Executive Summary
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
QoQ: -2.99% | YoY:-19.55%
QoQ: -0.56% | YoY:-34.07%
Key Insights
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 Flo...
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
operatingProfitMargin
9.45%
operatingCashFlowPerShare
$0.55
freeCashFlowPerShare
$0.4
dividendPayoutRatio
174.7%
Management Commentary
Note: The earnings transcript for QQ2 2025 was not provided in the dataset. Consequently, there are no management quotes available to cite. In the absence of transcript content, potential themes investors would typically monitor include strategy execution on cost control, housing-market demand implications for timber and wood products, price realization and mix, forestry sustainability commitments, and capital allocation priorities (buybacks vs. dividend vs. capex). If/when the transcript is available, key quotes should be grouped by themes such as Strategy, Operations, Market Conditions, and Capital Allocation with context and significance.
Forward Guidance
No formal forward-looking targets or guidance were provided in the supplied data. Given the observed quarterly dynamics, investors should monitor: (1) housing market indicators and housing starts in the US, which drive demand for timberlands and wood products; (2) timber pricing trends and cost of goods sold pressure (logistics, freight, and fiber input costs); (3) utilization of cash flow toward debt reduction, capex optimization, and shareholder returns; (4) seasonality and any weather-related or regulatory headwinds affecting timber assets. On balance, the company’s liquidity and free cash flow generation support flexibility to navigate near-term cyclicality, but the absence of explicit guidance requires investors to rely on macro drivers and quarterly cadence for cadence-based planning. Key factors to monitor include debt maturities, capex intensity, dividend sustainability in context of payout policy, and any strategic initiatives around asset optimization or potential acquisitions.