WEYERHAEUSER COMPANY CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED) QUARTER ENDED YEAR-TO-DATE ENDED DOLLAR AMOUNTS IN MILLIONS, EXCEPT PER-SHARE FIGURES JUNE 2026 JUNE 2025 JUNE 2026 JUNE 2025 Net sales (Note 3) $ 1,867 $ 1,884 $ 3,594 $ 3,647 Costs of sales 1,556 1,559 2,965 2,987 Gross margin 311 325 629 660 Selling expenses 24 23 47 46 General and administrative expenses 115 114 234 233 Gain on sale of timberlands (Note 15) (71 ) — (129 ) — Other operating costs, net (Note 13) 20 10 7 24 Operating income 223 178 470 357 Non-operating pension and other post-employment benefit costs (Note 6) (14 ) (19 ) (28 ) (38 ) Interest income and other 4 6 8 11 Interest expense, net of capitalized interest (66 ) (66 ) (132 ) (132 ) Earnings before income taxes 147 99 318 198 Income taxes (Note 14) 15 (12 ) — (28 ) Net earnings $ 162 $ 87 $ 318 $ 170 Earnings per share, basic and diluted (Note 4) $ 0.23 $ 0.12 $ 0.44 $ 0.23 Weighted average shares outstanding (in thousands) (Note 4): Basic 721,421 723,682 721,356 724,906 Diluted 721,901 723,927 721,787 725,239 See accompanying Notes to Consolidated Financial Statements. 1 WEYERHAEUSER COMPANY CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED) QUARTER ENDED YEAR-TO-DATE ENDED DOLLAR AMOUNTS IN MILLIONS JUNE 2026 JUNE 2025 JUNE 2026 JUNE 2025 Net earnings $ 162 $ 87 $ 318 $ 170 Other comprehensive income (loss): Foreign currency translation adjustments (10 ) 19 (17 ) 21 Changes in unamortized actuarial loss, net of tax expense of $3, $2, $6 and $5 10 9 21 19 Changes in unamortized net prior service credit, net of tax expense of $0, $0, $0 and $0 — 1 1 — Unrealized net gain on cash flow hedges, net of tax expense of $1, $0, $2 and $0 (Note 9) 5 4 9 6 Total other comprehensive income 5 33 14 46 Total comprehensive income $ 167 $ 120 $ 332 $ 216 See accompanying Notes to Consolidated Financial Statements. 2 WEYERHAEUSER COMPANY CONSOLIDATED BALANCE SHEET (UNAUDITED) DOLLAR AMOUNTS IN MILLIONS, EXCEPT PAR VALUE JUNE 30, 2026 DECEMBER 31, 2025 ASSETS Current assets: Cash and cash equivalents $ 527 $ 464 Receivables, net 373 303 Receivables for taxes 5 10 Inventories (Note 5) 604 593 Assets held for sale — 128 Prepaid expenses and other current assets 127 154 Total current assets 1,636 1,652 Property and equipment, less accumulated depreciation of $4,248 and $4,158 2,405 2,420 Construction in progress 423 337 Timber and timberlands at cost, less depletion 11,384 11,533 Minerals and mineral rights, less depletion 173 177 Deferred tax assets 113 97 Other assets 379 397 Total assets $ 16,513 $ 16,613 LIABILITIES AND EQUITY Current liabilities: Current maturities of long-term debt (Note 8) $ 122 $ 522 Accounts payable 311 278 Accrued liabilities (Note 7) 468 478 Total current liabilities 901 1,278 Long-term debt, net (Note 8) 5,303 5,050 Deferred tax liabilities 15 18 Deferred pension and other post-employment benefits (Note 6) 486 485 Other liabilities 352 356 Total liabilities 7,057 7,187 Commitments and contingencies (Note 10) Equity: Common shares: $1.25 par value; authorized 1,360 million shares; issued and outstanding: 720,692 thousand shares at June 30, 2026 and 720,531 thousand shares at December 31, 2025 901 901 Other capital 7,392 7,390 Retained earnings 1,442 1,428 Accumulated other comprehensive loss (Note 11) (279 ) (293 ) Total equity 9,456 9,426 Total liabilities and equity $ 16,513 $ 16,613 See accompanying Notes to Consolidated Financial Statements. 3 WEYERHAEUSER COMPANY CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED) YEAR-TO-DATE ENDED DOLLAR AMOUNTS IN MILLIONS JUNE 2026 JUNE 2025 Cash flows from operations: Net earnings $ 318 $ 170 Noncash charges (credits) to earnings: Depreciation, depletion and amortization 251 250 Basis of acres sold 54 57 Deferred income taxes, net (25 ) 4 Pension and other post-employment benefits (Note 6) 37 47 Share-based compensation expense (Note 12) 23 23 Gain on sale of timberlands (Note 15) (129 ) — Other 1 — Change in: Receivables, net (83 ) (66 ) Receivables and payables for taxes 14 (16 ) Inventories (14 ) (13 ) Prepaid expenses and other current assets 4 17 Accounts payable and accrued liabilities 17 39 Pension and post-employment benefit contributions and payments (9 ) (6 ) Other (8 ) (40 ) Net cash from operations 451 466 Cash flows from investing activities: Capital expenditures for property and equipment (220 ) (170 ) Capital expenditures for timberlands reforestation (31 ) (30 ) Proceeds from sale of timberlands (Note 15) 306 — Proceeds from lumber mill sale (Note 16) 22 — Other (3 ) (8 ) Net cash from investing activities 74 (208 ) Cash flows from financing activities: Cash dividends on common shares (303 ) (304 ) Net proceeds from issuance of long-term debt (Note 8) — 299 Net proceeds from issuance of commercial paper (Note 8) 331 — Payments on long-term debt (Note 8) (400 ) (210 ) Payments on commercial paper (Note 8) (81 ) — Repurchases of common shares (Note 4) (20 ) (125 ) Other (6 ) (10 ) Net cash from financing activities (479 ) (350 ) Net change in cash, cash equivalents and restricted cash 46 (92 ) Cash, cash equivalents and restricted cash at beginning of period 481 684 Cash, cash equivalents and restricted cash at end of period $ 527 $ 592 Cash paid during the period for: Interest, net of amount capitalized of $7 and $6 $ 133 $ 132 Income taxes, net of refunds $ 13 $ 40 See accompanying Notes to Consolidated Financial Statements. 4 WEYERHAEUSER COMPANY CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED) QUARTER ENDED YEAR-TO-DATE ENDED DOLLAR AMOUNTS IN MILLIONS, EXCEPT PER-SHARE FIGURES JUNE 2026 JUNE 2025 JUNE 2026 JUNE 2025 Common shares: Balance at beginning of period $ 901 $ 908 $ 901 $ 908 Issued for exercise of stock options and vested units — — 1 1 Repurchases of common shares (Note 4) — (5 ) (1 ) (6 ) Balance at end of period 901 903 901 903 Other capital: Balance at beginning of period 7,391 7,483 7,390 7,500 Issued for exercise of stock options — — 5 1 Repurchases of common shares (Note 4) (10 ) (95 ) (19 ) (119 ) Share-based compensation 10 12 23 23 Other transactions, net 1 1 (7 ) (4 ) Balance at end of period 7,392 7,401 7,392 7,401 Retained earnings: Balance at beginning of period 1,431 1,643 1,428 1,715 Net earnings 162 87 318 170 Dividends on common shares (151 ) (154 ) (304 ) (309 ) Balance at end of period 1,442 1,576 1,442 1,576 Accumulated other comprehensive loss: Balance at beginning of period (284 ) (389 ) (293 ) (402 ) Other comprehensive income 5 33 14 46 Balance at end of period (Note 11) (279 ) (356 ) (279 ) (356 ) Total equity: Balance at end of period $ 9,456 $ 9,524 $ 9,456 $ 9,524 Dividends paid per common share $ 0.21 $ 0.21 $ 0.42 $ 0.42 See accompanying Notes to Consolidated Financial Statements. 5 INDEX FOR NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 1: BASIS OF PRESENTATION 7 NOTE 2: BUSINESS SEGMENTS 7 NOTE 3: REVENUE RECOGNITION 10 NOTE 4: NET EARNINGS PER SHARE AND SHARE REPURCHASES 11 NOTE 5: INVENTORIES 12 NOTE 6: PENSION AND OTHER POST-EMPLOYMENT BENEFIT PLANS 12 NOTE 7: ACCRUED LIABILITIES 13 NOTE 8: LONG-TERM DEBT, LINE OF CREDIT AND COMMERCIAL PAPER PROGRAM 13 NOTE 9: FAIR VALUE OF FINANCIAL INSTRUMENTS 13 NOTE 10: LEGAL PROCEEDINGS, COMMITMENTS AND CONTINGENCIES 14 NOTE 11: ACCUMULATED OTHER COMPREHENSIVE LOSS 15 NOTE 12: SHARE-BASED COMPENSATION 15 NOTE 13: OTHER OPERATING COSTS, NET 16 NOTE 14: INCOME TAXES 16 NOTE 15: TIMBERLAND DIVESTITURES 16 NOTE 16: PRINCETON LUMBER MILL DIVESTITURE 16 6 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) FOR THE QUARTERS AND YEAR-TO-DATE PERIODS ENDED JUNE 30, 2026 AND 2025 NOTE 1: BASIS OF PRESENTATION Our consolidated financial statements provide an overall view of our results of operations, financial condition and cash flows. They include our accounts and the accounts of entities we control, including majority-owned domestic and foreign subsidiaries. They do not include our intercompany transactions and accounts, which are eliminated. Throughout these Notes to Consolidated Financial Statements, unless specified otherwise, references to “Weyerhaeuser,” “the company,” “we” and “our” refer to the consolidated company. The accompanying unaudited Consolidated Financial Statements reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of our financial position, results of operations and cash flows for the interim periods presented. Except as otherwise disclosed in these Notes to Consolidated Financial Statements, such adjustments are of a normal, recurring nature. The Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission pertaining to interim financial statements. Certain information and footnote disclosures normally included in our annual Consolidated Financial Statements have been condensed or omitted. These quarterly Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2025. Results of operations for interim periods should not necessarily be regarded as indicative of the results that may be expected for the full year. Reclassifications We have reclassified certain balances and results from prior years to be consistent with our 2026 reporting. This makes balances comparable from year to year. These changes include updates to the segment previously called Real Estate, Energy & Natural Resources, which has been renamed Strategic Land Solutions, effective first quarter 2026. Reportable business lines included within the segment have been updated from Real Estate and Energy & Natural Resources to Real Estate, Natural Resources and Climate Solutions. Refer to Note 2: Business Segments for discussion of the activities which comprise each business line. Our reclassifications had no effect on consolidated net earnings or equity. NOTE 2: BUSINESS SEGMENTS We are principally engaged in growing and harvesting timber; maximizing the value of our acreage through the sale of higher and better use (HBU) properties; monetizing the value of surface and subsurface assets through leases and royalties; and manufacturing, distributing and selling products made from trees. Our business segments are organized based primarily on products and services which include: ●Timberlands – Logs, timber, recreational leases and other products; ●Strategic Land Solutions – Real Estate (sales of timberlands), Natural Resources (rights to explore for and extract hard minerals, construction materials and natural gas production) and Climate Solutions (conservation, mitigation banking, renewable energy, forest carbon and carbon capture and sequestration). ●Wood Products – Structural lumber, oriented strand board, engineered wood products and building materials distribution. 7 A reconciliation of our business segment information to the respective information in our Consolidated Statement of Operations is as follows: DOLLAR AMOUNTS IN MILLIONS TIMBERLANDS STRATEGIC LAND SOLUTIONS WOOD PRODUCTS UNALLOCATED ITEMS AND INTERSEGMENT ELIMINATIONS CONSOLIDATED QUARTER ENDED JUNE 2026 Net sales to unaffiliated customers $ 367 $ 140 $ 1,360 $ — $ 1,867 Intersegment sales 151 — — (151 ) — Total 518 140 1,360 (151 ) 1,867 Costs of sales 434 38 1,223 (139 ) 1,556 Gross margin 84 102 137 (12 ) 311 Selling expenses 1 — 23 — 24 General and administrative expenses 24 8 37 46 115 Other segment items(1) (71 ) — 6 24 (41 ) Net contribution (charge) to earnings $ 130 $ 94 $ 71 $ (82 ) $ 213 QUARTER ENDED JUNE 2025 Net sales to unaffiliated customers $ 373 $ 154 $ 1,357 $ — $ 1,884 Intersegment sales 156 — — (156 ) — Total 529 154 1,357 (156 ) 1,884 Costs of sales 416 44 1,243 (144 ) 1,559 Gross margin 113 110 114 (12 ) 325 Selling expenses 1 — 22 — 23 General and administrative expenses 24 6 40 44 114 Other segment items(1) — (2 ) 6 19 23 Net contribution (charge) to earnings $ 88 $ 106 $ 46 $ (75 ) $ 165 YEAR-TO-DATE ENDED JUNE 2026 Net sales to unaffiliated customers $ 723 $ 347 $ 2,524 $ — $ 3,594 Intersegment sales 287 — — (287 ) — Total 1,010 347 2,524 (287 ) 3,594 Costs of sales 843 70 2,310 (258 ) 2,965 Gross margin 167 277 214 (29 ) 629 Selling expenses 1 — 45 1 47 General and administrative expenses 49 14 76 95 234 Other segment items(1) (128 ) — (20 ) 46 (102 ) Net contribution (charge) to earnings $ 245 $ 263 $ 113 $ (171 ) $ 450 YEAR-TO-DATE ENDED JUNE 2025 Net sales to unaffiliated customers $ 755 $ 248 $ 2,644 $ — $ 3,647 Intersegment sales 308 — — (308 ) — Total 1,063 248 2,644 (308 ) 3,647 Costs of sales 825 76 2,357 (271 ) 2,987 Gross margin 238 172 287 (37 ) 660 Selling expenses 1 — 44 1 46 General and administrative expenses 48 13 79 93 233 Other segment items(1) (1 ) (3 ) 12 43 51 Net contribution (charge) to earnings $ 190 $ 162 $ 152 $ (174 ) $ 330 (1)Other segment items for each reportable segment includes recurring and non-recurring income and expense items. For our Timberlands segment, this includes gains on the sale of timberlands for the quarter and year-to-date period ended June 30, 2026. For our Wood Products segment, this includes product remediation insurance recoveries for the year-to-date period ended June 30, 2026. For Unallocated Items, this includes non-operating pension and other post-employment benefit costs and interest income and other for all periods presented. Refer to Note 13: Other Operating Costs, Net for additional information. 8 Reconciliation of Net Contribution to Earnings to Net Earnings QUARTER ENDED YEAR-TO-DATE ENDED DOLLAR AMOUNTS IN MILLIONS JUNE 2026 JUNE 2025 JUNE 2026 JUNE 2025 Net contribution to earnings $ 213 $ 165 $ 450 $ 330 Interest expense, net of capitalized interest (66 ) (66 ) (132 ) (132 ) Earnings before income taxes 147 99 318 198 Income taxes 15 (12 ) — (28 ) Net earnings $ 162 $ 87 $ 318 $ 170 Additional Financial Information DOLLAR AMOUNTS IN MILLIONS TIMBERLANDS STRATEGIC LAND SOLUTIONS WOOD PRODUCTS UNALLOCATED ITEMS AND INTERSEGMENT ELIMINATIONS CONSOLIDATED QUARTER ENDED JUNE 2026 Depreciation, depletion and amortization $ 64 $ 4 $ 58 $ 1 $ 127 Capital expenditures $ 24 $ — $ 115 $ — $ 139 QUARTER ENDED JUNE 2025 Depreciation, depletion and amortization $ 64 $ 4 $ 55 $ 2 $ 125 Capital expenditures $ 19 $ — $ 88 $ — $ 107 YEAR-TO-DATE ENDED JUNE 2026 Depreciation, depletion and amortization $ 127 $ 5 $ 115 $ 4 $ 251 Capital expenditures $ 67 $ — $ 184 $ — $ 251 YEAR-TO-DATE ENDED JUNE 2025 Depreciation, depletion and amortization $ 129 $ 6 $ 110 $ 5 $ 250 Capital expenditures $ 45 $ — $ 155 $ — $ 200 Total Assets DOLLAR AMOUNTS IN MILLIONS JUNE 30, 2026 DECEMBER 31, 2025 Timberlands and Strategic Land Solutions(1) $ 12,398 $ 12,687 Wood Products 3,368 3,194 Unallocated items 747 732 Consolidated $ 16,513 $ 16,613 (1)Assets attributable to the Strategic Land Solutions segment are combined with total assets for the Timberlands segment as we do not produce separate balance sheets internally. 9 NOTE 3: REVENUE RECOGNITION A reconciliation of revenue recognized by our major products: QUARTER ENDED YEAR-TO-DATE ENDED DOLLAR AMOUNTS IN MILLIONS JUNE 2026 JUNE 2025 JUNE 2026 JUNE 2025 Net sales to unaffiliated customers: Timberlands segment Delivered logs: West Domestic sales $ 100 $ 102 $ 183 $ 200 Export grade sales 71 67 132 138 Subtotal West 171 169 315 338 South 145 154 293 306 North 9 8 23 22 Subtotal delivered logs sales 325 331 631 666 Stumpage and pay-as-cut timber 11 13 21 23 Recreational and other lease revenue 20 19 40 38 Other(1) 11 10 31 28 Net sales attributable to Timberlands segment 367 373 723 755 Strategic Land Solutions segment Real estate 91 72 160 134 Natural resources 34 26 61 45 Climate solutions 15 56 126 69 Net sales attributable to Strategic Land Solutions segment 140 154 347 248 Wood Products segment Structural lumber 591 581 1,069 1,108 Oriented strand board 180 205 347 433 Engineered solid section 181 169 336 330 Engineered I-joists 89 95 161 183 Softwood plywood 47 41 85 81 Medium density fiberboard 31 36 62 68 Complementary building products 179 155 322 280 Other(2) 62 75 142 161 Net sales attributable to Wood Products segment 1,360 1,357 2,524 2,644 Total net sales $ 1,867 $ 1,884 $ 3,594 $ 3,647 (1)Other Timberlands sales include sales of seeds and seedlings from our nursery operations as well as wood chips. (2)Other Wood Products sales include wood chips, other byproducts and third-party residual log sales from our Canadian Forestlands operations. 10 NOTE 4: NET EARNINGS PER SHARE AND SHARE REPURCHASES Our basic and diluted earnings per share were: ●$0.23 during second quarter 2026 and $0.44 during year-to-date 2026. ●$0.12 during second quarter 2025 and $0.23 during year-to-date 2025. Basic earnings per share is net earnings divided by the weighted average number of our outstanding common shares, including stock equivalent units where there is no circumstance under which those shares would not be issued. Diluted earnings per share is net earnings divided by the sum of the weighted average number of our outstanding common shares and the effect of our outstanding dilutive potential common shares. QUARTER ENDED YEAR-TO-DATE ENDED SHARES IN THOUSANDS JUNE 2026 JUNE 2025 JUNE 2026 JUNE 2025 Weighted average common shares outstanding – basic 721,421 723,682 721,356 724,906 Dilutive potential common shares: Stock options — 35 2 54 Restricted stock units 125 43 89 43 Performance share units 355 167 340 236 Total effect of outstanding dilutive potential common shares 480 245 431 333 Weighted average common shares outstanding – dilutive 721,901 723,927 721,787 725,239 We use the treasury stock method to calculate the dilutive effect of our outstanding stock options, restricted stock units and performance share units. Potential Shares Not Included in the Computation of Diluted Earnings per Share The following shares were not included in the computation of diluted earnings per share because they were either antidilutive or the required performance or market conditions were not met. Some or all of these shares may be dilutive potential common shares in future periods. QUARTER ENDED YEAR-TO-DATE ENDED SHARES IN THOUSANDS JUNE 2026 JUNE 2025 JUNE 2026 JUNE 2025 Performance share units 824 815 824 815 Share Repurchase Program During second quarter 2025, we completed the $1 billion purchase authorization under the share repurchase program approved by the board in September 2021 (the 2021 Repurchase Program). On May 8, 2025, we announced the board approved a new share repurchase program (the 2025 Repurchase Program) under which we are authorized to repurchase up to $1 billion of outstanding shares. Concurrently, the board of directors terminated the completed purchase authorization under the 2021 Repurchase Program. We repurchased 409,734 common shares for approximately $10 million (including transaction fees) under the 2025 Repurchase Program during second quarter 2026 and 818,777 common shares for approximately $20 million (including transaction fees) under the 2025 Repurchase Program during year-to-date 2026. As of June 30, 2026, we had remaining authorization of $918 million for future share repurchases under the 2025 Repurchase Program. During second quarter 2025, we repurchased 3,888,932 common shares for approximately $100 million (including transaction fees) and 4,733,981 common shares for approximately $125 million (including transaction fees) during year-to-date 2025 under the share repurchase programs. All common stock repurchases under the share repurchase programs were made in open-market transactions. We record share repurchases upon trade date as opposed to the settlement date when cash is disbursed. We record a liability for repurchases that have not yet been settled as of period end. There were no unsettled shares as of June 30, 2026 and December 31, 2025. 11 NOTE 5: INVENTORIES Inventories include raw materials, work-in-process and finished goods, as well as materials and supplies. DOLLAR AMOUNTS IN MILLIONS JUNE 30, 2026 DECEMBER 31, 2025 LIFO inventories: Logs $ 14 $ 28 Lumber, plywood, oriented strand board and fiberboard 91 74 Other products 10 9 Moving average cost or FIFO inventories: Logs 36 39 Lumber, plywood, oriented strand board, fiberboard and engineered wood products 112 107 Other products 167 173 Materials and supplies 174 163 Total $ 604 $ 593 LIFO – the last-in, first-out method – applies to major inventory products held at our U.S. locations. The moving average cost method or FIFO – the first-in, first-out method – applies to the balance of our U.S. raw material and product inventories, all material and supply inventories and all foreign inventories. NOTE 6: PENSION AND OTHER POST-EMPLOYMENT BENEFIT PLANS The components of net periodic benefit cost are: PENSION QUARTER ENDED YEAR-TO-DATE ENDED DOLLAR AMOUNTS IN MILLIONS JUNE 2026 JUNE 2025 JUNE 2026 JUNE 2025 Service cost $ 5 $ 5 $ 9 $ 9 Interest cost 24 30 47 60 Expected return on plan assets (23 ) (26 ) (45 ) (52 ) Amortization of actuarial loss 12 14 24 28 Amortization of prior service cost 1 1 1 1 Total net periodic benefit cost – pension $ 19 $ 24 $ 36 $ 46 OTHER POST-EMPLOYMENT BENEFITS QUARTER ENDED YEAR-TO-DATE ENDED DOLLAR AMOUNTS IN MILLIONS JUNE 2026 JUNE 2025 JUNE 2026 JUNE 2025 Interest cost $ 1 $ 1 $ 2 $ 2 Amortization of prior service credit (1 ) (1 ) (1 ) (1 ) Total net periodic benefit cost – other post-employment benefits $ — $ — $ 1 $ 1 For the periods presented, service cost is included in “Costs of sales,” “Selling expenses,” and “General and administrative expenses” with the remaining components included in “Non-operating pension and other post-employment benefit costs” in our Consolidated Statement of Operations. Fair Value of Pension Plan Assets and Obligations In our year-end reporting process, we estimate the fair value of pension plan assets based upon the information available at that time. For certain assets, primarily private equity funds, the information available consists of net asset values as of an interim date, cash flows between the interim date and the end of the year and market events. We evaluate the year-end estimated fair value of pension plan assets in the second quarter of each year to incorporate final net asset values reflected in financial statements received after we have filed our Annual Report on Form 10-K. No adjustments to the fair value of assets or projected benefit obligations were necessary during second quarter 2026. 12 NOTE 7: ACCRUED LIABILITIES Accrued liabilities were comprised of the following: DOLLAR AMOUNTS IN MILLIONS JUNE 30, 2026 DECEMBER 31, 2025 Compensation and employee benefit costs $ 149 $ 190 Current portion of lease liabilities 24 25 Customer rebates, volume discounts and deferred income 143 127 Interest 47 53 Taxes payable 46 28 Other 59 55 Total $ 468 $ 478 NOTE 8: LONG-TERM DEBT, LINE OF CREDIT AND COMMERCIAL PAPER PROGRAM Long-term Debt In July 2026, we repaid the remaining $62 million and $60 million in principal outstanding on our 7.35 percent and 7.85 percent debentures, respectively, at maturity. During second quarter 2026, we repaid the remaining $250 million in principal outstanding on our 4.75 percent notes at maturity. We also amended our $300 million senior unsecured term loan to extend the maturity date from April 2030 to April 2031 and amended our $250 million senior unsecured term loan to extend the maturity date from December 2028 to April 2031. Refinancing costs associated with each of these extensions were immaterial. During first quarter 2026, we repaid our $150 million 7.70 percent debentures at maturity. During first quarter 2025, we repaid our $139 million 8.50 percent debentures and our $71 million 7.95 percent debentures at maturity. We also entered into a $300 million senior unsecured term loan that will mature in April 2031 as a result of the aforementioned amendment. Net proceeds after fees were $299 million. Borrowings will bear interest at a floating rate based on either the adjusted term Secured Overnight Financing Rate (SOFR) plus a spread or a mutually agreed-upon base rate plus a spread. Commercial Paper Program During fourth quarter 2025, we established a commercial paper program under which we may issue short-term, unsecured commercial paper notes pursuant to the exemption from registration contained in Section 4(a)(2) of the Securities Act of 1933, as amended. Under this program, we may issue notes from time to time in an aggregate amount not to exceed $1.75 billion outstanding at any time. The notes will have maturities of up to 397 days from the date of issue and will not be subject to voluntary prepayment or redemption prior to maturity. We use our revolving credit facility as a liquidity backstop for the repayment of short-term unsecured notes issued under the commercial paper program. As of June 30, 2026, we had $250 million of commercial paper issued and outstanding under this program, with a weighted average interest rate of 4.10 percent. There was no commercial paper issued and outstanding under this program as of December 31, 2025. As of June 30, 2026, we have classified all issued and outstanding commercial paper maturing in the next 12 months as long-term because we have the intent and ability to refinance these borrowings on a long-term basis, as supported by the available capacity under our $1.75 billion revolving credit facility. The amount outstanding is recorded in "Long-term debt, net" on our Consolidated Balance Sheet. Line of Credit During second quarter 2025, we amended and restated our senior unsecured revolving credit facility to extend the expiration date to June 2030, while increasing borrowing capacity from $1.5 billion to $1.75 billion. Borrowings will bear interest at a floating rate based on either the adjusted term SOFR plus a spread or a mutually agreed-upon base rate plus a spread. We had no outstanding borrowings on our revolving credit facility as of June 30, 2026 or December 31, 2025. NOTE 9: FAIR VALUE OF FINANCIAL INSTRUMENTS The estimated fair value and carrying value of our long-term debt consisted of the following: JUNE 30, 2026 DECEMBER 31, 2025 DOLLAR AMOUNTS IN MILLIONS CARRYING VALUE FAIR VALUE (LEVEL 2) CARRYING VALUE FAIR VALUE (LEVEL 2) Long-term debt (including current maturities), line of credit and commercial paper: Fixed rate $ 3,828 $ 3,776 $ 4,225 $ 4,242 Variable rate 1,347 1,350 1,347 1,350 Commercial paper program 250 250 — — Total debt $ 5,425 $ 5,376 $ 5,572 $ 5,592 13 To estimate the fair value of fixed rate long-term debt, we used the market approach, which is based on quoted market prices we received for the same types and issues of our debt. We believe that our variable-rate long-term debt and line of credit instruments have net carrying values that approximate their fair value with only insignificant differences. The inputs to the valuations of our long-term debt are based on market data obtained from independent sources or information derived principally from observable market data. The difference between the fair value and the carrying value represents the theoretical net premium or discount we would pay or receive to retire all debt at the measurement date. Derivative Instruments Designated as Cash Flow Hedges Interest Rate Swap Hedging Relationship During third quarter 2025, we entered into interest rate swaps with the risk management objective of managing exposure to interest rate volatility by converting variable rate debt obligations associated with our $800 million term loan due in 2028 into fixed rate payments. The interest rate swaps provide the right to make fixed rate payments to the counterparty in exchange for variable, SOFR-based payments on a monthly settlement schedule. As of June 30, 2026 and December 31, 2025, our interest rate swap agreements with an aggregate notional amount of $800 million were designated as cash flow hedging instruments of variable, SOFR-based interest payments on our $800 million term loan. Foreign Currency Hedging Relationship During first quarter 2025, we entered into forward contracts with the risk management objective of reducing foreign exchange risk associated with the variability in cash flows from the settlement of forecasted foreign currency-denominated purchases of equipment. Our forward contracts provide the right to buy specified quantities of euros during predetermined future periods at predetermined future rates. As of June 30, 2026 and December 31, 2025, all forward contracts with an aggregate notional amount of $14 million and $32 million, respectively, were designated as cash flow hedging instruments of hedged forecasted foreign-currency denominated purchases of equipment. The current and noncurrent fair value of our outstanding derivatives designated as cash flow hedging instruments as recorded on our Consolidated Balance Sheet are summarized below: DERIVATIVE ASSETS DERIVATIVE LIABILITIES DOLLAR AMOUNTS IN MILLIONS PREPAID EXPENSES AND OTHER CURRENT ASSETS OTHER ASSETS ACCRUED LIABILITIES OTHER LIABILITIES AS OF JUNE 30, 2026 Interest rate swaps $ 4 $ 5 $ — $ — Foreign currency forward contracts 1 — — — Total fair value $ 5 $ 5 $ — $ — AS OF DECEMBER 31, 2025 Interest rate swaps $ — $ — $ 1 $ 2 Foreign currency forward contracts 2 1 — — Total fair value $ 2 $ 1 $ 1 $ 2 The pre-tax unrealized gain on our outstanding derivative instruments recognized in "Other comprehensive income" in our Consolidated Statement of Comprehensive Income and recorded in "Accumulated other comprehensive loss" on our Consolidated Balance Sheet are summarized below: QUARTER ENDED YEAR-TO-DATE ENDED DOLLAR AMOUNTS IN MILLIONS JUNE 2026 JUNE 2025 JUNE 2026 JUNE 2025 Interest rate swaps $ 6 $ — $ 11 $ — Foreign currency forward contracts — 4 — 6 Total unrealized gain on cash flow hedges $ 6 $ 4 $ 11 $ 6 Fair Value of Other Financial Instruments We believe that our other financial instruments, including cash and cash equivalents, short-term investments, receivables and payables, have net carrying values that approximate their fair values with only insignificant differences. This is primarily due to the short-term nature of these instruments and the allowance for doubtful accounts. NOTE 10: LEGAL PROCEEDINGS, COMMITMENTS AND CONTINGENCIES Legal Proceedings We are party to various legal proceedings arising in the ordinary course of business. We are not currently a party to any legal proceeding that management believes could have a material adverse effect on our Consolidated Statement of Operations, Consolidated Balance Sheet or Consolidated Statement of Cash Flows. 14 Environmental Matters Site Remediation Under the federal Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) – commonly known as the Superfund – and similar state laws, we: ●are a party to various proceedings related to the cleanup of hazardous waste sites and ●have been notified that we may be a potentially responsible party related to the cleanup of other hazardous waste sites for which proceedings have not yet been initiated. As of June 30, 2026, our total accrual for future estimated remediation costs on active Superfund sites and other sites for which we are potentially responsible was approximately $93 million. These amounts are recorded in "Accrued liabilities" and "Other liabilities" on our Consolidated Balance Sheet. NOTE 11: ACCUMULATED OTHER COMPREHENSIVE LOSS Changes in amounts included in our accumulated other comprehensive loss by component are: QUARTER ENDED YEAR-TO-DATE ENDED DOLLAR AMOUNTS IN MILLIONS JUNE 2026 JUNE 2025 JUNE 2026 JUNE 2025 Pension(1) Balance at beginning of period $ (489 ) $ (573 ) $ (502 ) $ (583 ) Other comprehensive income (loss) before reclassifications 2 (3 ) 3 (3 ) Amounts reclassified from accumulated other comprehensive loss to earnings(2) 9 12 21 22 Total other comprehensive income 11 9 24 19 Balance at end of period $ (478 ) $ (564 ) $ (478 ) $ (564 ) Other post-employment benefits(1) Balance at beginning of period $ 27 $ 22 $ 28 $ 23 Other comprehensive income (loss) before reclassifications — 2 (1 ) 1 Amounts reclassified from accumulated other comprehensive loss to earnings(2) (1 ) (1 ) (1 ) (1 ) Total other comprehensive (loss) income (1 ) 1 (2 ) — Balance at end of period $ 26 $ 23 $ 26 $ 23 Translation adjustments and other Balance at beginning of period $ 178 $ 162 $ 181 $ 158 Translation adjustments (10 ) 19 (17 ) 21 Unrealized gain on cash flow hedges(1) 5 4 9 6 Total other comprehensive (loss) income (5 ) 23 (8 ) 27 Balance at end of period 173 185 173 185 Accumulated other comprehensive loss, end of period $ (279 ) $ (356 ) $ (279 ) $ (356 ) (1)Amounts presented are net of tax. (2)Amounts of actuarial loss and prior service cost are components of net periodic benefit cost. See Note 6: Pension and Other Post-Employment Benefit Plans. NOTE 12: SHARE-BASED COMPENSATION Share-based compensation activity during year-to-date 2026 included the following: SHARES IN THOUSANDS GRANTED VESTED Restricted stock units (RSUs) 1,184 766 Performance share units (PSUs) 622 214 A total of 712 thousand shares of common stock were issued as a result of RSU and PSU vestings, net of tax. Restricted Stock Units The weighted average fair value of the RSUs granted in 2026, calculated as an average of the high and low prices on grant date, was $26.84. The vesting provisions for RSUs granted in 2026 were consistent with prior year grants. 15 Performance Share Units The weighted average grant date fair value of PSUs granted in 2026 was $26.29. The final number of shares granted in 2026 will vest between a range of 0 percent to 150 percent of each grant's target, depending upon actual company total shareholder return (TSR) compared against the TSR of an industry peer group, as well as company progress in achieving EBITDA growth targets. TSR assumes full reinvestment of dividends. In the event of negative absolute TSR, the TSR component used in the blended payout calculation is capped at 125 percent. Weighted Average Assumptions Used in Estimating the Value of Performance Share Units Granted in 2026 PERFORMANCE SHARE UNITS Performance period 2/13/2026 – 12/31/2028 Valuation date closing stock price $26.75 Risk-free rate 3.37% – 3.43% Expected volatility 27.90% NOTE 13: OTHER OPERATING COSTS, NET Other operating costs, net were comprised of the following: QUARTER ENDED YEAR-TO-DATE ENDED DOLLAR AMOUNTS IN MILLIONS JUNE 2026 JUNE 2025 JUNE 2026 JUNE 2025 Environmental remediation charges $ 5 $ 3 $ 6 $ 7 Litigation expense, net 12 3 20 5 Product remediation insurance recovery — — (28 ) — Research and development expenses 1 1 2 2 Other, net 2 3 7 10 Total other operating costs, net $ 20 $ 10 $ 7 $ 24 NOTE 14: INCOME TAXES As a real estate investment trust (REIT), we generally are not subject to federal corporate income taxes on REIT taxable income that is distributed to shareholders. We are required to pay corporate income taxes on earnings of our Taxable REIT Subsidiaries (TRSs), which include our Wood Products segment and a portion of our Timberlands and Strategic Land Solutions segments. The quarterly provision for income taxes is based on our current estimate of the annual effective tax rate and is adjusted for discrete taxable events that have occurred during the year. Our 2026 estimated annual effective tax rate, excluding discrete items, differs from the U.S. federal statutory tax rate of 21 percent primarily due to state and foreign income taxes and tax benefits associated with our nontaxable REIT earnings. Tax Legislation On July 4, 2025, H.R. 1, commonly known as the One Big, Beautiful Bill Act (the OBBBA), was enacted. The OBBBA contained significant changes to corporate taxation, including accelerated deductions for capital spending, expensing of research and development costs and increased deductibility of interest expense. Additionally, effective for taxable years beginning after December 31, 2025, the value of TRS securities that a REIT may hold increased from 20 percent to 25 percent of the value of the REIT’s total assets. We do not expect a material impact to our 2026 financial statements due to the enactment of the OBBBA. NOTE 15: TIMBERLAND DIVESTITURES Divestitures In June 2026, we completed the sale of 29 thousand acres of Oregon timberlands for $114 million, which is net of purchase price adjustments and closing costs. As a result of the sale, we recorded a $71 million gain in the Timberlands segment in our Consolidated Statement of Operations. This sale was not considered a strategic shift that had, or will have, a major effect on our operations or financial results and therefore did not meet the requirements for presentation as discontinued operations. In February 2026, we completed the sale of 108 thousand acres of Virginia timberlands for $192 million, which is net of purchase price adjustments and closing costs. As a result of the sale, we recorded a $58 million gain in the Timberlands segment in our Consolidated Statement of Operations. This sale was not considered a strategic shift that had, or will have, a major effect on our operations or financial results and therefore did not meet the requirements for presentation as discontinued operations. NOTE 16: PRINCETON LUMBER MILL DIVESTITURE In third quarter 2025, we completed the sale of our Princeton lumber mill for a total purchase price of approximately $85 million. The total purchase price was inclusive of mill assets, the associated timber licenses in British Columbia and the value of working capital as of the closing date. Pursuant to the transaction closing, a gain on the sale of $29 million was recognized. The transfer of all associated timber licenses in British Columbia was subject to regulatory approval and a portion of the total purchase price was held in escrow to be released in conjunction with the approval and transfer of these licenses. In April 2026, we obtained all necessary approvals and completed the transfer of the associated licenses. As a result, we received final proceeds of $22 million. 16