Weyerhaeuser sells logs, building materials, land and rights to use its land. Its third-quarter 2026 filing shows that net profit rose 52% in the first nine months, while cash from operations fell 5%. Land sales helped cover the difference between operating cash and spending on facilities, replanting, dividends and share repurchases. The company can continue building its next mill, but stronger reported profit has not yet made that entire spending program self-funding.
Analysis period: quarter and nine months ended September 30, 2026. Research cutoff: November 1, 2026, New York date.
1. Land gains lifted nine-month profit, while quarterly profit fell
The rise in nine-month profit overstates the improvement across Weyerhaeuser’s operating businesses. Selling timberlands produced substantial gains, and a larger tax benefit also helped. The third quarter tells a different story: sales rose, but reported profit fell because the prior-year quarter included gains and insurance recoveries that did not repeat.
The table separates the quarter from the nine-month period. Operating profit measures earnings before financing costs, taxes and certain other items; it helps show what happened before those later adjustments.
| Consolidated results, USD millions except EPS and margins | Q3 2026 | Q3 2025 | Nine months 2026 | Nine months 2025 |
|---|---|---|---|---|
| Revenue | 1,862 | 1,717 | 5,456 | 5,364 |
| Gross profit after cost of sales | 257 | 204 | 886 | 864 |
| Operating profit | 100 | 123 | 570 | 480 |
| Operating margin, calculated | 5.4% | 7.2% | 10.4% | 8.9% |
| Net profit | 61 | 80 | 379 | 250 |
| Diluted earnings per share, USD | 0.08 | 0.11 | 0.53 | 0.35 |
Source: Weyerhaeuser Q3 2026 Form 10-Q, consolidated statement of operations, p. 1; MD&A, pp. 21–22. Margins are calculated from the reported amounts.
In the third quarter, better product margins added $53 million to gross profit. That benefit was more than offset by the absence of a $29 million lumber-mill sale gain, $34 million less in insurance recoveries, and higher overhead and selling expenses. The lower reported profit therefore does not mean that manufacturing deteriorated against the same quarter last year.
For the first nine months, timberland sales generated $129 million of gains, compared with none in the corresponding 2025 period. A $28 million product-remediation insurance recovery also helped. Management removes these items from its adjusted earnings measure. On that basis, nine-month net profit increased from $210 million to $229 million, or 9%, well below the reported 52% increase. Third-quarter adjusted net profit rose from $40 million to $61 million. The complete pretax and after-tax adjustments appear in Calculation note A.
A second company measure, adjusted EBITDA, declined from $881 million to $866 million over nine months. This measure removes financing, taxes, depreciation and certain other costs or gains. Its different direction matters: lower pension costs, lower interest expense and a larger tax benefit helped net profit even while this operating measure weakened. Neither adjusted measure removes the large conservation transaction discussed below.
Sources: Q3 2026 Form 10-Q, Notes 13–15, pp. 17–18; MD&A, pp. 28 and 30–33.
Taxes were especially important in the third quarter. Weyerhaeuser earned $25 million before tax and recorded a $36 million tax benefit, producing $61 million of net profit. Much of its qualifying real-estate income is generally exempt from federal corporate income tax when distributed under its real estate investment trust structure. Its manufacturing business operates in taxable subsidiaries. Management’s revised annual tax outlook reflects a greater share of earnings coming from the tax-favored businesses, partly because wood-products markets became more difficult. The benefit supports reported profit, but is not the same as receiving a cash tax refund.
Sources: Q3 2026 Form 10-Q, Note 14 and MD&A, p. 28; Q3 2026 earnings presentation, slide 19, annual tax-outlook explanation.
2. Higher lumber prices drove the recovery in Wood Products
Wood Products improved against a weak prior-year quarter mainly because lumber sold at higher prices. Structural lumber revenue rose from $509 million to $629 million in the third quarter. Average selling prices, including freight, rose 26%, while sales volume fell 2%. That is a price recovery rather than a broad increase in the quantity of wood sold.
The segment’s operating result improved from a $19 million loss to a $33 million profit. Its gross profit increased from $10 million to $102 million, overcoming the absence of the prior-year mill-sale gain. Distributing more steel and decking, and selling more engineered wood products, also helped sales.
Over nine months, however, lumber’s $81 million revenue increase was exactly offset by an $81 million decline in oriented strand board, or OSB—the panels used in walls, floors and roofs. OSB sales volume was almost unchanged; lower prices caused the decline. The main products therefore faced different market conditions.
| Wood Products, nine months ended September 30; revenue in USD millions | 2026 revenue | 2025 revenue | Selling-price change, 2026 vs. 2025 | Sales-volume change, 2026 vs. 2025 |
|---|---|---|---|---|
| Structural lumber | 1,698 | 1,617 | +11% | −5% |
| OSB | 519 | 600 | −14% | Approximately unchanged |
| Engineered solid-section products | 507 | 492 | −4% | +7% |
| Engineered I-joists | 252 | 268 | −5% | −1% |
Source: Q3 2026 Form 10-Q, Note 3 and Wood Products MD&A, pp. 25–27. Selling prices include freight and normal sales deductions. Sales volumes include products bought for resale. OSB volume was 2,176 million square feet versus 2,177 million, on a 3/8-inch thickness basis.
The longer comparison confirms how low the starting point was: Wood Products operating profit fell from $457 million in full-year 2024 to $55 million in full-year 2025. The 2026 improvement follows a severe decline; it does not establish that the business has regained its earlier earning power.
Source: 2025 Annual Report and Form 10-K, Wood Products MD&A, p. 48. These are full-year reported results, separate from the quarterly and nine-month comparisons above.
Evidence outside Weyerhaeuser also points to difficult demand. Census estimated September 2026 single-family housing starts at an annualized pace of 859,000, versus 900,000 in August. The monthly estimate has a wide error range, so it should not carry the conclusion alone. More concrete evidence came from competitor West Fraser on October 28: it announced indefinite shutdowns of its Huguley OSB and Leola lumber mills, citing weak construction and renovation demand. The planned reductions amount to 500 million square feet of annual OSB capacity and 225 million board feet of lumber capacity.
Sources: Census Bureau, September 2026 residential construction release, October 20, 2026, Housing Starts; West Fraser Q3 2026 results and curtailment announcement, October 28, 2026, “Indefinite Curtailment of two mills.”
Reducing competing supply may help prices, but does not itself create more homebuilding. Weyerhaeuser’s own quarter-to-quarter results show the pressure: Wood Products adjusted EBITDA fell from $129 million in the second quarter to $91 million in the third. Management identified OSB maintenance and resin costs, lower selling prices across parts of engineered wood, and weaker distribution results. Its mills remain exposed to both customers’ demand and the cost of making and delivering products.
Source: Weyerhaeuser Q3 2026 earnings release, October 29, 2026, pp. 2–3, Wood Products. This comparison is sequential and uses management’s non-GAAP measure.
3. Land-related income is valuable, but large transactions shape the results
Selling land and land rights helped offset weaker earnings from harvesting timber. These are distinct activities with different accounting and cash-flow treatment.
The Timberlands segment grows and harvests trees and sells logs to outside customers and Weyerhaeuser’s own mills. Its third-quarter operating profit fell from $80 million to $67 million. Western outside-customer log volumes dropped from 1.529 million tons to 1.345 million tons. A 7% improvement in selling prices did not fully offset the lost volume. Southern log revenue increased, but higher freight costs in both regions also weighed on profit.
For nine months, Timberlands reported $312 million of operating profit, up from $270 million. Removing only the disclosed $129 million timberland-sale gains leaves $183 million, a calculated 32% decline. The property gains lifted the segment total despite weaker earnings from its remaining activities.
Source: Q3 2026 Form 10-Q, Timberlands MD&A, pp. 23–24, and Note 15. Western log volumes are reported as ton equivalents.
Strategic Land Solutions earns money from property sales, natural-resource rights and climate-related uses of land. Its nine-month operating profit rose from $231 million to $330 million. Revenue increased by $95 million, almost the same amount as a $94 million conservation-easement sale. An easement pays a landowner to limit specified uses of the property. It is different from selling logs or transferring the entire property.
Climate Solutions revenue reached $147 million, compared with $80 million a year earlier. The $94 million transaction accounts for most of the current total. Management includes the transaction in adjusted results, so the timing of large land agreements still affects those figures.
There is also progress beyond that agreement. Third-quarter Climate Solutions revenue rose from $11 million to $21 million, supported by sales of environmental and forest-carbon credits. By the earnings announcement, Weyerhaeuser reported approximately 340,000 forest-carbon credits sold during the first nine months and a solar portfolio with two operating sites and five under construction. These activities broaden the ways its land can earn money, although the company has not disclosed a separate profit contribution for each milestone.
Sources: Q3 2026 Form 10-Q, Notes 1–3 and Strategic Land Solutions MD&A, pp. 24–25; Q3 2026 earnings release, p. 1. The segment was renamed and its business lines reorganized in 2026; the filing restates the 2025 comparisons.
Ordinary property sales illustrate why timing and mix matter. Third-quarter real-estate acreage sold increased from 11,982 to 12,827 acres, but the average price fell from $5,128 to $3,945 per acre. Revenue consequently declined. Parcels differ in location and permitted uses, so that average is not a measurement of price changes for the same land.
Management expected fourth-quarter Strategic Land Solutions operating earnings before special items to be about $35 million below the third quarter, and adjusted EBITDA about $45 million lower, because of the expected property-sales mix and timing. The land business provides an important source of profit, but it does not produce an even stream each quarter.
Sources: Q3 2026 Form 10-Q, Real Estate Sales Statistics and accompanying explanation, pp. 24–25; Q3 2026 earnings presentation, slide 18, fourth-quarter outlook.
4. Asset sales filled a cash gap that lower buybacks only partly relieved
Operating cash covered capital spending, but did not also cover dividends and share repurchases. Cash from operations was $644 million over nine months, down from $676 million. After cash spending on equipment, facilities and reforestation, $256 million remained. Cash dividends alone were $454 million.
| Consolidated cash allocation, USD millions; nine months ended September 30 | 2026 | 2025 |
|---|---|---|
| Cash from operations | 644 | 676 |
| Property and equipment spending | 350 | 288 |
| Reforestation spending | 38 | 37 |
| Cash remaining after both forms of capital spending | 256 | 351 |
| Cash dividends paid | 454 | 454 |
| Cash paid for share repurchases | 30 | 150 |
| Remainder after capital spending, dividends and repurchases | −228 | −253 |
Source: Q3 2026 Form 10-Q, consolidated cash-flow statement, p. 4. Spending rows are positive cash uses. The calculated $256 million and $351 million remainders are free cash flow as defined here: operating cash less equipment/property and reforestation spending, before acquisitions or asset-sale proceeds.
The lower operating cash has identifiable causes. The cash-flow statement shows $92 million tied up in receivables, compared with $37 million a year earlier. More cash was therefore waiting to be collected from amounts already recorded as receivable. Changes in inventories, prepaid items, tax balances and supplier bills partly offset that effect. Together, these short-term operating balances consumed $49 million, versus releasing $5 million in the prior period.
Cash taxes fell from $61 million to $21 million, helping limit the decline. At the same time, the $129 million timberland-sale gain increased profit without entering operating cash: cash received from those disposals belongs in investing activities. Calculation note B reconciles the full difference between profit and operating cash.
Source: Q3 2026 Form 10-Q, cash-flow statement, p. 4, and MD&A, p. 29.
Two completed timberland sales brought in $306 million: Virginia contributed $192 million and Oregon $114 million, net of adjustments and closing costs. Weyerhaeuser also collected $22 million of final proceeds from the previously sold Princeton mill after timber-license approvals. These receipts helped cover the spending gap and debt repayments. The cash-flow statement records these large disposals as investing receipts; ordinary Strategic Land Solutions property sales remain part of operating cash.
Management describes disposals as a way to improve the timberland portfolio and create flexibility for other capital uses. Its October agreement to sell approximately 81,000 Arkansas acres for $146 million could provide more fourth-quarter cash, subject to closing conditions. Those proceeds were not in the September cash balance.
Sources: Q3 2026 Form 10-Q, Notes 15–16; Q3 2026 earnings release, p. 1, portfolio-management explanation and Arkansas agreement.
Lower repurchases conserved $120 million relative to the prior nine-month period. Even so, lower operating cash and higher capital spending meant the funding gap narrowed by only $25 million. Management’s adjusted funds available for distribution measure shows $375 million, rather than $256 million, because it adds back $147 million spent on the Monticello mill and removes a $28 million insurance receipt. That measure helps describe the established businesses’ cash generation, but the excluded construction spending still has to be paid.
Source: Q3 2026 Form 10-Q, Adjusted FAD reconciliation, p. 33. The comparable 2025 calculation is $351 million plus $70 million of Monticello spending, yielding $421 million. Management’s 75%–80% distribution objective applies to annual adjusted FAD; it is not a nine-month cash-coverage requirement.
5. The Arkansas mill connects existing forests to a new product market
Monticello is a deliberate expansion, with cash costs arriving before production. Management’s purpose is to bring TimberStrand engineered lumber closer to customers in the U.S. South and use southern yellow pine, largely from nearby company forests. TimberStrand combines wood strands into structural material with consistent strength and straightness. The company’s distribution network provides a route to customers.
The original November 2024 plan called for roughly $500 million of investment and 10 million cubic feet of annual capacity, doubling Weyerhaeuser’s TimberStrand capacity. Management then targeted more than $100 million of annual adjusted EBITDA at full production. That is an original project objective, not a verified 2027 profit forecast. Reaching it requires successful startup, customer adoption and sufficient prices and production volumes.
Source: Weyerhaeuser’s original TimberStrand expansion announcement, November 18, 2024, project specifications, sourcing and financial objectives. The Q3 2026 filing continues to target operations beginning in 2027.
Monticello absorbed $147 million in the first nine months of 2026, versus $70 million a year earlier. All other capital spending combined fell from $255 million to $241 million. The new facility therefore explains the increase in total spending; the company was already restraining spending elsewhere.
For full-year 2026, management now expects about $375 million of capital expenditure outside Monticello, reduced from $400 million–$450 million, plus roughly $250 million for Monticello. The combined $625 million plan implies approximately $237 million still to spend in the fourth quarter after the $388 million already paid. The timing is a forecast, but it explains why the pending Arkansas land sale matters to available funding.
Sources: Q3 2026 Form 10-Q, capital-spending discussion, p. 29, and Adjusted FAD reconciliation, p. 33; Q3 2026 earnings presentation, slide 19. Non-Monticello spending and remaining fourth-quarter expenditure are calculated.
The balance sheet reflects that construction. Work in progress increased from $337 million to $466 million, while completed property and equipment changed little. Money committed to unfinished facilities cannot yet contribute normal production earnings.
The carrying amount of timber and timberlands fell by $196 million, and $128 million of assets previously classified for sale left that category. Land disposals and the accounting cost of harvested timber reduce the forest asset base, while replanting and acquisitions replenish it.
Receivables rose from $303 million to $383 million, reinforcing the cash-collection pressure. Inventory was nearly unchanged at $592 million, versus $593 million: lower log inventories were offset in part by more manufactured products and supplies. Weyerhaeuser’s balance sheet is consequently shifting some resources from cash and saleable land into construction and customer balances. The investment can improve the product offering, but its funding burden arrives during a weak building market.
Source: Q3 2026 Form 10-Q, balance sheet, p. 3; Notes 5 and 15. Asset balances are carrying amounts, not estimates of market value.
6. Debt fell, but the company still has short-term borrowing to refinance
Bank credit supports investment, but short-term borrowing still needs refinancing. The company repaid $522 million of scheduled debt during the first nine months and had $300 million of commercial paper outstanding at September 30. Total debt at its accounting carrying amount declined from $5.572 billion to $5.354 billion.
Commercial paper is short-term borrowing. All $300 million outstanding matures within the next 12 months, but Weyerhaeuser classifies it as long-term because it intends and is able to refinance it using its bank facility. Thus, the zero balance for “current maturities of long-term debt” does not mean no borrowing needs to be repaid or rolled over soon.
The following schedule shows principal, before the $31 million reduction for unamortized discounts and debt costs.
| Debt principal at September 30, 2026, USD millions | Fixed-rate debt | Variable-rate term loans |
|---|---|---|
| Remaining 2026 | 0 | 0 |
| 2027 | 300 | 0 |
| 2028 | 0 | 800 |
| 2029 | 750 | 0 |
| 2030 | 750 | 0 |
| After 2030 | 1,935 | 550 |
| Total, excluding commercial paper | 3,735 | 1,350 |
Source: Q3 2026 Form 10-Q, Notes 8–9 and Item 3, p. 34. The separate $300 million commercial-paper balance is excluded from this maturity table. The $550 million of term loans after 2030 matures in April 2031 following extensions in 2026.
The $800 million 2028 maturity is the largest single annual amount shown. Interest-rate swaps convert its variable payments into fixed payments, reducing rate exposure without removing the eventual principal payment. Across all fixed-rate borrowings, the weighted average coupon is 4.96%; commercial paper carried an average 4.23% rate at quarter-end. Nine-month interest expense, after excluding interest added to construction assets, was $195 million, down from $203 million.
Weyerhaeuser held $349 million of cash and had an undrawn $1.75 billion revolving bank facility expiring in June 2030. That same facility backs the commercial-paper program. Its capacity and the program’s $1.45 billion unused issuance allowance are therefore not two independent pools of liquidity.
Source: Q3 2026 Form 10-Q, Notes 8–9; MD&A, pp. 28–30; debt maturity and interest-rate disclosures, p. 34.
The main borrowing tests require at least $3 billion of adjusted equity and a defined debt-to-capital ratio no higher than 65%. The company reported compliance at September 30. Leases are additional obligations: the last annual schedule showed $183 million of future payments, including $30 million due in 2026. The quarter-end current lease liability was $23 million.
Sources: 2025 Form 10-K, borrowing covenants, p. 51, and lease schedule, p. 89, as of December 31, 2025; Q3 2026 Form 10-Q, Note 7 and debt-covenant discussion, p. 30. Covenant equity uses contractual adjustments; it is not simply reported equity.
Equity declined modestly, from $9.426 billion to $9.382 billion. Dividends charged to retained earnings exceeded profit, while share-based compensation and other comprehensive income partly offset that reduction. The latter records certain pension, currency and hedge changes outside net profit. Calculation note C reconciles these movements.
Share repurchases also had a limited effect on per-share results. Weyerhaeuser bought back 1.213 million shares during the nine months, but shares outstanding fell by only about 189,000 because new issuance offset most of the reduction. Vesting employee awards alone issued 756,000 shares net of tax withholding. Nine-month diluted average shares fell just 0.34%, so the increase in EPS came overwhelmingly from profit, not a shrinking denominator. Share-based compensation expense was $33 million, versus $32 million.
Source: Q3 2026 Form 10-Q, balance sheet and equity statement, pp. 3 and 5; Notes 4, 11 and 12. Repurchased shares, newly issued shares and diluted weighted-average shares measure different things.
7. Cleanup obligations and a softer fourth-quarter outlook remain material
Cleanup costs could add to the cash demands of a weak market. The recorded cleanup liability was $92 million at September 30. That balance is an estimate of recognized costs, not a ceiling on possible payments.
The 2025 annual filing estimated reasonably possible additional remediation costs of up to $282 million across identified sites, beyond its then-recorded liability. The estimate covered possible payments over several years. The Q3 filing provides no revised range, so $282 million remains a historical disclosure, not a new September estimate.
Sources: Q3 2026 Form 10-Q, Note 10; 2025 Form 10-K, Note 13, pp. 83–84.
Work at the former Mill A site in Everett remains unfinished. Washington’s environmental regulator says additional investigation approved in March 2026 will delay further revision of the upland cleanup study until mid-2027. That establishes continuing work, not Weyerhaeuser’s final allocation of the bill. Separately, net litigation expense increased from $18 million to $32 million over nine months. Management says no individual legal proceeding is expected to have a material adverse effect on the consolidated statements; that assessment does not eliminate ongoing costs.
Sources: Washington Department of Ecology, Weyerhaeuser Mill A site record, “Cleanup Work” and “Next Steps,” including the March 2026 update; Q3 2026 Form 10-Q, Notes 10 and 13.
The operating outlook also argues against extrapolating the third quarter’s year-over-year improvement. Management expected fourth-quarter Timberlands earnings before special items to be roughly steady, Strategic Land Solutions earnings to decline, and Wood Products earnings to be moderately lower before changes in lumber and OSB selling prices. Those price changes are a significant additional condition.
As of October 23, the company’s fourth-quarter-to-date delivered lumber price was about $55 per thousand board feet below the third-quarter average. OSB was about $15 per thousand square feet higher. These are partial-quarter observations, not completed fourth-quarter results. They show why an improvement in one product cannot safely stand in for the whole business. Lower lumber prices would make the company more dependent on cost restraint, collections and asset-sale proceeds while construction continues.
Source: Q3 2026 earnings presentation, slides 18 and 20. OSB prices use a 3/8-inch thickness basis; company selling prices can lag market benchmarks because of orders already booked.
8. The business can fund its transition, but operations must eventually carry more of it
Weyerhaeuser has funding flexibility, but its expansion and shareholder payments currently depend on more than operating cash. Completed land sales, lower repurchases and available bank credit have allowed it to repay debt and keep building Monticello through a difficult market. The purpose of that investment is coherent: connect its forests, manufacturing technology and distribution to a larger southern customer base.
The weaker point is current earning power. Higher lumber prices have not restored broad product demand, forestry earnings weakened after removing land-sale gains, and a large conservation transaction remains inside adjusted earnings. The fourth-quarter outlook adds further pressure just as construction payments rise.
The business assessment would improve with stronger cash collections, better manufacturing margins and a successful mill startup that turns construction spending into product sales. Continued weakness would put more weight on disposal timing, borrowing and the pace of discretionary spending. Weyerhaeuser’s resources support the transition; the central operating task is to make the expanded business generate enough cash to reduce that dependence.
Calculation notes
A. What the adjusted earnings measures remove
The first table starts with reported net profit and subtracts management’s designated gains and recoveries. All adjustments in this table are after tax. A zero means no designated adjustment for that period.
| Net-profit reconciliation, USD millions | Q3 2026 | Q3 2025 | Nine months 2026 | Nine months 2025 |
|---|---|---|---|---|
| Reported net profit | 61 | 80 | 379 | 250 |
| Remove lumber-mill sale gain | 0 | −21 | 0 | −21 |
| Remove timberland-sale gains | 0 | 0 | −129 | 0 |
| Remove designated insurance recovery | 0 | −19 | 0 | −19 |
| Remove product-remediation insurance recovery | 0 | 0 | −21 | 0 |
| Management’s net profit before special items | 61 | 40 | 229 | 210 |
Calculation notes: The $29 million pretax mill-sale gain becomes $21 million after tax. The designated $26 million pretax insurance recovery becomes $19 million after tax; it is only part of the $34 million total third-quarter 2025 insurance recoveries. The $28 million pretax product-remediation recovery becomes $21 million after tax. Timberland-sale gains are $129 million both before and after tax. The $94 million conservation-easement revenue remains in adjusted results; its revenue amount is not treated as its net profit.
The next table starts with operating profit, before tax. Depreciation and depletion spread the accounting cost of equipment and harvested timber over their use. “Book cost of land sold” is the amount previously carried as an asset for ordinary Strategic Land Solutions sales. Management adds these costs back when calculating adjusted EBITDA.
| Adjusted EBITDA reconciliation, USD millions | Q3 2026 | Q3 2025 | Nine months 2026 | Nine months 2025 |
|---|---|---|---|---|
| Reported operating profit | 100 | 123 | 570 | 480 |
| Add depreciation, depletion and amortization | 132 | 130 | 383 | 380 |
| Add book cost of Strategic Land Solutions land sold | 16 | 19 | 70 | 76 |
| Remove designated pretax gains and recoveries | 0 | −55 | −157 | −55 |
| Management’s adjusted EBITDA | 248 | 217 | 866 | 881 |
Source: Q3 2026 Form 10-Q, Notes 13–15 and reconciliations, pp. 31–33. These are management-defined non-GAAP measures, not substitutes for reported profit or cash flow.
Calculation notes: Reported quarterly operating profit includes Timberlands $67 million, Strategic Land Solutions $67 million, Wood Products $33 million and corporate costs/intersegment eliminations of negative $67 million, totaling $100 million. The nine-month equivalents are $312 million, $330 million, $146 million and negative $218 million, totaling $570 million. Sales between company segments are eliminated; they are not additional consolidated revenue.
B. Why profit, operating cash and the cash balance differ
| Profit-to-operating-cash reconciliation, USD millions; nine months ended September 30 | 2026 | 2025 |
|---|---|---|
| Net profit | 379 | 250 |
| Add depreciation, depletion and amortization | 383 | 380 |
| Add book cost of ordinary land sales | 70 | 76 |
| Remove deferred-tax accounting benefit | −60 | −61 |
| Add pension and post-employment expense | 56 | 71 |
| Add share-based compensation | 33 | 32 |
| Remove gains on disposals classified as investing | −129 | −29 |
| Other noncash adjustments | 2 | 3 |
| Changes in short-term operating balances | −49 | 5 |
| Subtract pension and post-employment cash payments | −14 | −13 |
| Other operating cash changes | −27 | −38 |
| Cash from operations | 644 | 676 |
Calculation notes: The adjustments above add back expenses that did not use operating cash in the period and remove gains or tax benefits that did not bring operating cash. They are not extra receipts. Pension expense is added back, then the actual pension cash payment is subtracted.
Calculation notes: Short-term operating balances combine receivables, inventories, prepayments, tax balances and operating payables. The largest change was receivables, discussed in Section 4. A change between two balance sheets need not equal a cash-flow adjustment because asset sales and noncash changes can also affect the balances.
The following table connects the spending gap in Section 4 to the closing cash balance. It includes restricted cash so that its opening balance matches the cash-flow statement.
| Funding and cash reconciliation, USD millions; nine months ended September 30, 2026 | Amount |
|---|---|
| Opening cash, including restricted cash | 481 |
| Operating cash after capital spending, dividends and repurchases | −228 |
| Asset-sale proceeds, less timberland purchases and other investing | 324 |
| Debt repayments, less net new commercial-paper borrowing | −222 |
| Other financing payments | −6 |
| Closing cash | 349 |
Calculation notes: The asset subtotal includes $306 million from timberland sales and $22 million from the mill sale, less $3 million of timberland purchases and $1 million of other investing. Net debt repayment is $522 million of repayments less $300 million of net commercial-paper borrowing. These are cash amounts, separate from disposal gains and debt carrying values.
Opening cash included $17 million restricted for Monticello, released during the first quarter. The ordinary cash balance alone fell from $464 million to $349 million. For comparison, the 2025 cash-flow statement reconciles opening cash of $684 million, operating inflow of $676 million, investing outflow of $729 million and financing outflow of $230 million to closing cash of $401 million.
Sources: Q3 2026 Form 10-Q, cash-flow statement, p. 4; 2025 Form 10-K, Note 21, p. 93, restricted-cash purpose and release.
C. Checking assets, liabilities, equity and share effects
Equity is the amount left after subtracting recorded liabilities from recorded assets. Both balance sheets reconcile:
| Consolidated balance-sheet check, USD millions | Assets | Liabilities | Equity |
|---|---|---|---|
| September 30, 2026 | 16,380 | 6,998 | 9,382 |
| December 31, 2025 | 16,613 | 7,187 | 9,426 |
Calculation notes: Deferred-tax assets rose from $97 million to $144 million. They represent potential future tax reductions rather than cash currently available. Deferred pension and post-employment liabilities were $488 million, versus $485 million.
| Equity reconciliation, USD millions; nine months ended September 30, 2026 | Opening balance | Net change | Closing balance |
|---|---|---|---|
| Common-share capital | 901 | −1 | 900 |
| Other paid-in capital | 7,390 | 3 | 7,393 |
| Retained earnings | 1,428 | −77 | 1,351 |
| Accumulated other comprehensive loss | −293 | 31 | −262 |
| Total equity | 9,426 | −44 | 9,382 |
Calculation notes: Retained earnings are accumulated profits kept inside the company. They fell by $77 million because $456 million of dividends recorded in equity exceeded $379 million of profit. Cash dividends actually paid were $454 million; recognition and payment are separate entries.
Calculation notes: Common-share capital added $1 million for issuance and deducted $2 million for repurchases. Other paid-in capital increased by $3 million: it added $5 million from option exercises and $33 million of employee share compensation, then deducted $28 million for repurchases and $7 million for other transactions. These entries explain why the capital accounts changed little despite buybacks. No separate treasury-share balance is presented.
Calculation notes: Other comprehensive income of $31 million combines a $16 million currency loss, $32 million of net pension and related changes, and $15 million of after-tax hedge gains. These accounting changes sit outside net profit.
Calculation notes: Outstanding shares fell from 720.531 million to 720.342 million. Diluted average shares for nine months fell from 724.151 million to 721.678 million, a calculated 0.34% decline. The first comparison measures shares at two dates; the second is the average used to calculate earnings per share.
Source: Q3 2026 Form 10-Q, statements on pp. 1–5 and Notes 4, 11–12. Tables use rounded reported amounts.
Reporting basis
Weyerhaeuser Company, NYSE: WY; SEC CIK 0000106535. Selected report: Form 10-Q, accession 0001193125-26-441693, filed October 30, 2026, for the quarter ended September 30, 2026. Quarterly comparisons cover July 1–September 30; cumulative comparisons cover January 1–September 30. Balance-sheet comparisons use September 30, 2026 and December 31, 2025. The unaudited U.S. GAAP accounts consolidate controlled subsidiaries and eliminate internal transactions.
The supplied complete filing text is the foundation. Filing identity was checked against SEC submission records. Revenue, operating profit, net profit, operating cash, assets, liabilities, equity and cash were cross-checked against SEC company XBRL facts, using this accession, U.S. dollar units and the exact quarterly, cumulative or balance-sheet contexts. Where quarterly footnotes omit annual detail, the dated 2025 Form 10-K is identified locally.
Research cutoff is November 1, 2026, New York date. The company evidence reviewed includes the October 29 earnings release, the October 30 filing and earnings presentation, with the presentation’s product-price observations dated October 23. External evidence carries its own publication or update date beside the relevant discussion. Management outlooks and original project targets are distinguished from actual results; calculations use reported rounded amounts.
This report is for general information and is not investment advice.
