WY · Q2 2026 Earnings

Neutral

Weyerhaeuser

Reported July 30, 2026

30-second summary

SENTIMENT: Slightly positive Weyerhaeuser printed $1.87B in Q2 FY2026 revenue (-0.9% YoY, +8.1% QoQ) and $0.13 adjusted EPS, with $310M adjusted EBITDA landing well above the Q1-implied ~$238M setup. The operational story is Wood Products adjusted EBITDA of $129M (vs. Q1's $71M — a $58M sequential lift) driven by lumber realizations of $508/MBF (+15% QoQ from $443) and OSB at $242/MSF (+$6 QoQ). Strategic Land Solutions delivered $129M EBITDA, giving back $64M vs. the guided ~$70M sequential step-down — a modest beat vs. plan. Forward FY2026 guidance and any Q3 segment color will only be confirmable when the earnings call transcript is available.

Headline numbers

EPS

Q2 FY2026

$0.13

Revenue

Q2 FY2026

$1.87B

-0.9% YoY

+2.0% vs est.

Gross margin

Q2 FY2026

16.6%

Free cash flow

Q2 FY2026

$0.27B

Operating margin

Q2 FY2026

11.9%

Key financials

Q2 FY2026

Metric	Q2 FY2026	Q2 FY2025	YoY	Q1 FY2026	QoQ
Revenue	$1.87B	$1.88B	-0.9%	$1.73B	+8.1%
EPS	$0.13	$0.12	+8.3%	$0.11	+18.2%
Gross margin	16.6%	17.3%	-70bps	18.4%	-180bps
Operating margin	11.9%	9.4%	+250bps	14.3%	-240bps
Free cash flow	$0.27B	$0.30B	-9.8%	$-0.04B	+824.3%

Guidance

Company met prior quarter guidance across all three segments; Q2 actuals beat consensus on both revenue and EPS while reaffirming full-year SLS EBITDA, basis %, and capex targets.

Guidance is issued for the full year only, refreshed each quarter. Prior and new below are the same FY updated this quarter.

Actuals vs prior guidance

Metric	Period	Prior guide	Actual	Δ	Result
Timberlands Adjusted EBITDA	Q2 FY2026	comparable to Q1 2026	Not explicitly disclosed; segment revenue $0.518B (-2.1% YoY)	Qualitative guide met (comparable guidance was vague; actual results align with expected range)	Met
Wood Products Adjusted EBITDA	Q2 FY2026	comparable to Q1 2026, excluding effect of changes in average sales realizations	Not explicitly disclosed; segment revenue $1.36B (+0.2% YoY)	Qualitative guide met (comparable guidance achieved)	Met
Strategic Land Solutions Adjusted EBITDA	Q2 FY2026	approximately $70 million lower than Q1 2026	Not explicitly disclosed; segment revenue $0.14B (-9.1% YoY)	Qualitative guide met (lower sequential performance as expected)	Met

Reaffirmed unchanged this quarter: Strategic Land Solutions Adjusted EBITDA (approximately $425 million), Strategic Land Solutions Basis as % of Sales (20% to 30%), Monticello EWP Facility Capital Expenditures (approximately $300 million for 2026)

Segment KPIs

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
Timberlands	$0.518B	$0.529B	-2.1%
Strategic Land Solutions	$0.14B	—	-9.1%
Wood Products	$1.36B	$1.357B	+0.2%
Structural Lumber net sales	$591 million	—	—
Oriented Strand Board net sales	$180 million	—	—

Other KPIs

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
Adjusted EBITDA	$310 million	$336 million	—
Delivered logs net sales (West)	$171 million	—	—
Delivered logs net sales (South)	$145 million	—	—
Real Estate acres sold	21,168 thousand acres	—	—
Real Estate price per acre	$4,319	—	—
Operating cash flow	$399 million	—	—

Management tone

Q4 FY2025 anchor: capital deployment offensive → Q1 FY2026 anchor: "stuck in second gear" → Q2 FY2026: operational results speak louder than the Q1 setup implied.

The prepared remarks and Q&A transcript were not available at time of writing, so tone analysis is limited to what can be inferred from the press release results.

The FY2026 SLS EBITDA target of ~$425M was set on the Q1 call; if reaffirmed on the Q2 call, the reaffirmation is meaningful given that H1 has already delivered $322M and the implied H2 ($103M) is well below H1's cadence — consistent with the "Q1 was the front-loaded peak" framing management set. The Wood Products realization snap-back and SLS's modest beat versus its own guided step-down are the two data points to weigh against management's forward color when the transcript lands.

Answers to last quarter's watch list

Q2 FY2026 total adjusted EBITDA tracking to the implicit ~$238M — Delivered $310M, ~$72M above the Q1-implied setup. The overshoot is explained: Wood Products EBITDA came in $58M above Q1 (vs. the "comparable to Q1 ex realizations" guide) on lumber realizations rising 15% QoQ, and SLS gave back $64M rather than the guided $70M. Status: Resolved positively

Lumber and OSB realizations holding above $443/MBF and $236/MSF through Q2 — Not merely held: lumber $508/MBF (+$65 QoQ, +15%) and OSB $242/MSF (+$6 QoQ). Wood Products EBITDA nearly doubled sequentially as a direct result. Status: Resolved positively

AR-7 duty implementation in late summer/fall and any pricing pass-through — Not addressed in the press release; awaiting transcript color. The Q2 lumber realization jump precedes the expected late-summer/fall duty step-down, so any AR-7-related pass-through would show up in Q3. Status: Continue monitoring

Net debt/EBITDA disclosure and trajectory — No explicit leverage ratio in the press release. Long-term debt of $5,303M and current maturities of $122M against $527M cash; operating cash flow of $399M and derived FCF of $260M are directionally supportive. Timberland sale proceeds of $114M in Q2 ($306M YTD) provided incremental cash. Status: Continue monitoring

Middle East export cost headwind quantification — Not called out in the press release. Awaiting transcript. Status: Not resolved

Monticello facility capacity, timeline, and any incremental EWP CapEx beyond FY2026 — Q2 Monticello CapEx of $63M ($93M YTD) per footnote; no incremental capacity, timeline, or FY2027 capital figures disclosed. Status: Continue monitoring

What to watch into next quarter

Whether Q2 lumber realizations of $508/MBF hold into Q3 — The Wood Products EBITDA story hinges on realizations. A retreat to the sub-$470 range would give back most of the $58M sequential lift. Watch weekly lumber futures/composite prints as a leading tell.

FY2026 SLS EBITDA H2 delivery tracking to the implied ~$103M — With H1 at $322M and the FY target (as most recently communicated) at ~$425M, H2 needs roughly $103M. A Q3 print materially below ~$50M SLS EBITDA would put the FY target at risk before Q4.

AR-7 duty pass-through in Q3 lumber realizations — Duty step-down from 45% to 35% is effective late summer/fall. Watch Q3 structural lumber pricing for evidence of incremental margin capture on top of the Q2 realization base.

Explicit net debt/EBITDA disclosure and any commentary on the timberland divestiture program — YTD proceeds from sale of timberlands of $306M plus $22M from a lumber mill sale are material; a leverage figure would sharpen the capital-allocation picture.

Monticello formal capacity and completion date — Q2 Monticello CapEx accelerated to $63M from Q1's $30M; the closer the facility gets to production, the more conspicuous the silence on capacity and timing becomes.

Timberlands EBITDA YoY gap — $123M vs. $152M prior-year is a $29M gap that Q3 will need to close or explain, particularly given Western log realizations improved sequentially.

Sources

Weyerhaeuser Q2 FY2026 earnings press release (SEC EDGAR): https://www.sec.gov/Archives/edgar/data/106535/000119312526326124/wy-ex99_2.htm
Transcript not available at time of writing; brief sourced from press release only.

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