Executive Summary
Weyerhaeuser (0LWG.L) delivered QQ4 2024 results with revenue of $1.708 billion, gross profit of $304 million and net income of $81 million ($0.11 per share). The topline declined 3.72% year over year and 1.61% quarter over quarter, while gross margin remained pressured at roughly 17.8%, reflecting a challenging mix and input costs within the timber and wood products cycle. Operating income of $141 million and EBITDA of $266 million signaled modest operating leverage despite a low margin environment, contributing to a net margin near 4.7% for the period. Cash flow from operations was sound at $218 million, but capital expenditures of $265 million produced negative free cash flow of about $47 million, underscoring a cash flow discipline dynamic: cash generation is real, yet capital allocation and debt management remain critical to sustain distributions and growth.
From a balance sheet perspective, Weyerhaeuser remains asset-rich with total assets of $16.54 billion and a sizeable timberland and related property base (Property, Plant & Equipment net around $14.49 billion). Liabilities total $6.82 billion, yielding a conservative debt ratio of about 0.317 and a debt-to-capitalization around 0.350. The company carries net debt around $4.42 billion after taking into account cash of $684 million, implying modest leverage for a timber REIT with a long-duration asset base. The dividend burden, reflected in a payout that exceeds near-term earnings (dividend payout ratio reported near 1.79x in the data), raises questions about sustainable cash-based returns absent FFO/adjusted metrics typical for REITs. Valuation metrics show a premium versus some peers (P/E ≈ 63x, P/BV ≈ 2.1x, and a price-to-sales around 12x), suggesting investors should weigh asset quality and long-cycle cash generation against near-term earnings volatility.
Overall, QQ4 2024 presents a prudent but cautious risk/return profile: meaningful asset-backed cash flows, solid balance sheet, and a dividend that remains attractive for income-oriented investors if supported by stronger FFO/recurring free cash flow in the quarters ahead. The near-term trajectory will hinge on housing-market demand, lumber pricing, input costs, and management’s capital allocation decisions aimed at deleveraging and optimizing returns for shareholders.
Key Performance Indicators
QoQ: 21.60% | YoY:-35.04%
QoQ: 80.77% | YoY:-55.66%
QoQ: 189.29% | YoY:-63.01%
QoQ: 185.71% | YoY:-63.33%
Key Insights
Revenue: $1.708B; YoY -3.72%, QoQ +1.61%
Gross Profit: $304.0M; YoY -35.04%, QoQ +21.60%
Operating Income: $141.0M; YoY -55.66%, QoQ +80.77%
Net Income: $81.0M; YoY -63.01%, QoQ +189.29%
EPS (Basic/Diluted): $0.11; YoY -63.33%, QoQ +185.71%
Gross Margin: 17.80%
Operating Margin: 8.96%
Net Margin: 4.74%
EBITDA: $266.0M; EBITDA Margin ~15.6%
Cash from Operations: $218.0M; Free Cash Flow: -$47.0M
Capex: $265.0M; Dividends Paid: $145.0M; Net Cash Used in Financing: -$178.0M
Cash at End of Period: $6...
Financial Highlights
Revenue: $1.708B; YoY -3.72%, QoQ +1.61%
Gross Profit: $304.0M; YoY -35.04%, QoQ +21.60%
Operating Income: $141.0M; YoY -55.66%, QoQ +80.77%
Net Income: $81.0M; YoY -63.01%, QoQ +189.29%
EPS (Basic/Diluted): $0.11; YoY -63.33%, QoQ +185.71%
Gross Margin: 17.80%
Operating Margin: 8.96%
Net Margin: 4.74%
EBITDA: $266.0M; EBITDA Margin ~15.6%
Cash from Operations: $218.0M; Free Cash Flow: -$47.0M
Capex: $265.0M; Dividends Paid: $145.0M; Net Cash Used in Financing: -$178.0M
Cash at End of Period: $684.0M; Net Debt: ~$4.421B; Total Debt: $5.105B
Balance Sheet (selected): Total Assets $16.54B; Total Liabilities $6.82B; Total Equity $9.72B; Property, Plant & Equipment Net $14.49B
Liquidity/Debt: Debt Ratio ~0.317; Debt to Equity ~0.539; Long-Term Debt $4.867B; Current Liabilities $0.977B
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.71B |
-3.72% |
1.61% |
| Gross Profit |
304.00M |
-35.04% |
21.60% |
| Operating Income |
141.00M |
-55.66% |
80.77% |
| Net Income |
81.00M |
-63.01% |
189.29% |
| EPS |
0.11 |
-63.33% |
185.71% |
Key Financial Ratios
operatingProfitMargin
8.96%
operatingCashFlowPerShare
$0.3
freeCashFlowPerShare
$-0.06
Management Commentary
Note: The earnings transcript content is not provided in the dataset. Management commentary and quotes from the QQ4 2024 call are not included here. Highlights below are based on the Quantitative outcomes and typical REIT commentary expectations.
- Revenue and margins faced cyclical pressure tied to timber pricing and input costs, offset by operational leverage in certain wood products segments.
- Cash flow generation remains positive from operations, but capital expenditure intensity and sustaining dividends require careful capital allocation.
- Balance sheet remains asset-backed with substantial timberland and PP&E, providing optionality for strategic investments and potential deleveraging routes if needed.
Forward Guidance
No formal forward-looking guidance is available within the provided data. Inferences about the next 12 months should reflect cyclicality in housing construction, lumber demand, and log costs. Investors should monitor: (1) housing starts and repair/remodel activity, (2) lumber and wood products pricing, (3) commodity input costs, (4) commodity/log freight dynamics and supply chain, (5) ability to deleverage while sustaining the dividend. Given the negative free cash flow in QQ4 2024 despite positive operating cash flow, a conservative stance on payout sustainability and capital allocation is prudent until visible improvements in FFO/recurring cash flow emerge.