NYSE:WY
WEYERHAEUSER CO
A diversified forestry and real estate investment trust generating sustainable revenue from timberlands and wood manufacturing operations.
Key Metrics
Investment Thesis
Bull Case
The company offers exposure to the growing demand for sustainable building materials and renewable energy solutions backed by massive timberland assets; Strong operating cash flow of $562M supports consistent dividend payments despite recent revenue volatility; Long-term asset appreciation potential in forest lands provides a hedge against inflation and economic downturns.
Bear Case
Significant year-over-year revenue contraction from $10.18B to $6.91B raises concerns about market share loss or demand weakness; High debt levels with $5.05B in long-term debt and $273M interest expense create vulnerability to rising rates; Declining net income trend over the past three years suggests structural headwinds or one-time impairments affecting future earnings.
About WEYERHAEUSER CO
Weyerhaeuser Company (NYSE: WY) is a premier real estate investment trust focused on investing in timberlands, pulpwood, fiber products, and energy. The company serves markets including residential construction, commercial development, and renewable energy generation across North America. Its key products include lumber, plywood, veneer, and engineered wood products derived from its extensive forest assets.
Analysis
Management Discussion
Despite a significant revenue decline from $10.18B in 2022 to $6.91B in 2025, the company maintained profitability with net income stabilizing around $324M. Cash flow from operations of $562M demonstrates strong liquidity generation, though cash reserves decreased by $203M due to heavy investing and financing outflows. The shift from high revenue years suggests a transition period or market contraction that management is navigating while preserving shareholder value.
Industry Overview
The forestry and wood products industry is undergoing a transformation driven by sustainability mandates, green building standards, and the shift toward renewable energy sources like biomass. Companies must balance traditional timber harvesting with emerging markets in engineered wood and carbon sequestration to remain competitive. Volatility in commodity prices and regulatory landscapes continues to challenge margins across the sector.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $10.18B | $7.67B | $7.12B | $6.91B |
| Cost of Revenue | $6.56B | $5.99B | $5.81B | $5.88B |
| Gross Profit | $3.62B | $1.68B | $1.31B | $1.02B |
| Operating Expenses | $540.0M | $496.0M | $628.0M | $294.0M |
| Operating Income | $3.08B | $1.19B | $685.0M | $731.0M |
| R&D | $6.0M | $7.0M | $7.0M | $5.0M |
| G&A | $398.0M | $431.0M | $480.0M | $453.0M |
| Stock-Based Comp | $33.0M | $36.0M | $43.0M | $43.0M |
| D&A | $480.0M | $500.0M | $502.0M | $509.0M |
| Other OpEx | $136.0M | $58.0M | $141.0M | $-164.0M |
| Non-Operating Income | $-775.0M | $-249.0M | $-258.0M | $-471.0M |
| Interest Expense | $270.0M | $280.0M | $269.0M | $273.0M |
| Pre-Tax Income | $2.31B | $937.0M | $427.0M | $260.0M |
| Income Tax | $425.0M | $98.0M | $31.0M | $-64.0M |
| Continuing Ops | $1.88B | $839.0M | $396.0M | $324.0M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $1.88B | $839.0M | $396.0M | $324.0M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $1.88B | $839.0M | $396.0M | $324.0M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $2.75B | $2.31B | $1.75B | $1.65B |
| Cash & Equivalents | $1.58B | $1.16B | $684.0M | $464.0M |
| Accounts Receivable | $357.0M | $354.0M | $306.0M | $303.0M |
| Inventory | $550.0M | $566.0M | $607.0M | $593.0M |
| Other Current Assets | $258.0M | $229.0M | $151.0M | $292.0M |
| Long-Term Assets | $14.59B | $14.67B | $14.79B | $14.96B |
| PP&E (Net) | $2.17B | $2.27B | $2.33B | $2.42B |
| Operating Leases | $102.0M | $105.0M | $138.0M | $125.0M |
| Other LT Assets | $12.32B | $12.30B | $12.32B | $12.42B |
| Total Assets | $17.34B | $16.98B | $16.54B | $16.61B |
| Current Liabilities | $1.74B | $788.0M | $977.0M | $1.28B |
| Accounts Payable | $247.0M | $287.0M | $255.0M | $278.0M |
| Current Debt | $978.0M | $0 | $210.0M | $522.0M |
| Current Leases | $17.0M | $15.0M | $25.0M | $19.0M |
| Other Current Liab | $-13.0M | $-15.0M | $-25.0M | $-19.0M |
| Long-Term Liabilities | $4.85B | $5.96B | $5.84B | $5.91B |
| Long-Term Debt | $4.07B | $5.07B | $4.87B | $5.05B |
| LT Operating Leases | $91.0M | $96.0M | $121.0M | $108.0M |
| Other LT Liab | $689.0M | $794.0M | $851.0M | $751.0M |
| Total Liabilities | $6.59B | $6.75B | $6.82B | $7.19B |
| Shareholders' Equity | $10.75B | $10.24B | $9.72B | $9.43B |
| Retained Earnings | $2.39B | $2.01B | $1.72B | $1.43B |
| AOCI | $-247.0M | $-293.0M | $-402.0M | $-293.0M |
| Total L&E | $17.34B | $16.98B | $16.54B | $16.61B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $1.88B | $839.0M | $396.0M | $324.0M |
| Non-Cash Adjustments | $1.22B | $449.0M | $600.0M | $240.0M |
| Working Capital Changes | $-267.0M | $145.0M | $12.0M | $-2.0M |
| Cash from Operations | $2.83B | $1.43B | $1.01B | $562.0M |
| Cash from Investing | $-759.0M | $-508.0M | $-636.0M | $-475.0M |
| Debt Issuances | $881.0M | $992.0M | $0 | $1.20B |
| Share Buybacks | $543.0M | $131.0M | $154.0M | $160.0M |
| Dividends Paid | $1.62B | $1.22B | $684.0M | $606.0M |
| Cash from Financing | $-2.49B | $-1.34B | $-852.0M | $-290.0M |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $-418.0M | $-417.0M | $-480.0M | $-203.0M |
| Beginning Cash | $2.00B | $1.58B | $1.16B | $684.0M |
| Ending Cash | $1.58B | $1.16B | $684.0M | $481.0M |
Frequently Asked Questions
How does WEYERHAEUSER CO make money?
Timberlands providing long-term asset appreciation and harvest income; Wood Products Manufacturing including sawmills and plywood production; Energy segment focused on biomass power generation and renewable fuels; Real Estate investing in commercial properties and housing developments.
What are the main risks for WY?
Fluctuating lumber and pulpwood commodity prices impacting operating margins; Regulatory changes affecting forestry practices or carbon credit revenues; Interest rate sensitivity due to substantial long-term debt obligations of $5.05B; Potential supply chain disruptions in raw material sourcing or logistics.
What is WY's competitive advantage?
Ownership of over 4.7 million acres of productive timberlands offering a sustainable supply chain advantage; Diversified revenue streams combining harvest cycles with manufacturing and energy operations; Strong balance sheet with significant cash reserves supporting debt servicing and dividends.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.