Weyerhaeuser reported solid Q1 results with EBITDA up significantly due to higher lumber and OSB prices. Management's outlook for Q2 is stable, with improved volumes offset by increased costs from the Middle East conflict and planned maintenance outages. The housing market remains a key headwind. Q1 adjusted EBITDA of $308 million, a 120% increase QoQ.
Weyerhaeuser reported solid Q1 results with EBITDA up significantly due to higher lumber and OSB prices. Management's outlook for Q2 is stable, with improved volumes offset by increased costs from the Middle East conflict and planned maintenance outages. The housing market remains a key headwind. Q1 adjusted EBITDA of $308 million, a 120% increase QoQ.
Weyerhaeuser reported solid Q1 results with EBITDA up significantly due to higher lumber and OSB prices. Management's outlook for Q2 is stable, with improved volumes offset by increased costs from the Middle East conflict and planned maintenance outages. The housing market…
Guidance tone
Lumber prices increased significantly in Q1 due to supply curtailments, but have partially stabilized since.
Management acknowledged housing and repair/remodel weakness and inflationary pressures, but highlighted solid operational results, cost discipline, and positive longer-term fundamentals, striking a cautious but confident tone.
Spring building season started softer than expected. Management acknowledged housing and repair/remodel weakness and inflationary pressures, but highlighted solid operational results, cost discipline, and positive longer-term fundamentals, striking a cautious but confident tone.
Management confirmed approximately $300 million of investments for Monticello in 2026, with this CapEx excluded from adjusted FAD calculations. They also highlighted continued investments in expanding distribution footprint and new product development, while using Timberland divestitures and other proceeds to offset a significant portion of the Monticello spend.
Management acknowledged housing and repair/remodel weakness and inflationary pressures, but highlighted solid operational results, cost discipline, and positive longer-term fundamentals, striking a cautious but confident tone.
“we saw a lot of supply come out of the system last year, as we've said over the past couple of years. probably 50-ish mills have been shut down or curtailed.”
“when you take all of that together across the businesses the the headwind on a gross basis is about 10 million dollars a month”
“the preliminary results from the AR-7 have dropped the duties about 10%.”
“the professional segment holding up better than DIY. I've probably also seen a little bit more focus on smaller remodeling projects”
| 지표 | 기간 | 범위 | 중간값 | 상태 |
|---|---|---|---|---|
| Capex | FY2026 | 300 | 300 | GUIDED |
| Op marginSTRATEGIC_LAND_SOLUTIONS | FY2026 | 20%–30% | 25% | GUIDED |
Management noted that while overall repair and remodel demand is solid but mixed, the professional segment is holding up better than DIY, and there is a focus on smaller projects that use less wood. — This provides insight into demand trends at home improvement retailers, suggesting professional-focused businesses are stronger than DIY-focused ones.
Great, thanks, and good morning, everyone. I was hoping to just start off on the wood product side. Could you just talk a little bit about demand patterns you saw with home center customers over Q1, and maybe specifically looking at March and April? whether the seasonal pickup that you might typically expect occurred or perhaps is just delayed a little bit and pushed back a little bit later.
I'd say overall, you know, it's a mixed view here. You know, when we talk to our customers, you know, I'd say across to R&R generally, but that includes home centers as well. You know, there has been... differing views depending on geography. And I do think you've seen the professional segment holding up better than DIY. I've probably also seen a little bit more focus on smaller remodeling projects, which typically use a little less wood. So, you know, it's been sort of mixed. I would say it's solid, but, you know, certainly we haven't seen as meaningful a pickup as maybe sometimes you do this time of year. But nevertheless, we still think you know, we're still in the heart of repair and remodel season. Some of the colder areas are really just starting to get into the, you know, into the warmer season. And we have a while to go before the South really dials it back for kind of midsummer heat. So, you know, again, sort of a mixed story to date on R&R thus far.