10 Best Lumber Stocks To Buy Right Now

5. Weyerhaeuser Company (NYSE:WY)

Number of Hedge Fund Holders: 29

Weyerhaeuser Company (NYSE:WY) is a leading American timberland and lumber company, owning or managing around 10.5 million acres of timberlands in the US and 14 million acres in Canada. The company is one of the largest wood products manufacturers in North America, producing engineered lumber, oriented strand board (OSB), plywood, and medium-density fiberboard panels.

In the third quarter of 2024, Weyerhaeuser Company (NYSE:WY) reported net sales of $1.7 billion, down from $2.0 billion in the same quarter last year. This decline reflects a challenging market environment. The company posted a net income of $28 million compared to $239 million in net income for Q3 2023. Despite the decrease, Weyerhaeuser Company (NYSE:WY) achieved an adjusted EBITDA of $236 million, indicating solid operational performance despite a challenging market backdrop.

In November 2024, Weyerhaeuser Company (NYSE:WY) announced plans to invest about $500 million in a new TimberStrand facility in Arkansas, which will significantly boost its capacity for engineered wood products. This facility is expected to produce around 10 million cubic feet annually and generate over $100 million in annual adjusted EBITDA once fully operational. Construction is expected to start in 2024 and operations are projected to begin in 2027.

Previously, in July, the company had announced strategic timberland acquisitions in Alabama, totaling 84,300 acres for $244 million. With its focus on expanding production capacity and strategic land acquisitions, Weyerhaeuser Company (NYSE:WY) is well-positioned for future growth.