Weyerhaeuser Company (0LWG.L) Q3 2024 Earnings Report

Weyerhaeuser reported Q3 2024 results that reflect a cyclically challenged environment for timber and wood products. Revenue of $1.681 billion declined 16.9% year over year and 13.3% quarter over quarter, while gross profit of $250 million yielded a gross margin of about 14.9%. Operating income was $78 million with an operating margin of 4.6%, and net income stood at $28 million (EPS $0.0385). The quarter faced margin compression driven by lower selling prices and higher input costs in a volatile macro backdrop, underscoring the sensitivity of the business to housing demand and timber markets. Free cash flow (FCF) was $55 million, supported by a solid operating cash flow of $234 million, even as capital expenditures remained meaningful at $179 million for the period. Balance sheet strength remains apparent: total assets of $16.67 billion, cash of $0.88 billion, and a net debt position of roughly $4.22 billion, with a debt-to-capitalization ratio of 0.338. The dividend payout remains conservative at about 5.18% of equity value, reinforcing a selective allocation approach in a cyclical asset class. The quarterly performance signals cautious optimism on the long-term value of timberlands and wood products, but near-term earnings are highly cyclical, necessitating disciplined capital allocation and proactive risk management.