WY

Wall Street expects a year-over-year decline in earnings on higher revenues when Weyerhaeuser (WY) reports results for the quarter ended September 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 29. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This timber and paper products company is expected to post quarterly earnings of $0.05 per share in its upcoming report, which represents a year-over-year change of -16.7%. Revenues are expected to be $1.83 billion, up 6.3% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 257.14% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Weyerhaeuser, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -34.78%. On the other hand, the stock currently carries a Zacks Rank of #4. So, this combination makes it difficult to conclusively predict that Weyerhaeuser will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Weyerhaeuser would post earnings of $0.06 per share when it actually produced earnings of $0.13, delivering a surprise of +116.67%. Over the last four quarters, the company has beaten consensus EPS estimates four times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Weyerhaeuser doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. UFP Industries (UFPI), another stock in the Zacks Building Products - Wood industry, is expected to report earnings per share of $1.2 for the quarter ended September 2026. This estimate points to a year-over-year change of -7%. Revenues for the quarter are expected to be $1.59 billion, up 2.1% from the year-ago quarter. The consensus EPS estimate for UFP Industries has been revised 8.5% lower over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +0.83%. When combined with a Zacks Rank of #3 (Hold), this Earnings ESP indicates that UFP Industries will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed EPS estimates just once. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Weyerhaeuser Company (WY) : Free Stock Analysis Report UFP Industries, Inc. (UFPI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

- Weyerhaeuser (WY) leased geothermal rights on 145,000 acres of Oregon and Washington timberland to Hexagon Energy, opening similar deals for smaller landowners. - Passive geothermal royalties reported on Schedule E count as $0 toward Social Security's $24,480 earnings test, leaving monthly benefits untouched. - A $30,000 passive royalty can trigger $22,350 of newly taxable Social Security, pushing total extra federal tax to roughly $6,282 instead of $3,600. Weyerhaeuser (NYSE:WY) has leased the geothermal rights on about 145,000 acres of its Washington and Oregon timberland to Hexagon Energy. That turns forest into possible energy ground. Smaller landowners across the West are getting similar offers. A 64-year-old woodland owner who signs a geothermal lease may worry about the earnings test, the rule that holds back benefits from people who earn too much before full retirement age (FRA). The real cost shows up on his tax return. Before FRA, Social Security generally counts wages and net earnings from self-employment toward the earnings test. For 2026 the limit is $24,480. Above that, Social Security withholds $1 in benefits for every $2 of extra earnings. Passive oil, gas and mineral royalties reported on Schedule E generally fall outside both categories. Income reported on Schedule E is usually not subject to self-employment tax. So a $30,000 passive geothermal royalty generally counts as $0 toward the test, and his monthly checks keep arriving in full. The IRS taxes royalties from oil, gas and mineral properties as ordinary income. That income goes into the formula that decides how much of his Social Security is taxable. For a single filer, benefits start becoming taxable above $25,000 in combined income, and up to 85% can be taxed above $34,000. ------ One investment mistake could create big risks for your retirement. Many investors make the same critical errors: being too conservative, making big bets on "sure things," or paying excessive fees. Any of those blunders can endanger your hard-earned savings. Now you can learn the mistakes even experienced investors make (and ways you can sidestep them before it's too late) with this new guide: 13 Retirement Mistakes and How to Avoid Them from Fisher Investments. Access your complimentary copy here (sponsor) ------ Single Filer | Before Royalty | After Royalty Annual Social Security | $30,000 | $30,000 Other income | $10,000 | $40,000 Combined income | $25,000 | $55,000 Taxable Social Security | $0 | $22,350 Before the lease, his combined income sat at the first threshold, so none of his benefit was taxable. After it, about 75% of his benefit becomes taxable income. The $30,000 royalty causes taxable income before deductions to rise by roughly $52,350: the $30,000 royalty itself plus $22,350 of newly taxable Social Security. At a 12% marginal rate, that extra taxable income would represent about $6,282 of additional federal tax, versus $3,600 on the royalty alone. Next year's cost-of-living raise is currently tracking closer to 3.6%, which would push combined income up a little more. This protection covers passive income. If he only grants the rights to explore and produce, and a developer runs the project, the income usually goes on Schedule E and stays outside the earnings test. If he actively runs the extraction business, the IRS treats the income as business income on Schedule C. Owners with a working interest in the extraction operations are subject to self-employment tax. That income counts toward the earnings test. Timberland owners need to watch this closely. One parcel can now produce timber sales, geothermal royalties, carbon or conservation payments, and lease income. Running a timber operation creates self-employment earnings, while a passive geothermal royalty on the same land may not. Each income source gets different Social Security treatment. - What kind of payment is each dollar? Geothermal leases can include upfront bonuses, annual rent, and production royalties. The contract should list each separately. - Is he granting rights or taking part? If his role rises to an operating interest or an active trade or business, the income can move from Schedule E to Schedule C, bringing self-employment tax and the earnings test into play. - How close are his other earnings to $24,480? Timber harvesting or other self-employment work already counts toward the limit. - Where does his combined income land? If he's near $25,000 or $34,000, each royalty dollar pulls benefit dollars into taxable income. He can ask Social Security to withhold 7%, 10%, 12%, or 22% of each monthly payment for taxes. A geothermal lease can turn timberland into an energy asset without making the owner an energy operator. For Social Security, a passive royalty can count as $0 of earnings even as the IRS uses the same dollars to tax more of his benefit. The contract language matters most, so have a tax preparer review how payments are labeled before signing. One clause about his role in the project can change the result. One investment mistake could create big risks for your retirement. Many investors make the same critical errors: being too conservative, making big bets on "sure things," or paying excessive fees. Any of those blunders can endanger your hard-earned savings. Now you can learn the mistakes even experienced investors make (and ways you can sidestep them before it's too late) with this new guide: 13 Retirement Mistakes and How to Avoid Them from Fisher Investments. (sponsor) Contact [email protected] for any questions or corrections.

With a market capitalization of $13.8 billion, Weyerhaeuser Company (WY) is one of North America's largest private timberland owners and wood products manufacturers. Headquartered in Seattle, Washington, the company manages millions of acres of timberland and produces lumber, engineered wood products, and building materials used in residential and commercial construction. It operates through three segments: Timberlands; Real Estate, Energy & Natural Resources; and Wood Products. WY is expected to release its Q3 2026 earnings after the market closes on Thursday, Oct. 29. Ahead of the event, analysts expect the company's FFO to be $0.05 on a diluted basis, down 16.7% from $0.06 in the year-ago quarter. The company has exceeded Wall Street's FFO estimates in each of its last four quarters, which is impressive. - Elon Musk Sets the Record Straight on Terafab. What It Means for Intel, TSMC, and SpaceX Stocks. - Why Super Micro Stock Is Heading to $60 - A $1.3 Billion Reason Why IONQ Stock Is Down Today - Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. For fiscal 2026, analysts project the company's FFO to be $0.28, up 40% from $0.20 in fiscal 2025. Moreover, its EPS is expected to rise by 110.7% year over year to $0.59 in fiscal 2027. WY stock has declined 20.9% over the past 52 weeks, lagging behind the S&P 500 Index's ($SPX) 19.2% rise and the State Street Real Estate Select Sector SPDR ETF's (XLRE) 3.1% rise during the same time frame. On Oct. 8, Weyerhaeuser shares popped 3.3% after the company announced a strategic partnership with TimberHP to expand the distribution of wood fiber insulation products across the U.S. Under the agreement, Weyerhaeuser will hold U.S. commercialization and distribution rights for TimberHP's TimberBatt and TimberBoard products through the lumber and building materials channel. The partnership will leverage Weyerhaeuser's extensive distribution network, logistics capabilities, and customer relationships to expand access to sustainable, energy-efficient building materials. The companies will also collaborate on customer education, technical support, and potential development of new wood-based building products. Analysts are moderately bullish on WY, with a "Moderate Buy" rating overall. Among the 13 analysts covering the stock, eight recommend a "Strong Buy," one suggests a "Moderate Buy," and the remaining four advise "Hold." WYI's average analyst price target is $27.42, indicating an upside of 44.8% from the current levels. On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. Weyerhaeuser stock has delivered a decline of about 15.1% over the past three years, yet current valuation checks suggest the shares now sit closer to fair value rather than being clearly cheap or clearly expensive. The three year share price decline of about 15.1% signals that long term holders have seen value erode despite more recent short term gains. Future cash flow generation from Weyerhaeuser's timber and real estate assets can support the current price, while any setback in demand or pricing for wood products may weigh on what investors are willing to pay. The stock scores 4 out of 6 on Simply Wall St's broader valuation checks, which points to a mixed picture rather than an obvious bargain or clear overvaluation for Weyerhaeuser, with details available at 4. The issue now is whether Weyerhaeuser's current price fairly reflects its long term cash generating potential or leaves room for investors to expect a better entry point. Find out why Weyerhaeuser's 3.9% return over the last year is lagging behind its peers. The P/E ratio is a useful cross check for Weyerhaeuser because this is an earnings generating real estate business where investors often anchor on income based metrics. Weyerhaeuser currently trades on a P/E of about 39.1x, which is higher than the Specialized REITs industry average of about 17.4x and slightly above the peer average of about 37.1x. That places the stock at a premium to the broader sector and only a little higher than similar companies in the peer group. The Simply Wall St fair P/E ratio for Weyerhaeuser is about 41.1x, based on the company’s growth profile, margins, size and risk. The current multiple sits only modestly below that fair level, which indicates that the market is pricing the stock in line with what this framework would expect rather than flagging a clear discount or a clear premium. On the P/E multiple, Weyerhaeuser stock currently appears roughly fairly valued relative to its tailored fair ratio and its peer group. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where the Weyerhaeuser valuation puzzle leaves off and explain what would need to happen to growth, margins and earnings for the stock to be worth meaningfully more or less than it is today. They sit on the company’s Community page. Rather than relying on a single multiple or model output, each narrative lays out its own set of assumptions so you can later compare those to Weyerhaeuser's actual results. One of the top community narratives on Weyerhaeuser: 9% undervalued Read one of the top narratives on Weyerhaeuser Do you think there's more to the story for Weyerhaeuser? Head over to our Community to see what others are saying! Weyerhaeuser now appears to be priced roughly in line with where its earnings profile and peer P/E multiples suggest it should trade, rather than being clearly cheap or clearly overvalued. That shifts the focus to what happens next to cash generation from timber and wood products demand, since any change there is likely to matter more than small shifts in the multiple. For investors, the key question is whether Weyerhaeuser can sustain earnings at a level that continues to justify this premium to the wider REIT sector, or whether a softer backdrop for its core markets would leave the current valuation looking full. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include WY. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. Weyerhaeuser (WY) is back in focus after reporting second quarter 2026 net income of US$162 million, with earnings per share from continuing operations of US$0.23, compared with US$0.12 a year earlier. See our latest analysis for Weyerhaeuser. At a share price of US$25.58, Weyerhaeuser has recorded a 13.9% 30 day share price return and a 7.5% year to date share price return, while the 3 year total shareholder return has declined 15.1%. This suggests recent momentum has picked up after a weaker multi year stretch. If this earnings driven move has you thinking about where else capital could work hard, it may be worth scanning other opportunities through the 36 power grid technology and infrastructure stocks Bulls point to Weyerhaeuser’s earnings beat, analyst optimism and recent share price strength. Bears highlight a softer multi year return record, premium valuation concerns and housing sensitivity. Which side does the current valuation actually support? With Weyerhaeuser trading at $25.58 against a narrative fair value of $31.18, the current price sits below what this widely followed model suggests. Read the complete narrative. Want to see what justifies that higher fair value for Weyerhaeuser? The narrative leans on steady growth, firmer margins and a future earnings multiple usually reserved for faster growing sectors. Result: Fair Value of $31.18 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Weyerhaeuser still faces meaningful risks, including weaker lumber demand linked to cautious housing activity and potential trade or tariff changes that pressure timber and wood product pricing. Find out about the key risks to this Weyerhaeuser narrative. The fair value narrative suggests Weyerhaeuser is undervalued, yet the current P/E of 39.1x sits above both the North American Specialized REITs average of 28.9x and the peer average of 37.1x, while sitting just under a fair ratio of 41.1x. Does that premium point to valuation risk or a justified quality markup for you? See what the numbers say about this price — find out in our valuation breakdown. With sentiment on Weyerhaeuser split between opportunity and caution, now is a good time to review the numbers yourself and decide how the story fits your portfolio. To weigh both sides in one place, start with the 4 key rewards and 3 important warning signs. If Weyerhaeuser has sharpened your interest in opportunities, do not stop here. Use Simply Wall Street's screener to quickly spot fresh ideas that fit your style. Target potential mispricings by scanning companies that currently look attractively valued through the 51 high quality undervalued stocks. Strengthen your income stream by hunting for stocks that offer reliable high yields in the 8 dividend fortresses. Prioritise resilience by focusing on companies with robust finances using the solid balance sheet and fundamentals stocks screener (49 results). This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include WY. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Image source: The Motley Fool. Fri, July 31, 2026 at 10:00 a.m. ET Vice President of Investor Relations - Andy Taylor Chief Executive Officer - Devin Stockfish Chief Financial Officer - Davie Wold Operator: Greetings and welcome to the Weyerhaeuser's Second Quarter 2026 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Andy Taylor, Vice President of Investor Relations. Thank you, Mr. Taylor. You may begin. Andy Taylor: Thank you, Rob. Good morning, everyone. Thank you for joining us today to discuss Weyerhaeuser's second quarter 2026 earnings. This call is being webcast at www.weyerhaeuser.com. Our earnings release and presentation materials can also be found on our website. Please review the warning statements in our earnings release and on the presentation slides concerning the risks associated with forward-looking statements as forward-looking statements will be made during this conference call. We will discuss non-GAAP financial measures and a reconciliation of GAAP can be found in the earnings materials on our website. On the call this morning are Devin Stockfish, Chief Executive Officer; and Davie Wold, Chief Financial Officer. I will now turn the call over to Devin Stockfish. Devin Stockfish: Thanks, Andy. Good morning, everyone and thank you for joining us. Yesterday, Weyerhaeuser reported second quarter GAAP earnings of $162 million or $0.23 per diluted share on net sales of $1.9 billion. Excluding a special item, we earned $91 million or $0.13 per diluted share. Adjusted EBITDA totaled $310 million for the quarter. Despite ongoing market challenges and inflationary pressures, we delivered solid results that underscore the resilience of our business and the strong operational performance of our teams. Turning now to our second quarter business results. I'll start with Timberlands on Pages 6 through 9 of our earnings slides. Excluding a special item, Timberlands contributed $59 million to second quarter earnings. Adjusted EBITDA was $123 million, a slight improvement compared to the first quarter. In the West, adjusted EBITDA was $67 million, a $9 million increase over the prior quarter. Starting with the Western domestic market, log demand and pricing improved in the second quarter as mills responded to a strengthening lumber market and built log inventories ahead of wildfire season. As a result, our domestic sales volumes and average realizations were higher compared to the first quarter. Given favorable operating conditions, our fee harvest volumes increased slightly and forestry and road costs were seasonally higher. Our per unit log and haul costs increased as we made the seasonal transition to higher elevation sites and in response to elevated fuel costs. Moving to our Western export business. Log markets in Japan were relatively stable in the second quarter, albeit at lower consumption levels driven by ongoing headwinds in the Japanese housing market. That said, our customers remain well positioned relative to imported lumber from Europe, which continues to face challenges in the Japanese market. For the quarter, demand for our logs was steady and our sales volumes to Japan were comparable to the first quarter. Our average sales realizations increased moderately. Turning briefly to China. Our log shipments remain limited as we continue to focus on the more profitable domestic market. For the quarter, we delivered 1 vessel to strategic customers in the region and our average sales realizations were comparable to the prior quarter. Turning to the South. Adjusted EBITDA for Southern Timberlands was $58 million, a slight decrease compared to the first quarter. Southern sawlog markets improved slightly in the second quarter, supported by strengthening lumber prices and log supply constraints resulting from wetter-than-normal weather conditions, particularly in the second half of the quarter. That said, sawlog demand was somewhat tempered as mini mills lowered production in response to elevated finished goods inventories that accumulated due to ongoing trucking constraints. With respect to Southern fiber markets, demand and pricing softened in the second quarter as mills completed spring maintenance outages and continue to align log consumption with lower takeaway of finished goods. On balance, takeaway for our logs remained steady given our delivered programs across the region. Our average realizations increased slightly compared to the first quarter, largely due to a higher mix of grade logs. Given the wet weather conditions, our fee harvest volumes were comparable to the prior quarter and forestry and road costs were slightly lower, per unit log and haul costs increased moderately, largely due to increased fuel costs. In the North, adjusted EBITDA decreased slightly compared to the first quarter due to significantly lower sales volumes associated with seasonal spring breakup conditions. Before moving to Strategic Land Solutions, I'll comment briefly on Timberlands -- on a timberlands transaction we completed in the second quarter. As we reported yesterday, we divested 29,000 acres of noncore timberlands in Oregon for $114 million. This transaction further demonstrates our ongoing commitment to active portfolio management and our disciplined approach to optimizing the quality and value of our timberlands over time. We'll continue to evaluate strategic opportunities that enhance the return profile of our timberlands while also balancing our broader growth strategy and other capital allocation priorities to drive long-term value for our shareholders. Turning now to Strategic Land Solutions on Pages 10 and 11. In the second quarter, Strategic Land Solutions contributed $94 million to earnings. Adjusted EBITDA was $129 million, a $64 million decrease compared to the first quarter. The decrease was primarily attributable to lower Climate Solutions contributions following the sizable conservation easement transaction completed in the first quarter. This was partially offset by strong results from our real estate business as both acres sold and average price per acre increased compared to the first quarter. It's worth noting that we continue to benefit from strong demand and pricing for real estate properties resulting in high-value transactions with significant premiums to timber value. Turning to our Climate Solutions business. Demand for large-scale solar development remains healthy and we are well positioned to capitalize on this opportunity as markets continue to expand. Notably, our second solar site commenced operations in the second quarter and we have 3 additional solar developments currently under construction with more expected to break ground later this year. Briefly on our new biocarbon business. We continue to advance the first facility adjacent to our lumber mill in McComb, Mississippi. We've received permits and are positioning to commence construction activity in the fourth quarter. In addition, the partnership is working towards additional sites across Weyerhaeuser's footprint. These are important steps in scaling our biocarbon platform and creating new pathways for growth across our integrated portfolio. Now moving to Wood Products on Pages 12 through 14. Wood Products contributed $71 million to second quarter earnings. Adjusted EBITDA was $129 million, a $58 million improvement compared to the first quarter. This was largely driven by an increase in lumber pricing and higher sales volumes across all business lines, partially offset by higher costs. Starting with lumber. Second quarter adjusted EBITDA was $73 million, a $46 million increase from the prior quarter. Benchmark prices for lumber strengthened in the second quarter, supported by a seasonal improvement in demand against a backdrop of supply constraints from previously enacted mill curtailments and closures. Lower European lumber imports have also contributed to tighter supply across the North American market. Further, transportation constraints and elevated fuel costs put upward pressure on lumber pricing in the second quarter. This was particularly acute in Southern lumber markets. For our lumber business, average sales realizations increased by 15% compared to the first quarter, largely in line with the framing lumber composite. Although production and sales volumes improved sequentially, our results were impacted by transportation challenges in the U.S. South. Specifically, limited trucking availability contributed to elevated finished goods inventories at several mills, prompting temporary production adjustments to rebalance inventories. Given this dynamic, our unit manufacturing costs increased compared to the first quarter. Log costs were slightly higher. It's worth noting that while transportation remains constrained in the U.S. South, we've taken steps to improve capacity across our operations and expect minimal transportation disruptions in the third quarter. Now turning to OSB. Second quarter adjusted EBITDA was a $6 million loss and a $9 million decrease compared to the prior quarter. This was largely driven by higher unit manufacturing costs resulting from planned annual maintenance as well as elevated resin costs. With respect to the broader OSB market, buyer sentiment remained cautious in the second quarter and supply continued to outpace demand. As a result, composite pricing decreased slightly in May and remained steady for the balance of the quarter, albeit at low levels. Our average sales realizations increased by 3% compared to the first quarter, which was favorable to the OSB composite. And this is largely due to the length of our order files, which results in a lag effect for OSB realizations. Our sales volumes increased slightly and fiber costs were slightly higher. Adjusted EBITDA for engineered wood products was $54 million, a $15 million increase compared to the first quarter, largely driven by a seasonal increase in sales volumes for all products and higher sales realizations for most products. Our unit manufacturing costs increased slightly compared to the prior quarter, while raw material costs were slightly lower. In distribution, adjusted EBITDA increased by $2 million compared to the first quarter, largely due to higher sales volumes. With that, I'll turn the call over to Davie to discuss some financial items and our third quarter outlook. David Wold: Thanks, Devin and good morning, everyone. I'll begin with key financial items, which are summarized on Page 16. In the second quarter, we generated approximately $400 million of cash from operations. We ended the quarter with approximately $530 million of cash and total debt of $5.4 billion. During the quarter, we funded the repayment of our remaining $250 million 4.75% notes at maturity through our commercial paper program. And in early July, we repaid an additional $122 million of debt maturities, which carried a weighted average rate of 7.59%, using cash on hand. Following these transactions, we have no remaining debt maturities in 2026. We have successfully navigated a number of financing transactions in recent years to smooth our maturity profile and lower our expense. Despite the higher rate environment in recent years, we have reduced our overall weighted average interest rate by over 130 basis points since the beginning of 2022. We returned $152 million to shareholders through the payment of our quarterly base dividend and approximately $10 million through share repurchase activity in the second quarter. Capital expenditures were $139 million in the second quarter, which includes $63 million related to the construction of our EWP facility in Arkansas. As we've previously communicated, we anticipate approximately $300 million of investments for Monticello in 2026. It's worth noting that cash proceeds received this year from recent portfolio management activities including timberlands divestitures in Virginia and Oregon and the final proceeds from the sale of our Princeton mill more than cover our anticipated 2026 investment in Monticello. And as a reminder, CapEx associated with this project will be excluded for purposes of calculating adjusted FAD as used in our cash return framework. Second quarter results for our unallocated items are summarized on Page 15. Adjusted EBITDA for this segment increased slightly compared to the first quarter. Looking forward, key outlook items for the third quarter are presented on Page 18. In our Timberlands business, though we typically see a seasonal decrease in third quarter, we anticipate earnings before special items and adjusted EBITDA to be slightly higher compared to the second quarter of 2026, as results from all regions are expected to improve sequentially. Turning to our Western Timberlands operations, we expect domestic log demand to remain steady in the third quarter as mills respond to a stronger lumber market and maintain elevated log inventories. At the same time, log supply is expected to increase seasonally absent operational restrictions during wildfire season. As a result, our fee harvest and domestic sales volumes are expected to increase moderately compared to the second quarter with slightly higher pricing for our grade logs. That said, we anticipate slightly lower average domestic sales realizations due to mix. Our per unit log and haul costs are expected to decrease slightly and we anticipate seasonally higher forestry and road costs as we do a significant amount of this work over the summer months. Moving to the Western export program. We anticipate steady demand from our customers and stable pricing for our logs in the third quarter. That said, sales volumes to Japan are expected to be lower sequentially due to the timing of vessels. In China, our shipments are expected to remain consistent with recent activity with one vessel planned in the third quarter. Turning to the South. We expect log demand to improve in the third quarter as mills rebuild inventories following recent weather-related supply constraints. Demand should also benefit from higher sawmill operating rates in response to stronger lumber prices as well as improved fiber mill activity following spring outages. At the same time, regional log supply is expected to increase as weather conditions improve. Given these dynamics, we expect our average sales realizations to be comparable to the second quarter with higher fee harvest volumes. Our per unit log and haul costs are expected to decrease slightly, while forestry and road costs are expected to be seasonally higher. In the North, our fee harvest volumes are expected to be significantly higher as we have fully transitioned from spring breakup conditions and we anticipate moderately lower sales realizations due to mix. Moving to our Strategic Land Solutions segment. Real estate markets have remained solid year-to-date and we continue to anticipate a consistent flow of transactions with significant premiums to timber value. Additionally, we expect to deliver steady growth from our Climate Solutions and Natural Resources business in 2026. As a result, we are increasing segment guidance for full year 2026 adjusted EBITDA to approximately $450 million, an increase of $25 million from prior guidance. We now expect basis as a percentage of total SLS sales to be between 15% to 20% for the year. For the third quarter, we expect SLS adjusted EBITDA to be approximately $45 million lower and earnings to be approximately $30 million lower than the second quarter of 2026, primarily due to the timing and mix of real estate sales. For context, it's common for our real estate results to be more heavily weighted toward the first half of the year. For our Wood Products segment, we expect third quarter earnings and adjusted EBITDA to be slightly lower than the second quarter of 2026, excluding the effects of changes in average sales realizations for lumber and OSB. As for product pricing, the lumber composite entered the third quarter on an upward trajectory, supported by steady demand and ongoing supply constraints and transportation challenges. For OSB, composite pricing has been generally range bound through July as supply continues to outpace demand. As shown on Page 19, our current and quarter-to-date average sales realizations for lumber are moderately higher than the second quarter average, while OSB realizations are slightly lower. As a reminder, in late June, we provided a temporary lumber EBITDA sensitivity to reflect the rapid increase in trucking costs incorporated into delivered realizations during the second quarter. While these costs may remain dynamic in the near term, we do not expect the same level of rapid increase in the third quarter. As a result, we expect to return to our typical lumber sensitivity where a $10 change in commodity prices translates to approximately $50 million of annual EBITDA. For our lumber business, as Devin mentioned, we have largely worked through recent transportation constraints. As a result, we anticipate higher production and sales volumes in the third quarter and slightly lower unit manufacturing costs. Our log costs are expected to be moderately higher, primarily for Western logs. For our OSB business, we expect slightly higher sales volumes and comparable fiber costs in the third quarter. Unit manufacturing costs are expected to increase, primarily driven by more extensive planned annual maintenance and higher resin costs relative to the second quarter. For our engineered wood products business, we anticipate slightly higher sales realizations for all products as previously determined price adjustments take effect in certain markets. Our sales volumes are expected to increase slightly for most products compared to the second quarter and raw material costs are expected to be slightly higher. For our distribution business, we expect adjusted EBITDA to increase slightly compared to the second quarter, primarily due to higher sales volumes. With that, I'll now turn the call back to Devin and look forward to your questions. Devin Stockfish: Thanks, Davie. Before wrapping up this morning, I'll make a few comments on the housing and repair and remodel markets. Starting with housing. Overall, housing activity remains largely stuck in second gear and continues to be influenced by weak consumer confidence and ongoing affordability challenges. More recently, mortgage rates have moved back up into the mid-6% range and the conflict in the Middle East has reignited concerns around inflationary pressures and added to the broader economic uncertainty. Given these headwinds, builder confidence remains subdued and housing activity has been softer than we anticipated at the outset of the year. In the near term, I suspect we'll continue to see choppiness in the housing market, absent a noticeable improvement in consumer sentiment. Looking beyond current conditions, however, our outlook for housing fundamentals remains favorable. The U.S. continues to face a significant housing shortage, demographic trends remain supportive and there's a growing recognition that policies need to better facilitate housing development and improve affordability. On that point, we're encouraged by the recent passage of the 21st Century ROAD to Housing Act, which represents a positive step forward addressing housing availability and affordability over time. Turning to the repair and remodel market. Activity has remained relatively steady through the first half of 2026, albeit at somewhat muted levels, largely driven by many of the same pressures impacting the new residential market. In addition, turnover of existing homes remains well below historical levels given higher mortgage rates and the ongoing lock-in effect, which has reduced one of the traditional catalysts for remodeling activity. Based on conversations with our customers, demand trends remain somewhat mixed across regions and channels. In general, the pro segment continues to hold up better than the do-it-yourself segment and we're seeing greater emphasis on smaller remodeling projects, which typically require less wood. Looking forward, we're optimistic that repair and remodel activity will gain momentum as the broader macro environment improves over time. In addition, we think the deferral of large discretionary projects over the last few years will ultimately serve as a tailwind as the macro environment improves. And longer term, many of the key drivers supporting R&R activity remain intact, including favorable home equity levels and an aging housing stock. In closing, our teams delivered solid operating performance in the second quarter, notwithstanding ongoing macroeconomic uncertainty and near-term inflationary pressures. We also advanced key growth initiatives across our business and further optimized our Timberlands portfolio. We're encouraged by the recent increases in pricing for lumber and Western logs. And we remain focused on driving operational excellence, serving our customers and creating long-term value for our shareholders through our disciplined and flexible approach to capital allocation. So with that, I think we can open it up for questions. Operator: [Operator Instructions] Our first question comes from Susan Maklari with Goldman Sachs. Susan Maklari: I want to start on the Wood Products side of things. Can you talk a bit more about the inventories that you're seeing across the products there? And I guess as we've gone through earnings season and a lot of these builders have taken down their guides for their full year closings, what does that imply in terms of the supply demand setup in the back half of the year and the potential for pricing and realizations as a result? Devin Stockfish: Yes. Thanks for the question, Sue. I mean, as you can imagine, it's going to be somewhat differential depending on product line. Maybe I'll start with lumber. I would say, in general, what we've seen this year has been a preference throughout most of the channel to keep a little bit leaner inventories. And so you really just haven't seen a whole lot of folks building up large decks of wood across the system. And so I think that's also been one of the dynamics that's maybe pushed pricing a little bit more this year. Obviously, the supply side is a big issue for demand and supply balance in lumber. And so I'd say at present, inventories, probably just slightly below average, not super lean but certainly not on the heavy side. On the OSB side, similar story. I think just nobody really is inclined to build up large inventories. There's plenty of supply available and you can see that really across the system. And so it's been fine to just carry a just-in-time approach on the OSB side. And so I would say, similarly, OSB inventories are pretty balanced across the system, not heavy, not too light, but for the level of activity, pretty appropriate. And then EWP is, I would say, pretty normal given the level of activity. And so in terms of your second question, builders bringing their guide down for the year. I mean, look, it's obviously better to have more demand and more building activity on the demand side of the equation. But overall, on lumber, it still feels pretty balanced in terms of the overall system even as we look out to the back half of the year. OSB, similar story to what we've seen here really over the last handful of quarters, which is, there's more than adequate supply available out there. And so I think that's just going to be a slog until we see either demand pick up or more supply come out of the system. And then EWP feels reasonably balanced given this level of building activity. Susan Maklari: Yes. Okay. That's great color. And then turning to Timberlands. It's nice to hear about the Oregon transaction that came through. Given the rising backdrop for lumber prices, can you talk about what you're seeing in terms of transactions for timberland, the valuations and just the overall market conditions there? David Wold: Yes. You bet, Sue. I think in general, the Timberlands A&D markets are going to look through kind of near-term pricing and be thinking more about the longer-term trends that we've been talking about for some time. And so I think with that, we're not really seeing a significant change in the market. I think it's maybe been a little bit slow to the year in terms of the start based on the activity levels. But we started to see a few more transactions as the year progresses. And I expect, when all is said and done, the whole market will end up in that typical $2 billion to $3 billion range. Once again, it was kind of a similar story last year and we did end up coming in towards the upper end of that range. So again, there's significant capital out there pursuing this asset class. Much of that's been raised over the past several years and has not yet been deployed. And so again, our experience is that demand remains very strong for high-quality timberland packages. And while we have seen some level of valuation disconnects on some of those lower quality packages, again, I think we continue to expect solid demand for quality assets over time. Operator: Our next question comes from George Staphos with Bank of America. George Staphos: I guess the first question I had is on lumber. So I was wondering, Davie or Devin, if you can quantify what the effect in 2Q on the slowbacks in the South might have been as you're managing inventory levels relative to transportation. Relatedly, if that was a measurable amount, why would we not necessarily see an increase in lumber and in wood EBITDA ex pricing? David Wold: Yes, you bet, George. So maybe just to start on the adjustment in the second quarter. We did reduce the guidance by approximately $20 million for Q2 as a result of really several factors impacting lumber. We had increased grade logs, reduced residuals takeaways in the West as a result of downtime at one of our larger customers. But the largest really was the transportation difficulties that you're referring to. And I'd say that was probably about half of the total reduction there. As we mentioned, we've largely worked through those transportation challenges. And so as we look ahead for the third quarter and we think about the lumber guide, we are guiding for higher sales volumes. So we do anticipate that improving. We are guiding for slightly lower unit manufacturing costs. And so those things, we do anticipate improving into the third quarter. George Staphos: Okay. And that makes sense, maybe half of the $20 million. Lumber, well, maybe it's more seasonal but we have noticed some of the trade pubs are talking about a little bit of erosion. Is it just that? Or is there something else going on in terms of lumber realizations? My other question, then I'll turn it over. Can you talk a bit about the timber inventories? I think you mentioned, Devin, that they'll be building in the third quarter on the West. Is that just precautionary ahead of fire season? Or does it reflect less takeaway, if you will, than we'd like to see? And then last, on Climate Solutions, can you give us a quick update, I know it's maybe a little bit out there but on what you're seeing both in terms of your storage and your credit program? Devin Stockfish: Yes. So let me take the lumber piece first. What you're seeing in the South is what happens pretty much every year in the South. You're going to see a little bit of a seasonal slowdown in demand just because in many of these geographies, you're pushing 100 degrees every day and that always slows down building activity, R&R activity. So nothing that I would say is outside of the norm or anything unexpected. You see that largely every year. And then when things cool off a little bit as you get into the fall, activity will pick back up. So nothing unusual there. I think similarly, when you think about the Western log inventory, there's a seasonality to that as well. So this is pretty typical. As you get into that June time frame, generally speaking, you're going to see most mills build up some log inventories as an insurance measure for fire season. I think this year, in particular, because we entered the year -- entered the summer with such a low snowpack, there is a heightened, I think, anxiety about fire season in the Northwest. And so people build up some inventory. Now look, if you have a few days of heavy fire activity and you shut down activity in the woods, people will chew through that pretty darn quickly. And alternatively, if it's a really, really light fire season, which frankly, seems a little unlikely at this point, that extra inventory will put a little bit of a headwind, at least through August, into early September on log pricing. And so that's, again, just kind of the normal seasonality. And in terms of your last question on the Climate Solutions business, we're still kind of early in the year from a forest carbon standpoint. The team is doing a great job on putting together high-quality forest carbon projects, working their way through the approval process, the auditing process. So that's all going very well. And they are in the heart of marketing carbon offsets. And so everything is tracking pretty much as we would expect for this time of the year. And then lastly, I think you mentioned the carbon storage. So I think you're referring to CCS projects. I think that's just kind of moving along. The big project that's moving along is the one with Occidental Petroleum. They've got a large offtake agreement with CF Industries. I think the easements are now underway for the pipeline, for the CO2 pipeline. So things are moving along. We still expect that's probably going to come online somewhere around 2029. Operator: Our next question comes from Ketan Mamtora with BMO Capital Markets. Ketan Mamtora: Maybe first question on the engineered wood side, encouraging to see prices moving higher. Can you talk about what you have out there by way of any price increases? Or is this more of sort of higher cost pass-through? How should we be thinking about it? Devin Stockfish: Yes. So a couple of things I would highlight. When we look at the Q2 increase in pricing, I would say, to a large degree, that was mostly just a mix issue. We did a little bit more solid section, which has a little better realizations versus I-joists. So Q2 is more of a mix. As we roll into Q3, we are expecting to see the price increases that we rolled through in Q2 take effect. And I would say that is largely primarily just a reflection of passing along some of the increased resin costs and other input costs with higher fuel overall. So that's really what that is. It's still a competitive market out there. And so it's really not a demand issue. It's more of a passing along some of those costs and that's really what's driving that. Ketan Mamtora: Understood. No, that's helpful. And then just switching to OSB. Devin, I'm curious to get your updated thoughts around sort of what is your approach to managing sort of production and capacity given an extended slump in new residential construction. I mean 3 out of the last 4 quarters have been EBITDA negative for you guys. I'm curious sort of -- how are you sort of approaching this if sort of new residential continues to remain weak here in the back half. Devin Stockfish: Yes. I mean, this has been a -- it's been a tough environment for OSB here recently for us and really everyone in the industry. I'd say it starts with a strong focus on cost management. I do think we are the lowest cost producers across the OSB industry. So that's where it starts. We certainly focus on product quality. We do lean a little bit heavier to flooring, which is generally a little bit better margin opportunity. And then it's all about what can you do for the customer to create value and that's how you win business in this market. Look, over time, as you think about this industry and you can see a great example of this in lumber. You can have stretches that are like this. Ultimately, supply and demand balance out, it can be a painful period getting from here to there. But ultimately, we're going to see either more demand come or more capacity rationalized. And generally speaking, how that works is, folks that are a little bit further down on the cost cut curve are the ones that will ultimately rationalize that capacity. We obviously can't speak to what other people are going to do or not do. They're going to make their own decisions. But for us, it's about making sure that we have our costs low, making sure that we're serving customers and just navigating what is a pretty challenging environment right now. Operator: Our next question comes from Kurt Yinger with D.A. Davidson. Kurt Yinger: Davie, I was hoping we could just go back to kind of the Wood Products outlook. Just kind of considering the higher volume across all the categories, EWP pricing distribution, I mean it seems like there's a lot working in your favor in terms of kind of sequential profitability. So could you just maybe talk about some of the big offsets there? I know you mentioned some OSB maintenance, maybe some pieces on the cost side as well. So can you just help us understand kind of those big offsets there? David Wold: Yes. You bet, Kurt. So you're right. There's some favorable outlook guide on the volume side, across the products. The big ones that I would point you to would be in OSB, the unit manufacturing costs. We do have a similar amount of maintenance in the third quarter, although higher costs in terms of what we're -- what the activities are that we're doing. And so there is a little bit more cost associated with that in the third quarter. And then we do also expect to see the increase in resin costs, just be slightly higher in the third quarter in that space as well as in EWP. And then as we're looking across lumber, we do see some increase in log costs, which is obviously favorable to us on the timberland side. So that's kind of all in when you weigh all that together, that's how you get to the slightly lower ex price. Kurt Yinger: Okay, okay. I appreciate that. And then Devin, I was hoping we could talk a little bit about kind of what you're seeing or thinking second half of the year into the early part of 2027, even on kind of lumber imports, just with kind of the pricing environment we've seen plus presumably finalized Canadian duties moving lower. How are you thinking about incremental supply from Canada? And then what are you also hearing in terms of shipments coming over from Europe as well? Devin Stockfish: Yes. Maybe I'll take that in 2 parts. From Canada, which is obviously the bigger of the two, we are going to see with AR7, we're going to see the duties come down by 10%. So the all-in duty rate with tariffs is going to be around 35% versus 45%. So that does provide a little bit more breathing room on the downside from a pricing standpoint. My own personal view is, I wouldn't expect to see a meaningful amount of additional volume coming in from Canada based on that 10% reduction, 35% is still a healthy number. And I'd say the other thing, too, right, is we've seen a bunch of Canadian capacity come out of the system. I don't anticipate that those mills that have been shut down are going to come back. And so there's a certain amount of volume that's just out of the system. So there may be a little bit of noise once the implementation date is set. And as a reminder, that can be anywhere from August to October. Maybe around the margins, you'll see people kind of moving shipment dates to try to navigate that change. But I don't see that resulting in any sort of meaningful increase in lumber coming across the border. Now with respect to Europe, now that's always -- just as a reminder, that's always been a relatively small piece of the overall demand. I do see that continuing to trend down over time. I mean you may have a few monthly spikes here and there. But with the transportation and logistics costs these days, getting that wood across the pond, together with the fact that just log costs have gone up in many of these key producing regions in Europe. And so it just -- it strikes me as unlikely that you're going to see European imports really get back to more of those peak levels. And I would just remind you that when we really saw the peak in imports coming over from Europe, part of that was because they were working through salvage with wind blown, pest, fire, et cetera. And for all intents and purposes, those logs are free. And so that just gives you a lot of flexibility to take on the transportation cost, to get it over. Now log prices have gone back to market levels and they've been going up. So that's going to be, I think, a bit more challenging for European volume to really spike up meaningfully. Operator: Our next question comes from Mark Weintraub with Seaport Research Partners. Mark Weintraub: Devin, a pretty big picture question. Normally, housing is the drivers for you for sure. Right now, we're going through this massive spend. But it's on AI infrastructure. Are there ways that you are participating at all? And are there ways that you could possibly increase participation from this massive spend going on? Devin Stockfish: Yes, absolutely, Mark. And so I'll highlight a few different areas. So in the very near term, one of the areas that we're going to benefit is from our solar and renewables business. I think when you look across all of North America, certainly in the U.S., the amount of energy demand is just spiking. And so that's causing a significant degree of interest in developing, in particular, solar because that's the fastest to market. So that's going to be a nice tailwind for us for a very long time, is just the incremental demand for electricity and we'll get that in the renewables business. You're already starting to see some of that. I'd say the second one is with our land position. We're obviously the largest landowner in North America. We have a number of sites that we feel are very well suited for data center build-outs. And so we are actively marketing a handful of sites and we're building that pipeline. So that's another area where I think in the relatively near future, we could see some upside. As you would expect, the price per acre from data centers is pretty significant and just an extraordinary margin above timber values. And so we're actively pursuing that. And then the other piece, which I would say is probably a little bit more in the early stages, although we, Weyerhaeuser, and we, as an industry, are actively working this is, utilizing more wood-based construction in the build-out of data centers. I think there's a really nice sweet spot for us in this space in that most of the folks that are building data centers also have pretty significant climate pledges and greenhouse gas reduction commitments. Building with wood is substantially better from an environmental standpoint. And so we're out there working with the data center developers trying to get wood more extensively utilized in this build-out. And so the early indications, I think there is certainly an openness to it. But in all candor, today, it's all about speed. And so what we've got to do is we've got to convince the developers that you can get mass timber up more quickly than the alternative building product. So we're working that. I do think we'll get some momentum here, the softwood lumber coalition, a whole bunch of other industry associations are working this. So it's a big opportunity and we're going after it. Mark Weintraub: Right. [indiscernible] are they primarily using like steel and concrete currently? Devin Stockfish: Steel and concrete, yes. Steel and concrete. Mark Weintraub: Yes. And maybe there's a little bit of relationship to this next question, too then. And it's on Monticello. And so one thing that's been very apparent out there is the cost to build things has increased very substantially in the last several years. Is the $500 million budget still good? I mean were you out in front and have things locked down so that we can stay there? And then relatedly and this again might tie into the last question a little bit, any update or read on look forward demand for the product? David Wold: Sure, Mark. This is Davie. I'll take the budget question on Monticello. So big picture, construction is progressing really well. We are on track as we had indicated for a start-up in the first half of 2027. For this year, we do anticipate approximately $300 million in spend. We've said that. Yes, we are seeing some amount of cost pressures particularly when you think about areas like labor, steel, concrete, really, those are the areas, to your point, that are seeing competition in larger scale construction activities impacting those dollars. Also seeing some pressure from tariffs. But as always, our teams are working to minimize the impact of these pressures through things like value engineering. So at this point, I think it's hard to say whether and how much that would increase. But regardless, I think even if we did see some level of overall budget increase, the return profile remains very attractive. Devin Stockfish: And maybe I'll take the second part of the question, Mark, which is the early demand signals for TimberStrand, just very strong across a whole host of different opportunities. Just the baseline utilization of TimberStrand, what we're currently making out of Kenora, there remains a lot of demand for that product. It's a great product at a good price point. We are looking at a whole host of additional opportunities to add on to that. So things like AeroStrand, which is a new product that we're very excited about, that's based off of the TimberStrand technology. I think there's a really interesting application in the mass timber space and we've had a bunch of conversations about TimberStrand being utilized in that building capacity. And just general industrial. I think there's a -- we've got a good strong anchor customer already in the South who's expanding. I think there's a variety of opportunities there. So we're really excited about this product. Our sales folks are very excited about this product. So we're looking forward to getting this mill up and running so we can start moving product out of Monticello. Mark Weintraub: Super. And just one last confirmation since we're on the topic of [ OS ], so is it correct to say that the new Canadian tariffs are not applicable to Kenora's products? Devin Stockfish: That is correct, yes. Operator: Our next question comes from Hamir Patel with CIBC Capital Markets. Hamir Patel: On the biocarbon initiative, how should we think about timing of the build-out of additional sites beyond the first one? Devin Stockfish: Yes. So we are actively looking at the footprint. We have a handful of additional sites that we've identified and we're working through those with Aymium. One of the challenges with the first site is, there's just a lot of groundwork you have to do to make sure that the product, the residuals, the pulpwood, the chips, the process, those are all working to get to the end product of biocarbon that the buyers want. And so as you would expect, that takes a fair bit of testing. That should get easier as we go forward because a lot of this work has been done. So at this point, really, we have a pretty good line of sight on what wood baskets would be best for new facilities. And that's a function of the growth-to-drain in these various markets, our ability to serve with both our sawmill residuals as well as our pulp logs, the transportation and logistics. So there's work to be done but we're making good progress. We hope at some point later this year or early next year to be able to announce some additional sites. But the focus right now is, we want to get this first facility outside of McComb mill. So we're getting -- permits all in order and land purchase and doing all the groundwork. So we're really excited about this. We've had our team, Paul and a few of his folks were earlier this summer all across Europe, meeting with potential customers for biocarbon. We still think this is a really big opportunity for us over time. So we're getting after it. Operator: Our next question comes from Anthony Pettinari with Citi. Anthony Pettinari: You raised the full year guide for Strategic Land Solutions. And in terms of Climate Solutions and the contribution there, I think if you back out the big conservation easement in 1Q, it seems like Climate Solutions EBITDA was like $14 million in 1Q, $13 million in 2Q. Is that like a decent run rate as we think about the second half? Or is that just -- is that number going to be very volatile and spiky? Or any kind of way that you can help us sort of frame Climate Solutions contribution in the back half and maybe kind of on a run rate basis? David Wold: Yes. Sure, Anthony. It is going to be pretty lumpy as we move forward. That's kind of the nature of these businesses as we are building them out and investing in the long-term growth in each of those areas. You're going to see that move around quarter-to-quarter. So I don't think that reading too much into the current quarter amount as a run rate is a good thought moving forward. I think we're continuing to focus on growing that business up to the $250 million target through 2030. So I think we'll continue to update you as we progress along the way to that. Devin Stockfish: Yes. I would just add, that's definitely true today. It is going to be lumpy. I will say, though, over time, you're going to see this become more of a run rate business. So when we get to full scale on renewables, when you get to growth on the construction materials, when you see the CCS project come into play, some of these businesses are a little bit more run rate and won't be quite as lumpy as, say, some of the conservation mitigation deals that we're doing today. Anthony Pettinari: Got it. Got it. That's helpful. And then, Devin, at the Investor Day, you identified $180 million in enterprise initiatives for the company. Obviously, that comprises a lot of individual projects and programs. But I'm just wondering if you could give any sort of update there. And I guess the context of the question is, since the Investor Day, housing market has been a bit weaker than expected. Some of the product prices have been a little bit weaker than expected. Do you sort of prioritize some of those projects? Do you cut back? Do you accelerate? I'm just wondering how you think about that and how those are progressing. Devin Stockfish: Yes. I mean the good news about those enterprise initiatives is that for the most part, they're not really expensive to move forward with. So look, if I kind of look at the different buckets there, I'm really pleased with how this is coming along. We've got a lot of activity going on, on the AI front. We're starting -- I mean we're in the early stages of some of these things, or we're starting to see a little bit of the money flow in from that. We got a whole host of projects in the AI space that we're really excited about. And so I'd say that is progressing at or even perhaps better than we expected pace. When we think about some of the cost initiatives, Davie and his team are doing a great job together with the businesses, really looking for every penny. I think the last count is, we have 53 separate cost initiatives underway at the company. We're starting to see some benefit there. I think next year, we'll really start to see some meaningful benefits from some of that activity. The procurement folks are doing a great job driving spend and being very thoughtful about how we organize the spend. We've got new initiatives from the integration excellence team, things like our contractor loyalty program, which is really starting to gain some traction, really just kind of working, making sure that we're getting every conceivable possible dollar from the integrated nature of our platform. So I'm really excited about that. We're going to do that regardless of what's going on in the market. And you could almost say that tough markets make that a little easier. Cost initiatives sometimes are a little easier to sell to the organization when times are tight. So it's all going according to plan, if not better than planned. So we're just moving forward full force on those enterprise initiatives. Operator: Our next question comes from Matthew McKellar with RBC Capital Markets. Matthew McKellar: Just on transportation, can you just give a bit more color on the steps you've actually taken to improve capacity around transportation for lumber? It was just a bit unclear to me to what extent the market has improved and maybe to what extent you've taken steps yourselves to remedy the issue. Devin Stockfish: Yes. I mean, so really, what happened in Q2 is, we just had kind of a perfect storm of events all happening at more or less at the same time. Now I would say, if you look back over time, it's not unusual to see markets tighten and loosen over time. And I think our team does a good job ordinarily of managing through that. So it's not necessarily going to be impactful to our operations. But when you had the higher fuel costs from the Iran situation, we've also had some regulatory changes here that unfortunately have reduced the number of available truck drivers. And I'd say just overall trucking capacity and the usage just created a very challenging dynamic in Q2. Fast forward to today, I would say maybe things are slightly better but not meaningfully. The overall market, particularly for flatbed trucks in the U.S. South is still pretty tight. Our commentary on why we don't think it's going to be as impactful in Q3 is because our team has taken a number of steps to help navigate that. And that covers a lot of different areas, things like maybe moving a little bit more volume to rail versus truck, things like adding additional loading days at the mills, things like there's ordinarily an option for customers to arrange pickup of their product from our mill versus us managing that transportation. We've taken a little bit more of that management on our team to help manage that a little bit better. So we're doing a whole variety of different things to try to navigate this more challenging environment. And I would expect it to continue to be tight here for the foreseeable future. Operator: Our next question comes from Buck Horne with Raymond James. Buck Horne: I'll try to keep this brief. Just wondering if you've got any thoughts on the Canadian wildfire situation this year and either in terms of the longer-term impact on fiber supply, or if there's any near-term potential salvage inventory impact? Or how do you think about what's happening with the wildfires in Canada impacting overall North American flows? Devin Stockfish: Yes. I mean, first of all, just say that fortunately for us, the wildfire in Canada really hasn't impacted our operating areas too much. Alberta really is a key region for us and they just -- they had a lot of rain early in the year, so it hasn't been quite as bad. In some of the other geographies, I think the fire activity has probably been a little bit further north. So it hasn't been quite as impactful to date. And it's fire salvage opportunity, I suppose, even if it's far north but sometimes the logistics cost to get after that just make the economics a little tricky. So sitting here today, I'm not sure I see a massive influx of salvage logs hitting the Canadian system. I mean there may be a few spots where that may be the case. But generally speaking, to date, I don't know that I see that as being a huge issue for us. Operator: Our next question comes from Hong Zhang with JPMorgan. Hong Zhang: I guess how do you think about share buybacks in your capital allocation priorities, just given where the stock trades today? David Wold: Yes. You bet, Hong. It's -- our approach there really remains disciplined and consistent. We designed our capital allocation framework to ensure it aligns with the cyclical nature of our business. So we start with that commitment to returning significant amounts of cash back to shareholders. And then beyond that, we can allocate additional capital to value-add activities, whether that be investing in our businesses, debt paydown or incremental share repurchase. So this year, of course, we've got the significant amount of Monticello spend. So we're focused on that. But beyond that, we'll continue to evaluate opportunities for share repurchase. We like it. We've been active in that space. We closed out our $1 billion authorization last year, announced a new one. So I think that's a good indication of the value of that lever that we see. But of course, we're going to weigh that with all the other long-term investment opportunities that we have and maintaining an appropriate capital structure. Hong Zhang: Got it. And then on the OSB side, so what we saw with lumber last year was that producers are willing to operate under negative margins for a surprising amount of time. Do you think that could -- we could face a similar situation on -- in OSB this year? Or do you think the market will correct a little bit more faster? Devin Stockfish: Yes. To be perfectly frank, I think that's very hard to predict. I mean each individual organization is going to have their rationale for how they operate and I just don't know that we have visibility into that to make a good prediction. Operator: Our last question comes from Mike Roxland with Truist Securities. Michael Roxland: Just two quick ones for me. Devin, in OSB, can you give us a sense of what's happening with the start-ups for those new mills? Do you expect them to start on schedule? Do you think that they could be delayed given the persistent housing weakness we're currently seeing as well as OSB oversupply? And then just secondly, Devin, in EWP, if conditions remain steady, do you think that you guys could be poised for another increase in early '27? Devin Stockfish: Yes. I mean, so with the 2 new OSB mills, like, what I know is what we've read in the press. And so the latest I've heard is those have been pushed out to the end of this year, early next year. I don't know that we have any insight other than what's been publicly reported on that. On EWP, it's very hard to predict what you're going to do from a pricing standpoint that far out. The reality is, it's just going to depend on what does the demand environment look like, particularly if you're talking about early next year. It's going to also depend on what the general confidence level is of the builders as they're putting together their buy program. So I'd say at this point, it's a little bit hard to say what that pricing environment is going to look like as you get into '27. Operator: There are no further questions at this time. I'd like to turn the floor back over to Devin Stockfish for closing comments. Devin Stockfish: All right. Well, thanks, everyone, for joining us this morning. Thank you for your continued interest in Weyerhaeuser and have a great day. Operator: This concludes today's teleconference. You may disconnect your lines at this time and we thank you for your participation. Before you buy stock in Weyerhaeuser, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Weyerhaeuser wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $397,405!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,344,091!* Now, it’s worth noting Stock Advisor’s total average return is 953% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 7, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Weyerhaeuser (WY) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Weyerhaeuser Company WY is showing signs of an earnings recovery, but the stock does not offer an easy buy case. Second-quarter results beat expectations and Wood Products improved sharply, while Climate Solutions and engineered wood investments add longer-term growth avenues.The counterweight is valuation. WY trades well above its sub-industry, sector and the S&P 500 on forward earnings, while housing demand and commodity pricing remain uncertain. Second-quarter adjusted earnings of 13 cents per share topped the Zacks Consensus Estimate of six cents by 116.7%. Net sales of $1.87 billion exceeded the $1.80 billion consensus mark by 4%, while Wood Products adjusted EBITDA rose to $129 million from $71 million sequentially.Management expects higher lumber production and sales volumes in the third quarter and slightly lower unit manufacturing costs. Engineered wood products also improved in the second quarter, with adjusted EBITDA rising to $54 million from $39 million. Climate Solutions generated $126 million of sales in the first half of 2026, including a $94 million conservation easement completed in the first quarter. Weyerhaeuser's second solar site began operating in the second quarter, with three additional solar developments under construction.The company also received permits for its first biocarbon facility near its McComb, MS, lumber mill. Weyerhaeuser raised full-year 2026 Strategic Land Solutions adjusted EBITDA guidance by $25 million to approximately $450 million, broadening its earnings sources beyond timber and wood products. WY's forward 12-month price-to-earnings ratio stands at 49.94, compared with 27.18 for its Zacks sub-industry, 20.3 for the Zacks Construction sector and 20.71 for the S&P 500. The stock's five-year median is 30.18.That spread makes execution more important. Investors need stronger earnings improvement to justify a multiple already above relevant benchmarks, leaving less room for operating setbacks or a slower recovery. Weyerhaeuser Company price-consensus-chart | Weyerhaeuser Company Quote Demand remains exposed to housing affordability, mortgage rates in the mid-6% range and weak consumer confidence. Repair-and-remodel activity was steady but muted in the first half, while OSB adjusted EBITDA posted a $6 million loss in the second quarter as supply exceeded demand and costs remained elevated.Commodity sensitivity compounds the risk. Management estimates that a $10 change in lumber prices changes annual EBITDA by roughly $50 million. Louisiana-Pacific Corporation LPX, another housing-linked wood-products producer, reported second-quarter OSB sales down $68 million year over year as prices and volumes declined. Rayonier Inc. RYN, which now combines timberlands and wood products following its January merger with PotlatchDeltic, offers a related reference point for the same timber-and-lumber cycle. Bottom line, WY's investment case remains balanced rather than decisive. Earnings recovery, Wood Products improvement and land-based growth opportunities support the outlook, but a premium valuation and housing-linked volatility keep the risk-reward from looking straightforward.The stock currently carries a Zacks Rank #3 (Hold), pointing to a balanced short-term stance rather than a clear Buy signal. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Its Value Score of D, Growth Score of F, Momentum Score of D and VGM Score of F are less favorable readings within the Style Score framework, which is designed to complement the Zacks Rank. The score mix indicates that value, growth and momentum characteristics are not currently among the stronger Style Score profiles, leaving the fundamental recovery as the key area to watch. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Weyerhaeuser Company (WY) : Free Stock Analysis Report Louisiana-Pacific Corporation (LPX) : Free Stock Analysis Report Rayonier Inc. (RYN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Weyerhaeuser Company? Here are five stocks we like better. Weyerhaeuser reported solid Q2 results, with $162 million in GAAP earnings, $1.9 billion in sales and $310 million in adjusted EBITDA. Wood Products improved significantly as higher lumber prices and volumes offset continued housing-market weakness. Strategic Land Solutions adjusted EBITDA guidance for 2026 increased by $25 million to approximately $450 million, supported by stronger real estate markets and growth in Climate Solutions and Natural Resources. The company also completed a $114 million sale of non-core Oregon timberlands. Weyerhaeuser ended 2026 debt maturities after repaying $372 million of debt during the quarter, while returning $152 million through dividends and repurchasing $10 million of shares. Management expects slightly higher Q3 Timberlands results but somewhat lower Wood Products performance amid higher input and maintenance costs. Rayonier-PotlatchDeltic Merger Signals Industry Upside Weyerhaeuser (NYSE:WY) reported second-quarter 2026 GAAP earnings of $162 million, or $0.23 per diluted share, on net sales of $1.9 billion, as stronger lumber prices and sales volumes supported its wood products business despite continued housing-market weakness and inflationary pressures. Excluding a special item, the company earned $91 million, or $0.13 per diluted share, while adjusted EBITDA totaled $310 million. Chief Executive Officer Devin Stockfish said the results reflected resilient operations amid challenging markets. → Microsoft Just Flipped the AI Spending Narrative Overnight One Must-Buy Stock and One to Avoid as Tariffs Shake the Market “Despite ongoing market challenges and inflationary pressures, we delivered solid results that underscore the resilience of our business and the strong operational performance of our teams,” Stockfish said. Wood Products contributed $71 million in second-quarter earnings and generated adjusted EBITDA of $129 million, up $58 million from the first quarter. The improvement was largely driven by higher lumber pricing and increased sales volumes across the segment’s businesses, partly offset by higher costs. → 2 Unique Space ETFs That Could Upend the Industry Falling Inflation Sparks Optimism for These 3 Home Builder Stocks Lumber adjusted EBITDA rose $46 million sequentially to $73 million. Weyerhaeuser said benchmark lumber prices strengthened because of seasonal demand improvement, supply constraints from mill curtailments and closures, lower European imports, and transportation constraints. Average lumber sales realizations increased 15% from the first quarter, broadly in line with the framing lumber composite. However, trucking shortages in the U.S. South increased finished-goods inventories at some mills and led to temporary production adjustments. Chief Financial Officer Davie Wold said transportation difficulties represented roughly half of a previously disclosed $20 million second-quarter reduction in lumber guidance. The company expects the issue to be less disruptive in the third quarter after taking operational steps including shifting some volume to rail, adding mill loading days, and managing more customer pickups. → MarketBeat Week in Review – 07/27- 07/31 OSB remained a weaker area. The business recorded a $6 million adjusted EBITDA loss, compared with a $3 million gain in the prior quarter, due primarily to planned maintenance and higher resin costs. Stockfish said supply continued to exceed demand in the OSB market, while cautious buyers have generally maintained just-in-time inventories. Engineered wood products adjusted EBITDA increased $15 million to $54 million, helped by seasonal volume gains and improved realizations for most products. Stockfish said expected third-quarter price gains largely reflect pass-throughs for higher resin, fuel and other input costs rather than stronger demand. Timberlands contributed $59 million in earnings excluding a special item, with adjusted EBITDA of $123 million, slightly above the first quarter. Western Timberlands adjusted EBITDA rose $9 million to $67 million as domestic log demand and pricing improved while mills replenished inventories before wildfire season. Southern Timberlands adjusted EBITDA declined slightly to $58 million. Wet weather constrained log supply and modestly improved sawlog markets, but mills also reduced production in response to elevated finished-goods inventories stemming from trucking constraints. Fiber demand and pricing softened as mills completed maintenance outages and adjusted consumption to lower finished-goods demand. The company divested 29,000 acres of non-core Oregon timberlands for $114 million during the quarter. Wold said timberland acquisition and disposition activity has been somewhat slower at the start of 2026, though he expects the overall market to finish in a typical $2 billion to $3 billion range. He said demand remains strong for high-quality timberland packages. Strategic Land Solutions contributed $94 million in earnings and $129 million in adjusted EBITDA, down $64 million from the first quarter because the prior period included a sizable conservation-easement transaction. Strong real estate sales partly offset the decline, as both acres sold and average price per acre increased sequentially. Weyerhaeuser raised its full-year 2026 Strategic Land Solutions adjusted EBITDA guidance by $25 million to approximately $450 million. The company cited solid real estate markets and expected growth from Climate Solutions and Natural Resources. Still, it expects third-quarter segment adjusted EBITDA to be about $45 million below the second quarter because of the timing and mix of real estate sales. The company said its second solar site began operations during the quarter, with three additional solar developments under construction. It also received permits for its first Biocarbon facility near its lumber mill in McComb, Mississippi, and is positioning to begin construction in the fourth quarter. Weyerhaeuser generated about $400 million of cash from operations in the second quarter and ended the period with roughly $530 million in cash and $5.4 billion of total debt. The company repaid its remaining $250 million of 4.75% notes at maturity through its commercial paper program and later used cash to repay another $122 million of debt maturities carrying a weighted average rate of 7.59%. Following those actions, the company has no remaining 2026 debt maturities. Wold said Weyerhaeuser has reduced its overall weighted-average interest rate by more than 130 basis points since the beginning of 2022. Returned $152 million to shareholders through its quarterly dividend. Repurchased about $10 million in shares during the second quarter. Spent $139 million on capital expenditures, including $63 million for its engineered wood products facility in Arkansas. Expects about $300 million of Monticello project investment during 2026. For the third quarter, Weyerhaeuser expects Timberlands earnings and adjusted EBITDA to be slightly higher than the second quarter, with improvements anticipated across all regions. It expects Wood Products earnings and adjusted EBITDA to be slightly lower excluding changes in lumber and OSB sales realizations, as higher log, resin and maintenance costs offset expected volume improvements. Stockfish said housing activity remains “stuck in second gear,” pressured by weak consumer confidence, affordability constraints and mortgage rates in the mid-6% range. He said builder confidence remains subdued and housing activity has been softer than the company expected at the start of the year. Still, Stockfish cited a significant U.S. housing shortage, favorable demographics and the recent passage of the 21st Century ROAD to Housing Act as long-term supports for housing demand. Repair-and-remodel activity remained relatively steady but muted during the first half, with professional customers performing better than do-it-yourself channels and consumers focusing on smaller projects. Stockfish also pointed to potential growth opportunities related to rising electricity demand and data-center construction. He said Weyerhaeuser is pursuing solar-development opportunities, marketing certain land sites for data centers and working with industry groups to expand use of wood-based construction materials in data-center development. Weyerhaeuser Company (NYSE: WY) is a leading integrated forest products company whose core businesses are timberland ownership and forest products manufacturing. The company owns and manages large tracts of timberland and harvests, processes and sells wood and wood-derived products used primarily in residential and industrial construction. Its manufacturing operations produce a range of building materials, including lumber, engineered wood products and wood panels, alongside fiber-based products that serve multiple commercial applications. Founded in 1900 by Frederick Weyerhaeuser and headquartered in Seattle, Washington, the company has a long history in the North American forest products industry. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Weyerhaeuser Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was characterized by resilience in Timberlands and Wood Products despite a housing market 'stuck in second gear' due to affordability challenges and high mortgage rates. Lumber realizations improved by 15% sequentially, driven by seasonal demand and supply constraints from previous mill curtailments and lower European imports. Southern lumber results were impacted by a 'perfect storm' of transportation challenges, including limited trucking availability and regulatory changes that reduced driver supply. Timberlands performance in the West benefited from mills building log inventories as a precautionary measure ahead of a potentially severe wildfire season. OSB markets remained challenging as supply continued to outpace demand, leading to negative EBITDA driven by higher resin costs and planned maintenance. The company demonstrated active portfolio management by divesting 29,000 acres of noncore Oregon timberlands for $114 million to optimize the return profile. Climate Solutions momentum continued with the commencement of a second solar site and progress on the McComb, Mississippi biocarbon facility. Full year 2026 Strategic Land Solutions EBITDA guidance was raised by $25 million to approximately $450 million, reflecting strong real estate demand and premiums to timber value. Third quarter Timberlands EBITDA is expected to be slightly higher sequentially as all regions improve, though Western domestic realizations may face mix-related headwinds. Management anticipates minimal transportation disruptions in the third quarter after implementing mitigation strategies such as increased rail usage and flexible loading schedules. The $500 million Monticello EWP facility remains on track for a first-half 2027 startup, with $300 million in capital expenditures planned for 2026. Long-term housing demand is expected to be supported by a significant national shortage and the recent passage of the 21st Century ROAD to Housing Act. The company reduced its overall weighted average interest rate by over 130 basis points since early 2022 and has no remaining debt maturities in 2026. Wildfire risk in the Northwest is elevated due to low snowpack, which could lead to operational restrictions or sudden log inventory depletion if fire activity spikes. Canadian lumber duties are expected to decrease from 45% to 35% later this year, though management does not anticipate this will trigger a meaningful influx of new volume. The biocarbon initiative represents a strategic pivot toward high-margin industrial applications, with construction at the first facility slated to begin in the fourth quarter. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Lumber inventories are slightly below average as the channel prefers a lean approach, while OSB remains in a 'just-in-time' mode due to adequate supply. Management described the OSB market as a 'slog' that will persist until demand improves or further industry capacity is rationalized. Weyerhaeuser is actively marketing land sites for data centers, which command significant price premiums over traditional timber values. The company is lobbying data center developers to switch from steel and concrete to mass timber to meet corporate greenhouse gas reduction commitments. Transportation difficulties accounted for approximately half of a $20 million guidance reduction in the second quarter. Corrective actions include moving more volume to rail and allowing customers to manage their own pickups to bypass trucking shortages. Current earnings are 'lumpy' due to the timing of conservation easements, but will transition to a more stable run rate as solar and CCS projects mature. The company remains committed to its target of $250 million in annual EBITDA from Climate Solutions by 2030.

Weyerhaeuser Company WY reported better-than-expected second-quarter 2026 financial results with adjusted earnings and net sales topping the Zacks Consensus Estimate. Year over year, the bottom line grew while the top line declined.The quarterly results reflect weakness in Timberlands and Strategic Land Solutions outweighing growth in parts of Wood Products. Adjusted EBITDA was $310 million compared with $336 million a year ago. The second-quarter adjusted earnings were 13 cents per share, up 8.3% year over year and topping the Zacks Consensus Estimate of six cents by 116.7%.Net sales of $1.87 billion inched down 0.9% from the prior-year quarter but beat the consensus mark of $1.80 billion by 4%.Gross margin was $311 million, down from $325 million in the year-ago quarter. Selling expenses increased to $24 million from $23 million, while general and administrative expenses rose to $115 million from $114 million. Operating income advanced to $223 million from $178 million. The latest quarter included a $71 million pretax gain from the sale of Oregon timberlands. Weyerhaeuser Company price-consensus-eps-surprise-chart | Weyerhaeuser Company Quote Wood Products net sales reached $1.36 billion, up $196 million sequentially. Operating income increased to $71 million from $42 million, while adjusted EBITDA climbed to $129 million from $71 million. The segment’s adjusted EBITDA margin expanded to 9% from 6%.Lumber was the primary driver, with adjusted EBITDA rising to $73 million from $27 million. Lumber realizations increased 15% sequentially and volumes were moderately higher. Engineered Wood Products adjusted EBITDA improved to $54 million from $39 million, supported by higher volumes and realizations. However, Oriented Strand Board posted a $6 million adjusted EBITDA loss due to higher manufacturing, maintenance and resin costs. Timberlands generated total net sales of $518 million, down 2.1% year over year. Net contribution to earnings increased to $130 million from $88 million, aided by the timberland sale. Adjusted EBITDA declined to $123 million from $152 million.In the West, fee harvest volumes were slightly higher sequentially due to seasonally favorable operating conditions. Domestic log sales volumes and realizations improved, but elevated fuel, freight, forestry and road costs pressured results. Southern fee harvest volumes were comparable sequentially, while realizations improved slightly due to mix. Strategic Land Solutions recorded net sales of $140 million, down 9.1% year over year. Operating income fell to $94 million from $106 million, while adjusted EBITDA declined to $129 million from $143 million.Sequentially, results fell sharply because the first quarter included a $94 million conservation easement transaction in the Climate Solutions business. This was partly offset by stronger Real Estate results stemming from the timing and mix of sales. Real Estate adjusted EBITDA increased sequentially to $83 million from $61 million, while Climate Solutions adjusted EBITDA dropped to $13 million from $108 million. Net cash from operations was $399 million, slightly above $396 million in the year-ago quarter and substantially higher than $52 million in the first quarter. Capital expenditures totaled $139 million, including $63 million related to the Monticello engineered wood products facility.WY ended the quarter with $527 million in cash and cash equivalents and total debt of $5.43 billion. The company repurchased $10 million of common stock and paid $152 million in cash dividends during the quarter. For the third quarter of 2026, Timberlands earnings before special items and adjusted EBITDA are expected to be slightly higher sequentially. Management anticipates higher harvest volumes and lower per-unit log and haul costs, partly offset by seasonally higher forestry and road expenses.Strategic Land Solutions earnings are projected to decline about $30 million sequentially, while adjusted EBITDA is expected to fall roughly $45 million due to the timing and mix of real estate sales. Full-year segment adjusted EBITDA is now forecast at approximately $450 million, up $25 million from the prior outlook.Wood Products earnings and adjusted EBITDA are expected to be slightly lower, excluding changes in lumber and oriented strand board realizations. Higher lumber and engineered wood product volumes are expected, though moderately higher lumber log costs and increased oriented strand board manufacturing costs may weigh on profitability. Weyerhaeuser currently carries a Zacks Rank #4 (Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Martin Marietta Materials, Inc. MLM reported outstanding second-quarter 2026 results, wherein adjusted earnings (from continuing operations) and revenues topped the Zacks Consensus Estimate and increased year over year.Martin Marietta’s results benefited from strong organic performance and acquisition contributions. Aggregates shipments increased 17% to a record 61.6 million tons, supported by infrastructure and heavy nonresidential demand. Heavy nonresidential demand also benefited from data center, power-generation and warehouse construction. Martin Marietta raised its 2026 revenue guidance to a range of $7.2-$7.4 billion, with a midpoint of $7.3 billion.CRH plc CRH reported exceptional second-quarter 2026 financial results with adjusted earnings and total revenues topping the Zacks Consensus Estimate and growing year over year. Positive pricing, favorable demand and acquisition contributions supported the quarterly growth. CRH completed 11 acquisitions during the quarter for $1.1 billion.CRH reaffirmed 2026 net income guidance of $3.9-$4.1 billion, adjusted EBITDA guidance of $8.1-$8.5 billion and earnings guidance of $5.60-$6.05 per share. The company expects public infrastructure spending and reindustrialization activity to support demand, while new-build residential conditions remain subdued.Quanta Services, Inc. PWR reported better-than-expected second-quarter 2026 results, with adjusted earnings and revenues beating the Zacks Consensus Estimate. Quanta’s performance benefited from strong demand for grid, generation and data-center infrastructure, broader self-perform capabilities, efficient resource utilization and solid execution across both segments.Quanta increased its 2026 revenue forecast to $39.3-$39.7 billion, representing a $4.55 billion increase at the midpoint from its prior outlook. Adjusted earnings are now projected to be in the range of $16.45-$16.95 per share, while adjusted EBITDA is expected to be between $4.09 billion and $4.21 billion. Free cash flow is forecasted to be in the $2.00-$2.50 billion range. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Weyerhaeuser Company (WY) : Free Stock Analysis Report Quanta Services, Inc. (PWR) : Free Stock Analysis Report Martin Marietta Materials, Inc. (MLM) : Free Stock Analysis Report CRH PLC (CRH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Release Date: July 31, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Solid Q2 results with adjusted EBITDA of $310 million, demonstrating business resilience despite market challenges. Improved lumber pricing and higher sales volumes across all business lines drove a $58 million sequential increase in Wood Products adjusted EBITDA. Strong real estate performance with increased acres sold and average price per acre, benefiting from significant premiums to timber value. Successful divestiture of 29,000 non-core acres in Oregon for $114 million, highlighting active portfolio management. Raised full-year 2026 Strategic Land Solutions adjusted EBITDA guidance to approximately $450 million, up $25 million from prior guidance. Reduced weighted average interest rate by over 130 basis points since 2022 and repaid $122 million of high-cost debt in early July. Advanced growth initiatives including biocarbon facility construction and solar developments, with two solar sites now operational. Expect minimal transportation disruptions in Q3 after taking steps to improve capacity in the US South. OSB business continues to struggle with a $6 million adjusted EBITDA loss in Q2, impacted by high costs and oversupply. Housing market remains weak with mortgage rates back up to mid-6% range, leading to subdued builder confidence and softer activity. Transportation constraints in the US South led to elevated finished goods inventories and temporary production adjustments, increasing unit costs. Inflationary pressures, including elevated fuel and resin costs, continue to weigh on margins across segments. Western export log markets in Japan remain weak due to ongoing housing market headwinds, with lower consumption levels. Climate Solutions contributions were significantly lower in Q2 following a large Q1 conservation easement transaction, highlighting lumpiness. OSB market remains oversupplied with cautious buyer sentiment, and pricing is expected to stay range-bound. Cost pressures on the Monticello project from labor, steel, and concrete could potentially increase the budget. Warning! GuruFocus has detected 7 Warning Signs with WY. Is WY fairly valued? Test your thesis with our free DCF calculator. Q: Can you quantify the effect of the production slowdowns in the US South during Q2 due to transportation constraints, and why wouldn't we see an increase in lumber and wood EBITDA excluding pricing in Q3? A: Devin Stockfish (CEO) and Davey Wold (CFO) explained that Q2 lumber guidance was reduced by approximately $20 million due to several factors, with transportation difficulties accounting for about half of that reduction. The company has largely worked through these challenges, and for Q3, they are guiding for higher sales volumes and slightly lower unit manufacturing costs, which should improve results. Q: Given the recent increases in lumber prices, what are you seeing in terms of Timberland transaction activity and valuations? A: Devin Stockfish (CEO) noted that the Timberland M&A market is looking through near-term pricing to longer-term trends. While activity was slow to start the year, it is picking up, and the market is expected to reach the typical $2 to $3 billion range. Demand remains strong for high-quality packages, though there are valuation disconnects on lower-quality assets. Q: Can you provide an update on the OSB market and your approach to managing production and capacity given the extended slump in new residential construction? A: Devin Stockfish (CEO) stated that the OSB environment is challenging for the entire industry. The company focuses on cost management, product quality, and leaning into flooring products for better margins. He noted that supply and demand will eventually balance out through either increased demand or capacity rationalization, but the timing is difficult to predict. Q: What are the key offsets in the wood products outlook for Q3, given the favorable volume and pricing guidance? A: Davey Wold (CFO) highlighted that the main offsets are higher unit manufacturing costs in OSB due to more extensive planned maintenance and elevated resin costs. Additionally, lumber log costs are expected to increase, which is favorable for the Timberlands segment but a headwind for Wood Products. Q: How are you thinking about lumber imports from Canada and Europe in the second half of 2026 and into early 2027? A: Devin Stockfish (CEO) explained that Canadian duties will decrease by 10% under AR 7, but at ~35%, it remains a healthy number, and he doesn't expect a meaningful increase in volume. European imports are expected to continue trending down due to high transportation costs and rising log costs in Europe, making it unlikely they return to peak levels. Q: Are there ways Weyerhaeuser is participating in the massive AI infrastructure spend, and could you increase that participation? A: Devin Stockfish (CEO) highlighted three areas: 1) The solar and renewables business benefits from spiking energy demand. 2) The company is actively marketing sites for data center build-outs, which command significant premiums to timber value. 3) They are working to promote wood-based construction in data centers, leveraging the environmental benefits of mass timber. Q: Is the $500 million budget for the Monticello EWP facility still good given rising construction costs, and what is the demand outlook for the product? A: Davey Wold (CFO) confirmed construction is on track for a first-half 2027 startup, with ~$300 million in spend anticipated for 2026. While there are cost pressures from labor, steel, and concrete, the team is working to minimize impacts, and the return profile remains attractive. Devin Stockfish (CEO) added that early demand signals for TimberStrand are very strong across multiple applications. Q: How should we think about the timing of building out additional biocarbon sites beyond the first one? A: Devin Stockfish (CEO) stated that the company has identified several additional sites and is working through them. The first facility in McComb, Mississippi, is progressing with permits in order, and they hope to announce additional sites later this year or early next year. The team is actively marketing biocarbon to customers in Europe. Q: Can you provide a run-rate for the climate solutions contribution in the back half of the year, given the lumpy nature of the business? A: Davey Wold (CFO) noted that the climate solutions business will remain lumpy quarter-to-quarter as they build it out. The company is focused on growing this business toward the $250 million target through 2030. Over time, as renewables and CCS projects come online, it will become more of a run-rate business. Q: Can you give an update on the $180 million in enterprise initiatives and how you're prioritizing them given the weaker housing market? A: Devin Stockfish (CEO) stated that these initiatives are progressing well and are not expensive to implement. There are 53 separate cost initiatives underway, with meaningful benefits expected next year. The company is also seeing early results from AI projects and procurement efforts, and tough markets make cost initiatives easier to implement. Q: What specific steps have you taken to improve transportation capacity for lumber, and has the market improved? A: Devin Stockfish (CEO) explained that Q2 was a "perfect storm" of higher fuel costs and regulatory changes reducing trucking capacity. While the market is only slightly better, the company has taken steps like shifting more volume to rail, adding loading days, and taking on more transportation management to mitigate the impact. They expect the environment to remain tight. Q: How do you think about share buybacks and capital allocation priorities given the current stock price? A: Davey Wold (CFO) reiterated the disciplined and consistent approach to capital allocation. The framework prioritizes returning cash to shareholders, then allocating to value-add activities like business investments, debt paydown, or share repurchases. With significant Monticello spend this year, they remain focused on that, but continue to evaluate share repurchase opportunities. For the complete transcript of the earnings call, please refer to the full earnings call transcript.