AI Takeaway
Weyerhaeuser (WY) reported FY2025 revenue of $6.91B, down 3.1% year-over-year, with net income falling 18.2% to $324M as higher costs compressed gross margins to 14.8%, though operating income improved 6.7% due to gains elsewhere in the cost structure.
Revenue
$6.91B
-3.07% YoY
EPS (Basic)
$0.45
-16.67% YoY
Gross Margin
14.8%
-3.59% YoY
Operating Income
$731M
++6.72% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Total revenue fell 3.1% year-over-year to $6.91B in FY2025 from $7.12B in the prior year, reflecting weaker pricing or volume in Weyerhaeuser's timber and wood products segments amid a challenging housing and lumber market environment.
Source: Source: 10-K Income Statement, Financial Data
Cost of revenue increased 1.2% to $5.88B even as revenue declined, causing gross profit to drop 21.9% to $1.03B and compressing gross margin by approximately 360 basis points to 14.8% from 18.4% in the prior year.
Source: Source: 10-K Income Statement, Financial Data
Despite the gross margin headwinds, operating income rose 6.7% to $731M (operating margin of 10.6%), suggesting meaningful reductions in operating expenses below the gross profit line that partially offset the higher cost of revenue.
Source: Source: 10-K Income Statement, Financial Data
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Upgrade to unlockCost of revenue grew 1.2% while revenue declined 3.1%, squeezing gross margin to 14.8% from 18.4%. If lumber prices remain depressed or input costs (logging, transportation, manufacturing) continue to rise, profitability could deteriorate further. This dynamic is particularly acute for a commodity-driven business like Weyerhaeuser.
Source: Source: 10-K Income Statement, Financial Data
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Upgrade to unlockReported EPS of $-0.09 versus the $-0.13 analyst consensus — a +32.8% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $6.91B | $7.12B | -3.07% |
Cost of Revenue | $5.88B | $5.81B | +1.19% |
Gross Profit | $1.02B | $1.31B | -21.93% |
Operating Income | $731M | $685M | +6.72% |
Net Income | $324M | $396M | -18.18% |
EPS (Basic) | $0.45 | $0.54 | -16.67% |
EPS (Diluted) | $0.45 | $0.54 | -16.67% |
R&D Expense | $5M | $7M | -28.57% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $16.61B | $16.54B | +0.47% |
Current Assets | $1.65B | $1.75B | -5.49% |
Total Liabilities | $7.19B | $6.82B | +5.46% |
Current Liabilities | $1.28B | $977M | +30.81% |
Stockholders' Equity | $9.43B | $9.72B | -3.03% |
Cash & Equivalents | $464M | $684M | -32.16% |
Long-Term Debt | $5.57B | $5.08B | +9.77% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $562M | $1.01B | -44.25% |
Investing Cash Flow | $-475M | $-636M | +25.31% |
Financing Cash Flow | $-290M | $-852M | +65.96% |
Share Buybacks | $160M | $154M | +3.90% |
D&A | $509M | $502M | +1.39% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 14.8% | 18.4% | -3.59% |
Operating Margin | 10.6% | 9.6% | +0.97% |
Net Margin | 4.7% | — | — |
ROE | 3.4% | — | — |
ROA | 2.0% | — | — |
Current Ratio | $1.293 | — | — |
Debt to Equity | $0.762 | — | — |
Weyerhaeuser reported FY2025 revenue of $6.91B, down 3.1%, and net income of $324M, down 18.2% from the prior year. EPS fell to $0.45 from $0.54, reflecting the combined impact of lower revenue and higher production costs.
WY's gross margin fell approximately 360 basis points to 14.8% in FY2025 because cost of revenue rose 1.2% to $5.88B even as total revenue declined 3.1% to $6.91B. This cost-revenue mismatch, likely driven by input cost inflation in timber operations, caused gross profit to drop 21.9% to $1.03B.
Weyerhaeuser's operating cash flow declined sharply by 44.2% to $562M in FY2025 from $1.01B in the prior year, and cash on hand fell 32.2% to $464M. This significant deterioration in cash generation raises questions about the sustainability of capital returns and debt management going forward.
The key risks for Weyerhaeuser in FY2025 include gross margin erosion from rising production costs, a sharp 44.2% decline in operating cash flow, and a 9.8% increase in long-term debt to $5.57B. The company is also highly exposed to cyclical U.S. housing market conditions, which directly affect lumber demand and pricing.
WY's balance sheet shows some stress: long-term debt rose to $5.57B (+9.8%), current liabilities surged 30.8% to $1.28B, and cash fell 32.2% to $464M, though the current ratio of 1.29 still indicates the company can meet near-term obligations. Stockholders' equity declined 3.0% to $9.43B, and the debt-to-equity ratio of 0.76 reflects moderate but growing leverage.