Weyerhaeuser Company (WY) Q2 2023 Earnings Call Transcript

For the period ending June 30, 2023

July 28, 2023 10:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Greetings, and welcome to the Weyerhaeuser Second Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions]. As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Andy Taylor, Vice President of Investor Relations. Thank you, Mr. Taylor. You may begin.

Andy Taylor

Thank you, Rob. Good morning, everyone. Thank you for joining us today to discuss Weyerhaeuser's second quarter 2023 earnings. This call is being webcast at www.weyerhaeuser.com. Our earnings release and presentation materials can also be found on our website. Please review the warning statements in our press release and on the presentation slides concerning the risks associated with forward-looking statements. As forward-looking statements will be made during this conference call. We will discuss non-GAAP financial measures, and a reconciliation of GAAP can be found in the earnings materials on our website.

On the call this morning are Devin Stockfish, Chief Executive Officer; and Davie Wold, Chief Financial Officer.

I will now turn the call over to Devin Stockfish.

Devin Stockfish

Thanks, Andy. Good morning, everyone, and thank you for joining us. Yesterday, Weyerhaeuser reported second quarter GAAP earnings of $230 million or $0.31 per diluted share on net sales of $2 billion. Excluding special items, we earned $238 million or $0.32 per diluted share. Adjusted EBITDA totaled $469 million in the second quarter. This is a 19% increase from the first quarter and was largely driven by an increase in wood products commodity pricing and strong EWP sales volumes.

Notwithstanding elevated mortgage rates, we've been encouraged by resilient demand for new homes this year, which provided a nice tailwind for our Wood Products business in the second quarter. We delivered solid results in the quarter, and I'd like to thank our teams for their collective efforts and focus on safety, operational excellence, and continuing to serve our customers. Before moving into our business results, I'd like to comment briefly on a Timberlands transaction we completed earlier this month.

As we reported yesterday, we acquired 22,000 acres of high quality Timberlands in Mississippi for approximately $60 million. This acquisition is comprised of highly productive timberlands strategically located to deliver immediate synergies with existing Weyerhaeuser timber and mill operations. With a mature age class and well stock timber inventory, we expect these timberlands to generate strong cash yields.