Weyerhaeuser Q2 Earnings & Sales Top, Adjusted EBITDA Down Y/Y

Weyerhaeuser's Q2 Highlights

The second-quarter adjusted earnings were 13 cents per share, up 8.3% year over year and topping the Zacks Consensus Estimate of six cents by 116.7%.

Net sales of $1.87 billion inched down 0.9% from the prior-year quarter but beat the consensus mark of $1.80 billion by 4%.

Gross margin was $311 million, down from $325 million in the year-ago quarter. Selling expenses increased to $24 million from $23 million, while general and administrative expenses rose to $115 million from $114 million. Operating income advanced to $223 million from $178 million. The latest quarter included a $71 million pretax gain from the sale of Oregon timberlands.

Weyerhaeuser's Wood Products Segment Rebounds

Wood Products net sales reached $1.36 billion, up $196 million sequentially. Operating income increased to $71 million from $42 million, while adjusted EBITDA climbed to $129 million from $71 million. The segment’s adjusted EBITDA margin expanded to 9% from 6%.

Lumber was the primary driver, with adjusted EBITDA rising to $73 million from $27 million. Lumber realizations increased 15% sequentially and volumes were moderately higher. Engineered Wood Products adjusted EBITDA improved to $54 million from $39 million, supported by higher volumes and realizations. However, Oriented Strand Board posted a $6 million adjusted EBITDA loss due to higher manufacturing, maintenance and resin costs.

Weyerhaeuser's Timberlands Results Stay Resilient

Timberlands generated total net sales of $518 million, down 2.1% year over year. Net contribution to earnings increased to $130 million from $88 million, aided by the timberland sale. Adjusted EBITDA declined to $123 million from $152 million.

In the West, fee harvest volumes were slightly higher sequentially due to seasonally favorable operating conditions. Domestic log sales volumes and realizations improved, but elevated fuel, freight, forestry and road costs pressured results. Southern fee harvest volumes were comparable sequentially, while realizations improved slightly due to mix.

WY's Strategic Land Solutions Sales Decline

Strategic Land Solutions recorded net sales of $140 million, down 9.1% year over year. Operating income fell to $94 million from $106 million, while adjusted EBITDA declined to $129 million from $143 million.

Sequentially, results fell sharply because the first quarter included a $94 million conservation easement transaction in the Climate Solutions business. This was partly offset by stronger Real Estate results stemming from the timing and mix of sales. Real Estate adjusted EBITDA increased sequentially to $83 million from $61 million, while Climate Solutions adjusted EBITDA dropped to $13 million from $108 million.

WY's Cash Flow and Liquidity Improve

Net cash from operations was $399 million, slightly above $396 million in the year-ago quarter and substantially higher than $52 million in the first quarter. Capital expenditures totaled $139 million, including $63 million related to the Monticello engineered wood products facility.

WY ended the quarter with $527 million in cash and cash equivalents and total debt of $5.43 billion. The company repurchased $10 million of common stock and paid $152 million in cash dividends during the quarter.

Weyerhaeuser Issued Mixed Q3 Segment Outlook

For the third quarter of 2026, Timberlands earnings before special items and adjusted EBITDA are expected to be slightly higher sequentially. Management anticipates higher harvest volumes and lower per-unit log and haul costs, partly offset by seasonally higher forestry and road expenses.

Strategic Land Solutions earnings are projected to decline about $30 million sequentially, while adjusted EBITDA is expected to fall roughly $45 million due to the timing and mix of real estate sales. Full-year segment adjusted EBITDA is now forecast at approximately $450 million, up $25 million from the prior outlook.

Wood Products earnings and adjusted EBITDA are expected to be slightly lower, excluding changes in lumber and oriented strand board realizations. Higher lumber and engineered wood product volumes are expected, though moderately higher lumber log costs and increased oriented strand board manufacturing costs may weigh on profitability.

WY Stock’s Zacks Rank & Recent Construction Releases

Weyerhaeuser currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Martin Marietta Materials, Inc. MLM reported outstanding second-quarter 2026 results, wherein adjusted earnings (from continuing operations) and revenues topped the Zacks Consensus Estimate and increased year over year.

Martin Marietta’s results benefited from strong organic performance and acquisition contributions. Aggregates shipments increased 17% to a record 61.6 million tons, supported by infrastructure and heavy nonresidential demand. Heavy nonresidential demand also benefited from data center, power-generation and warehouse construction. Martin Marietta raised its 2026 revenue guidance to a range of $7.2-$7.4 billion, with a midpoint of $7.3 billion.

CRH plc CRH reported exceptional second-quarter 2026 financial results with adjusted earnings and total revenues topping the Zacks Consensus Estimate and growing year over year. Positive pricing, favorable demand and acquisition contributions supported the quarterly growth. CRH completed 11 acquisitions during the quarter for $1.1 billion.

CRH reaffirmed 2026 net income guidance of $3.9-$4.1 billion, adjusted EBITDA guidance of $8.1-$8.5 billion and earnings guidance of $5.60-$6.05 per share. The company expects public infrastructure spending and reindustrialization activity to support demand, while new-build residential conditions remain subdued.

Quanta Services, Inc. PWR reported better-than-expected second-quarter 2026 results, with adjusted earnings and revenues beating the Zacks Consensus Estimate. Quanta’s performance benefited from strong demand for grid, generation and data-center infrastructure, broader self-perform capabilities, efficient resource utilization and solid execution across both segments.

Quanta increased its 2026 revenue forecast to $39.3-$39.7 billion, representing a $4.55 billion increase at the midpoint from its prior outlook. Adjusted earnings are now projected to be in the range of $16.45-$16.95 per share, while adjusted EBITDA is expected to be between $4.09 billion and $4.21 billion. Free cash flow is forecasted to be in the $2.00-$2.50 billion range.

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