Nov 4, 2026, 4:21 PM ETReal Estate

Rayonier — Third Quarter 2026 Earnings Summary

RYNRAYONIER INC

Financial Performance

Reported third quarter net income attributable to Rayonier of $123.3 million ($0.41 diluted EPS) on sales of $565.6 million, compared to $43.2 million ($0.28 diluted EPS) on sales of $177.5 million in the prior year quarter.
Pro forma net income for the quarter was $40.0 million ($0.13 diluted EPS) on pro forma sales of $420.6 million, compared to $50.2 million ($0.32 diluted EPS) in the prior year period.
Third quarter operating income was $146.9 million versus $41.7 million in the prior year; pro forma operating income was $63.3 million versus $48.8 million.
Adjusted EBITDA was $144.6 million, up from $114.3 million in the prior year quarter.
Year-to-date cash provided by operating activities was $252.2 million versus $204.9 million in the prior year.
Year-to-date Cash Available for Distribution (CAD) was $287.4 million, an increase of $133.9 million versus the prior year period.
Debt outstanding was $1.86 billion and cash was $361.4 million as of September 30, 2026.
Large Dispositions contributed $90.6 million of net income (net of tax) and $145.0 million in sales proceeds; merger-related costs were $6.9 million (net of tax).

Full-year 2026 Southern Timber harvest volumes are expected to be 12.2 to 12.4 million tons, with Q4 volumes of 3.0 to 3.2 million tons.
Full-year 2026 Northwest Timber harvest volumes are expected to be 2.0 to 2.1 million tons, with Q4 volumes of 500,000 to 550,000 tons.
Wood Products lumber shipments for the 11 months of 2026 are expected to total approximately 1.1 billion board feet, including 295 to 305 million board feet in Q4.
Real Estate segment Adjusted EBITDA for Q4 2026 is expected to be $60 to $70 million.
Management expects regional sawtimber and pulpwood prices in Southern Timber to remain relatively stable in Q4 compared to Q3, though full-year average prices are expected to be lower than prior year standalone Rayonier prices due to geographic mix.
Northwest Timber sawtimber prices are expected to be lower in Q4 compared to Q3 due to lower Idaho sawlog prices, though full-year average pricing is expected to be higher than prior year standalone Rayonier prices.
Wood Products Q4 lumber realizations are expected to be lower than Q3 due to softer market conditions and seasonal demand.

Southern Timber: Sales increased 61% to $107.4 million; harvest volumes increased 56% to 3.02 million tons (driven by 1.4 million tons from PotlatchDeltic). Adjusted EBITDA increased 23% to $52.4 million. Average delivered pine sawtimber prices decreased to $45.31 per ton; pulpwood prices decreased to $31.14 per ton.
Northwest Timber: Sales increased 269% to $73.6 million; harvest volumes increased 171% to 571,000 tons (driven by 368,000 tons from PotlatchDeltic). Adjusted EBITDA was $32.3 million, roughly five times the prior year. Average delivered sawtimber prices increased to $129.12 per ton.
Wood Products: Sales totaled $206.2 million ($172.5 million lumber, $33.7 million plywood/residual). Lumber shipments were 327 MMBF with average realizations of $528 per thousand board feet. Adjusted EBITDA was $27.0 million.
Real Estate: Sales totaled $208.0 million, including $145.0 million from Large Dispositions. Excluding dispositions, pro forma sales were $63.0 million. Adjusted EBITDA was $48.5 million.
- Improved Development sales were $12.2 million (Chenal Valley, Wildlight, Heartwood).
- Unimproved Development sales were $19.3 million (1,730 acres at $11,177 per acre).
- Rural sales were $25.6 million (5,135 acres at $4,984 per acre).
- No Timberland & Non-Strategic sales occurred in the quarter.

Lumber price realizations remained strong in Q3 due to import duties, tariffs, mill curtailments, and trucking shortages constricting supply.
Southern Timber average prices were impacted by a shift in geographic mix from the expanded footprint and softer market conditions.
Northwest Timber prices were supported by the addition of Idaho sawtimber, offsetting modestly lower prices in the Pacific Northwest.
Real Estate segment showed strong transaction activity and momentum across categories, exceeding the high end of prior quarterly guidance.

Forward-looking statements note risks including cyclical industry nature, fluctuations in demand/supply for forest products and real estate, housing market downturns, and entry of new competitors.
Potential risks include manufacturing disruptions, fires, changes in government timber sales policy, global economic conditions, geopolitical tensions, and climate-related initiatives.
Operational risks include unanticipated logging/trucking service availability and cost, geographic concentration of timberlands, and lengthy real estate entitlement processes.
Financial risks include changes in timberland values, environmental laws, financing costs, and tax laws affecting REIT status.

CEO Mark McHugh stated the company generated $144.6 million in Adjusted EBITDA reflecting "solid operational performance" and "meaningful progress on integration initiatives."
Management highlighted disciplined capital allocation, repurchasing $59.8 million of shares in the quarter and $163 million year-to-date.
The tone was confident regarding the integration of PotlatchDeltic, citing significant volume contributions and improved pricing in the Northwest.
Real Estate segment performance was described as exceeding guidance due to strong transaction activity.

Closed tax-efficient timberland transactions with RMS: a $145 million Large Disposition of ~36,000 acres in Washington and a $146 million acquisition of ~57,000 acres in Texas and Alabama.
Repurchased $59.8 million of shares at an average price of $21.00 per share in the third quarter.
Board approved a new incremental $300 million share repurchase program on November 3, 2026.
As of September 30, 2026, $66.2 million remained on the 2024 share repurchase authorization.
Third quarter corporate and other operating expenses increased $12.9 million to $21.9 million, driven by merger scale and $7.0 million in merger-related costs.
Interest expense increased $9.9 million to $16.7 million due to incremental debt assumed in the PotlatchDeltic merger.
Consolidated results for Q3 2026 include PotlatchDeltic operations for the entire period, whereas the prior year quarter reflects Rayonier on a standalone basis.