Weyerhaeuser (WY) Stock Forecast & Price Target

Weyerhaeuser's management has raised its guidance for segment Adjusted EBITDA to approximately $390 million for FY25, reflecting an optimistic outlook on improved lumber pricing as a key catalyst for share performance. The company's vast timberland holdings in favorable markets are expected to provide consistent cash flows, bolstered by long-term demand growth in wood and paper products, along with increasing overseas demand. Additionally, the acquisition of Plum Creek is projected to significantly contribute to Weyerhaeuser's earnings, with an anticipated annual EBITDA of $19 million, marking a substantial enhancement in productivity relative to historical averages.

Weyerhaeuser's financial outlook is negatively impacted by a significant decline in its 2Q Wood Products EBITDA forecast, which dropped from $180 million to $102 million, resulting in a consolidated projection decrease from $399 million to $319 million. The company's net asset value has also declined to $39 per share amid a rising net debt balance and diminished expectations for North American wood products, with the Wood Products segment anticipated to incur an EBITDA loss in 3Q25 for the first time since 2011. Additionally, Weyerhaeuser's second-half 2025 estimates have been lowered due to challenges in pricing environments for engineered wood products and oriented strand board, alongside persistently decreasing composite lumber prices.