WEYERHAEUSER CO
For the period ended Dec 31, 2024. Filed Feb 14, 2025.
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FY2024 · Filed Feb 14, 2025
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WHAT WE DO
This section provides information about how we:
| | grow and harvest trees, |
|---|---|
| | maximize the value of every acre we own and |
| | manufacture and sell wood products. |
For each of our business segments, we provide details about what we do, where we do it, how much we sell and where we are headed.
WEYERHAEUSER COMPANY >2024 ANNUAL REPORT AND FORM 10-K 8
TIMBERLANDS
Our Timberlands segment manages 10.4 million acres of private commercial timberlands in the U.S. We own 9.8 million of those acres and control the remaining acres through long-term contracts. In addition, we have renewable, long-term licenses on 14.1 million acres of Canadian timberlands.
Forestry Management
Our Timberlands segment:
| | grows and plants seedlings to reforest harvested areas using the most effective regeneration method for the site and species (natural regeneration is employed and managed in parts of Canada and the northern U.S.); |
|---|---|
| | manages our timberlands as the trees grow to maturity; |
| | harvests trees to be converted into wood products, such as lumber, oriented strand board, engineered wood products, pellets, pulp and paper; |
| | manages the health of our forests to sustainably maximize harvest volumes, minimize risks, and protect unique environmental, cultural, historical and recreational value and |
| | offers recreational access. |
We seek to maximize the returns from our timberlands by selling delivered logs and through stumpage sales to both internal and external customers. We leverage our expertise in forestry using research and planning systems to optimize log production and innovative planting and harvesting techniques across varying terrain. We use intensive, customized silviculture to increase forest productivity and returns while managing our forests on a sustainable basis. We use our scale, infrastructure and supply chain expertise to deliver reliable and consistent supply to our customers.
Competitive factors within each of our market areas generally include price, species, grade, quality, proximity to wood-consuming facilities and the ability to consistently meet customer requirements. We compete in the marketplace through our ability to provide customers with a consistent and reliable supply of high-quality logs at scale volumes and competitive prices. Our customers also value our status as a SFI certified supplier.
Sustainable Forestry Practices
We manage our forests intensively to maximize the value of every acre and produce a sustainable supply of wood fiber for our customers. At the same time, we are careful to protect biological diversity, water quality and other ecosystem values. Our working forests also provide unique environmental, cultural, historical and recreational value. We work hard to protect these and other qualities, while still managing our forests to produce financially mature timber. We follow regulatory requirements, voluntary standards and certify 100 percent of our North American timberlands under the SFI Forest Management Standard.
Canadian Forestry Operations
In Canada, we manage timberlands under long-term licenses that serve as the primary source of raw material for our manufacturing facilities in various provinces. When we harvest trees, we pay the provinces at stumpage rates set by the government. We transfer logs to our manufacturing facilities at cost and do not generate any significant profit from the harvest of timber from our licensed acres in Canada.
Timberlands Products
| PRODUCTS | HOW THEY’RE USED |
|---|---|
| Delivered logs:• Grade logs• Fiber logs | Grade logs are made into lumber, plywood, veneer and other products used in residential homes, commercial structures, furniture, industrial and decorative applications. Fiber logs are sold to pulp, paper, oriented strand board and pellet mills to make products used for printing, writing, packaging, homebuilding, consumer products and renewable energy. |
| Timber | Standing timber is sold to third parties through stumpage sales. |
| Recreational leases | Timberlands are leased or permitted for recreational purposes. |
| Other products | Seeds and seedlings grown in the U.S. and wood chips. |
HOW WE MEASURE OUR PRODUCTS
We use multiple units of measure when transacting business including:
Thousand board feet (MBF) — used in the West to measure the expected lumber recovery from a tree or log and
Green tons (GT) — used in the South to measure weight; factors used for conversion to product volume can vary by species, size, location and season.
We report Timberlands volumes in ton equivalents.
WEYERHAEUSER COMPANY >2024 ANNUAL REPORT AND FORM 10-K 9
As of December 31, 2024, we sustainably managed timberlands in 17 states. This included owned or contracted acres in the following locations:
2.5 million acres in the western U.S. (Oregon and Washington);
6.7 million acres in the southern U.S. (Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, North Carolina, Oklahoma, South Carolina, Texas and Virginia) and
1.2 million acres in the northern U.S. (Maine, New Hampshire, Vermont and West Virginia).
In Canada, we manage timberlands under long-term licenses that provide raw material for our manufacturing facilities. These licenses are in Alberta, British Columbia, Ontario and Saskatchewan.
Our total timber inventory — comprised of timber on owned and contracted land in the U.S. — is approximately 594 million tons. This timber inventory does not translate into a specific amount of lumber or panel products because the quantity of end products varies according to the age, species, size and quality of the timber and will change over time as these variables adjust.
We maintain our timber inventory in an integrated resource inventory system and geographic information system (GIS). The resource inventory component of the system is proprietary and is largely based on internally developed methods, including growth and yield models developed by our research and development organization. The GIS component is based on GIS software that is viewed as the standard in our industry.
Timber inventory data collection and verification techniques include the use of industry standard field sampling procedures as well as proprietary remote sensing technologies in some geographies. The data is collected and maintained at the timber stand level.
We also own and operate nurseries and seed orchards in Alabama, Arkansas, Georgia, Louisiana, Mississippi, Oregon, South Carolina and Washington.
Summary of 2024 Standing Timber Inventory
| MILLIONS OF TONS AS OF | |
|---|---|
| GEOGRAPHIC AREA | DECEMBER 31, 2024 |
| TOTAL INVENTORY(1) | |
| U.S.: | |
| West | |
| Douglas-fir/Cedar | 156 |
| Whitewood | 22 |
| Hardwood | 13 |
| Total West | 191 |
| South | |
| Southern yellow pine | 280 |
| Hardwood | 80 |
| Total South | 360 |
| North | |
| Conifer | 16 |
| Hardwood | 27 |
| Total North | 43 |
| Total Company | 594 |
(1)
Inventory includes all conservation and non-harvestable areas.
WEYERHAEUSER COMPANY >2024 ANNUAL REPORT AND FORM 10-K 10
Summary of 2024 Timberland Locations
| THOUSANDS OF ACRES AS OF | |||
|---|---|---|---|
| GEOGRAPHIC AREA | DECEMBER 31, 2024 | ||
| FEE OWNERSHIP | LONG-TERMCONTRACTS | TOTALACRES(1) | |
| U.S.: | |||
| West | |||
| Oregon | 1,415 | — | 1,415 |
| Washington | 1,095 | — | 1,095 |
| Total West | 2,510 | — | 2,510 |
| South | |||
| Alabama | 525 | 163 | 688 |
| Arkansas | 1,184 | 16 | 1,200 |
| Florida | 210 | 61 | 271 |
| Georgia | 571 | 24 | 595 |
| Louisiana | 1,005 | 350 | 1,355 |
| Mississippi | 1,113 | 35 | 1,148 |
| North Carolina | 660 | — | 660 |
| Oklahoma | 486 | — | 486 |
| South Carolina | 201 | — | 201 |
| Texas | 12 | 2 | 14 |
| Virginia | 117 | — | 117 |
| Total South | 6,084 | 651 | 6,735 |
| North | |||
| Maine | 833 | — | 833 |
| New Hampshire | 24 | — | 24 |
| Vermont | 86 | — | 86 |
| West Virginia | 251 | — | 251 |
| Total North | 1,194 | — | 1,194 |
| Total Company | 9,788 | 651 | 10,439 |
(1)
Acres include all conservation and non-harvestable areas.
We provide a year-round flow of logs to internal and external customers. We sell grade and fiber logs to manufacturers that produce a diverse range of products. We also sell standing timber to third parties and lease land for recreational purposes. Most of our timberlands are strategically located to take advantage of road, logging and transportation systems for efficient delivery of logs to customers.
Western United States
Our Western timberlands are well situated to serve the wood products and pulp markets in Oregon and Washington. For the year ended December 31, 2024, we sold 36 percent of our total Western log sales volume internally. Additionally, our location on the West Coast provides access to higher-value export markets for Douglas-fir and whitewood logs to Japan, China and Korea. Our largest export market is Japan, where Douglas-fir is a preferred species for higher-valued post and beam homebuilding. The size and quality of our Western timberlands, coupled with their proximity to several deep-water port facilities, competitively positions us to meet the needs of Pacific Rim log markets.
Our holdings are composed primarily of Douglas-fir, a species highly valued for its structural strength, stiffness and appearance. All of our lands are located on the west side of the Cascade Mountain Range with soil and rainfall conditions considered favorable for growing this species. Our standing timber inventory is comprised of 81 percent Douglas-fir, 12 percent whitewood and 7 percent hardwood.
Our management systems and supply chain expertise provide us with a competitive operating advantage in a number of areas including forestry and research, harvesting, marketing and logistics. Additionally, our scale, diversity of timberlands ownership and infrastructure on the West Coast allow us to consistently and reliably supply logs to our internal and external customers year-round.
We sell recreational use permits covering approximately 2 million acres of our owned Western timberlands.
WEYERHAEUSER COMPANY >2024 ANNUAL REPORT AND FORM 10-K 11
2024 Western U.S. Inventory by Species
2024 Western U.S. Inventory by Age / Species
The average age of timber harvested from our Western timberlands in 2024 was 47 years. In accordance with our sustainable forestry practices, we harvest and replant an average of 2 percent of our Western acreage each year.
Southern United States
Our Southern timberland ownership, covering 11 states, is well situated to serve domestic wood products and pulp markets, including third-party customers and our own mills. For the year ended December 31, 2024, we sold 23 percent of our total Southern log sales volume internally. Additionally, our Atlantic and Gulf coastal locations position us to serve an emerging Asian log export market. Our standing timber inventory is comprised of 78 percent Southern yellow pine and 22 percent hardwood.
Operationally, we focus on efficiently harvesting and hauling logs from our ownership and capitalizing on our scale and supply chain expertise to consistently and reliably supply logs to our internal and external customers year-round.
We lease approximately 96 percent of our owned Southern acreage for recreational purposes.
2024 Southern U.S. Inventory by Species
WEYERHAEUSER COMPANY >2024 ANNUAL REPORT AND FORM 10-K 12
2024 Southern U.S. Inventory by Age / Species
The average age of timber harvested from our Southern timberlands in 2024 was 29 years. In accordance with our sustainable forestry practices, we harvest and replant an average of 2 percent of our acreage each year in the South.
Northern United States
Our Northern timberlands acres contain a diverse mix of temperate broadleaf hardwoods and mixed conifer species across timberlands located in four states. We grow over 35 species and market over 300 product grades to a diverse mix of customers.
Our large-diameter cherry, red oak and hard maple sawlogs and veneer logs serve domestic and export furniture markets. Our maple and other appearance woods are used in furniture and high-value decorative applications. In addition to high-value hardwood sawlogs, our log mix includes hardwood fiber logs for pulp and oriented strand board applications. Hardwood pulpwood is a significant market in the Northern region and we have long-term supply agreements, primarily at market rates, for nearly 90 percent of our hardwood pulp production. Our competitive advantages include a merchandising program to capture the value of premium hardwood logs.
2024 Northern U.S. Inventory by Species
2024 Northern U.S. Inventory by Age / Species
WEYERHAEUSER COMPANY >2024 ANNUAL REPORT AND FORM 10-K 13
The average age of timber harvested from our Northern timberlands in 2024 was 61 years. Timber harvested in the North is sold predominantly as delivered logs to domestic mills, including our manufacturing facilities. For the year ended December 31, 2024, we sold 9 percent of our total Northern log sales volume internally. In accordance with our sustainable forestry practices, we harvest an average of 1 percent of our acreage each year in the North. Regeneration is predominantly natural, augmented by planting where appropriate.
Canada — Licensed Forestlands
We manage forestlands in Canada under long-term licenses from the provincial governments to secure volume for our manufacturing facilities in various provinces. The provincial governments regulate the volume of timber that may be harvested each year through Annual Allowable Cuts (AAC), which are updated every 10 years. As of December 31, 2024, our AAC by province was:
Alberta — 2,211 thousand tons,
British Columbia — 547 thousand tons,
Ontario — 154 thousand tons and
Saskatchewan — 633 thousand tons.
When the volume is harvested, we pay the province for that volume at stumpage rates set by the government. The harvested logs are transferred to our manufacturing facilities at cost (stumpage plus harvest, haul and overhead costs less any margin on selling logs to third parties). Any profit from harvesting the log through converting to finished products is recognized at the respective mill in our Wood Products segment.
Summary of License Arrangements
| THOUSANDS OF | |
|---|---|
| ACRES AS OF | |
| GEOGRAPHIC AREA | DECEMBER 31, 2024 |
| TOTAL ACRES | |
| Province: | |
| Alberta | 5,399 |
| British Columbia | 1,147 |
| Ontario(1) | 2,574 |
| Saskatchewan(1) | 4,987 |
| Total Canada | 14,107 |
(1)
License is managed by partnership.
HOW MUCH WE HARVEST
Our fee harvest volumes are managed sustainably across all regions to ensure the preservation of long-term economic value of the timber and to capture maximum value from the markets. This is accomplished by ensuring annual harvest schedules target financially mature timber and reforestation activities align with the growing of timber through its life cycle to financial maturity.
Five-Year Summary of Timberlands Fee Harvest Volumes
| FEE HARVEST VOLUMES IN THOUSANDS OF TONS | |||||
|---|---|---|---|---|---|
| 2024 | 2023 | 2022 | 2021 | 2020 | |
| West(1) | 8,902 | 8,753 | 7,858 | 8,084 | 8,542 |
| South | 24,514 | 25,177 | 24,329 | 23,304 | 23,149 |
| North(2) | 940 | 942 | 974 | 1,085 | 1,226 |
| Total | 34,356 | 34,872 | 33,161 | 32,473 | 32,917 |
(1)
Western logs are primarily transacted in thousand board feet (MBF) but are converted to ton equivalents for external reporting purposes.
(2)
WEYERHAEUSER COMPANY >2024 ANNUAL REPORT AND FORM 10-K 14
Five-Year Summary of Timberlands Fee Harvest Volumes — Percentage of Grade and Fiber
| PERCENTAGE OF GRADE AND FIBER | ||||||
|---|---|---|---|---|---|---|
| 2024 · 2023 · 2022 · 2021 · 2020 | ||||||
| West | Grade | 92% | 91% | 89% | 92% | 90% |
| Fiber | 8% | 9% | 11% | 8% | 10% | |
| South | Grade | 46% | 47% | 45% | 49% | 48% |
| Fiber | 54% | 53% | 55% | 51% | 52% | |
| North(1) | Grade | 35% | 35% | 37% | 51% | 49% |
| Fiber | 65% | 65% | 63% | 49% | 51% | |
| Total | Grade | 58% | 58% | 55% | 62% | 60% |
| Fiber | 42% | 42% | 45% | 38% | 40% | |
(1)
Our net sales to unaffiliated customers over the last two years were $1.5 billion in 2024 and $1.7 billion in 2023. Our intersegment sales over the last two years were $554 million in 2024 and $572 million in 2023.
Five-Year Summary of Net Sales for Timberlands
| NET SALES IN MILLIONS OF DOLLARS | |||||
|---|---|---|---|---|---|
| 2024 | 2023 | 2022 | 2021 | 2020 | |
| Net sales to unaffiliated customers: | |||||
| Delivered logs: | |||||
| West | $693 | $794 | $1,004 | $869 | $720 |
| South | 603 | 643 | 645 | 589 | 573 |
| North(1) | 46 | 48 | 56 | 52 | 52 |
| Total | 1,342 | 1,485 | 1,705 | 1,510 | 1,345 |
| Stumpage and pay-as-cut timber | 51 | 56 | 46 | 31 | 19 |
| Recreational lease revenue | 77 | 74 | 68 | 65 | 63 |
| Other products(2) | 42 | 39 | 39 | 30 | 39 |
| Subtotal net sales to unaffiliated customers | 1,512 | 1,654 | 1,858 | 1,636 | 1,466 |
| Intersegment net sales | 554 | 572 | 561 | 535 | 471 |
| Total | $2,066 | $2,226 | $2,419 | $2,171 | $1,937 |
(1)
(2)
Other products include sales of seeds and seedlings from our nursery operations and wood chips.
WEYERHAEUSER COMPANY >2024 ANNUAL REPORT AND FORM 10-K 15
Five-Year Trend for Total Net Sales in Timberlands
Percentage of 2024 Sales Dollars to Unaffiliated Customers
Log Sales Volumes
Our sales volumes include fee timber as well as logs purchased in the open market.
Our log sales volumes to unaffiliated customers over the last two years were:
22,855 thousand tons in 2024 and
24,061 thousand tons in 2023.
We sell three grades of logs — domestic grade, domestic fiber and export. Factors that may affect log sales in each of these categories include:
domestic grade log sales — lumber usage, primarily for housing starts and repair and remodel activity, the needs of our own mills and the availability of logs from both outside markets and our own timberlands;
domestic fiber log sales — demand for wood chips by pulp mills, containerboard mills, pellet mills and oriented strand board mills and
export log sales — the level of housing starts in Japan and construction in China, as well as availability of logs from other countries, particularly for China.
Five-Year Summary of Log Sales Volumes to Unaffiliated Customers
| SALES VOLUMES IN THOUSANDS | |||||
|---|---|---|---|---|---|
| 2024 | 2023 | 2022 | 2021 | 2020 | |
| Logs – tons: | |||||
| West(1) | 5,901 | 6,259 | 6,296 | 6,203 | 6,506 |
| South | 16,317 | 17,173 | 16,864 | 16,594 | 16,954 |
| North(2) | 637 | 629 | 707 | 788 | 872 |
| Total | 22,855 | 24,061 | 23,867 | 23,585 | 24,332 |
(1)
Western logs are primarily transacted in thousand board feet (MBF) but are converted to ton equivalents for external reporting purposes.
(2)
WEYERHAEUSER COMPANY >2024 ANNUAL REPORT AND FORM 10-K 16
Log Prices
Domestic and export grade logs are sold at market prices to unaffiliated customers or our internal mills. The majority of our log sales to unaffiliated customers involve sales to domestic sawmills and the export market. Log prices in the following tables are on a delivered (mill) basis.
Five-Year Summary of Published Domestic Log Prices (#2 Sawlog Bark On — $/MBF)
Five-Year Summary of Export Log Prices (#2 Sawlog Bark On — $/MBF)
Log prices are affected by the supply of and demand for grade and fiber logs. Export log prices are particularly affected by the Japanese housing market, Chinese construction activity and the availability of logs from other regions.
continuing to capitalize on our scale of operations, silviculture and supply chain expertise and sustainability practices;
improving cash flow through operational excellence initiatives including merchandising for value, harvest and transportation efficiencies as well as focused silviculture investments to improve forest productivity;
optimizing and growing our timber portfolio through disciplined investments;
leveraging our export and domestic market access, infrastructure and strong customer relationships;
increasing our recreational lease revenue and
continuing to maximize the value of our timberlands portfolio by managing the acres to achieve the highest and best use.
WEYERHAEUSER COMPANY >2024 ANNUAL REPORT AND FORM 10-K 17
REAL ESTATE, ENERGYAND NATURAL RESOURCES
Our Real Estate & ENR segment maximizes the value of our timberland ownership through application of our asset value optimization (AVO) process and captures the full value of surface and subsurface assets. In 2021, we launched our natural climate solutions business through which we leverage our resources and expertise to help others meet their goals to reduce carbon emissions or mitigate environmental impacts. This involves an expansion of our established business activities in the areas of conservation, mitigation banking and leasing land for renewable energy projects. Additionally, it involves advancing our participation in two emerging markets focused on the mitigation of carbon emissions: forest carbon, by which we generate carbon credits through incremental carbon sequestration over a baseline and sell them on voluntary carbon markets, and carbon capture and storage, which involves leasing of surface and subsurface ownership to safely and permanently sequester transported carbon emissions from their source. As the largest private owner of timberlands in North America, the scale and geographic diversity of our assets create a unique opportunity for participation in each of these activities, all of which offer natural solutions for reducing carbon emissions and support climate change mitigation efforts.
Real Estate
Properties that exhibit higher use value than commercial timberlands are monetized by our Real Estate business over time. We analyze our existing U.S. timberland holdings using a process we call AVO. We start with understanding the value of a parcel operating as commercial timberlands and then assess the specific real estate attributes of the parcel and its corresponding market. The assessment includes demographics, infrastructure and proximity to amenities and recreation to determine the potential to realize a premium value to commercial timberland. Attributes can evolve over time, and accordingly, the assignment of value and opportunity can change. We continually revisit our AVO assessment across our timberland portfolio. Additionally, we leverage new technology to improve and enhance our ability to identify and capture value from various timber and non-timber attributes, including carbon, renewable energy and other natural climate solutions opportunities. This technology-enabled approach, referred to as "AVO 2.0", leverages remote sensing, satellite imagery, machine learning and other advanced data analytics, and continues to drive significant improvements in our ability to identify strategic growth opportunities and manage every acre in our portfolio to maximize value across the full suite of attributes and opportunities.
We expect to sell certain properties for recreational, conservation, commercial or residential purposes over time. We will also entitle a small amount of acres for real estate development. Development, outside of entitlement activities, is typically performed by third parties. Mitigation banking consists of setting aside certain areas of our timberlands to preserve, enhance or restore a wetland, stream or habitat area to make up for development by another entity in a similar nearby ecosystem. Activities within the Real Estate business that contribute to natural climate solutions include conservation sales or easements and mitigation banking. Some of our real estate activities are conducted through our TRSs.
Occasionally, we sell a small amount of timberland acreage in areas where we choose to reduce our market presence and capture a price that exceeds the value derivable from holding and operating as commercial timberlands. These transactions will vary based on factors including the location and physical and operating characteristics of the timberlands.
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 expectation 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 sold will vary based on the location and physical characteristics of parcels sold.
Energy and Natural Resources
We focus on maximizing potential opportunities for construction materials, industrial minerals, renewable energy (including wind and solar energy), natural gas, rights of way easements on our timberland portfolio and retained mineral interests. Activities within the ENR business that contribute to natural climate solutions include utilizing land for the production of renewable energy like wind and solar, forest carbon and carbon capture and storage.
As the owner of mineral rights and interests, we typically do not invest in development or operations but, instead, enter into contracts with operators granting them the rights to explore, develop and sell energy and natural resources produced from our property in exchange for rents and royalties. We generally reserve mineral rights when selling timberlands acreage. Some Energy and Natural Resources activities are conducted through our TRSs.
WEYERHAEUSER COMPANY >2024 ANNUAL REPORT AND FORM 10-K 18
Real Estate, Energy and Natural Resources Sources of Revenue
| BUSINESS | SOURCES OF REVENUE |
|---|---|
| Real Estate | • Select timberland tracts are sold for recreational, conservation, commercial or residential purposes.• Mitigation banking credits are generated and sold. |
| Energy and Natural Resources | • Rights are granted to explore for, extract and sell construction aggregates (rock, sand and gravel), industrialmaterials and natural gas. • Ground leases and easements are granted to wind and solar developers to generate renewable electricity.• Rights are granted to access and utilize timberland acreage for communications, pipeline, powerline and transportation rights of way.• Forest carbon credits are generated and sold.• Subsurface ownership is leased for carbon sequestration. |
Our Real Estate business identifies opportunities to realize premium value for our owned timberland acreage.
The majority of our Energy and Natural Resources revenue sources are located in Oregon, Washington, South Carolina and Georgia (construction material royalties); as well as Louisiana and West Virginia (natural gas royalties).
Our net sales over the last two years were $391 million in 2024 and $363 million in 2023.
Five-Year Summary of Net Sales for Real Estate, Energy and Natural Resources
| NET SALES IN MILLIONS OF DOLLARS | |||||
|---|---|---|---|---|---|
| 2024 | 2023 | 2022 | 2021 | 2020 | |
| Net sales: | |||||
| Real Estate | $280 | $237 | $235 | $246 | $202 |
| Energy and Natural Resources | 111 | 126 | 133 | 98 | 74 |
| Total | $391 | $363 | $368 | $344 | $276 |
Five-Year Summary of Real Estate Sales Statistics
| REAL ESTATE SALES STATISTICS | |||||
|---|---|---|---|---|---|
| 2024 | 2023 | 2022 | 2021 | 2020 | |
| Acres sold | 94,908 | 62,942 | 58,791 | 55,827 | 111,898 |
| Average price per acre | $2,682 | $3,494 | $3,714 | $3,725 | $1,690 |
| | continuing to apply the AVO process to identify opportunities to capture a premium to timber value; |
|---|---|
| | maintaining a flexible, low-cost execution model by continuing to leverage strategic relationships with outside real estate brokers; |
| | capturing the full value of our surface and subsurface ownership, including natural climate solutions opportunities, and |
| | delivering the most value from every acre. |
WOOD PRODUCTS
We are one of the largest manufacturers and distributors of wood products in North America.
Our Wood Products segment:
| | manufactures high-quality structural lumber, oriented strand board, engineered wood products and other specialty products for the residential, multi-family, industrial, light commercial and repair and remodel markets and |
|---|---|
| | distributes our products as well as complementary building products that we purchase from other manufacturers. |
WEYERHAEUSER COMPANY >2024 ANNUAL REPORT AND FORM 10-K 19
Wood Products Sources of Revenue
| PRODUCTS | HOW THEY’RE USED |
|---|---|
| Structural lumber | Structural framing for new residential, repair and remodel, treated applications, industrial and commercial structures, as well as other lumber specialty products. |
| Oriented strand board | Structural sheathing, subflooring and stair tread for residential, multi-family and commercial structures. |
| Engineered wood products• Solid section• I-joists• Softwood plywood• Medium density fiberboard | Structural elements for residential, multi-family and commercial structures such as floor and roof joists, headers, beams, subflooring and sheathing.Medium density fiberboard products for store fixtures, molding, doors and cabinet components. |
| Other products | Wood chips and other byproducts. |
| Complementary building products | Complementary building products such as cedar, decking, siding, insulation and rebar sold in our distribution facilities. |
We operate manufacturing facilities in the United States and Canada. We distribute through a combination of Weyerhaeuser distribution centers and third-party distributors. Information about the locations, capacities and actual production of our manufacturing facilities is included below.
Summary of Wood Products Capacities and Principal Manufacturing Locations as of December 31, 2024
| CAPACITIES IN MILLIONS | |||
|---|---|---|---|
| PRODUCTIONCAPACITY | NUMBER OFFACILITIES | FACILITY LOCATIONS | |
| Structural lumber – board feet(1) | 5,580 | 19 | Alabama, Arkansas, Louisiana (2), Mississippi (3), Montana, North Carolina (3), Oklahoma, Oregon (2), Washington (2), Alberta (2), British Columbia |
| Oriented strand board – square feet (3/8”) | 3,150 | 6 | Louisiana, Michigan, North Carolina, West Virginia, Alberta, Saskatchewan |
| Engineered solid section – cubic feet(2) | 42 | 6 | Alabama, Louisiana, Oregon, West Virginia, British Columbia, Ontario |
| Softwood plywood – square feet (3/8”)(3) | 610 | 3 | Arkansas, Louisiana, Montana |
| Medium density fiberboard – square feet (3/4”) | 265 | 1 | Montana |
(1)
Includes our New Bern lumber mill, which was indefinitely curtailed in third quarter 2024.
(2)
This represents total press capacity. Our engineered solid section facilities also may produce engineered I-joists. In 2024, approximately 22 percent of the total press production was converted into 147 million lineal feet of I-joist.
(3)
All of our plywood facilities also produce veneer.
Production capacities listed represent annual production volume under normal operating conditions and producing a normal product mix for each individual facility.
We also own or lease 19 distribution centers in the U.S. where our products and complementary building products are sold.
Five-Year Summary of Wood Products Production
| PRODUCTION IN MILLIONS | |||||
|---|---|---|---|---|---|
| 2024 | 2023 | 2022 | 2021 | 2020 | |
| Structural lumber – board feet | 4,404 | 4,572 | 4,513 | 4,815 | 4,666 |
| Oriented strand board – square feet (3/8”) | 2,920 | 2,933 | 2,961 | 2,865 | 3,013 |
| Engineered solid section – cubic feet | 22.3 | 21.9 | 23.6 | 24.0 | 23.0 |
| Engineered I-joists – lineal feet | 147 | 147 | 172 | 190 | 175 |
| Softwood plywood – square feet (3/8”) | 314 | 310 | 259 | 263 | 347 |
| Medium density fiberboard – square feet (3/4”) | 138 | 132 | 161 | 206 | 200 |
Revenues of our Wood Products segment come from sales to wood products dealers, do-it-yourself retailers, builders and industrial users. Wood Products net sales were $5.2 billion in 2024 and $5.7 billion in 2023.
WEYERHAEUSER COMPANY >2024 ANNUAL REPORT AND FORM 10-K 20
Five-Year Summary of Net Sales for Wood Products
| NET SALES IN MILLIONS OF DOLLARS | |||||
|---|---|---|---|---|---|
| 2024 | 2023 | 2022 | 2021 | 2020 | |
| Structural lumber | $1,906 | $2,123 | $3,374 | $3,721 | $2,602 |
| Oriented strand board | 979 | 944 | 1,578 | 1,840 | 1,013 |
| Engineered solid section | 708 | 783 | 862 | 679 | 505 |
| Engineered I-joists | 390 | 447 | 573 | 447 | 316 |
| Softwood plywood | 158 | 166 | 193 | 210 | 171 |
| Medium density fiberboard | 159 | 155 | 192 | 186 | 171 |
| Other products produced(1) | 306 | 335 | 346 | 348 | 336 |
| Complementary building products | 615 | 704 | 840 | 790 | 676 |
| Total | $5,221 | $5,657 | $7,958 | $8,221 | $5,790 |
(1)
Other products produced sales include wood chips, other byproducts and third-party residual log sales from our Canadian Forestlands operations.
Five-Year Trend for Total Net Sales in Wood Products
Percentage of 2024 Net Sales Dollars in Wood Products
WEYERHAEUSER COMPANY >2024 ANNUAL REPORT AND FORM 10-K 21
Wood Products Volumes
Five-Year Summary of Sales Volumes for Wood Products
| SALES VOLUMES IN MILLIONS(1) | |||||
|---|---|---|---|---|---|
| 2024 | 2023 | 2022 | 2021 | 2020 | |
| Structural lumber – board feet | 4,500 | 4,649 | 4,658 | 4,902 | 4,873 |
| Oriented strand board – square feet (3/8”) | 2,810 | 2,864 | 2,853 | 2,726 | 2,956 |
| Engineered solid section – cubic feet | 22.3 | 22.3 | 23.0 | 24.4 | 23.4 |
| Engineered I-joists – lineal feet | 149 | 154 | 171 | 194 | 190 |
| Softwood plywood – square feet (3/8”) | 342 | 342 | 285 | 308 | 414 |
| Medium density fiberboard – square feet (3/4”) | 135 | 122 | 160 | 205 | 201 |
(1)
Sales volumes include sales of internally produced products as well as complementary building products sold primarily through our distribution centers.
Wood Products Prices
In general, the following factors influence sales realizations for wood products:
| | Demand for wood products used in residential and multi-family construction and the repair and remodel of existing homes affects prices. Residential and multi-family construction is influenced by factors such as population growth and other demographics, availability of labor and lots, the level of employment, consumer confidence, consumer income, availability of financing and interest rate levels, and the supply and pricing of existing homes on the market. Repair and remodel activity is primarily affected by the size and age of existing housing inventory and access to home equity financing and other credit. |
|---|---|
| | The supply of commodity building products such as structural lumber, oriented strand board and softwood plywood affects prices. A number of factors can influence supply, including changes in production capacity and utilization rates, weather, imported supply, raw material supply and availability of labor and transportation. |
The following graphs reflect product price trends for the past five years.
Five-Year Summary of Published Lumber Prices — $/MBF
WEYERHAEUSER COMPANY >2024 ANNUAL REPORT AND FORM 10-K 22
Five-Year Summary of Published Oriented Strand Board Prices — $/MSF
| | delivering industry-leading controllable manufacturing costs and optimizing capacity through operational excellence and disciplined capital execution; |
|---|---|
| | aligning closely with fiber supply; |
| | expanding our lumber and engineered wood products capacity; |
| | developing new and innovative products; |
| | leveraging our brand and reputation as the preferred provider of quality building products and |
| | pursuing disciplined, profitable sales growth in target markets. |
WEYERHAEUSER COMPANY >2024 ANNUAL REPORT AND FORM 10-K 23
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.