | YoY: -2.84%
Gross Profit
Decreasing
325.00M
17.25% margin
QoQ: -2.99% | YoY: -19.55%
Operating Income
Decreasing
178.00M
QoQ: -0.56% | YoY: -34.07%
Net Income
Decreasing
87.00M
QoQ: 4.82% | YoY: -49.71%
EPS
Decreasing
0.12
QoQ: 9.09% | YoY: -50.00%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: USD 1.884B; YoY change: -2.84%; QoQ change: +6.86%
Gross Profit: USD 0.325B; Gross Margin: 17.25%; YoY change: -19.56%; QoQ change: -2.99%
Operating Income: USD 0.178B; Operating Margin: 9.45%; YoY change: -34.07%; QoQ change: -0.56%
Net Income: USD 0.087B; Net Margin: 4.62%; YoY change: -49.71%; QoQ change: +4.82%
EPS: USD 0.12; Diluted EPS: USD 0.12; YoY change: -50.0%; QoQ change: +9.09%
EBITDA: USD 0.29B; EBITDA Margin: ~15.4%
Cash Flow: Operating Cash Flow USD 0.396B; Free Cash Flow USD 0.288B; Capex USD -1.08M for the period
Balance Sheet: Total Assets USD 16.478B; Total Liabilities USD 6.954B; Total Equity USD 9.524B
Liquidity & Leverage: Current ratio 1.038x; Quick ratio 0.678x; Debt to capitalization 0.353x; Debt to equity 0.545x; Interest coverage 2.70x; Net debt USD 4.60B; Cash USD 0.592B; Dividends paid USD 0.152B; Share repurchases USD 0.100B
Dividend & Capital Allocation: Dividend payout indicated in the ratios as ~174.7% (note interpretation quirks in GAAP context); Net cash provided by financing activities negative USD (varies by period); Free cash flow per share USD 0.398; Operating cash flow per share USD 0.547
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
1.88B
-2.84%
6.86%
Gross Profit
325.00M
-19.55%
-2.99%
Operating Income
178.00M
-34.07%
-0.56%
Net Income
87.00M
-49.71%
4.82%
EPS
0.12
-50.00%
9.09%
Key Financial Ratios
Gross Profit Margin
Weak
17.30%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Fair
9.45%
Operating margin is moderate, room for improvement in cost management
Net Profit Margin
Fair
4.62%
Net profit margin is moderate, room for improvement in cost management
Return on Assets
Weak
0.53%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
0.91%
Return on equity suggests inefficient capital allocation
Current Ratio
Adequate
1.04
Current ratio meets minimum requirements but limited cushion
Debt to Equity
Moderate
0.55
Debt-to-equity indicates balanced capital structure with manageable debt
P/E Ratio
High Growth
53.42x
Very high P/E indicates aggressive growth expectations, higher risk
Price to Book
Fair Value
1.95x
Price-to-book ratio reasonable for profitable companies
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