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    RYN
    Earnings call· Mar 2026(Q1 FY26)

    RAYONIER Q1 FY26 earnings call RYN

    May 7, 2026 Source

    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

    5

    • 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

    4

    • 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

    14
    CategoryTargetConfidence
    Annual run rate synergies from merger
    $40 million
    high materiality
    High
    Southern Timber full year harvest volumes
    12.1 million to 12.6 million tons
    medium materiality
    High
    Southern Timber Q2 harvest volumes
    2.9 million to 3.1 million tons
    medium materiality
    High
    Southern Timber Q2 regional sawtimber and pulpwood prices
    remain relatively stable
    low materiality
    Medium
    Southern Timber full year average pine prices
    lower than the stand-alone prices for Rayonier in the prior year
    medium materiality
    High
    Northwest Timber full year harvest volumes
    2 million to 2.3 million tons
    medium materiality
    High
    Northwest Timber Q2 harvest volumes
    approximately 500,000 tons
    medium materiality
    High
    Northwest Timber Q2 overall sawtimber prices
    higher
    low materiality
    Medium
    Northwest Timber full year average sawlog pricing
    higher than the stand-alone pricing for Rayonier in the prior year
    medium materiality
    High
    Wood Products full year lumber shipments
    approximately 1.1 billion board feet
    medium materiality
    High
    Wood Products Q2 lumber shipments
    approximately 310 million to 320 million board feet
    medium materiality
    High
    Wood Products Q2 Adjusted EBITDA contribution
    higher
    medium materiality
    Medium
    Real Estate Q2 Adjusted EBITDA contribution
    $25 million to $35 million
    medium materiality
    High
    Real Estate full year Adjusted EBITDA contribution
    $180 million to $200 million
    high materiality
    High

    Segment performance

    4
    SegmentRevenueYoYQoQMargin
    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

    Operational metrics

    15
    Adjusted Net Income
    $17 million
    Q1 FY26

    Adjusting for pro forma items related to the merger.

    Adjusted EBITDA
    $94 millionwell above $27 million in prior year period
    Q1 FY26

    Primarily due to contribution from PotlatchDeltic operations and strong operational performance.

    Cash Available for Distribution (CAD)
    $90 millionversus $20 million in prior year period
    Q1 FY26

    Significant increase driven by PotlatchDeltic businesses and improved real estate results.

    Share Repurchases
    $31 million
    Q1 FY26

    Subsequent to the closing of the merger.

    Remaining Share Repurchase Authorization
    $198 million
    Q1 FY26

    As of the end of the first quarter.

    Cash Balance
    $682 million
    Q1 FY26

    Finished the first quarter with this amount.

    Total Debt
    $2.1 billion
    Q1 FY26

    Finished the first quarter with this amount.

    Net Debt to Enterprise Value
    18%
    Q1 FY26

    Based on closing stock price at the end of the quarter.

    Debt Repaid (in quarter)
    $28 million
    Q1 FY26

    Debt that matured in February.

    Debt Repaid (post-quarter)
    $200 million
    post Q1 FY26

    Term loan repaid at maturity using cash on hand, viewed as favorable capital allocation.

    Solar Land Sale Price Range
    $8,000 to $15,000
    current

    General range of economics seen for solar land sales.

    Solar Land Lease Rate Range
    $700 to $1,200
    current

    General range of economics seen for solar land leases.

    Average Lumber Price
    $505
    Q2 FY26 YTD

    Average lumber price thus far in the second quarter.

    Lumber Shipments
    125 million
    Q2 FY26 YTD

    Shipments thus far in the second quarter.

    All-in Burden on Canadian Softwood
    35%
    current

    Includes 10% Section 232 tariff on top of preliminary AD CVD rates.

    Orderbook & backlog

    1
    Solar Land Option Pipeline80,000 acresQ1 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

    1
    PotlatchDelticMerger 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

    1
    Merger Integration Synergiesunderway$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

    4
    Pulpwood market pricing pressureto 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. SouthOver 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 pricingrecent 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 pricesnext 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

    5

    Merger integration synergies achievement

    by the end of the first year
    Currenton track to achieve our synergies targets
    Targetat 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.

    Q&A highlights

    6

    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 read6 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    06

    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.

    AI-generated summary of the company’s earnings call. Not investment advice.