Weyerhaeuser Company Q1 FY2026 earnings call

• Completed divestiture of non-core Timberlands in Virginia ($192M) and Princeton mill timber license transfer ($22M). • Previewed new products AeroStrand and ProPanel at International Builders Show, expect strong demand. • Expanded distribution footprint with new locations in Billings, MT and Gallatin, TN (operational by year end), distribution network now 22 locations. • Discussed business results across segments including Timberlands, Strategic Land Solutions, Wood Products

Timberlands: Excluding a special item, contributed $57M to earnings, Adjusted EBITDA $120M (5% increase QoQ). Western: Adjusted EBITDA $58M ($13M increase QoQ) due to higher sales volumes and lower costs; export log markets in Japan muted, China shipments limited. Southern: Adjusted EBITDA $62M ($7M decrease QoQ) due to subdued saw log markets. North: Adjusted EBITDA comparable QoQ. Strategic Land Solutions: New name for real estate energy and natural resources segment, contributed $169M to earnings, Adjusted EBITDA $193M ($98M increase QoQ) driven by real estate sales and conservation easement. Wood Products: Excluding a special item, contributed $14M to earnings, Adjusted EBITDA $71M ($91M improvement QoQ) due to higher lumber and OSB pricing. Lumber: Adjusted EBITDA $27M ($84M increase QoQ) with higher sales realizations and volumes. OSB: Adjusted EBITDA $3M ($13M increase QoQ) with higher sales realizations but lower volumes. Engineered Wood Products: Adjusted EBITDA $39M ($10M decrease QoQ) due to lower sales realizations and higher raw material costs. Distribution: Adjusted EBITDA improved $7M QoQ due to higher sales volumes

• Timberlands: 2Q earnings before special items and Adjusted EBITDA comparable to 1Q 2026. Western: Steady log demand, slightly higher domestic sales realizations, higher fee harvest volumes and forestry/road costs. Export: Log markets in Japan and China relatively stable. South: Relatively stable saw log demand, comparable sales realizations. North: Moderately higher average sales realizations, significantly lower fee harvest volumes. • Strategic Land Solutions: Full year adjusted EBITDA ~$425M, 2Q adjusted EBITDA ~$70M lower than 1Q 2026. • Wood Products: 2Q earnings before special items and Adjusted EBITDA comparable to 1Q 2026 excluding sales realization changes; improved sales volumes but offset by higher costs and planned OSB mill outages

• Macro-economic uncertainty impacting business segments. • Middle East conflict affecting log and haul costs, ocean freight, and inflationary pressures. • Housing market challenges including weak consumer confidence, affordability issues, mortgage rate fluctuations. • Competitive dynamics in wood products affecting pricing and market share. • Weather conditions impacting harvest volumes and log supply in certain regions

Q: Looking at wood products, talk about ability to drive profitability and supply-demand dynamics.

A: Supply-demand in each product line drives profitability, housing will improve but key is supply-demand in each line; focused on cost, innovation, brand.

Q: Pipeline of new products and Monticello.

A: Long pipeline of new products, excited about AeroStrand and ProPanel, Monticello to come online next year leveraging timber strand technology.

Q: Tariffs and duties impact.

A: Tariffs are inflationary, affect CapEx; preliminary AR-7 results dropped duties ~10%, all-in duties to come down from ~45% to ~35% around August.

Q: Inflationary pressures on resin and freight.

A: Impact of ~$10M/month headwind, offset through procurement and passing costs; incorporated in 2Q guidance.

Q: Capital allocation and leverage.

A: Maintain investment grade, leverage to mid-cycle target; Timberland divestiture proceeds offset portion of Monticello spend.

Q: Wood product demand patterns.

A: Mixed R&R demand, professional segment holding up better than DIY; EWP demand tied to single family housing, seen uptick in orders.

Q: Cost performance in lumber and OSB.

A: Continued cost focus, operating at normal levels post market adjustments; inventory build typical in Q1.

Q: Solar leasing and log export.

A: Renewables business growing, log export to India progressing despite freight headwinds.

Q: OSB mill start-ups and log export growth.

A: Unsure on OSB mill start-up delays; log export to India and other regions showing growth.

Q: Timberlands earnings improvement and distribution greenfields.

A: Timberlands earnings improvement from lumber price recovery and volume upside; distribution greenfields to drive EWP sales in under-penetrated markets.

Q: Lumber price impact on Timberland valuations and mills.

A: Timberland values not moving with short-term lumber prices; mills rarely restart once shut down, some slight pickup in south.

Q: SLS guide and climate solutions.

A: SLS typically front-loaded, 2H step down due to timing/mix; climate solutions driven by large conservation easement.

Q: EWP margins and competition.

A: EWP margins impacted by single family housing, competitors aggressive; focus on service model and value proposition.

Q: Douglas fir price driver and SYP use.

A: Douglas fir price up due to California demand; increased use of SYP due to less SPF import and value delta