| Metric (Unit) | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|---------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Random Lengths Framing Lumber Composite Price ($/MBF) | $452 **[0000950170-24-117425_wy-20240930.htm:16]** | $412 **[0000950170-24-117425_wy-20240930.htm:16]** | $409 **[0000950170-24-117425_wy-20240930.htm:16]** | $438 **[0000950170-24-117425_wy-20240930.htm:16]** | $384 **[0000950170-24-117425_wy-20240930.htm:16]** | $403 **[0000950170-24-117425_wy-20240930.htm:16]** | $384 **[0000950170-24-117425_wy-20240930.htm:16]** | $383 **[0000950170-24-117425_wy-20240930.htm:16]** |
| OSB Composite Price ($/MSF) | $360 **[0000950170-24-117425_wy-20240930.htm:16]** | $297 **[0000950170-24-117425_wy-20240930.htm:16]** | $360 **[0000950170-24-117425_wy-20240930.htm:16]** | $540 **[0000950170-24-117425_wy-20240930.htm:16]** | $406 **[0000950170-24-117425_wy-20240930.htm:16]** | $460 **[0000950170-24-117425_wy-20240930.htm:16]** | $487 **[0000950170-24-117425_wy-20240930.htm:16]** | $346 **[0000950170-24-117425_wy-20240930.htm:16]** |
| Douglas Fir Sawlog Price Change (%) | -7.4% **[0000950170-24-086899_wy-20240630.htm:15]** | -6.3% **[0000950170-23-035534_wy-20230630.htm:16]** | +0.4% **[0000950170-24-117425_wy-20240930.htm:16]** | -0.2% **[0000950170-24-086899_wy-20240630.htm:15]** | -2.8% **[0000950170-24-117425_wy-20240930.htm:16]** | -2.9% **[0000950170-24-117425_wy-20240930.htm:16]** | -4.9% **[0000950170-24-117425_wy-20240930.htm:16]** | -3.7% **[0000950170-24-117425_wy-20240930.htm:16]** |
| Delivered Sawlog Prices in the South ($/ton) | N/A | N/A | $38.47 **[0000950170-23-056022_wy-20230930.htm:16]** | N/A | N/A | $36.93 **[0000950170-24-016434_wy-20231231.htm:66]** | $36.89 **[0000950170-24-086899_wy-20240630.htm:15]** | $36.68 **[0000950170-23-035534_wy-20230630.htm:16]** |
| Third-Party Log Sales (thousand tons) | 5,957 **[0000950170-23-015874_wy-20230331.htm:13]** | 6,264 **[0000950170-24-117425_wy-20240930.htm:16]** | 6,100 **[0000950170-24-117425_wy-20240930.htm:16]** | 5,807 **[0000950170-24-117425_wy-20240930.htm:16]** | 5,890 **[0000950170-23-003217_wy-20221231.htm:67]** | 5,716 **[0000950170-24-117425_wy-20240930.htm:16]** | 5,940 **[0000950170-24-117425_wy-20240930.htm:16]** | 5,601 **[0000950170-24-117425_wy-20240930.htm:16]** |
| Fee Harvest Volumes (thousand tons) | 8,260 **[0000950170-23-035534_wy-20230630.htm:16]** | 8,962 **[0000950170-24-049224_wy-20240331.htm:14]** | 8,897 **[0000950170-24-117425_wy-20240930.htm:16]** | 8,506 **[0000950170-24-117425_wy-20240930.htm:16]** | 8,507 **[0000950170-23-035534_wy-20230630.htm:16]** | 8,443 **[0000950170-24-117425_wy-20240930.htm:16]** | 8,838 **[0000950170-24-117425_wy-20240930.htm:16]** | 8,501 **[0000950170-24-117425_wy-20240930.htm:16]** |
| Acres Sold | 2,745 **[0000950170-23-035534_wy-20230630.htm:16]** | 20,753 **[0000950170-24-117425_wy-20240930.htm:16]** | 9,281 **[0000950170-24-117425_wy-20240930.htm:16]** | 25,721 **[0000950170-24-117425_wy-20240930.htm:16]** | 7,187 **[0000950170-23-015874_wy-20230331.htm:13]** | 19,774 **[0000950170-24-117425_wy-20240930.htm:16]** | 37,665 **[0000950170-24-117425_wy-20240930.htm:16]** | 17,441 **[0000950170-24-117425_wy-20240930.htm:16]** |
| Average Price per Acre ($) | $5,550 **[0000950170-24-016434_wy-20231231.htm:66]** | $3,241 **[0000950170-24-117425_wy-20240930.htm:16]** | $4,790 **[0000950170-24-117425_wy-20240930.htm:16]** | $3,033 **[0000950170-24-117425_wy-20240930.htm:16]** | $4,202 **[0000950170-24-049224_wy-20240331.htm:14]** | $3,629 **[0000950170-24-117425_wy-20240930.htm:16]** | $2,062 **[0000950170-24-117425_wy-20240930.htm:16]** | $2,808 **[0000950170-24-117425_wy-20240930.htm:16]** |

1982bda6c65feb3b0b17ee2ee0da163c9c7eda4dddced6efc842b95ba13f1e26

| Segment/Quarter | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|-----------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Timberlands** ($ million) | **548**  **[0000950170-23-001239_wy-ex99_1.htm:3]**  | **462**  **[0000950170-23-015874_wy-20230331.htm:4]**  | **417**  **[0000950170-23-035534_wy-20230630.htm:6]**  | **380**  **[0000950170-23-056022_wy-20230930.htm:6]**  | **534**  **[0000950170-24-007432_wy-ex99_2.htm:4]**  | **387**  **[0000950170-24-049224_wy-20240331.htm:4]**  | **555**  **[0000950170-24-086513_wy-ex99_1.htm:3]**  | **357**  **[0000950170-24-117425_wy-20240930.htm:5]**  |
| **Real Estate, Energy & Natural Resources** ($ million) | **55**  **[0000950170-23-001239_wy-ex99_1.htm:3]**  | **101**  **[0000950170-23-015874_wy-20230331.htm:4]**  | **80**  **[0000950170-23-035534_wy-20230630.htm:6]**  | **105**  **[0000950170-23-056022_wy-20230930.htm:6]**  | **77**  **[0000950170-24-007432_wy-ex99_1.htm:3]**  | **107**  **[0000950170-24-049224_wy-20240331.htm:4]**  | **109**  **[0000950170-24-086899_wy-20240630.htm:5]**  | **89**  **[0000950170-24-117425_wy-20240930.htm:5]**  |
| **Wood Products** ($ million) | **1,331**  **[0000950170-23-001239_wy-ex99_1.htm:4]**  | **1,318**  **[0000950170-23-015874_wy-20230331.htm:4]**  | **1,500**  **[0000950170-23-035534_wy-20230630.htm:6]**  | **1,537**  **[0000950170-23-056022_wy-20230930.htm:6]**  | **1,302**  **[0000950170-24-007432_wy-ex99_1.htm:3]**  | **1,302**  **[0000950170-24-049224_wy-20240331.htm:4]**  | **1,421**  **[0000950170-24-086899_wy-20240630.htm:5]**  | **1,235**  **[0000950170-24-117425_wy-20240930.htm:5]**  |
| **Total Net Sales** ($ million) | N/A | **1,881**  **[0000950170-23-015874_wy-20230331.htm:4]**  | **1,997**  **[0000950170-23-035534_wy-20230630.htm:6]**  | **2,022**  **[0000950170-23-056022_wy-20230930.htm:18]**  | **1,800**  **[0000950170-24-007432_wy-ex99_1.htm:1]**  | **1,796**  **[0000950170-24-049224_wy-20240331.htm:4]**  | **1,939**  **[0000950170-24-086899_wy-20240630.htm:5]**  | **1,681**  **[0000950170-24-117425_wy-20240930.htm:18]**  |

3b1b5da6007333a4a65a0dbd6db746929ee1cc363da89afa2534706b2170e86a

| Geographical Segment | Q4 2023 | Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 | Q3 2022 | Q2 2022 | Q1 2022 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **West** ($ million) | **183**  **[0000950170-24-007432_wy-ex99_2.htm:4]**  | **176**  **[0000950170-23-056022_wy-20230930.htm:6]**  | **206**  **[0000950170-23-035534_wy-20230630.htm:6]**  | **229**  **[0000950170-23-015328_wy-ex99_2.htm:3]**  | N/A | N/A | N/A | N/A |
| **South** ($ million) | **158**  **[0000950170-24-007432_wy-ex99_2.htm:4]**  | **155**  **[0000950170-23-056022_wy-20230930.htm:6]**  | **162**  **[0000950170-23-035534_wy-20230630.htm:6]**  | **168**  **[0000950170-23-015328_wy-ex99_2.htm:3]**  | N/A | N/A | N/A | N/A |
| **North** ($ million) | **13**  **[0000950170-24-007432_wy-ex99_2.htm:4]**  | **11**  **[0000950170-23-056022_wy-20230930.htm:6]**  | **7**  **[0000950170-23-035534_wy-20230630.htm:6]**  | **17**  **[0000950170-23-015328_wy-ex99_2.htm:3]**  | N/A | N/A | N/A | N/A |

f0a1a6329742488372f124794ada71a91808a6ae760e784202a74cafac160f7d

58fc96b9cf7da094e9f4b92198252ef78a7cd9a8fef65860e4ddf087d464fe26

Weyerhaeuser Company is one of the largest private owners of timberlands in North America, managing approximately 10.5 million acres in the U.S. and an additional 14 million acres under long-term licenses in Canada. The company operates primarily through three business segments: Timberlands, Real Estate, Energy and Natural Resources (Real Estate & ENR), and Wood Products **[0000950170-24-016434_wy-20231231.htm:84]** **[0000950170-24-016434_wy-20231231.htm:3]** **[0000950170-24-016434_wy-20231231.htm:2]** **[0000950170-24-125562_wy-ex99_1.htm:1]**. Weyerhaeuser is a major manufacturer of wood products, including structural lumber, oriented strand board, and engineered wood products **[0000950170-24-117425_wy-20240930.htm:5]** **[0000950170-24-016434_wy-20231231.htm:22]**. Overall, Weyerhaeuser's operations are deeply integrated with a focus on sustainability, and the company is structured as a real estate investment trust (REIT) to optimize tax efficiency **[0000950170-24-016434_wy-20231231.htm:84]** **[0000950170-24-016434_wy-20231231.htm:3]** **[0000950170-24-125562_wy-ex99_1.htm:1]**.

1. **Wood Products** - Manufactures wood products, including structural lumber, oriented strand board, and engineered wood products.
2. **Timberlands** - Involves growing and harvesting timber, with products including logs, timber, and recreational leases.
3. **Real Estate, Energy and Natural Resources (Real Estate & ENR)** - Focuses on selling timberland tracts for various purposes and granting rights for energy and natural resource extraction, including generating and selling forest carbon credits.

ef0ed1bc559eac9ceef6c7256aa0f198495f9aa09222fbd429f14badafa7f742

1. Given the challenges in the lumber market and your expectations for 2025, what specific operational improvements or cost reductions are you implementing to ensure that your lumber business returns to profitability above your cost of capital, and can you quantify the expected impact of these initiatives?  **[WY_3403996_11]** 

2. You've mentioned significant opportunities in exporting logs from the U.S. South to markets like India, Vietnam, Turkey, and Pakistan. Can you provide more details on the scale of these opportunities, the investments required to build out export facilities, and how you plan to mitigate risks associated with entering these new markets?  **[WY_3403996_25]** 

3. Regarding your renewables portfolio, you've indicated a "meaningful uptick" in forest carbon revenues and EBITDA next year. Can you provide concrete guidance on the expected financial contributions from your NCS projects, including forest carbon and solar developments, and how these will impact overall company performance?  **[WY_3403996_18]** **[WY_3403996_21]** 

4. You've acknowledged potential lithium mining opportunities on your Southern timberlands but have provided little detail. Can you elaborate on your strategy to capitalize on these opportunities, any partnerships being considered, and the expected timeline and financial impact of such initiatives?  **[WY_3403996_23]** 

5. With base dividends and share repurchases outpacing your funds available for distribution year-to-date, how sustainable is your current capital return strategy? Are you prioritizing shareholder returns over reinvestment in the business, and how do you plan to balance these moving forward, especially if market conditions remain challenging?  **[WY_3403996_14]** **[WY_3403996_4]** 

56eca46ff03930210eb599225fd29799ffb2a636b9b2e83b7e5a9d862c5cbe3a

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: Q4 2024 and FY 2024
- **Guidance**:
  1. **Timberlands Segment**:
     - **South**: Stable sawlog demand in Q4; slightly lower full-year fee harvest volumes compared to 2023.
     - **North**: Moderately higher fee harvest volumes in Q4.
     - **Western Timberlands**: Stable domestic log market; slight decrease in average domestic sales realizations.
  2. **Real Estate, Energy, and Natural Resources Segment**:
     - Full-year adjusted EBITDA guidance increased to **$340 million**; Q4 earnings and adjusted EBITDA expected to be $10 million lower than Q3.
  3. **Wood Products Segment**:
     - Q4 earnings and adjusted EBITDA expected to be slightly higher than Q3.
  4. **Engineered Wood Products**:
     - Lower sales volumes and realizations in Q4.
  5. **Distribution Business**:
     - Adjusted EBITDA slightly lower in Q4.
  6. **Capital Expenditures**:
     - Approximately **$420 million** in 2024.
  7. **Natural Climate Solutions**:
     - Advancing toward a **$100 million** EBITDA target by year-end 2025  **[WY_3403996_5]** **[WY_3403996_4]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: Q3 2024 and FY 2024
- **Guidance**:
  1. **Real Estate, Energy, and Natural Resources Segment**:
     - Full-year adjusted EBITDA guidance increased to **$330 million**.
  2. **Third Quarter Expectations**:
     - Earnings expected to be $10 million lower and adjusted EBITDA $30 million lower than Q2.
  3. **Wood Products Segment**:
     - Lower earnings and adjusted EBITDA in Q3 compared to Q2.
  4. **Market Conditions**:
     - Stable benchmark prices for lumber and OSB in July.
  5. **Log and Haul Costs**:
     - Comparable per unit costs; seasonally higher forestry and road costs.
  6. **Export Markets**:
     - Moderate decrease in sales realizations in Japan; moderated log demand in China.
  7. **Southern Timberlands**:
     - Moderation in sawlog markets; stable Southern fiber markets  **[WY_3394767_5]** **[WY_3394767_4]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: Q2 2024 and FY 2024
- **Guidance**:
  1. **Timberlands Business**:
     - Slightly higher earnings and adjusted EBITDA in Q2.
  2. **Western Timberlands Operations**:
     - Steady to increasing log demand; higher fee harvest volumes.
  3. **Export Markets**:
     - Stable demand in Japan; increased sales volumes to China.
  4. **Real Estate, Energy, and Natural Resources Segment**:
     - Adjusted EBITDA for Q2 comparable to Q1; full-year guidance of $320 million.
  5. **Wood Products Segment**:
     - Slightly higher earnings and adjusted EBITDA in Q2.
  6. **Housing and Repair and Remodel Markets**:
     - Healthy demand for housing; increased repair and remodel activity  **[WY_3381228_5]** **[WY_3381228_4]** **[WY_3381228_6]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: Q1 2024 and FY 2024
- **Guidance**:
  1. **Interest Expense**: Approximately **$275 million** for FY 2024.
  2. **Effective Tax Rate**: Between **13% and 16%** for Q1 and FY 2024.
  3. **Cash Taxes**: Comparable to overall tax expense for 2024.
  4. **Pension and Post-Employment Plans**: Comparable noncash expense to 2023; $20 million in cash payments.
  5. **Capital Expenditures**: Approximately **$440 million** for 2024.
  6. **Fee Harvest Volumes**: Approximately **35.5 million tons** for 2024.
  7. **Real Estate, Energy, and Natural Resources Segment**: Full-year adjusted EBITDA of **$320 million**.
  8. **Wood Products Segment**: Improving market conditions; slightly higher Q1 adjusted EBITDA.
  9. **Timberlands Business**: Comparable Q1 earnings and adjusted EBITDA to Q4 2023.
  10. **Western Timberlands Operations**: Higher domestic sales volumes in Q1.
  11. **Export Markets**: Higher sales volumes to Japan in Q1.
  12. **Natural Climate Solutions Business**: Significant EBITDA increase expected in 2024  **[WY_3371011_7]** **[WY_3371011_6]** **[WY_3371011_5]** .

871c8ee521463ac8fd5c75feb2c66c59f81d045675a7e2f77ae802f3a7b1a5ae

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

12f15500721e8d071757c5efc7c3125b85622a00195a323149d77fec1c9ff7ee

Random Lengths Framing Lumber Composite Price ($/MBF)

OSB Composite Price ($/MSF)

Douglas Fir Sawlog Price Change (%)

Delivered Sawlog Prices in the South ($/ton)

Third-Party Log Sales (thousand tons)

Fee Harvest Volumes (thousand tons)

Acres Sold

Average Price per Acre ($)

31c6e8d0b986581b1e5b118ec9219b9fa7885f60bf202fdf479179235ea2238c

f75692e32264ed55f714ec65783a869f52c0682f45146c96ce55e300d56781e9

- Total Revenue: $1.708 billion (-4% YoY)  **[0000950170-25-011092_wy-ex99_2.htm:0]** **[0000950170-24-016434_wy-20231231.htm:80]**   
- Timberlands: $225 million (**-67% YoY**)  **[0000950170-25-011092_wy-ex99_2.htm:4]** **[0000950170-24-016434_wy-20231231.htm:68]**   
- Real Estate & ENR: $86 million (+12% YoY)  **[0000950170-25-011092_wy-ex99_2.htm:5]** **[0000950170-24-016434_wy-20231231.htm:92]**   
- Oriented Strand Board: $23 million (**-90% YoY**)  **[0000950170-25-011092_wy-ex99_2.htm:6]** **[0000950170-24-016434_wy-20231231.htm:94]**   
- Structural Lumber: $492 million (+6% YoY)  **[0000950170-25-011092_wy-ex99_2.htm:6]** **[0000950170-24-016434_wy-20231231.htm:94]**   
- Operating Income: $141 million (**-49% YoY**)  **[0000950170-25-011092_wy-ex99_2.htm:0]** **[0000950170-24-016434_wy-20231231.htm:80]**   
- Net Income: $81 million (**-63% YoY**)  **[0000950170-25-011092_wy-ex99_2.htm:0]** **[0000950170-24-016434_wy-20231231.htm:80]**   
- Capital Expenditures: $136 million (-31% YoY)  **[0000950170-25-011092_wy-ex99_2.htm:3]** **[0000950170-24-016434_wy-20231231.htm:82]**   
- Share Repurchases: $28 million (+33% YoY)  **[0000950170-25-011092_wy-ex99_2.htm:3]** **[0000950170-24-016434_wy-20231231.htm:82]**   
- Net Change in Cash: -$215 million (vs. -$9 million in prior year)  **[0000950170-25-011092_wy-ex99_2.htm:3]** **[0000950170-24-016434_wy-20231231.htm:82]**   

ba1343afc227d7270b0e386d83c7ef371307e65590453eb904a8573648029945

4641160f55ed677ced7f899a7a11df75a24278c42306b0ddc1912735ce8b555c

**Quarterly guidance for Q4 2024:**
- **Timberlands Segment (South)**: stable sawlog demand in Q4  **[WY_3403996_5]** **[WY_3403996_4]**  (no prior guidance)  
- **Timberlands Segment (North)**: moderately higher fee harvest volumes in Q4  **[WY_3403996_5]** **[WY_3403996_4]**  (no prior guidance)  
- **Western Timberlands**: stable domestic log market; slight decrease in average domestic sales realizations  **[WY_3403996_5]** **[WY_3403996_4]**  (no prior guidance)  
- **Real Estate, Energy, and Natural Resources Segment**: Q4 earnings and adjusted EBITDA expected to be $10 million lower than Q3  **[WY_3403996_5]** **[WY_3403996_4]**  (no prior guidance)  
- **Wood Products Segment**: Q4 earnings and adjusted EBITDA expected to be slightly higher than Q3  **[WY_3403996_5]** **[WY_3403996_4]**  (no prior guidance)  
- **Engineered Wood Products**: lower sales volumes and realizations in Q4  **[WY_3403996_5]** **[WY_3403996_4]**  (no prior guidance)  
- **Distribution Business**: adjusted EBITDA slightly lower in Q4  **[WY_3403996_5]** **[WY_3403996_4]**  (no prior guidance)

**Annual guidance for FY 2024:**
- **Real Estate, Energy, and Natural Resources Segment (Adjusted EBITDA)**: $340 million  **[WY_3403996_5]** **[WY_3403996_4]**  (raised from $330 million  **[WY_3394767_5]** **[WY_3394767_4]** )  
- **Capital Expenditures**: $420 million  **[WY_3403996_5]** **[WY_3403996_4]**  (no prior guidance)  
- **Natural Climate Solutions**: $100 million  **[WY_3403996_5]** **[WY_3403996_4]**  (no prior guidance)

dc3759cf3f7ed29f71ec83dc6f189e3604e326cda66ac73e8fb4d354d523f47f

f6dc92c6d5f6adaa7ee219b740e52a4d063a1e24fd4f14aa8fcc947a97850bb6

| Name               | Position                                           | Start Date         | Short Bio                                                                                                                                                                                                 |
|--------------------|----------------------------------------------------|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Devin W. Stockfish | President and Chief Executive Officer              | January 2019       | Devin W. Stockfish has been the President and CEO since January 2019. He previously held roles such as Senior Vice President, Timberlands, and General Counsel. Before Weyerhaeuser, he worked at Univar Inc. and Starbucks Corporation  **[0000950170-24-016434_wy-20231231.htm:26]** **[0001140361-24-015567_ny20012591x1_def14a.htm:25]** **[0001193125-23-083496_d372835ddef14a.htm:24]** . |
| David M. Wold      | Senior Vice President and Chief Financial Officer  | May 2022           | David M. Wold has been the CFO since May 2022. He joined Weyerhaeuser in 2013 and has held various finance roles, including corporate controller. He is a CPA and previously worked at Verdiem Corporation and KPMG LLP  **[0000950170-24-016434_wy-20231231.htm:26]** .                      |
| Russell S. Hagen   | Senior Vice President and Chief Development Officer| March 2021         | Russell S. Hagen has been in his current role since March 2021. He was previously the CFO and worked at Plum Creek Timber Company before joining Weyerhaeuser  **[0000950170-24-016434_wy-20231231.htm:25]** **[0000950170-23-003217_wy-20221231.htm:27]** .                                                                            |
| Kristy T. Harlan   | Senior Vice President, General Counsel and Corporate Secretary | January 2017 | Kristy T. Harlan has been leading the Law department since January 2017. She was a partner at K&L Gates LLP before joining Weyerhaeuser  **[0000950170-24-016434_wy-20231231.htm:25]** **[0000950170-23-003217_wy-20221231.htm:27]** .                                                                                                  |
| Travis A. Keatley  | Senior Vice President, Timberlands                 | September 2021     | Travis A. Keatley has been in his current role since September 2021. He has been with Weyerhaeuser since 1997, holding various leadership positions  **[0000950170-24-016434_wy-20231231.htm:25]** **[0000950170-23-003217_wy-20221231.htm:27]** .                                                                                      |
| Denise M. Merle    | Senior Vice President and Chief Administration Officer | February 2018 | Denise M. Merle has been in her current role since February 2018. She has held various roles in HR and finance at Weyerhaeuser and is a CPA  **[0000950170-24-016434_wy-20231231.htm:25]** .                                                                                                 |
| Keith J. O'Rear    | Senior Vice President, Wood Products               | January 2019       | Keith J. O'Rear has been in his current role since January 2019. He has held various leadership roles in Wood Products and Timberlands operations  **[0000950170-24-016434_wy-20231231.htm:25]** **[0000950170-23-003217_wy-20221231.htm:27]** .                                                                                        |
| Brian K. Chaney    | Senior Vice President, Wood Products               | June 3, 2024       | Brian K. Chaney will serve as Senior Vice President of Wood Products effective June 3, 2024. He has been involved with the company in a different capacity, as indicated by his Form 3 filing  **[0000950170-24-068963_xslF345X02/ownership.xml:0]** .                                              |
| Paul Hossain       | Senior Vice President and Chief Development Officer| January 1, 2025    | Paul Hossain will serve in his new role effective January 1, 2025. He joined Weyerhaeuser in 2016 through a merger with Plum Creek and has held various leadership roles. He is a registered Professional Engineer  **[0000950170-24-125562_wy-ex99_1.htm:0]** .                           |

1da21d8df06bdce10357ecad1210b4dfea31c9a6db48e1428dea4e9f3729588f

| Program Details          | Program 1       |
|--------------------------|-----------------|
| Approval Date            | September 22, 2021  **[0000950170-24-117425_wy-20240930.htm:6]** **[0000950170-24-117425_wy-20240930.htm:33]**  |
| End Date/Duration        | N/A             |
| Total additional amount  | **$1 billion**  **[0000950170-24-117425_wy-20240930.htm:6]** **[0000950170-24-117425_wy-20240930.htm:33]**  |
| Remaining authorization amount | **$127 million**  **[0000950170-24-117425_wy-20240930.htm:6]** **[0000950170-24-117425_wy-20240930.htm:33]**  |
| Details                  | The program was approved to repurchase up to $1 billion of outstanding shares. Specific purposes are not detailed in the documents.  **[0000950170-24-086899_wy-20240630.htm:6]** **[0000950170-24-016434_wy-20231231.htm:108]** **[0000950170-23-003217_wy-20221231.htm:111]** **[0000950170-24-117425_wy-20240930.htm:6]** **[0000950170-23-035534_wy-20230630.htm:7]** **[0000950170-23-056022_wy-20230930.htm:7]** **[0001564590-22-027102_wy-10q_20220630.htm:7]** **[0001564590-22-035696_wy-10q_20220930.htm:8]** **[0000950170-24-049224_wy-20240331.htm:5]** **[0000950170-24-086899_wy-20240630.htm:32]**  |

fccbb3c8ae79d7b393b9967ae0a161bbba8756e39a17c3a7d87c425a20f3d98e

| Name     | Start Date | End Date | Reason for Change |
|----------|------------|----------|-------------------|
| KPMG LLP | 2002  **[0000950170-24-016434_wy-20231231.htm:80]**    | Present  | Current auditor   |

6f2699333086d747cc51143934b84d22cb4cc84785b5f43b1eda3527b5fcafe7

06d2e425d82656f94edb2764fe34f967ae4bacd72eb32f982b6866078cf693b1

eb06730203761f6d2e4a88845ecb42354b6d42da272d802b0ccf2051decaf670

- Weyerhaeuser plans to increase their harvest volumes in the U.S. South by approximately **3% to 4%** in 2025 compared to 2024, indicating potential revenue growth.  **[WY_3413971_19]**
- The company is expanding its timberlands through acquisitions, which will progressively increase harvest levels over time and contribute to business growth.  **[WY_3413971_20]**
- Weyerhaeuser has the flexibility to increase harvest levels if needed to capitalize on higher demand, particularly if potential tariffs on lumber imports lead to higher domestic lumber prices, and the company is not constrained by fiber availability in the U.S. South.  **[WY_3413971_15]** **[WY_3413971_17]**

fe98d94ec95286bef98731f0bd985e5fdb7f831a182e8d7b73eb38eda970701a

- **Increasing costs in OSB production**: The company expects **slightly higher unit manufacturing costs** for OSB in Q1 2025 due to an uptick in costs like **energy and resins**, which could pressure margins in the OSB segment.  **[WY_3413971_21]**
- **Lumber pricing not increasing despite supply constraints**: Despite **supply constraints and lean inventories**, lumber prices are not increasing, potentially due to **weak demand** and **market skepticism about tariffs**. This could impact the company's lumber segment profitability.  **[WY_3413971_15]**
- **Potential negative impact of tariffs on Canadian products**: The **majority of OSB and EWP volume produced in Canada** is exported to the U.S. If a **25% tariff** is imposed, these products would be subject to it, potentially **negatively affecting margins** in these segments.  **[WY_3413971_12]**

464ff8f35f1b12c52daa336cc0b66756f62cc97e14d38e5881c1256cde0ff341

1. **Tariffs Impact on Business**  
   **Q:** How will potential Canadian tariffs affect margins?  
   **A:** Potential **25% tariffs** on Canadian imports could create upward pricing pressure in wood products, benefiting margins. Weyerhaeuser has **80%** of lumber production in the U.S., with only **20% to 30%** of Canadian lumber entering the U.S., lessening direct impact. For OSB and EWP, the majority of Canadian production enters the U.S., so tariffs may affect pricing but Weyerhaeuser's focus on low-cost production positions them well regardless.  **[WY_3413971_12]** **[WY_3413971_18]** 

2. **Carbon Credit Sales Growth**  
   **Q:** What is the outlook for carbon credit sales in 2025?  
   **A:** Weyerhaeuser sold around **15,000** carbon credits in 2024 and anticipates a **5x to 10x** increase in sales for 2025, with **7** additional projects in development. This significant uptick reflects a growing pipeline and contributes positively to earnings.  **[WY_3413971_14]** 

3. **Dividend and Debt Refinancing**  
   **Q:** Can dividends increase despite debt maturities?  
   **A:** The company is confident in increasing the base dividend, supported by sustainable cash flow from timberland acquisitions and growth in Natural Climate Solutions. Despite **$1 billion** of debt maturing in 2026, Weyerhaeuser feels confident in refinancing, with no change expected in capital allocation priorities.  **[WY_3413971_16]** 

4. **New EWP Facility Investment**  
   **Q:** What's the impact of the $500M EWP facility project?  
   **A:** Weyerhaeuser is investing **$500 million** over three years in a new EWP facility in Arkansas, expected to complete by **2027**. The project brings portfolio integration benefits like increased pulpwood demand and logistics savings. CapEx will ramp up in 2026, but will not reduce cash returned to shareholders as the investment is treated separately from programmatic CapEx.  **[WY_3413971_22]** **[WY_3413971_25]** 

5. **Operating Rates and Flexibility**  
   **Q:** Can you adjust production to meet demand shifts?  
   **A:** Operating rates in Q4 were **low 80%** for lumber, **high 90s** for OSB, and **low to mid-70%** for EWP. There's limited flexibility to increase OSB production due to already high utilization. Lumber production can flex slightly, but harvest levels are managed sustainably, limiting dramatic changes.  **[WY_3413971_17]** **[WY_3413971_18]** **[WY_3413971_19]** 

6. **Market Outlook and Inventories**  
   **Q:** What's the demand outlook for wood products?  
   **A:** Lumber inventories are relatively lean, indicating potential demand growth. OSB inventories are somewhat heavy, but overall optimism exists for improvement in new housing and repair/remodel sectors. Weather and skepticism about tariffs have tempered immediate pricing uplift.  **[WY_3413971_11]** **[WY_3413971_15]** 

7. **Policy Impact on NCS Business**  
   **Q:** How do policy changes affect Natural Climate Solutions?  
   **A:** Despite uncertainties with the new administration, Weyerhaeuser believes existing and upcoming wind and solar projects remain viable. Tax incentives and strong market economics support ongoing growth in their Natural Climate Solutions business.  **[WY_3413971_23]** 

e34ba41e25c707398c15ea4846d4789540e9254d60fe8660fb668f20bccbe91a

Weyerhaeuser expects 3-4% harvest growth in 2025 and a 5-10x jump in carbon credit sales. Margins face near-term pressure from higher OSB costs, but new $500M EWP facility investment plus potential tariff benefits could bolster earnings and dividend growth.

bb5368932f5e8faddc46fafedc343d220a642d4fb0183c30bd083d2433a7a58e

**Quarterly guidance for Q1 2025:**  
- **Timberlands earnings & adjusted EBITDA**: Approximately $20 million higher than Q4 2024  **[WY_3413971_5]**  (no prior guidance)  
- **Engineered Wood Products (EWP) sales volumes**: Slightly higher heading into spring  **[WY_3413971_7]**  (no prior guidance)  
- **EWP average sales realizations**: Comparable to Q4 2024  **[WY_3413971_7]**  (no prior guidance)  
- **EWP raw material costs**: Slightly higher  **[WY_3413971_7]**  (no prior guidance)  
- **Distribution adjusted EBITDA**: Slightly higher compared to Q4 2024  **[WY_3413971_7]**  (no prior guidance)

**Annual guidance for FY 2025:**  
- **Interest expense**: $270 million  **[WY_3413971_7]**  (no prior guidance)  
- **Effective tax rate**: 16–19%  **[WY_3413971_7]**  (no prior guidance)  
- **Cash taxes**: Moderately lower relative to overall tax expense  **[WY_3413971_7]**  (no prior guidance)  
- **Pension & post-employment expense**: $75 million noncash; $20 million required  **[WY_3413971_7]**  (no prior guidance)  
- **Capital expenditures**: $440 million  **[WY_3413971_7]**  (no prior guidance)  
- **Adjusted EBITDA for Natural Climate Solutions (NCS)**: $100 million by year-end 2025  **[WY_3413971_3]**  (no change from prior guidance  **[WY_3403996_5]** )

21990edfd7bab9dc10c9be11e2c1871a4af8c56c427bfb8ba48b39a1184cf22a

f4c349d4113bd4cd9f279493fcb4d7e14a31649156c271c1253daf08e7c1139d

60334845c6e485273ec7ff6e572551b7d0f48913ab048f062ab04c7d4bf15ca6

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- Total Revenue: $1.681 billion (-17% YoY)  **[0000950170-24-117425_wy-20240930.htm:5]** **[0000950170-23-056022_wy-20230930.htm:18]** **[0000950170-23-056022_wy-20230930.htm:6]** **[0000950170-23-056022_wy-20230930.htm:1]**   
- Timberlands Revenue: $357 million (-32% YoY)  **[0000950170-24-117425_wy-20240930.htm:5]** **[0000950170-23-056022_wy-20230930.htm:19]**   
- Real Estate & ENR Revenue: $89 million (-15% YoY)  **[0000950170-24-117425_wy-20240930.htm:5]** **[0000950170-23-056022_wy-20230930.htm:6]** **[0000950170-23-056022_wy-20230930.htm:5]**   
- Wood Products Revenue: $1.235 billion (-20% YoY)  **[0000950170-24-117425_wy-20240930.htm:5]** **[0000950170-23-056022_wy-20230930.htm:6]** **[0000950170-23-056022_wy-20230930.htm:5]**   
- Net Income: $28 million (**-88% YoY**)  **[0000950170-24-117425_wy-20240930.htm:1]** **[0000950170-23-056022_wy-20230930.htm:1]**   
- EPS (Diluted): $0.04 (**-88% YoY**)  **[0000950170-24-117425_wy-20240930.htm:6]** **[0000950170-23-056022_wy-20230930.htm:1]**   

58edeafb7aedf95dc6be1d7e3106c81c1b99b821d11ec47040d0c57ad7d07952

0ebcede74bdaef6ff9ed4eaceaee2e05fe1b7a738279eb7fb09096f34a6c7748

1. **Lumber Market Outlook**  
   **Q:** Why not reduce production more given weak lumber market?  
   **A:** Devin Stockfish explained that although lumber prices are at multi-year lows and lumber EBITDA has been negative, Weyerhaeuser's mills are well-positioned on the cost curve and can weather the downturn.  **[WY_3394767_19]**  They are reducing production by **5% to 10%** in the third quarter to balance supply with customer demand but believe prices won't stay below cash breakeven levels for long.  **[WY_3394767_7]** **[WY_3394767_19]** 

2. **Timberlands Investments and Returns**  
   **Q:** How will recent Timberlands deals enhance value and returns?  
   **A:** The company is excited about the Alabama acquisitions, which include high-quality Timberlands expected to be at the top of their Southern portfolio in cash flow per acre.  **[WY_3394767_8]**  Devin Stockfish emphasized that these investments, along with Natural Climate Solutions initiatives, will support sustainable cash flow growth, helping to increase the base dividend over time.  **[WY_3394767_8]** **[WY_3394767_12]** 

3. **Dividend Growth Outlook**  
   **Q:** Is the company confident in the dividend growth outlook?  
   **A:** David Wold stated confidence in the ability to increase the base dividend, supported by ongoing increases in sustainable cash flow generation from Timberlands acquisitions, growth in Natural Climate Solutions, and operational improvements.  **[WY_3394767_12]** 

4. **EWP Pricing and Housing Market**  
   **Q:** What's the outlook for EWP pricing if single-family starts decline?  
   **A:** Devin Stockfish believes that as long as single-family housing holds up, EWP pricing should remain steady.  **[WY_3394767_16]**  If single-family housing falls dramatically, there could be additional price pressure, but the Trust Choice brand and customer support provide a competitive advantage.  **[WY_3394767_16]** **[WY_3394767_18]** 

5. **Timberlands Cash Flow Improvement**  
   **Q:** Will Timberlands cash flow improve over the next 2-3 years?  
   **A:** The company expects higher log realizations in the West when lumber markets normalize and increased harvest volumes in the South due to recent acquisitions.  **[WY_3394767_15]**  Growth in export business and Natural Climate Solutions will also contribute to cash flow improvements.  **[WY_3394767_15]** 

6. **Operating Rates in Wood Products**  
   **Q:** What were the operating rates for Wood Products in Q2?  
   **A:** In Q2, lumber operated at low **80%** capacity, OSB at mid-**90%**, and EWP at low **80%**.  **[WY_3394767_14]**  EWP operating rates are expected to remain at this level in Q3 to match customer demand.  **[WY_3394767_18]** 

7. **OSB Market Expectations**  
   **Q:** What is the outlook for the OSB market this year?  
   **A:** The company expects Q3 OSB sales volumes and realizations to be comparable to Q2.  **[WY_3394767_20]**  New capacity coming online may put downward pressure on pricing in Q4 unless demand picks up, but over the longer term, OSB is expected to remain a strong business.  **[WY_3394767_20]** 

8. **Impact of Higher Lumber Duties**  
   **Q:** How will higher lumber duties affect the market?  
   **A:** An increase in softwood lumber duty rates from **8% to 14%** for Canadian producers moving lumber into the U.S. adds another headwind for them.  **[WY_3394767_21]**  This could potentially lead to capacity decisions that may impact the market.  **[WY_3394767_21]** 

9. **Natural Climate Solutions Progress**  
   **Q:** When will solar projects start contributing cash flow?  
   **A:** Solar development will start coming online in the back half of this year, with projects continuing to build over time.  **[WY_3394767_22]**  Though the process is slow due to permitting, the demand level is extremely high, and cash flow from these projects will begin to impact the income statement.  **[WY_3394767_22]** 

10. **Cost Reduction from New Bern Closure**  
    **Q:** What's the fixed cost reduction from closing New Bern mill?  
    **A:** The New Bern mill is relatively small, with a capacity of **100 million board feet**.  **[WY_3394767_25]**  Fixed cost reductions are relatively immaterial in the broader context, but the closure is part of efforts to navigate the current market conditions.  **[WY_3394767_25]** 

6ef8bb26b993cd19f66135a28504f55c4ee891d077328674b4b0553ba624a279

| Year | Amount Due (in millions) | Debt Type       | Interest Rate (%) | % of Total Debt                     |
|----------|------------------------------|---------------------|-----------------------|------------------------------------------|
| 2025     | $210 **[0000950170-24-117425_wy-20240930.htm:28]**                 | Fixed-rate          | 8.31 **[0000950170-24-117425_wy-20240930.htm:28]**         | 4.1% = (210 / 5,074) * 100 **[0000950170-24-117425_wy-20240930.htm:8]** **[0000950170-24-117425_wy-20240930.htm:28]** |
| 2026     | $1,022 **[0000950170-24-117425_wy-20240930.htm:28]**               | Fixed-rate          | 5.52 **[0000950170-24-117425_wy-20240930.htm:28]**         | 20.1% = (1,022 / 5,074) * 100 **[0000950170-24-117425_wy-20240930.htm:8]** **[0000950170-24-117425_wy-20240930.htm:28]** |
| 2027     | $300 **[0000950170-24-117425_wy-20240930.htm:28]**                 | Fixed-rate          | 6.95 **[0000950170-24-117425_wy-20240930.htm:28]**         | 5.9% = (300 / 5,074) * 100 **[0000950170-24-117425_wy-20240930.htm:8]** **[0000950170-24-117425_wy-20240930.htm:28]** |
| 2028     | $250 **[0000950170-24-117425_wy-20240930.htm:28]**                 | Variable-rate       | 6.80 **[0000950170-24-117425_wy-20240930.htm:28]**         | 4.9% = (250 / 5,074) * 100 **[0000950170-24-117425_wy-20240930.htm:8]** **[0000950170-24-117425_wy-20240930.htm:28]** |
| Thereafter | $3,333 **[0000950170-24-117425_wy-20240930.htm:28]**             | Fixed-rate          | 4.82 **[0000950170-24-117425_wy-20240930.htm:28]**         | 65.7% = (3,333 / 5,074) * 100 **[0000950170-24-117425_wy-20240930.htm:8]** **[0000950170-24-117425_wy-20240930.htm:28]** |

3e147f9cdca3cf6e4c2e64ff9c19fd72af3841f664bac26974558afdbcde5928

4e527023636ddbc372a292ae9e02b06244055788b7d4df2f934480f6424f135c

1. **Lumber Market Outlook**  
   **Q:** How will lumber supply-demand dynamics affect 2025 pricing?  
   **A:** Significant capacity reductions of about **3.5 billion board feet** have tightened supply. With improved demand from single-family housing and the R&R sector, we expect upward pressure on lumber pricing as we enter the spring building season in 2025.  **[WY_3403996_8]** 

2. **Lumber Profitability in 2025**  
   **Q:** Can you achieve breakeven EBITDA in lumber next year?  
   **A:** We are optimistic about **2025**; with our well-positioned cost structure and anticipated demand pickup, we expect to return to profitability in lumber. At current lumber prices, we would expect to be **EBITDA positive**.  **[WY_3403996_11]** 

3. **Cost Management and Margins**  
   **Q:** How will OpEx initiatives impact margins in 2025?  
   **A:** We've been focusing on cost controls through reliability and automation. If demand normalizes and we ramp up production to capacity levels, improved unit costs could be a significant tailwind for margins next year.  **[WY_3403996_9]** 

4. **Timberlands Outlook in the South**  
   **Q:** What could drive improvement in U.S. South Timberlands?  
   **A:** As lumber prices improve on the West Coast, log prices will follow. In the South, we'll roll over any volume not harvested due to weather into future quarters. Over time, we expect price improvement driven by export opportunities and increased capacity utilization.  **[WY_3403996_15]** 

5. **EWP Demand and Market Share**  
   **Q:** Can you recapture EWP market share from Open Web truss?  
   **A:** During the pandemic, builders used alternate products due to EWP availability constraints. We expect to recapture most of that market over time, especially as lumber prices normalize, making it easier to regain share.  **[WY_3403996_13]** 

6. **Capital Returns and Dividends**  
   **Q:** How do dividends and repurchases align with your FAD?  
   **A:** Despite challenging markets, we expect to cover our base dividend with adjusted FAD. While we may not have a substantial amount above that, our framework allows flexibility for supplemental dividends or additional share repurchases.  **[WY_3403996_14]** 

7. **NCS Business Growth**  
   **Q:** What's the outlook for your solar and wind projects?  
   **A:** We have **3 solar projects** coming online soon and **2 new wind projects** next year. While we're not disclosing specific economics, these projects will increasingly contribute to our NCS business, moving toward our **$100 million** EBITDA target by the end of 2025.  **[WY_3403996_18]** **[WY_3403996_20]** 

8. **Export Markets Outlook**  
   **Q:** What is your view on Western exports in early 2025?  
   **A:** For Japan, we expect solid demand in the first half, with competitive pressures easing as European supply decreases. China remains uncertain, but reduced European salvage volumes and potential economic stimulus could improve demand.  **[WY_3403996_10]** 

9. **Operating Rates and Production**  
   **Q:** What were your Q3 operating rates in EWP, lumber, OSB?  
   **A:** In Q3, operating rates were **mid to high 70s** for lumber, **high 80s** for OSB, and **mid-60s** for EWP. We adjusted production to match demand and can ramp up easily as demand improves.  **[WY_3403996_24]** **[WY_3403996_25]** 

10. **Hurricane Impact**  
    **Q:** How did hurricanes affect your operations and markets?  
    **A:** Fortunately, we had no significant timberland damage. Volume impact in the South was about **1–2%** in the quarter, mostly affecting fiber with minimal margin impact. Overall, markets were not materially affected.  **[WY_3403996_16]** 

11. **Lithium Mining Opportunities**  
    **Q:** Are there revenue opportunities from lithium mining on your lands?  
    **A:** It's early to quantify, but there's significant overlap between our land base and major lithium deposits. We've had discussions and see this as a potential opportunity.  **[WY_3403996_23]** 

12. **EWP Operating Rates Outlook**  
    **Q:** How will EWP operating rates trend into next year?  
    **A:** We expect slightly higher rates in Q4. In Q1 of next year, rates should ramp up to normal levels, typically in the **high 70s to low 80s** under normal conditions.  **[WY_3403996_26]** 

13. **Forest Carbon Projects**  
    **Q:** What progress have you made on forest carbon projects?  
    **A:** We're seeing strong demand for high-quality projects. We have 3 projects nearing approval and several more in development. We expect a meaningful uptick in forest carbon revenues and EBITDA next year.  **[WY_3403996_21]** 

14. **European Lumber Impact**  
    **Q:** How might European lumber affect U.S. markets in 2025?  
    **A:** European supply could increase if margins improve, but factors like reduced salvage volumes and absence of Russian lumber may limit this. We may not see European imports at pandemic levels despite potential U.S. market improvement.  **[WY_3403996_22]** 

15. **Log Exports from U.S. South**  
    **Q:** Are you expanding log exports from the U.S. South?  
    **A:** Yes, we're growing exports to markets like India and Vietnam, and exploring opportunities in Turkey and Pakistan. While currently small, this is a focus area and we expect growth over time.  **[WY_3403996_25]** 

189bf6c0bc7ea3c87b400b02ad9e0bd974a195b24192ee69ebe08237384b1e3b

- **Weyerhaeuser is advancing its Natural Climate Solutions business with 70 solar projects covering over 130,000 acres**, expected to begin contributing to cash flow starting this year and growing over time.  **[WY_3394767_22]** **[WY_3394767_8]**
- **Recent acquisition of high-quality timberlands in Alabama**, which will be among the top in their Southern portfolio in cash flow per acre, enhancing long-term value and providing additional opportunities in Natural Climate Solutions.  **[WY_3394767_14]** **[WY_3394767_8]**
- **Strong balance sheet and industry-leading margins** allow Weyerhaeuser to navigate cyclical market challenges effectively, positioning them to capitalize when markets improve.  **[WY_3394767_7]** **[WY_3394767_8]**

664c80a88b289eaf2bb3954c013bb573a031d67e519db9121a2e0c7bec6f62e3

- **Weyerhaeuser successfully monetized initial forest carbon credits from its pilot project in Maine and is expanding its pipeline of high-quality carbon projects**, expecting approvals on two projects in the U.S. South and additional monetization in 2024, indicating significant growth potential in its Natural Climate Solutions business.  **[WY_3371011_17]**
- **Despite challenging lumber market conditions, Weyerhaeuser is ramping up operational excellence initiatives and capital projects**, expecting **significant increases in lumber production and improved profitability in 2024**, leveraging capital investments that are coming to fruition.  **[WY_3371011_12]** **[WY_3371011_10]**
- **Weyerhaeuser remains committed to disciplined capital allocation**, including **returning 75%–80% of adjusted funds available for distribution to shareholders** through dividends and opportunistic share repurchases, while also investing in growth through **timberland acquisitions**, expecting strong returns as timberland values appreciate over time.  **[WY_3371011_22]** **[WY_3371011_18]**

8dd17a850dde4c6f4d54c9f3f3f2bbada5f8a8ede3819fdc400eb0dbb1f51aa8

- **The company's lumber segment reported a fourth-quarter loss due to challenging market conditions and low lumber prices, with product pricing at the lowest levels in several years.**  **[WY_3371011_12]**
- **Inflation and higher costs have eroded some of the company's cost improvements, and despite efforts, they face continued challenges in offsetting labor and equipment inflation in the lumber segment.**  **[WY_3371011_12]**
- **Achieving profitability in the lumber segment may be difficult if market conditions remain unfavorable, indicating the company's performance is heavily dependent on volatile lumber markets.**  **[WY_3371011_12]**

7df82d779b6ea727959f128024506521a10c254b513f65c9f4993e45bdca1867

- **WY plans to reduce lumber production by 5% to 10% in the third quarter**, as **low lumber prices are making most of the market unprofitable**.  **[WY_3394767_7]**  This indicates weak demand and challenging conditions in the lumber market.
- **Pricing pressure is causing EBITDA declines in the Timberlands segment**, with mills operating at reduced levels and limited ability to raise prices.  **[WY_3394767_10]**  This suggests ongoing profitability challenges due to low log and lumber prices.
- **New OSB capacity coming online from competitors may put downward pressure on OSB prices**, potentially affecting WY's OSB business profitability in the fourth quarter if demand does not increase.  **[WY_3394767_20]**

89f604e12fe67bc1113c81e191c85470e6eb73a0a621d3059a704c541f68ea77

1. **Lumber Profitability**  
   **Q:** With lumber prices down, what steps are you taking to improve profitability?  
   **A:** We've been working on operating costs for a decade and are well-positioned on the cost curve.  **[WY_3381228_20]**  Recent quarters have been challenging due to lower prices, especially in the Pacific Northwest and British Columbia.  **[WY_3381228_20]**  However, as prices come up, we'll be well-positioned, and in the U.S. South, most mills are **top quartile cost structure**.  **[WY_3381228_20]**  Even at today's prices, we should still be **cash flow positive at trough level prices** ("black at the bottom").  **[WY_3381228_22]** 

2. **Natural Climate Solutions Growth**  
   **Q:** Can you update on the $100 million NCS target by 2025?  
   **A:** We're still working towards the **$100 million run rate by the end of 2025**  **[WY_3381228_7]** , but we're not prepared to update that today.  **[WY_3381228_7]**  Solar projects will be a growing component, but timelines are extended due to permitting and grid connection challenges.  **[WY_3381228_8]** **[WY_3381228_19]**  CCS projects are a multiyear process and probably not a big part of the 2025 target, but offer significant upside beyond that.  **[WY_3381228_13]** **[WY_3381228_14]** 

3. **EWP Market and Production**  
   **Q:** What are your views on EWP trends and capacity to meet demand?  
   **A:** We've seen **downward price pressure** in EWP coming off pandemic peaks, but pricing remains strong relative to pre-pandemic levels.  **[WY_3381228_7]**  We're working on regaining market share lost to alternatives during product shortages.  **[WY_3381228_7]** **[WY_3381228_18]** **[WY_3381228_27]**  We adjusted production last year due to expected housing softness, but we're now running at normal levels and don't expect the same challenges this year.  **[WY_3381228_18]** **[WY_3381228_23]** 

4. **Lumber Industry Curtailments**  
   **Q:** Are you surprised there haven't been more industry curtailments given weak lumber prices?  
   **A:** On some level, yes, since parts of the industry are operating below **cash breakeven**.  **[WY_3381228_10]**  Mills may be holding out to retain labor, but it's unsustainable to operate below breakeven indefinitely.  **[WY_3381228_10]** 

5. **Inventory Levels**  
   **Q:** Can you comment on inventory levels for lumber, OSB, and EWP?  
   **A:** Lumber inventories are **adequate**; buyers have built up some inventory, reducing aggressive buying and impacting prices.  **[WY_3381228_10]**  OSB inventories are **leaner**, and EWP inventories are at normal levels for this time of year.  **[WY_3381228_10]** 

6. **Impact of Interest Rates**  
   **Q:** How are higher interest rates affecting your markets?  
   **A:** Single-family builders have been **nimble and resilient**, continuing to build despite higher rates.  **[WY_3381228_21]**  The multifamily segment shows more **interest rate sensitivity**, particularly in high-rise projects, but these use less wood.  **[WY_3381228_21]**  The **repair and remodel** Pro segment is doing fine, but DIY has been impacted and is softer this year.  **[WY_3381228_21]** 

7. **Timberland M&A and Valuations**  
   **Q:** What's the latest on Timberland acquisitions and valuations?  
   **A:** We expect a typical year with **$2 billion to $2.5 billion** in transactions.  **[WY_3381228_24]**  There's strong interest and **very strong pricing** for quality packages, especially in Washington, Oregon, and the South.  **[WY_3381228_28]**  Carbon optionality is increasingly considered in valuations, though we're still early in fully quantifying its impact.  **[WY_3381228_28]** 

8. **Operating Rates Outlook**  
   **Q:** What were your operating rates in Q1, and what's the outlook?  
   **A:** In Q1, **lumber** operated in the high **70%**, **OSB** in the low **90%**, and **EWP** in the high **70%**.  **[WY_3381228_17]**  We plan to increase operating rates for all three in Q2, with EWP targeting the mid to low **80%**.  **[WY_3381228_17]** **[WY_3381228_26]** 

9. **CCS Projects Timeline**  
   **Q:** What's the process and timeline for CCS projects?  
   **A:** CCS projects are a **multiyear process**, involving geological analysis, challenging permitting, and infrastructure development.  **[WY_3381228_13]**  Timelines have extended beyond initial expectations from 2021, but demand is strong, and projects offer long-term recurring revenue.  **[WY_3381228_13]** **[WY_3381228_14]** 

10. **EWP Pricing and Input Costs**  
    **Q:** How do pricing lags and input costs affect EWP margins?  
    **A:** There is a timing lag of **30-90 days** in EWP pricing adjustments.  **[WY_3381228_23]**  Higher OSB costs impact EWP margins, but since we produce OSB internally, higher OSB prices benefit us on that side.  **[WY_3381228_23]** 

11. **Forest Carbon Credits Pricing**  
    **Q:** What are the trends in pricing for forest carbon credits?  
    **A:** The voluntary market is challenging due to project quality differentials.  **[WY_3381228_29]**  We expect to receive **solid premiums** for our high-quality projects, with pricing improving over time as demand grows.  **[WY_3381228_29]** 

86ea943b3f11ad830beb6a910ba86d215562bbdce84f7197a4b8aa166938f00c

- **Weyerhaeuser's lumber business has been losing money**, with the company not satisfied with **negative EBITDA** in the lumber segment due to challenging market conditions.  **[WY_3403996_11]**
- The company acknowledges that its **Engineered Wood Products (EWP) demand is down significantly**, with **I-joist volumes expected to be down about 25% from peak**, indicating difficulty in recapturing market share.  **[WY_3403996_13]**
- **Year-to-date base dividends and share repurchases have outpaced Funds Available for Distribution (FAD)**, suggesting potential issues with cash flow and that there might not be a substantial supplemental dividend, impacting shareholder returns.  **[WY_3403996_2]**

ebe180260fe45f4d29a39262c543432a187df787db2ee190518b9aaf7f5803e2

1. **Production Ramp-Up**  
   **Q:** How can you increase production across product categories?  
   **A:** We have the most flexibility to increase production in lumber and expect a **significant production increase in 2024** due to capital investments coming to fruition.  **[WY_3371011_10]**  Lumber allows us to add shifts and overtime to capitalize on strong markets. OSB is difficult to ramp up as operations run 24/7 with little flex.  **[WY_3371011_10]**  EWP has some flexibility but less slack in the system.  **[WY_3371011_10]**  Overall, we can best capture benefits in lumber and distribution.  **[WY_3371011_10]** 

2. **Operational Excellence Initiatives**  
   **Q:** What are your OpEx focus areas for 2024?  
   **A:** Despite achieving **$77 million** of OpEx savings over the last two years amid inflation, we will continue focusing on reliability in Wood Products, leveraging capital projects, improving recovery, and fostering innovation.  **[WY_3371011_11]**  In Timberlands, we'll work on reducing log and haul costs and improving road building.  **[WY_3371011_11]**  With OpEx ingrained in our culture and assuming normalized inflation, we expect an uptick in OpEx delivery this year compared to the last couple.  **[WY_3371011_11]** 

3. **Lumber Segment Profitability**  
   **Q:** How will you address lumber losses in Q4?  
   **A:** Q4 was challenging due to lumber prices hitting their lowest levels in several years while log prices didn't decline as much, creating a tough operating environment.  **[WY_3371011_12]**  We're ramping up OpEx across Wood Products in 2024, facing fewer inflationary headwinds and maximizing benefits from our capital projects like the Holden mill.  **[WY_3371011_12]**  We aim to be industry-leading in cost, production, and efficiency, and we believe we're on the path to recovery heading into Q1.  **[WY_3371011_12]** 

4. **EWP Pricing and Demand**  
   **Q:** What's your outlook for EWP realizations and demand?  
   **A:** EWP pricing actions have a lag, and Q1 realizations reflect prior price adjustments as the market rebalanced in 2023.  **[WY_3371011_13]**  Overall, EWP pricing remains very strong historically.  **[WY_3371011_13]**  We're receiving strong optimistic signals from builder customers and expect steady demand.  **[WY_3371011_13]**  With a stronger housing environment and mortgage rates decreasing, we believe the setup for EWP is good, and we'll be in a strong position as the market develops.  **[WY_3371011_13]** 

5. **Timberland Valuations and Acquisitions**  
   **Q:** How are timberland prices and transactions trending?  
   **A:** In 2023, transaction volumes were typical at around **$2.5 billion**, with more activity in the back half of the year.  **[WY_3371011_14]**  Good quality Southern timberlands have seen substantial appreciation, with prices increasing from around **$2,000 per acre** to as high as **$4,000 per acre** for high-quality properties.  **[WY_3371011_14]**  We expect a typical year in 2024 with **$2 to $3 billion** in transaction value and continued competitive interest in the asset class.  **[WY_3371011_14]** 

6. **Impact of Oregon Regulations**  
   **Q:** Do new Oregon policies affect your operations?  
   **A:** New regulations in Oregon, effective January 1, make the wood basket more tensioned, but we're well-positioned as they bring Oregon closer to Washington's regulations, under which we've long operated.  **[WY_3371011_15]**  Fiber supply may be challenged for some, but with our own fee timberlands, we don't anticipate issues with fiber availability for our mills.  **[WY_3371011_15]**  However, it may push log prices up due to less timber supply across the stable manufacturing base.  **[WY_3371011_15]** 

7. **European Imports and EWP Competition**  
   **Q:** How do European imports affect your markets?  
   **A:** European lumber imports decreased in the second half of 2023 due to pricing dynamics.  **[WY_3371011_16]**  The wind-down of salvage activity in Europe reduces cheap fiber competition.  **[WY_3371011_16]**  For EWP, while there's some increase in imported LVL, it's a rounding error at this point.  **[WY_3371011_16]**  Our market position relies on a strong service component and respected brands like Trus Joist, making it hard for small importers to compete.  **[WY_3371011_16]** 

8. **Forest Carbon Credits**  
   **Q:** What lessons from your pilot carbon project?  
   **A:** Quality matters in carbon projects; our upfront investment in internal expertise led to strong pricing for our initial credits.  **[WY_3371011_17]**  These projects are complex, but we've gained efficiencies for future ones.  **[WY_3371011_17]**  We're expanding our pipeline with two projects expected to be approved in the first half and more in development.  **[WY_3371011_17]**  We anticipate monetizing additional credits this year, building a steady revenue stream over time.  **[WY_3371011_17]** 

9. **Pulpwood Demand and Mill Closures**  
   **Q:** How do mill closures affect pulpwood demand?  
   **A:** The pulpwood market has been in decline due to mill closures, creating challenges.  **[WY_3371011_21]**  However, our scale and strong relationships with major consumers allow us to move our volume.  **[WY_3371011_21]**  We're exploring opportunities in Asia for pellet or pulpwood exports and potential future demand from biofuels and sustainable aviation fuels.  **[WY_3371011_21]**  We'll ensure we can move our pulpwood volume over time.  **[WY_3371011_21]** 

10. **Capital Allocation Priorities**  
    **Q:** How do you approach dividends vs. buybacks?  
    **A:** Our capital allocation framework commits to returning **75% to 80%** of adjusted FAD to shareholders via base and supplemental dividends.  **[WY_3371011_22]**  We have flexibility to use share repurchases as we've done in recent years.  **[WY_3371011_22]**  The remaining adjusted FAD is allocated across opportunities, primarily timberland acquisitions as part of our plan to purchase **$1 billion** of timberlands over the next few years.  **[WY_3371011_22]** 

11. **Key Capital Projects**  
    **Q:** What are your key Wood Products projects?  
    **A:** Our Holden mill, a major rebuild project, is ramping up production and will fully operate this year, offering significant synergies as it's surrounded by our timberlands.  **[WY_3371011_22]**  Beyond Holden, we're investing in projects like adding CDKs, merchandisers, and saws across mills, each following a 5-year roadmap to become world-class.  **[WY_3371011_22]**  It's about executing well and completing projects on time and on budget.  **[WY_3371011_22]** 

12. **EWP Order Files and Operating Rates**  
    **Q:** What's the status of EWP orders and production?  
    **A:** EWP order files are now at normal levels, ranging from **3 to 5 weeks**, after being extended last year due to earlier production cuts.  **[WY_3371011_19]** **[WY_3371011_20]**  Our EWP operating rates were in the low **80%** range in Q4 and will increase as we head into Q1 2024.  **[WY_3371011_19]**  We're better positioned now to meet customer demand, which will be appreciated by our customers.  **[WY_3371011_19]** 

13. **Pulpwood Harvest Planning**  
    **Q:** How do end-market changes affect pulpwood plans?  
    **A:** We consider future optionality in our silviculture practices, adjusting trees per acre and thinning regimes to adapt to changing fiber needs.  **[WY_3371011_21]**  Despite reduced demand due to mill closures, we're exploring export opportunities and potential demand from biofuels to ensure we can move our pulpwood volume.  **[WY_3371011_21]** 

d35be319955d04501953f18a15480d446b40bb7f98344ffcd84fb8ee81e7362c

- **Weyerhaeuser has been EBITDA-negative in lumber for the past two quarters**, primarily due to a challenging pricing environment in the Pacific Northwest and British Columbia, where lumber prices have declined faster than log costs, creating difficult operating conditions.  **[WY_3381228_20]**
- **Engineered Wood Products (EWP) are experiencing a steady trend of lower pricing**, and the company is facing challenges in regaining market share in I-joists after customers converted to alternative products during the pandemic. Lower lumber prices may prolong the time needed to recover this market share.  **[WY_3381228_7]**
- **Adequate lumber inventory levels in the market are reducing buyer urgency, acting as a headwind on lumber prices**, which have been weak, particularly for Southern Pine. Some industry participants may be operating below cash breakeven, suggesting ongoing pressure on profitability.  **[WY_3381228_10]** **[WY_3381228_20]**

a892dbd6d5d8481c1702a2e51bab7692a6e9a2074926881830877c5e20a2fe09

- Weyerhaeuser expects strong growth in its Natural Climate Solutions business, with **increasing demand for high-quality carbon credits** and a positive **trajectory of carbon prices** over the coming years.  **[WY_3381228_29]**
- The company anticipates **higher operating rates in Q2** across all its Wood Products businesses, including lumber, OSB, and engineered wood products, indicating improved production efficiency and potential for increased profitability.  **[WY_3381228_26]** **[WY_3381228_16]**
- Weyerhaeuser maintains **top quartile cost structure mills**, especially in the U.S. South, and is **well-positioned to capitalize on anticipated lumber price increases**, which will enhance profitability in the coming quarters.  **[WY_3381228_20]**

d812108a8065016dbd3249ec57269dcd7ac691357280d54e621be4649e539553

- **Weyerhaeuser expects a stronger lumber market in 2025**, anticipating increased demand and improved margins due to cost reductions and a better positioning on the cost curve.  **[WY_3403996_11]**
- **Significant growth is projected in their Natural Climate Solutions business**, with a robust pipeline of forest carbon projects and an expected meaningful uptick in revenues and EBITDA next year.  **[WY_3403996_21]**
- **Expansion of log exports from the U.S. South is underway**, with growing volumes to India and Vietnam, and new opportunities in Turkey and Pakistan, capitalizing on international demand.  **[WY_3403996_25]**

774ea17b4cb0888679c5b71f8ffde2da3d8d19afbd5a192b1421c7f121cc10e0

Weyerhaeuser Co (WY)

Financials