WEYERHAEUSER CO

RESULTS OFOPERATIONS

In reviewing our results of operations, it is important to understand these terms:

CONSOLIDATED RESULTS

Summary of Financial Results

Net sales decreased $550 million — 7 percent — primarily due to a $436 million decrease in Wood Products net sales attributable to decreased sales realizations and sales volumes across most product lines, as well as a $142 million decrease in Timberlands net sales to unaffiliated customers attributable to decreased log sales realizations and sales volumes in the Western and Southern regions.

Costs of sales decreased $181 million — 3 percent — primarily due to decreased sales volumes across most product lines in Wood Products, as well as decreased sales volumes in our Timberlands segment, partially offset by an increase in acres sold in our Real Estate, Energy and Natural Resources segment.

Operating Income

Operating income decreased $501 million — 42 percent — primarily due to a $369 million decrease in consolidated gross margin (see discussion of components above), as well as an $84 million decrease in gain on sale of timberlands (refer to Note 4: Timberland Acquisitions and Divestitures).

Net Earnings

Net earnings decreased $443 million — 53 percent — primarily due to the $501 million decrease in operating income discussed above. This decrease was partially offset by a $67 million decrease in income tax expense (refer to Income Taxes).

WEYERHAEUSER COMPANY >2024 ANNUAL REPORT AND FORM 10-K 47

TIMBE RLANDS

We report sales volumes and fee harvest volumes for our Timberlands segment in Our Business/What We Do/Timberlands.

Net Sales and Net Contribution to Earnings for Timberlands

(1)

Other products include sales of seeds and seedlings from our nursery operations and wood chips.

Net Sales — Unaffiliated Customers

Net sales to unaffiliated customers decreased $142 million — 9 percent — primarily due to a $101 million decrease in Western log sales attributable to a 7 percent decrease in sales realizations and a 6 percent decrease in sales volumes, as well as a $40 million decrease in Southern log sales primarily attributable to a 5 percent decrease in sales volumes.

Intersegment Sales

Intersegment sales decreased $18 million — 3 percent — primarily due to a 6 percent decrease in sales realizations, partially offset by a 3 percent increase in sales volumes.

Costs of sales decreased $60 million — 3 percent — primarily due to decreased Western and Southern sales volumes.

Net Contribution to Earnings

Net contribution to earnings decreased $208 million — 43 percent — primarily due to the change in the components of gross margin, as discussed above, as well as an $84 million decrease in gain on sale of timberlands (refer to Note 4: Timberland Acquisitions and Divestitures).

WEYERHAEUSER COMPANY >2024 ANNUAL REPORT AND FORM 10-K 48

REAL ESTATE, ENERGY AND NATURAL RESOURCES

We report acres sold and average price per acre for our Real Estate, Energy and Natural Resources (Real Estate & ENR) segment in Our Business/What We Do/Real Estate, Energy and Natural Resources.

Net Sales and Net Contribution to Earnings for Real Estate, Energy and Natural Resources

The volume of real estate sales is a function of many factors, including the general state of the economy, demand in local real estate markets, the ability of buyers to obtain financing, the number of competing properties listed for sale, the seasonal nature of sales, the plans of adjacent landowners, our expectations of future price appreciation, the timing of harvesting activities and the availability of government and not-for-profit funding. In any period, the average price per acre will vary based on the location and physical characteristics of parcels sold.

Net sales increased $28 million — 8 percent — primarily due to an increase in acres sold, partially offset by a decrease in average price per acre sold and a decrease in royalty income from our Energy and Natural Resources business.

Costs of sales increased $26 million — 21 percent — primarily due to an increase in acres sold.

Operating Income and Net Contribution to Earnings

Operating income and net contribution to earnings increased $5 million — 2 percent — primarily due to the change in the components of gross margin, as discussed above.

WEYERHAEUSER COMPANY >2024 ANNUAL REPORT AND FORM 10-K 49

WOOD PRODUCTS

We report sales volumes and annual production data for our Wood Products segment in Our Business/What We Do/Wood Products.

Net Sales and Net Contribution to Earnings for Wood Products

(1)

Other products produced sales include wood chips, other byproducts and third-party residual log sales from our Canadian Forestlands operations.

Net sales decreased $436 million — 8 percent — primarily due to:

These decreases were partially offset by a $35 million increase in oriented strand board sales attributable to a 6 percent increase in sales realizations, partially offset by a 2 percent decrease in sales volumes.

Costs of sales decreased $183 million — 4 percent — primarily due to decreased sales volumes across most product lines.

Operating Income and Net Contribution to Earnings

Operating income and net contribution to earnings decreased $252 million — 36 percent — primarily due to the change in the components of gross margin, as discussed above.

WEYERHAEUSER COMPANY >2024 ANNUAL REPORT AND FORM 10-K 50

UNALLOCATED ITEMS

Unallocated items are gains or charges not related to, or allocated to, an individual operating segment. They include all or a portion of items such as:

Net Charge to Earnings for Unallocated Items

Net charge to earnings increased by $66 million — 35 percent — primarily due to:

INTEREST EXPENSE

Our net interest expense incurred for the last two years was:

Interest expense decreased by $11 million compared to 2023 primarily due to a series of debt issuances and retirements during 2023 that decreased our average outstanding debt.

Refer to Note 11: Long-Term Debt, Net for further information.