Operating Income Boosted by Timberland Sales
Consolidated operating income increased 25.3% YoY to $223M despite a 0.9% net sales drop to $1.867B, primarily propelled by a $71M increase in gains on the sale of timberlands.
Source: 10-Q Item 2 MD&A
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
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AI Takeaway
Weyerhaeuser (WY) reported Q2 FY2026 net income of $162M ($0.23 per diluted share), up 86.2% YoY despite a 0.9% decrease in revenue to $1.867B, driven primarily by a $71M gain on timberland sales.
Revenue
$1.87B
-0.90% YoY
EPS (Diluted)
$0.23
+91.67% YoY
Gross Margin
16.7%
-0.6 pts YoY
Operating Income
$223M
+25.28% YoY
Source: SEC XBRL
Weyerhaeuser (WY) reported Q2 FY2026 revenue of $1.87B, down 0.9% year over year. Operating margin was 11.9%, up 2.5 points from 9.4% a year earlier. WY's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 0.13 | 0.09 | Beat +47.1% |
| Mar 2026 | 0.11 | 0.05 | Beat +124.0% |
| Dec 2025 | -0.09 | 0.05 | Miss -283.3% |
| Sep 2025 | 0.06 | -0.07 | Beat +186.6% |
Compiled by AI from 10-Q Item 2 of this filing
Consolidated operating income increased 25.3% YoY to $223M despite a 0.9% net sales drop to $1.867B, primarily propelled by a $71M increase in gains on the sale of timberlands.
Source: 10-Q Item 2 MD&A
Timberlands net sales to unaffiliated customers fell 2% YoY to $367M due to a 6% drop in Southern log sales volume, but segment net contribution to earnings rose 48% to $130M owing to timberland sale gains.
Source: 10-Q Item 2 MD&A
Strategic Land Solutions Q2 net sales declined 9% YoY to $140M as Climate Solutions conservation sales decreased, though YTD segment sales remain up 40% YoY to $347M following a $94M Q1 conservation easement sale.
Source: 10-Q Item 2 MD&A
U.S. housing starts averaged 1.3 million units in Q2 FY2026, down 5.0% from Q1, while average 30-year mortgage rates increased to 6.5%, continuing to weigh on buyer affordability and wood products demand.
Source: 10-Q Item 2 MD&A
Compiled by AI from this SEC filing · 1 high, 2 medium, 0 low
Demand and pricing for Weyerhaeuser's wood products and logs are highly dependent on U.S. residential construction and repair/remodel activity, which remain constrained by elevated 30-year mortgage rates (6.5%) and subdued consumer confidence.
Source: 10-Q Item 2 MD&A
Long-term debt expanded 24.3% YoY to $5.303B while cash and cash equivalents declined 11.0% to $527M, increasing leverage and interest obligations in a sustained higher-rate environment.
Source: 10-Q Balance Sheet (XBRL)
Operating costs across all segments remain exposed to fluctuations in freight, fuel, raw materials, and labor costs, which cannot always be passed on to customers through pricing.
Source: 10-Q Item 2 MD&A
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 1.87 $B | 1.88 $B | -0.90% |
Cost of Revenue $B | 1.56 $B | 1.56 $B | -0.19% |
Gross Profit $M | 311.00 $M | 325.00 $M | -4.31% |
Operating Income $M | 223.00 $M | 178.00 $M | +25.28% |
Net Income $M | 162.00 $M | 87.00 $M | +86.21% |
EPS (Basic) $ | 0.23 $ | 0.12 $ | +91.67% |
EPS (Diluted) $ | 0.23 $ | 0.12 $ | +91.67% |
R&D Expense $M | 1.00 $M | 1.00 $M | 0.00% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
WY (Weyerhaeuser) delivered a strong Q1 FY2026 with net income nearly doubling to $156M and operating income surging 38% YoY despite a modest 2% revenue decline to $1.73B.
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.