Is the company seeing a supply response in PNW log markets beyond seasonal trends due to improved lumber prices, and how significant is it?

PNW timber markets are balanced but sensitive to lumber prices. Recent lumber price improvements offer optimism for log prices, but the overall market is still softer than a few years ago. “But certainly, with this recent trajectory in lumber prices, that gives us some optimism about what the trajectory in log prices in that region will look like.”

How do rising diesel prices impact log and haul costs across segments, and is it a pass-through or absorbed?

Higher diesel prices impact log and haul in Timberland business, more so in the northern region. They try to pass costs to customers, but it takes time. In Wood Products, transportation costs are generally passed through to customers. “As far as transportation for wood products in lumber, that generally is a pass-through to customers. So any cost increases there, they absorb that.”

Is data center land use an incremental or transformative opportunity for Rayonier, given the recent mention?

Data centers are an incremental, promising opportunity, not transformative. They require less land than solar farms but command higher price points. The company has identified and marketed a handful of suitable parcels. “I wouldn't say that we expect it to be a huge use of land... it's definitely an opportunity that we think is pretty promising, but I'd characterize it more as incremental more so than transformative.”

RYN

Rayonier (RYN) Q1 FY26 earnings call: guidance and Q&A

Q: Is there more interest in purchasing or leasing land for solar development, and how does Rayonier view these options?

Management noted a balanced interest, but recent options lean heavier towards leasing for recurring revenue. Both options are pursued, depending on developer preference (some prefer ownership, others prefer long-term leases to avoid capital outlay). “I'd say it's probably heavier to lease in terms of that current option portfolio, but we have seen interest on both sides.”

Earnings call· Mar 2026 (Q1 FY26)· Real Estate· May 7, 2026

Source: earnings call transcript

Executive summary

Rayonier Q1 FY26 — Strong Post-Merger Performance Driven by Real Estate and Timber

Rayonier delivered solid Q1 FY26 results, integrating two months of PotlatchDeltic operations following the late January merger close. The company reported strong Adjusted EBITDA, primarily driven by robust Real Estate performance and increased timber harvest volumes, despite challenging pulpwood markets and moderating lumber prices. Management remains focused on realizing significant merger synergies and capitalizing on land-based solutions, including a growing solar development pipeline, to drive long-term shareholder value.

Highlights

Adjusted EBITDA of $94 million, well above $27 million in prior year, driven by merger contribution and strong operational performance.
Southern Timber Adjusted EBITDA up 68% YoY to $46 million, with harvest volumes increasing 76%.
Real Estate segment Adjusted EBITDA significantly up to $46 million from $2 million in prior year, with $60 million revenue on 7,700 acres sold.
Solar land sale at $10,000 per acre, underscoring continued interest from solar developers.
Merger integration on track to achieve $40 million annual run rate synergies within 24 months, with at least half by year-end.

Concerns

GAAP loss of $12 million or $0.05 per share due to merger-related pro forma items.
Pulpwood markets remained challenging with continued pricing pressure due to weaker demand and historically dry weather conditions.
Property damage on roughly 10,000 acres primarily in Georgia due to recent forest fires, though not expected to have a significant financial impact.
Lumber pricing moderated in recent weeks after a positive trajectory through mid-April, amid more balanced supply-demand dynamics.

Guidance & targets

Category	Target	Timeline	Confidence
Annual run rate synergies from merger	$40 million high materiality	FY27	High
Southern Timber full year harvest volumes	12.1 million to 12.6 million tons medium materiality	FY26	High
Southern Timber Q2 harvest volumes	2.9 million to 3.1 million tons medium materiality	Q2 · FY26	High
Southern Timber Q2 regional sawtimber and pulpwood prices	remain relatively stable low materiality	Q2 · FY26	Medium
Southern Timber full year average pine prices	lower than the stand-alone prices for Rayonier in the prior year medium materiality	FY26	High
Northwest Timber full year harvest volumes	2 million to 2.3 million tons medium materiality	FY26	High
Northwest Timber Q2 harvest volumes	approximately 500,000 tons medium materiality	Q2 · FY26	High
Northwest Timber Q2 overall sawtimber prices	higher low materiality	Q2 · FY26	Medium
Northwest Timber full year average sawlog pricing	higher than the stand-alone pricing for Rayonier in the prior year medium materiality	FY26	High
Wood Products full year lumber shipments	approximately 1.1 billion board feet medium materiality	FY26	High
Wood Products Q2 lumber shipments	approximately 310 million to 320 million board feet medium materiality	Q2 · FY26	High
Wood Products Q2 Adjusted EBITDA contribution	higher medium materiality	Q2 · FY26	Medium
Real Estate Q2 Adjusted EBITDA contribution	$25 million to $35 million medium materiality	Q2 · FY26	High
Real Estate full year Adjusted EBITDA contribution	$180 million to $200 million high materiality	FY26	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Southern Timber Increased harvest volumes more than offset lower net stumpage realizations. Revised price reporting to delivered log prices. Geographic mix shift post-merger led to lower reported pricing. Pulpwood markets challenging due to demand weakness and dry weather. Adjusted EBITDA growth YoY: 68%Total harvest volumes: 76% increase YoYHarvest volumes from PotlatchDeltic: 1 million tons	—	—	—	Adjusted EBITDA of $46 million
Northwest Timber Harvest activity limited by extended spring breakup conditions. Lumber pricing increased significantly, expected to translate to positive log price momentum. Adjusted EBITDA growth YoY: 45%Harvest volumes: 38% increase YoYIncremental harvest volume from PotlatchDeltic's Idaho timberlands: 116,000 tons	—	—	—	Adjusted EBITDA of $9 million
Wood Products Modestly above expectations for the 2-month post-merger period. Improvement due to reduced supply and improved demand, though pricing moderated recently. Average lumber price realization (post-merger): $437 per MBFShipments (post-merger): 199 million board feetAverage lumber price realization (full quarter): $427 per MBFShipments (full quarter): 288 million board feetAverage lumber price realization rebound from Q4 FY25: 11% (from $384 per MBF)	—	—	—	Adjusted EBITDA of $7 million
Real Estate Sales increased significantly due to higher acres sold, partially offset by sales mix. Wildlight and Heartwood projects performing well. Chenal Valley (from merger) diversifies platform and contributes cash flow. Strong interest from solar developers. Acres sold: 7,700 acresAverage price per acre: $7,300Adjusted EBITDA growth YoY: significantly up from $2 millionImproved development sales: $7 millionRural sales: $49 millionRural acres sold: 7,650 acresRural average price per acre: $6,500Solar developer sale: 2,200 acres for $23 millionSolar developer sale price per acre: $10,000	$60 million	—	—	Adjusted EBITDA of $46 million

RYN operating KPIs by quarter

RYN operating KPIs stated on its earnings calls, by fiscal quarter
KPI	This call Mar 2026 Q1 FY26	Jun 2026 Q2 FY26	Change vs prior quarter
Harvest volume PotlatchDeltic	~1M tons Total harvest volumes increased 76% versus the prior year quarter, primarily due to the addition of roughly 1 million tons of volume from the PotlatchDeltic timberlands. Source: earnings call transcript	~1.5M tons Total harvest volumes more than doubled versus the prior year quarter, primarily due to the addition of roughly 1.5 million tons of volume from the PotlatchDeltic timberland. Source: earnings call transcript	—
Average lumber price realization Wood Products	$437 During this period, our average lumber price realization was $437 per MBF and shipments totaled 199 million board feet. Source: earnings call transcript	$505 Our average lumber price realization was $505 per MBF and shipments totaled 314 million board feet, in line with our prior guidance. Source: earnings call transcript	+15.6%
Lumber shipments Wood Products	199M board feet During this period, our average lumber price realization was $437 per MBF and shipments totaled 199 million board feet. Source: earnings call transcript	314M board feet Our average lumber price realization was $505 per MBF and shipments totaled 314 million board feet, in line with our prior guidance. Source: earnings call transcript	+57.8%
Acres sold Real Estate	~7,700 acres In the first quarter, real estate revenue totaled $60 million on approximately 7,700 acres sold at an average price of $7,300 per acre. Source: earnings call transcript	~7,500 acres In the second quarter, real estate revenue totaled $54 million on approximately 7,500 acres sold at an average price of $6,300 per acre. Source: earnings call transcript	—
Average price per acre Real Estate	$7,300 In the first quarter, real estate revenue totaled $60 million on approximately 7,700 acres sold at an average price of $7,300 per acre. Source: earnings call transcript	$6,300 In the second quarter, real estate revenue totaled $54 million on approximately 7,500 acres sold at an average price of $6,300 per acre. Source: earnings call transcript	-13.7%
Acres sold Rural Real Estate	~7,650 acres First quarter sales totaled $49 million, consisting of roughly 7,650 acres sold at an average price of nearly $6,500 per acre. Source: earnings call transcript	<7,500 acres Second quarter sales totaled $41 million, consisting of nearly 7,500 acres sold at an average price of roughly $5,400 per acre. Source: earnings call transcript	—
Average price per acre Rural Real Estate	<$6,500 First quarter sales totaled $49 million, consisting of roughly 7,650 acres sold at an average price of nearly $6,500 per acre. Source: earnings call transcript	~$5,400 Second quarter sales totaled $41 million, consisting of nearly 7,500 acres sold at an average price of roughly $5,400 per acre. Source: earnings call transcript	—

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Orderbook & backlog

Solar Land Option Pipeline 80,000 acres Q1 FY26

35,000 acres of options are set to mature between now and the end of 2028, with expected more regular turnover of option maturities.

Deals & partnerships

PotlatchDeltic Merger of equals, combining operations to create a larger, more diversified company.

Transaction closed ahead of schedule in late January. Integration efforts underway, including optimizing organizational structure and retaining Rayonier name.

Capital programs

Merger Integration Synergies underway $40 million annual run rate

Spent to date: significant progress

Start: late January 2026

Benefit:overhead cost savings and operational efficiencies

Expected $40 million of annual run rate synergies within 24 months of closing, with at least half achieved by the end of the first year. Significant progress made towards these objectives.

Risks & headwinds

Pulpwood market pricing pressure to start the year

continued pricing pressure

Mitigation:End product pricing for pulp and packaging mill customers has improved, which should contribute to some stabilization of demand. Longer term, less timber supply available due to casualty events should improve supply-demand balance.

Forest fires in U.S. South Over the past couple of weeks

sustained property damage on roughly 10,000 acres, primarily in Georgia

Mitigation:Actively assessing impact and preparing to commence remediation and salvage operations. Do not currently expect a significant financial or operational impact.

Moderating lumber pricing recent weeks

pricing in recent weeks across some products has moderated amid more balanced supply-demand dynamics.

Mitigation:Encouraged by positive trajectory through mid-April; expect Q2 Wood Products EBITDA to be higher than Q1.

Variability in lumber and log prices next 6 months out

very hard to predict lumber prices next week, much less than the next 6 months out

Mitigation:Providing volume guidance in timber segment to allow for reasonable EBITDA outlook, but not providing annual price guidance due to variability.

What to watch in Q2 FY26

Merger integration synergies achievement

by the end of the first year

Current on track to achieve our synergies targets

Target at least half of $40 million annual run rate synergies achieved

Why it matters

Confirms the financial benefits and operational efficiency gains from the PotlatchDeltic merger.

We continue to expect $40 million of annual run rate synergies within 24 months of closing, with at least half of that achieved by the end of the first year. Since closing the merger, we've made significant progress toward these objectives, and we remain on track to achieve our synergies targets.

Find out whether RYN delivers this. Inve re-checks your case every morning.

Q&A highlights

Is there more interest in purchasing or leasing land for solar development, and how does Rayonier view these options?

Management noted a balanced interest, but recent options lean heavier towards leasing for recurring revenue. Both options are pursued, depending on developer preference (some prefer ownership, others prefer long-term leases to avoid capital outlay).

“I'd say it's probably heavier to lease in terms of that current option portfolio, but we have seen interest on both sides.”

asked by Matthew McKellar · answered by Mark McHugh

2 min read 6 chapters

Detailed narrative

Merger Integration Progress

The merger with PotlatchDeltic closed ahead of schedule in late January, with integration efforts "hitting the ground running." The company expects $40 million in annual run rate synergies within 24 months, with at least half achieved by year-end, driven by organizational optimization and operational efficiencies.

The Rayonier name was retained after a thorough review to leverage brand equity and mitigate costs, reflecting a new era for the combined company.

Southern Timber Dynamics

The Southern Timber segment saw a 68% increase in Adjusted EBITDA to $46 million, primarily due to a 76% rise in harvest volumes, including 1 million tons from PotlatchDeltic. While grade log demand was steady, pulpwood markets faced challenges from mill closures, maintenance downtime, and historically dry weather, leading to continued pricing pressure.

The company sustained property damage on 10,000 acres from recent forest fires, primarily in Georgia, but expects no significant financial or operational impact.

Northwest Timber and Wood Products Performance

Northwest Timber Adjusted EBITDA increased 45% to $9 million, with harvest volumes up 38% due to 116,000 tons from Idaho timberlands, despite limited activity from extended spring breakup conditions. Wood Products, a new segment post-merger, generated $7 million Adjusted EBITDA in Q1, with average lumber price realization rebounding 11% to $437 per MBF.

Lumber prices improved due to reduced supply and better demand, though recent weeks saw moderation.

Real Estate Segment Strength and Solar Opportunities

Real Estate revenue totaled $60 million from 7,700 acres sold, driving Adjusted EBITDA to $46 million, significantly up from $2 million in the prior year. This included a $23 million sale of 2,200 acres to a solar developer at $10,000 per acre.

The company's solar land option pipeline stands at 80,000 acres, with 35,000 acres set to mature by end of 2028, indicating future cash flow potential from both sales and leases, which typically range from $700 to $1,200 per acre.

Capital Allocation and Liquidity

Rayonier repurchased 1.5 million shares for $31 million at an average price of $20.98, with $198 million remaining on its current share repurchase authorization. The company ended Q1 with $682 million cash and $2.1 billion debt, resulting in a net debt to enterprise value of 18%.

Post-quarter, $200 million of debt was repaid at maturity using cash on hand, reflecting a preference for debt reduction over refinancing in the current higher interest rate environment.

Long-Term Outlook and Land-Based Solutions

Management expressed optimism about the long-term fundamentals of the industry, citing a structural deficit in U.S. housing, positive real estate trajectory, and broad optionality in its land base. The company is actively pursuing land-based solutions, including solar land sales/leases, carbon capture and storage, bioenergy, and carbon offsets, expecting these to become increasingly meaningful contributors to cash flow in the years ahead, driven by growing demand for power and AI/data center infrastructure.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.