Weyerhaeuser Company Q4 FY2025 earnings call

• Devin thanked employees for execution in 2025, noted completed timberlands divestitures, entered divestiture agreement for VA acres. • Timberlands Q4 results discussed, including Western, South, North performance. • Real Estate, ENR and Climate Solutions Q4 and full year results highlighted, Climate Solutions exceeded 2025 target and set new 2030 target. • Wood Products Q4 results discussed, including lumber, OSB, Engineered Wood Products, Distribution. • David Wold discussed key financial items, pension liability management, 2026 outlook for timberlands, Strategic Land Solutions, Wood Products, capital expenditures. • Devin commented on housing, repair and remodel markets, multiyear targets and accelerated growth strategy.

Timberlands: Excluding special items, contributed $50M to Q4 earnings, adjusted EBITDA $114M, down $34M from Q3 due to lower sales volumes and realizations in West; Western domestic log demand/price softened, Western export to Japan saw softer log demand but higher realizations due to freight; South adjusted EBITDA $69M, down $5M from Q3, sawlog markets muted but fiber markets stable, average sales realizations up slightly; North adjusted EBITDA comparable to Q3. Real Estate, Energy and Natural Resources: Contributed $84M to Q4 earnings, adjusted EBITDA $95M, slight increase from prior quarter, full year adjusted EBITDA $411M, $61M higher than initial outlook; Climate Solutions full year adjusted EBITDA $119M, 42% increase from 2024, exceeded $100M target and set new $250M by 2030 target. Wood Products: Q4 loss $78M, adjusted EBITDA loss $20M; Lumber adjusted EBITDA loss $57M, production/sales volumes down, sales realizations down 3%; OSB adjusted EBITDA loss $10M, sales realizations down 6%; Engineered Wood Products adjusted EBITDA $49M, down $7M from Q3; Distribution adjusted EBITDA down $2M from prior quarter.

• Timberlands: Q1 earnings before special items and adjusted EBITDA comparable to Q4 2025; Western domestic log markets trending balanced, expect increased demand/slightly higher volumes; Japan export expected steady demand/stable pricing but slightly lower sales realizations; China expect 1 vessel in Q1, sales volumes comparable, slightly higher realizations; South log markets fairly stable, expect slightly lower sales realizations, lower fee harvest volumes; North expect slightly lower fee harvest volumes. • Strategic Land Solutions: Full year 2026 adjusted EBITDA ~$425M, basis as % of real estate sales 25%-35%; Q1 earnings ~$75M higher than Q4 2025, adjusted EBITDA ~$90M higher. • Wood Products: Excluding sales realizations change, Q1 earnings and adjusted EBITDA slightly higher; lumber expect higher production/sales volumes, lower unit manufacturing costs; OSB expect slightly higher sales volumes, slightly lower unit manufacturing costs; Engineered Wood Products expect relatively stable sales volumes with slight seasonal improvement; Distribution expect adjusted EBITDA increase. • 2026 interest expense ~$255M, effective tax rate 8%-12% before special items, noncash nonoperating pension/post-employment expense ~$60M, capital expenditures ~$400M-$450M typical, ~$300M for Arkansas EWP facility.

• Regulatory changes in Washington state related to buffer zones around non-fish-bearing streams could impact log markets, but Weyerhaeuser expects to navigate it, though smaller landowners may be impacted. • Weather-related disruptions could impact harvest volumes and construction activity. • Housing and repair and remodel markets face challenges like weak consumer confidence, affordability issues, and economic uncertainty which could impact demand for products.

Q: On pricing front, is improvement in lumber and OSB due to curtailments or underlying demand pickup?

A: Primarily supply side-driven, with some pickup in demand as spring building season approaches but currently largely supply side.

Q: Constraints stopping meaningful production response in Southern lumber?

A: Industry has been restrained in running overtime/shifts, but there's flex in system.

Q: Approach to A&D decisions in timberland portfolio?

A: Expect normal level of activity, plenty of capital pursuing transactions, real estate team capitalizing on high-value transactions.

Q: Other conservation easement opportunities?

A: Dedicated team evaluates opportunities, the Florida transaction was unique but future opportunities may exist.

Q: Operating rates in lumber and OSB?

A: Lumber in Q4 mid-70% operating rate, OSB mid-90% range.

Q: Why EWP pricing not showing pickup yet?

A: Driven by single-family housing which has been down for 4 years, but EWP has broad end-use opportunities.

Q: Thoughts on Potlatch and Rayonier closing?

A: No meaningful impact on Weyerhaeuser as they competed individually before.

Q: Leverage comfort level?

A: Leverage tracked higher, but balance sheet strong with debt reduction and portfolio optimization.

Q: Open to more divestitures?

A: Open to any that drives long-term shareholder value.

Q: Upside in Western sawlog markets?

A: Log prices follow lumber prices with lag.

Q: Impact of Washington state buffer zone regulations?

A: Weyerhaeuser expects to navigate it, not expected to be impactful.

Q: Pace of share buyback?

A: View share repurchase as attractive lever, will continue to allocate cash for shareholder value.

Q: 1Q Timberlands EBITDA guide reconciliation?

A: Due to soft log prices in Q1, pulled volume to summer last year, expect pricing to improve in spring building season so Q1 volume slightly down.

Q: Key CapEx projects in 2026 excluding Monticello?

A: Typical projects like reforestation, silviculture, roads, bridges, and wood products mill cost reduction projects.