PotlatchDeltic Corporation

Total adjusted EBITDA was $89 million in Q3 2025 versus $52 million in Q2 2025. Timberlands adjusted EBITDA was $41 million, up from $40 million, with Idaho sawlog harvest rising to 411,000 tons from 360,000 tons and Southern harvest at 1.5 million tons, flat sequentially. Wood Products posted a $2 million adjusted EBITDA loss versus a $2 million gain in Q2; average lumber price realization fell 12% to $396 per thousand board feet from $450, while shipments rose to 333 million board feet from 303 million. Real Estate adjusted EBITDA was $63 million versus $23 million, with about 15,600 acres sold at nearly $3,300 per acre, including two Georgia transactions and 55 residential lots sold at an average of $139,000 per lot. Liquidity was $388 million, including $89 million of cash, and the company refinanced $100 million of debt with only a $50,000 annual increase in cash interest costs. CapEx was $16 million in Q3, and full-year CapEx is still expected at $60 million to $65 million, excluding the $6 million Waldo closeout payment and any timberland acquisitions. For Q4, Timberlands harvest is expected at 1.7 million to 1.8 million tons, Wood Products shipments at 290 million to 300 million board feet, and Real Estate sales at about 5,000 rural acres at $3,200 per acre plus about 46 Chenal Valley lots at $95,000 per lot. Management expects Q4 adjusted EBITDA to be lower than Q3 due to fewer real estate sales, lower seasonal harvest volumes, and softer Idaho sawlog pricing.

Eric Cremers framed the quarter as strong operationally despite a difficult market, emphasizing that real estate drove results while mills and timberlands performed well on execution. He spent much of his commentary on the proposed Rayonier merger, calling it strategically and financially compelling, with a larger acreage footprint, expanded wood products scale, and $40 million of expected synergies. His tone was constructive but cautious: he said lumber looks to have bottomed, curtailments are increasing, and 2026 should be better, though the near-term market remains weak.

Wayne Wasechek focused on the quarter’s financial bridge and balance sheet. He cited $89 million of total adjusted EBITDA, $63 million of real estate EBITDA, $41 million in Timberlands, and a $2 million loss in Wood Products, then noted $388 million of liquidity and $89 million of cash at quarter-end. He also highlighted the $100 million debt refinancing, the modest $50,000 annual increase in cash interest, the approximately 2.3% weighted average cost of debt, and full-year CapEx guidance of $60 million to $65 million.

Analysts focused on pulpwood pressure, wood products pricing, real estate timing, and the merger. Management said pulpwood pricing is pressured by mill closures, but PotlatchDeltic’s scale and customer relationships help it find a home for volume, and the merged company would diversify that exposure further. On lumber, management said inventory in the channel looks lean, prices may rise modestly in Q4, and 2026 pricing could be $30 to $40 higher year over year; on real estate, they said Q3 outperformance was largely due to a large conservation sale and timing can shift between quarters.