Here's What Investors Must Know Ahead of Weyerhaeuser's Q2 Earnings

Weyerhaeuser Company WY is slated to report second-quarter 2025 results on July 24, after the closing bell.

In the last reported quarter, the company’s adjusted earnings met the Zacks Consensus Estimate at 11 cents per share while net sales topped the same by 0.7%. Year over year, the top and bottom lines decreased 1.8% and 31.3%, respectively.

Weyerhaeuser’s earnings beat the consensus mark in two of the last four quarters, met on one occasion and missed on the remaining occasion, with the average surprise being 50.7%.

How Are Estimates Placed for Weyerhaeuser?

The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share (EPS) has decreased to 12 cents from 15 cents over the past seven days. The estimated figure indicates a decrease of 42.9% from the year-ago level.

Weyerhaeuser Company Price and EPS Surprise

Weyerhaeuser Company price-eps-surprise | Weyerhaeuser Company Quote

The consensus mark for net sales is pegged at $1.88 billion, indicating a 3% year-over-year decline.

Factors Influencing WY’s Q2 Results

Weyerhaeuser's second-quarter 2025 performance is expected to have pulled back comparably year over year due to soft contributions from its Wood Products (which accounted for approximately 73% of first-quarter 2025 net sales) and Timberlands (21.7%) segments, somewhat offset by positive contributions from the Real Estate, Energy and Natural Resources (5.3%) segment.

On June 26, 2025, Weyerhaeuser released its updated second-quarter 2025 outlook through the June investor presentation.

Segment-wise, concerning the Wood Products segment, it updated this segment’s earnings and adjusted EBITDA guidance, which is now expected to be lower by approximately $20 million, sequentially, compared with the prior slightly higher expectation. The downward revision was mainly caused by a soft demand environment for most of the product categories. Moreover, higher-than-expected western log costs, manufacturing costs and raw material costs are likely to pressure the results, alongside a one-time cost impact from the fire at an MDF plant impacting Engineered Wood Products category. 

Our model predicts Wood Products segment’s net sales to decline 4.4% year over year but grow 5.6% sequentially to $1.36 billion in the second quarter. Adjusted EBITDA is expected to decline 37.3% from a year ago and 12.4% sequentially to $141 million.

The Timberlands segment’s second-quarter outlook was maintained by WY, with expectations of about $15 million lower earnings and adjusted EBITDA quarter over quarter. The company expects sales realizations to have been slightly lower due to unfavorable mix alongside higher per-unit log and haul costs in the South and West regions. Moreover, the margins are expected to have been pressured due to seasonally higher forestry and road costs. Nonetheless, expectations of higher fee harvest volumes from the West and South are likely to have eased the pressures to some extent.

We expect the Timberlands segment’s net sales to decline year over year by 2%, but increase 1.9% sequentially to $544 million. Adjusted EBITDA is expected to grow 3.3% from a year ago but decrease 9% sequentially to $151.9 million.

Weyerhaeuser expects Real Estate, Energy and Natural Resources segment’s second-quarter earnings and adjusted EBITDA to be sequentially up by about $40 million and $50 million, respectively, primarily due to timing and sales mix in real estate.

Our model predicts the Real Estate, Energy and Natural Resources segment’s net sales to be $136.4 million, up 25.1% year over year and 45.1% sequentially. Adjusted EBITDA is expected to be up 29.9% from a year ago and 61.6% sequentially to $132.5 million.

What Our Model Unveils for WY

Our proven model does not conclusively predict an earnings beat for Weyerhaeuser this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here.

Earnings ESP: WY has an Earnings ESP of -18.10%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks With the Favorable Combination

Here are some stocks from the Zacks Construction sector, which per our model, have the right combination of elements to deliver an earnings beat this time around.

Primoris Services Corporation PRIM has an Earnings ESP of +5.33% and a Zacks Rank of 1.

The company’s earnings beat estimates in each of the last four quarters, the average surprise being 44.8%. Primoris Services’ earnings for the second quarter of 2025 are expected to increase 1.9%.

Masco Corporation MAS currently has an Earnings ESP of +2.61% and a Zacks Rank of 3.

The company’s earnings beat estimates in two of the last four quarters, met on one occasion and missed on the remaining occasion, the negative average surprise being 0.2%. Masco’s earnings for the second quarter of 2025 are expected to tumble 10%.

Armstrong World Industries, Inc. AWI currently has an Earnings ESP of +1.71% and a Zacks Rank of 3.

The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 6.5%. Armstrong World’s earnings for the second quarter of 2025 are expected to increase 8%.

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This article originally published on Zacks Investment Research (zacks.com).

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