Weyerhaeuser Navigates Lower Lumber Prices Amid Normalizing Demand and Soft Housing Markets

Weyerhaeuser is one of the world’s largest forest product producers and is the largest private timberland owner in North America. Weyerhaeuser is a real estate investment trust, or REIT, and distributes its REIT income to shareholders without having to pay corporate level incomes taxes. The company operates with significant wood product production capacity in Canada and the United States. Homebuilding, remodeling, and construction are the main uses of softwood lumber and engineered wood products in North America. Weyerhaeuser is closely tied to the North American market as it accounted for over 90% of revenue in 2022 (85% in U.S. and 7% in Canada). As price-takers, Weyerhaeuser and its peers see dramatic profit variations depending on the health of housing markets and overall economic conditions.