AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-3: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 6/6 · 31/10/2026
Moat63
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 3/4 · Owned timberlands, integrated manufacturing and export infrastructure support a concrete cost and access mechanism. Survey-based cost leadership and historical Western relative performance strengthen the evidence beyond scale alone. The conclusion is bounded by issuer-prepared comparisons and continuing price competition.
durability · 3/4 · Land ownership, established export infrastructure and reported multi-decade Japanese relationships are difficult to reproduce quickly. The disclosed Western comparison spans 2012–2025. This supports durable operating advantages without guaranteeing continued leadership or immunity from competing supply.
customer dependency · 2/4 · Longstanding export relationships and proprietary engineered products support useful customer ties. However, no switching costs or contractual dependence are demonstrated, and similar products remain available in highly competitive markets.
erosion resilience · 2/4 · Cost and route-to-market advantages provide some protection, but broad 2025 weakness and mixed 2026 prices show substantial market exposure. Second-quarter Wood Products improvement provides an offset. The September outlook reduction signals additional pressure but is not a realized result.
Pricing power31
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
realized pricing · 1/4 · Second-quarter 2026 lumber realizations increased 12 percent and plywood increased 9 percent, while OSB fell 14 percent and other products weakened. Following significant 2025 declines, pricing remains fragile. Disclosed industry supply adjustments explain lumber's improvement without establishing discretionary issuer pricing power.
retention · 2/4 · Reported multi-decade Japanese relationships support repeat demand. Indirect operating evidence is mixed: engineered solid section volumes increased 7 percent and OSB increased 2 percent, while lumber fell 9 percent and other lines weakened. These figures do not establish customer-level retention rates.
margin resilience · 1/4 · Wood Products operating income fell from $457 million in 2024 to $55 million in 2025. Second-quarter 2026 improved, but first-half operating income and adjusted EBITDA remained below the prior year, despite a remediation recovery in operating income. This demonstrates weak resilience across the observed downturn.
contractual freedom · 1/4 · Order files cause realizations to lag benchmark pricing, providing indirect evidence of limited immediate repricing flexibility. Price-led competition further constrains economic freedom. Contract durations, cancellation rights and escalation clauses are not supplied.
Predictability65
Financial-sector stability over 5 consecutive reported annual periods: equal weights for nondeclining revenue frequency, revenue-growth volatility (5–40pp), positive consolidated earnings frequency, and net-income/revenue margin volatility (3–20pp). Uses reported accounting scope; not industrial FCF or a growth forecast.
- Nondeclining revenue years (%)
- 0.00
- Revenue growth volatility (pp)
- 9.50
- positiveEarningsShare
- 100.00
- netMarginStdDev
- 7.95
- observedAnnualPeriods
- 5.00
Financial strength50
Qualitative real_estate assessment: equal-weight average of four current evidence-backed grades (0–4), scaled to 100. Policy real-estate-1; not an industrial ratio score or credit rating.
capital adequacy · 2/4 · For this timberland, land-sales and wood-products business, June 2026 consolidated debt of $5.425 billion against $16.513 billion of assets and $9.456 billion of equity supports a mixed assessment of borrowing leverage. Debt declined from $5.572 billion at year-end 2025, although $250 million of commercial paper was introduced. Secured versus unencumbered assets, covenant headroom and financing commitments are not established by the supplied passages, limiting confidence in capital flexibility.
liquidity funding · 2/4 · June 2026 cash and cash equivalents of $527 million exceeded $122 million of current long-term debt maturities, but $250 million of commercial paper adds refinancing exposure. First-half operating cash flow of $451 million was below the combined $251 million of property/equipment and reforestation spending and $323 million of dividends and repurchases. Asset-sale proceeds of $328 million and net commercial-paper issuance of $250 million accompanied $400 million of long-term debt repayments. Available undrawn facilities and remaining development commitments are not disclosed here; liquidity is demonstrated but partly dependent on asset recycling and financing.
asset liability risk · 2/4 · Most June 2026 debt was fixed rate, providing some protection, while $1.347 billion was classified as variable rate and $250 million as commercial paper. The separate long-term obligation schedule shows $800 million of variable-rate principal due in 2028 and $750 million of fixed-rate principal in each of 2029 and 2030; its principal amounts exclude $32 million of discounts and debt expense and should not be equated with carrying values. Variable-rate interest averaged 4.97% before patronage refunds and swaps. Actual weaker wood-product realizations and log volumes demonstrate cyclical asset earnings exposure alongside refinancing and rate risk.
earnings resilience · 2/4 · The business remained profitable and generated $451 million of operating cash in the first half of 2026 versus $466 million a year earlier. However, sales declined $53 million and gross margin fell $31 million. The $113 million operating-income increase depended primarily on $129 million of timberland-sale gains and a $28 million remediation recovery; Wood Products operating income declined to $113 million from $152 million. Positive cash generation and land monetization provide support, but recurring operating outcomes show meaningful cyclicality.
Capital allocation50
Qualitative real_estate assessment: equal-weight average of four current evidence-backed grades (0–4), scaled to 100. Policy real-estate-1; not an industrial ratio score or credit rating.
capital efficiency · 2/4 · First-half 2026 diluted EPS increased to $0.44 from $0.23 while diluted weighted-average shares declined to 721.787 million from 725.239 million. The improvement is qualified by timberland-sale gains and the remediation recovery rather than stronger consolidated gross margin. Operating cash flow slipped despite increased property/equipment spending, including $93 million on Monticello. Per-share progress and realized asset monetization support a mixed grade; realized returns on the new facility are not established.
distributions and buffers · 1/4 · In 2025, $562 million of operating cash flow was below $606 million of dividends even before $474 million of property/equipment and reforestation spending and $160 million of repurchases. In first-half 2026, $451 million of operating cash covered $303 million of dividends, but left $200 million after all reported capital spending, below $323 million of dividends and repurchases. Repurchases fell substantially, and June cash was $527 million, but asset sales and financing remained material funding sources. Maintenance spending is not separately identified, so these comparisons use total reported capital spending rather than an invented maintenance requirement.
dilution and cost · 3/4 · Actual share outcomes show dilution control: first-half diluted weighted-average shares fell to 721.787 million from 725.239 million, and June shares outstanding fell year over year to 720.692 million from 721.835 million. Share-based compensation remained $23 million in each first half, while interest expense remained $132 million despite changes in funding mix. Shares outstanding increased slightly from December 2025, and commercial-paper funding adds rollover exposure, but the observed share base and financing costs support a strong bounded assessment.
investment discipline · 2/4 · Completed recycling demonstrates execution: 2025 included $469 million of timberland acquisitions and $405 million of timberland-sale proceeds, followed by $306 million of timberland-sale proceeds in first-half 2026. The Princeton mill sale realized a $29 million gain, with associated license transfers completed in April 2026. Against these outcomes, Monticello spending reached $93 million in first-half 2026 while Wood Products operating income weakened. Disposition gains demonstrate monetization, but acquisition returns and the new facility's realized economics remain unproven in the supplied evidence.
Management63
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · First-half operating cash flow of $451 million covered $251 million of property and reforestation spending, leaving $200 million before $303 million of dividends and $20 million of repurchases. Asset sales supported broader cash uses; repurchases declined and debt was repaid alongside commercial-paper issuance. The approximately $500 million plant commitment remains unfinished, so its expected returns cannot establish allocation success.
incentive alignment · 3/4 · Actual arrangements include three-year PSUs, four-year RSUs, ownership requirements and hedging prohibitions. The 2023 PSU award achieved 66.6 percent of target and earned shares vested in March 2026, demonstrating implementation. The adopted removal of deferred-compensation premiums applies to 2027 and later earnings. Ownership compliance and exceptional alignment outcomes remain unestablished.
execution · 2/4 · Management reports $92 million of operational improvements and achievement of the Climate Solutions target; a completed $94 million conservation easement sale provides additional transactional evidence. Assessment is partly indirect and issuer-reported. Weak Wood Products results and consolidated income growth driven largely by timberland gains limit evidence of sustained operating execution.
governance · 3/4 · Ten of eleven directors are independent, chair and CEO roles are separate, directors face annual elections with majority voting, and key committees consist exclusively of independent directors. These demonstrate strong governance structures, while exceptional oversight effectiveness is not established.
Evidence
We own 9.7 million of those acres and control the remaining acres through long-term contracts.
2025 Form 10-K, Our Business, Timberlands ownership · Filed 13/02/2026
Acres In Millions U.S. Weyerhaeuser1 10.3 Rayonier2 4.1 Our Peer-Leading Scale & Integrated Manufacturing Allows Us To Flex Volumes & Maximize Overall Returns Industry-Leading Silviculture & Harvesting Costs3 #1 In Adj.
September 2026 presentation, Timberlands competitive position · Filed 24/09/2026
EBITDA Per Acre In The West 4 1st Our Substantial Delivered Log Model Enables Us To Capture Higher Margins 1.
September 2026 presentation, Western per-acre ranking and delivered-log model · Filed 24/09/2026
Based on most recent Forisk Silviculture Survey for each region.
September 2026 presentation, silviculture survey methodology · Filed 24/09/2026
4. From 2012-2025, based on public filings.
September 2026 presentation, historical comparison period · Filed 24/09/2026
Compared to NCREIF and stand-alone Rayonier.
September 2026 presentation, Western comparison coverage · Filed 24/09/2026
Unrivaled Market Position & Supply Chain Expertise WEYERHAEUSER TIMBERLANDS EXPORT MARKETS Scale + Consistent Product Quality + Supply Chain Reliability = Export Competitive Advantage UNIQUE JAPAN EXPORT BUSINESS Multi-decade relationships supplying post & beam housing market Western timberlands ownership provides premium logs at unrivaled scale Largest log export facility in North America creates substantial supply chain advantage & efficiencies OTHER WY EXPORT MARKETS Direct-to-customer strategy facilitates consistent demand Flexibility to quickly respond to shifts in global wood demand Southern exports positioned to grow Targeting new geographies & growing demand for wood fiber, biomass & pellets Southern Exports Western Exports 1.
September 2026 presentation, Timberlands export markets · Filed 24/09/2026
COMPETITION IN OUR MARKETS
We operate in highly competitive domestic and foreign markets, with numerous companies selling similar products.
2025 Form 10-K, Competition in Our Markets · Filed 13/02/2026
The principal basis for competition for many of our products is selling price.
2025 Form 10-K, price competition · Filed 13/02/2026
Increases in timber prices often result in substantial increases in harvesting on private timberlands, including lands owned by others and not previously made available for commercial timber operations, causing a short-term increase in supply that moderates such price increases.
2025 Form 10-K, timber supply response · Filed 13/02/2026
In general, Southern log supply remains ample and wood product and fiber mills continue to align production with end-market demand.
June 2026 Form 10-Q, Southern log market conditions · Filed 31/07/2026
As a result, Weyerhaeuser continues to re-establish its log export program to strategic customers in China.
June 2026 Form 10-Q, re-establishment of China export program · Filed 31/07/2026
To improve comparability with peer disclosures, amounts shown for Weyerhaeuser include Timberlands EBITDA and non-timber income associated with Natural Resources and Climate Solutions business lines, where available.
September 2026 presentation, peer-comparison adjustments · Filed 24/09/2026
Third Party Sales By Product (2025)1 Distinct Competitive Advantages Microllam (LVL) 14% I-joists 27% Plywood 11% MDF 11% ~$370MM Annual Adjusted EBITDA2 5-Year Average 25% Adjusted EBITDA Margin2 5-Year Average Strong Financial Results Trus Joist® brand leadership Proprietary TimberStrand® & Parallam® beam products are ~40% of revenue1 Limited dependence on high-grade veneer Diverse customers & growing industrial mix Proprietary design software & tools Industry-leading customer support ~50% of our EWP is sold through WY Distribution1 Parallam (PSL) 20% TimberStrand (LSL) 17% Solid Section Products Solid Section Products I-joists 31 1.
September 2026 presentation, engineered wood products · Filed 24/09/2026
2. Wood Products peers include BlueLinx, Boise Cascade, Canfor, Interfor, Louisiana-Pacific and West Fraser.
September 2026 presentation, named Wood Products peers · Filed 24/09/2026
South & serves WY’s strong & expanding customer base in the region Existing TimberStrand production located exclusively in Canada Delivering Seamless Integration With Our Existing Timberlands & Distribution Network New facility enables conversion of lower quality southern logs & forest by-products into a higher value EWP product ~80% of raw material sourcing will come from WY fee timberlands in the region Doubling Our TimberStrand Capacity New facility adds 10 million cubic feet of production capacity Increases total company EWP capacity by ~24%1 $100+ MILLION Annual Adjusted EBITDA2 Expected At Full Operating Capacity Additional upside from portfolio integration benefits Construction commenced in 2025, with startup expected in 2027 ~$500 million investment between 2025 & 2027 1.
September 2026 presentation, planned TimberStrand facility and investment · Filed 24/09/2026
COMPARING 2025 WITH 2024
Net Sales
Net sales decreased $264 million — 5 percent — primarily due to:
a $217 million decrease in oriented strand board sales attributable to a 25 percent decrease in sales realizations, partially offset by a 4 percent increase in sales volumes;
a $59 million decrease in engineered solid section sales attributable to a 7 percent decrease in sales realizations and a 1 percent decrease in sales volumes;
2025 Form 10-K, Wood Products realized prices and volumes · Filed 13/02/2026
These increases were partially offset by: • a $25 million decrease in oriented strand board sales attributable to a 14 percent decrease in sales realizations, partially offset by a 2 percent increase in sales volumes; • a $13 million decrease in other products produced sales, primarily attributable to a decrease in wood chip sales realizations and volumes; • a $6 million decrease in engineered I-joist sales attributable to a 5 percent decrease in sales volumes and a 2 percent decrease in sales realizations and • a $5 million decrease in medium density fiberboard sales attributable to a 13 percent decrease in sales volumes and a 4 percent decrease in sales realizations.
June 2026 Form 10-Q, Wood Products price and volume declines · Filed 31/07/2026
Comparing Second Quarter 2026 with Second Quarter 2025 Net sales Net sales increased $3 million – less than 1 percent – primarily due to: • a $24 million increase in complementary building products sales primarily attributable to increased sales volumes and realizations for steel; • a $12 million increase in engineered solid section sales attributable to a 7 percent increase in sales volumes; • a $10 million increase in structural lumber sales attributable to a 12 percent increase in sales realizations, partially offset by a 9 percent decrease in sales volumes and • a $6 million increase in softwood plywood sales attributable to a 9 percent increase in sales realizations and a 4 percent increase in sales volumes.
June 2026 Form 10-Q, Wood Products price and volume increases · Filed 31/07/2026
Curtailments and some permanent closures in late 2025 and into 2026, fewer European lumber imports, leaner dealer inventories and tighter freight markets contributed to the price increases.
June 2026 Form 10-Q, market drivers of lumber price increases · Filed 31/07/2026
2025
2024
2024
Net sales:
Structural lumber
$
2,037
$
1,906
$
131
Oriented strand board
762
979
(217
)
Engineered solid section
649
708
(59
)
Engineered I-joists
343
390
(47
)
Softwood plywood
155
158
(3
)
Medium density fiberboard
135
159
(24
)
Complementary building products
565
615
(50
)
Other products produced (1)
311
306
5
Total segment net sales
$
4,957
$
5,221
$
(264
)
Costs of sales
$
4,674
$
4,516
$
158
Operating income and Net contribution to earnings
$
55
$
457
$
(402
)
(1)
Other products produced sales include wood chips, other byproducts and third-party residual log sales from our Canadian Forestlands operations.
2025 Form 10-K, Wood Products segment results · Filed 13/02/2026
Segment Statement of Operations
in millions
Q1.2026
Q2.2026
Q2.2025
YTD.2026
YTD.2025
Net sales
$
1,164
$
1,360
$
1,357
$
2,524
$
2,644
Costs of sales
1,087
1,223
1,243
2,310
2,357
Gross margin
77
137
114
214
287
Selling expenses
22
23
22
45
44
General and administrative expenses
39
37
40
76
79
Other operating (income) costs, net
(26
)
6
6
(20
)
12
Operating income and Net contribution to earnings
$
42
$
71
$
46
$
113
$
152
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1)
in millions
Q1.2026
Q2.2026
Q2.2025
YTD.2026
YTD.2025
Operating income
$
42
$
71
$
46
$
113
$
152
Depreciation, depletion and amortization
57
58
55
115
110
Special items
(28
)
—
—
(28
)
—
Adjusted EBITDA(1)
$
71
$
129
$
101
$
200
$
262
(1) See definition of Adjusted EBITDA (a non-GAAP measure) on page 1.
July 2026 analyst package, Wood Products results and special-item reconciliation · Filed 30/07/2026
Changes in average realizations typically lag changes in industry benchmark pricing due to length of order files.
August 2026 presentation, order-file effect on realized pricing · Filed 27/08/2026
3 WEYERHAEUSER COMPANY CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED) YEAR-TO-DATE ENDED DOLLAR AMOUNTS IN MILLIONS JUNE 2026 JUNE 2025 Cash flows from operations: Net earnings $ 318 $ 170 Noncash charges (credits) to earnings: Depreciation, depletion and amortization 251 250 Basis of acres sold 54 57 Deferred income taxes, net (25 ) 4 Pension and other post-employment benefits (Note 6) 37 47 Share-based compensation expense (Note 12) 23 23 Gain on sale of timberlands (Note 15) (129 ) — Other 1 — Change in: Receivables, net (83 ) (66 ) Receivables and payables for taxes 14 (16 ) Inventories (14 ) (13 ) Prepaid expenses and other current assets 4 17 Accounts payable and accrued liabilities 17 39 Pension and post-employment benefit contributions and payments (9 ) (6 ) Other (8 ) (40 ) Net cash from operations 451 466 Cash flows from investing activities: Capital expenditures for property and equipment (220 ) (170 ) Capital expenditures for timberlands reforestation (31 ) (30 ) Proceeds from sale of timberlands (Note 15) 306 — Proceeds from lumber mill sale (Note 16) 22 — Other (3 ) (8 ) Net cash from investing activities 74 (208 ) Cash flows from financing activities: Cash dividends on common shares (303 ) (304 ) Net proceeds from issuance of long-term debt (Note 8) — 299 Net proceeds from issuance of commercial paper (Note 8) 331 — Payments on long-term debt (Note 8) (400 ) (210 ) Payments on commercial paper (Note 8) (81 ) — Repurchases of common shares (Note 4) (20 ) (125 ) Other (6 ) (10 ) Net cash from financing activities (479 ) (350 ) Net change in cash, cash equivalents and restricted cash 46 (92 ) Cash, cash equivalents and restricted cash at beginning of period 481 684 Cash, cash equivalents and restricted cash at end of period $ 527 $ 592 Cash paid during the period for: Interest, net of amount capitalized of $7 and $6 $ 133 $ 132 Income taxes, net of refunds $ 13 $ 40 See accompanying Notes to Consolidated Financial Statements.
June 2026 Form 10-Q, consolidated cash flows · Filed 31/07/2026
Our long-term incentive program comprises two types of awards: • PSU awards, which measure performance over a three-year performance period and are settled in shares of common stock • RSU awards, which vest ratably over a four-year period and are settled in shares of common stock Our long-term incentive awards effectively align the interests of our senior executives and our shareholders by rewarding stock price appreciation and cash returns to our shareholders.
April 2026 proxy, long-term incentive structure · Filed 01/04/2026
Directors and executive officers are obligated to own shares of Weyerhaeuser common stock valued at least at five times the director’s cash compensation, at three times the executive officer’s annual base salary and at six times the CEO’s annual base salary.
April 2026 proxy, share ownership requirements · Filed 01/04/2026
Earned PSU shares vested on March 1, 2026.
April 2026 proxy, actual PSU vesting · Filed 01/04/2026
Directors and officers are prohibited from hedging or pledging company stock
April 2026 proxy, anti-hedging and anti-pledging policy · Filed 01/04/2026
Notably, in 2025, we meaningfully enhanced the quality and value of our timberlands portfolio, exceeded the multi-year growth target for our Climate Solutions business, captured $92 million in operational excellence improvements and returned $766 million in total cash to shareholders.
April 2026 proxy, reported operational and strategic achievements · Filed 01/04/2026
$766M
5%
$469M
$100M
in total cash returned
to shareholders based
on 2025 results
and actions
increase to
quarterly base
dividend in 2025 to
$0.21 per share
of timberlands acquired
in 2025 primarily
with proceeds from
timberlands divestitures
Climate Solutions goal
exceeded with $102M in
operating income and $119M*
in Adjusted EBITDA in 2025
Further Optimized our Timberlands Portfolio
•
Enhanced the quality and value of our timberlands through a series of strategic and capital-efficient transactions.
April 2026 proxy, Climate Solutions results and capital deployment · Filed 01/04/2026
Comparing Year-to-Date 2026 with Year-to-Date 2025
Net sales
Net sales increased $99 million – 40 percent – primarily due to a $94 million conservation easement sale in our Climate Solutions business, increases in acres sold and average price per acre sold for our Real Estate business, as well as increases in right-of-way easements, royalty income, and mineral asset sales for our Natural Resources business.
June 2026 Form 10-Q, Strategic Land Solutions realized transactions · Filed 31/07/2026
Operating income
Operating income increased $113 million – 32 percent – primarily due to a $129 million increase in gain on sale of timberlands, as well as a $28 million product remediation recovery recorded in first quarter 2026, partially offset by a $31 million decrease in consolidated gross margin (see discussion of components above).
June 2026 Form 10-Q, consolidated operating income drivers · Filed 31/07/2026
Our current board composition far exceeds this requirement, as ten of our eleven directors are independent, with the one exception being our chief executive officer.
2025 Form 10-K, board independence · Filed 13/02/2026
Our board chair and our chief executive officer are currently separate.
2025 Form 10-K, separate chair and CEO roles · Filed 13/02/2026
All of our directors stand for election annually, and we have a majority voting standard in uncontested elections.
2025 Form 10-K, annual elections and majority voting · Filed 13/02/2026
The board of directors has determined that these committees are comprised exclusively of independent directors and, in the case of the Audit Committee and Compensation Committee, include members who meet the enhanced independence requirements of the SEC and the NYSE for service on those committees.
April 2026 proxy, independent board committees · Filed 01/04/2026
In accordance with SEC disclosure rules, the number of units in this column also include PSUs granted in 2023, the performance period for which was concluded on December 31, 2025, based on the actual performance (66.6 percent of target shares) of the award.
April 2026 proxy, actual 2023 PSU performance · Filed 01/04/2026
Prior to the amendment and restatement of the plan, amounts deferred into stock equivalent accounts were credited with a premium determined each year by the Compensation Committee; the primary purpose of the amendment and restatement of the plan was to eliminate the premium for stock equivalent deferrals and related provisions.
May 2026 Form 8-K, elimination of deferred-compensation premium · Filed 20/05/2026
The amended and restated plan will govern deferrals and distributions of amounts earned in 2027 and subsequent years.
May 2026 Form 8-K, amended plan effective earnings periods · Filed 20/05/2026
SEGMENT PRIOR OUTLOOK EXPECTED EARNINGS1 & ADJUSTED EBITDA OUTLOOK UPDATE EXPECTED EARNINGS1 & ADJUSTED EBITDA TIMBERLANDS Slightly higher than 2026 Q2 Unchanged STRATEGIC LAND SOLUTIONS2 Earnings ~$30 million lower than 2026 Q2 Adjusted EBITDA ~$45 million lower than 2026 Q2 Unchanged WOOD PRODUCTS Slightly lower than 2026 Q2, excluding the effect of changes in average sales realizations for lumber and oriented strand board Moderately (~$30 million) lower than 2026 Q2, excluding the effect of changes in average sales realizations for lumber and oriented strand board.
September 2026 presentation, revised third-quarter outlook · Filed 24/09/2026
The variance from prior outlook is primarily due to higher-than-expected fuel costs, as well as a mix shift in EWP.
September 2026 presentation, fuel-cost and product-mix outlook drivers · Filed 24/09/2026
JUNE 30,
2026
DECEMBER 31,
2025
DOLLAR AMOUNTS IN MILLIONS
CARRYING
VALUE
FAIR VALUE
(LEVEL 2)
CARRYING
VALUE
FAIR VALUE
(LEVEL 2)
Long-term debt (including current maturities), line of credit and commercial paper:
Fixed rate
$
3,828
$
3,776
$
4,225
$
4,242
Variable rate
1,347
1,350
1,347
1,350
Commercial paper program
250
250
—
—
Total debt
$
5,425
$
5,376
$
5,572
$
5,592
filing-2, June 30, 2026 debt carrying values and rate classification · Filed 31/07/2026
DOLLAR AMOUNTS IN MILLIONS, EXCEPT PAR VALUE
JUNE 30,
2026
DECEMBER 31,
2025
ASSETS
Current assets:
Cash and cash equivalents
$
527
$
464
Receivables, net
373
303
Receivables for taxes
5
10
Inventories (Note 5)
604
593
Assets held for sale
—
128
Prepaid expenses and other current assets
127
154
Total current assets
1,636
1,652
Property and equipment, less accumulated depreciation of $4,248 and $4,158
2,405
2,420
Construction in progress
423
337
Timber and timberlands at cost, less depletion
11,384
11,533
Minerals and mineral rights, less depletion
173
177
Deferred tax assets
113
97
Other assets
379
397
Total assets
$
16,513
$
16,613
LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt (Note 8)
$
122
$
522
Accounts payable
311
278
Accrued liabilities (Note 7)
468
478
Total current liabilities
901
1,278
Long-term debt, net (Note 8)
5,303
5,050
Deferred tax liabilities
15
18
Deferred pension and other post-employment benefits (Note 6)
486
485
Other liabilities
352
356
Total liabilities
7,057
7,187
Commitments and contingencies (Note 10)
Equity:
Common shares: $1.25 par value; authorized 1,360 million shares; issued and outstanding: 720,692 thousand shares at June 30, 2026 and 720,531 thousand shares at December 31, 2025
901
901
Other capital
7,392
7,390
Retained earnings
1,442
1,428
Accumulated other comprehensive loss (Note 11)
(279
)
(293
)
Total equity
9,456
9,426
Total liabilities and equity
$
16,513
$
16,613
filing-2, consolidated balance sheet, June 30, 2026 and December 31, 2025 · Filed 31/07/2026
31
Summary of Long-Term Debt Obligations as of June 30, 2026
DOLLAR AMOUNTS IN MILLIONS
2026
2027
2028
2029
2030
THEREAFTER
TOTAL(1)(3)
FAIR VALUE
Fixed-rate debt
$
122
$
300
$
—
$
750
$
750
$
1,935
$
3,857
$
3,776
Average interest rate
7.60
%
6.95
%
—
%
4.00
%
4.00
%
5.40
%
5.05
%
N/A
Variable-rate debt(2)(3)
$
—
$
—
$
800
$
—
$
—
$
550
$
1,350
$
1,350
(1)
Excludes $32 million of unamortized discounts and capitalized debt expense.
filing-2, Summary of Long-Term Debt Obligations as of June 30, 2026 · Filed 31/07/2026
(2)
As of June 30, 2026, the weighted average interest rate for our variable-rate debt was 4.97 percent, excluding estimated patronage refunds and the impact of interest rate swaps.
filing-2, variable-rate debt interest-rate footnote · Filed 31/07/2026
DOLLAR AMOUNTS IN MILLIONS
2025
2024
2023
Cash flows from operations:
Net earnings
$
324
$
396
$
839
Noncash charges (credits) to earnings:
Depreciation, depletion and amortization
509
502
500
Basis of real estate sold
84
120
93
Deferred income taxes, net (Note 18)
(114
)
(40
)
(4
)
Pension and other post-employment benefits (Note 8)
239
63
68
Share-based compensation expense (Note 15)
43
43
36
Gain on lumber mill sale (Note 20)
(29
)
—
—
Gain on sale of timberlands (Note 4)
(266
)
—
(84
)
Other
7
2
(2
)
Change in:
Receivables, net
14
45
4
Receivables and payables for taxes
(20
)
14
41
Inventories
—
(55
)
(13
)
Prepaid expenses and other current assets
11
19
(13
)
Accounts payable and accrued liabilities
11
(38
)
35
Pension and post-employment benefit contributions and payments (Note 8)
(219
)
(18
)
(20
)
Other
(32
)
(45
)
(47
)
Net cash from operations
562
1,008
1,433
Cash flows from investing activities:
Capital expenditures for property and equipment
(423
)
(364
)
(390
)
Capital expenditures for timberlands reforestation
(51
)
(52
)
(57
)
Acquisition of timberlands (Note 4)
(469
)
(251
)
(233
)
Proceeds from lumber mill sale (Note 20)
61
—
—
Proceeds from sale of timberlands (Note 4)
405
—
166
Purchase of short-term investments
—
—
(664
)
Maturities of short-term investments
—
—
664
Other
2
31
6
Net cash from investing activities
(475
)
(636
)
(508
)
Cash flows from financing activities:
Cash dividends on common shares
(606
)
(684
)
(1,216
)
Net proceeds from issuance of long-term debt (Note 11)
1,199
—
992
Payments on long-term debt (Note 11)
(712
)
—
(978
)
Repurchases of common shares (Note 14)
(160
)
(154
)
(131
)
Other
(11
)
(14
)
(9
)
Net cash from financing activities
(290
)
(852
)
(1,342
)
Net change in cash, cash equivalents and restricted cash
$
(203
)
$
(480
filing-1, consolidated statement of cash flows, 2025, 2024 and 2023 · Filed 13/02/2026
Comparing Year-to-Date 2026 with Year-to-Date 2025
Net sales
Net sales decreased $53 million – 1 percent – primarily due to a $120 million decrease in Wood Products net sales attributable to decreased sales realizations for oriented strand board and lower sales volumes for structural lumber, as well as a $32 million decrease in Timberlands net sales to unaffiliated customers attributable to lower Western and Southern log sales.
filing-2, year-to-date 2026 versus 2025 consolidated net-sales discussion · Filed 31/07/2026
Mar 31,
2026
Jun 30,
2026
Jun 30,
2025
Jun 30,
2026
Jun 30,
2025
Net sales
$
1,727
$
1,867
$
1,884
$
3,594
$
3,647
Costs of sales
1,409
1,556
1,559
2,965
2,987
Gross margin
318
311
325
629
660
Selling expenses
23
24
23
47
46
General and administrative expenses
119
115
114
234
233
Gain on sale of timberlands
(58
)
(71
)
—
(129
)
—
Other operating (income) costs, net
(13
)
20
10
7
24
Operating income
247
223
178
470
357
Non-operating pension and other post-employment benefit costs
(14
)
(14
)
(19
)
(28
)
(38
)
Interest income and other
4
4
6
8
11
Interest expense, net of capitalized interest
(66
)
(66
)
(66
)
(132
)
(132
)
Earnings before income taxes
171
147
99
318
198
Income taxes
(15
)
15
(12
)
—
(28
)
Net earnings
$
156
$
162
$
87
$
318
$
170
Per Share Information
Q1
Q2
Year-to-Date
Mar 31,
2026
Jun 30,
2026
Jun 30,
2025
Jun 30,
2026
Jun 30,
2025
Earnings per share, basic and diluted
$
0.22
$
0.23
$
0.12
$
0.44
$
0.23
Dividends paid per common share
$
0.21
$
0.21
$
0.21
$
0.42
$
0.42
Weighted average shares outstanding (in thousands):
Basic
721,290
721,421
723,682
721,356
724,906
Diluted
721,671
721,901
723,927
721,787
725,239
Common shares outstanding at end of period (in thousands)
721,043
720,692
721,835
720,692
721,835
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization (Adjusted EBITDA)
Q1
Q2
Year-to-Date
in millions
Mar 31,
2026
Jun 30,
2026
Jun 30,
2025
Jun 30,
2026
Jun 30,
2025
Net earnings
$
156
$
162
$
87
$
318
$
170
Non-operating pension and other post-employment benefit costs
14
14
19
28
38
Interest income and other
(4
)
(4
)
(6
)
(8
)
(11
)
Interest expense, net of capitalized interest
66
66
66
132
filing-7, consolidated operating results and per-share information, Q2 and year-to-date 2026 versus 2025 · Filed 30/07/2026
(3) Includes capital expenditures related to the construction of our Monticello engineered wood products facility of $22 million and $38 million in second quarter 2025 and year-to-date 2025, respectively, and $30 million, $63 million and $93 million in first quarter 2026, second quarter 2026, and year-to-date 2026, respectively.
filing-7, Monticello engineered wood products facility capital-expenditure footnote · Filed 30/07/2026
In third quarter 2025, we completed the sale of our Princeton lumber mill for a total purchase price of approximately $85 million.
filing-2, completed Princeton lumber mill sale · Filed 31/07/2026
Pursuant to the transaction closing, a gain on the sale of $29 million was recognized.
filing-2, realized gain on Princeton lumber mill sale · Filed 31/07/2026
In April 2026, we obtained all necessary approvals and completed the transfer of the associated licenses.
filing-2, April 2026 completion of associated timber-license transfers · Filed 31/07/2026
