Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2025 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File Number 1-32729 PotlatchDeltic Corporation (Exact name of registrant as specified in its charter) Delaware 82-0156045 (Stat ...

PotlatchDeltic (PCH) Q2 2025 Earnings Call July 29, 2025 12:00 PM ET Company ParticipantsWayne Wasechek - VP & CFOEric Cremers - President & CEOKetan Mamtora - Director - Building Products Equity ResearchGeorge Staphos - Managing DirectorMatt McKellar - Vice PresidentConference Call ParticipantsAnthony Pettinari - Research AnalystKurt Yinger - SVP & Research AnalystMark Weintraub - Senior Analyst & Head - Business DevelopmentOperatorGood morning. My name is John, and I will be your conference operator today ...

Financial Data and Key Metrics Changes - Total adjusted EBITDA for Q2 2025 was $52 million, down from $63 million in Q1 2025, primarily due to lower harvest volumes and higher forest management costs in the Timberland segment, along with an inventory impairment charge in Wood Products [19][3][4] - Adjusted EBITDA for the Timberlands segment decreased from $42 million in Q1 to $40 million in Q2, while Wood Products saw a drop from $12 million to $2 million [20][22] Business Line Data and Key Metrics Changes - The Wood Products division earned $2 million in adjusted EBITDA during Q2, impacted by lower lumber prices and several nonrecurring items totaling approximately $7 million [4][22] - Timberlands harvested 1.86 million tons in Q2, with Idaho's sawlog prices increasing by 9% per ton compared to Q1, while Southern sawlog prices rose by 2% [20][21] - Real estate segment produced adjusted EBITDA of $23 million in Q2, matching Q1 results, with 7,500 acres sold at an average price of $3,100 per acre [23][24] Market Data and Key Metrics Changes - Average total housing starts were just above 1.3 million units in Q2, with single-family starts around 900,000 units, indicating a stable market despite economic uncertainty [14][15] - The repair and remodel sector remains subdued, but slight gains in expenditures are forecasted for 2025 and modest growth in 2026 [16][17] Company Strategy and Development Direction - The company is focused on capital allocation strategies that create long-term shareholder value, including maintaining dividends, key capital investments, and opportunistic share repurchases [12] - The company anticipates improved results in Wood Products for Q3, driven by the resolution of temporary challenges faced in Q2 [29][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term fundamentals driving demand in the industry, despite near-term headwinds [18] - Lumber prices are expected to trend higher as Canadian softwood lumber duties and potential tariffs come into effect [9][18] Other Important Information - The company repurchased $56 million of its common stock in Q2 at an average price of $39 per share, marking the largest share repurchase volume in a single quarter since becoming a REIT in 2006 [12][13] - The company has $395 million in liquidity, including $95 million in cash, and plans to refinance $100 million of debt maturing in August [25][26] Q&A Session Summary Question: What are the assumptions behind the forecast of flat lumber prices for Q3 despite a 9% decline quarter-to-date? - Management indicated that duties are coming into effect, which will force supply adjustments in the marketplace, leading to a gradual increase in prices [34][35] Question: Will the unfavorable costs and inventory charge in Wood Products largely go away in Q3? - Management confirmed that the challenges faced in Q2 are expected to reverse in Q3, leading to improved earnings [38][39] Question: How does the company balance near-term uncertainty with attractive discounts to NAV for share repurchases? - Management emphasized the importance of protecting dividends and the balance sheet while utilizing free cash flow for shareholder value [42][46] Question: What is the outlook for tariffs and duties on lumber? - Management speculated that a tariff may be imposed on top of the duties, based on historical actions of the administration [51][52] Question: Is the company inclined to be an incremental buyer or seller of Timberland? - Management expressed a desire to buy Timberland but noted that current prices may not yield acceptable returns, leading to a more cautious approach [88][90] Question: What are the expectations for capital expenditures in the Wood Products business? - Management indicated that opportunities exist for growth and improvement in the Wood Products business, with plans to revisit expansion opportunities later in the year [99][100]

Financial Performance - The company achieved a record annual Total Adjusted EBITDDA of $653 million, surpassing the 2020 record[10] - Cash Available for Distribution (CAD) was $84.4 million for the trailing twelve months ended June 30, 2025[7] - The company has a strong liquidity position with $395 million available[12] - Net debt to enterprise value is 24.1%[12] Segment Results - Total Adjusted EBITDDA for Q2 2025 was $52.0 million, a decrease of $11.4 million from Q1 2025[17, 18] - Timberlands Adjusted EBITDDA was $39.6 million in Q2 2025[12] - Wood Products Adjusted EBITDDA was $1.7 million in Q2 2025[12] - Real Estate Adjusted EBITDDA was $22.7 million in Q2 2025[12] Timberlands - Northern Timberlands sawlog price increased to $136 per ton in Q2 2025 from $124 per ton in Q1 2025[27] - Southern Timberlands sawlog harvest volume increased to 671 thousand tons in Q2 2025 from 654 thousand tons in Q1 2025[34] Wood Products - Lumber shipment volume increased to 303 MMBF in Q2 2025 from 290 MMBF in Q1 2025[12, 47] - Average lumber price decreased 1% to $450 per MBF in Q2 2025[42] Real Estate - 7,457 rural acres were sold in Q2 2025 at an average price of $3,108 per acre[12, 50] - 18 residential lots were sold in Q2 2025 at an average price of $102,222 per lot[12, 50]

Q2 2025 Financial & Operational Overview [Financial Highlights](index=1&type=section&id=Financial%20Highlights) PotlatchDeltic reported Q2 2025 net income of $7.4 million on revenues of $275.0 million, reflecting strong Timberlands and Real Estate performance despite Wood Products weakness, supported by share repurchases and robust liquidity Q2 2025 Key Financial Metrics | Metric (in millions, except per share data) | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Revenues | $275.0 | $268.3 | $320.7 | | Net income | $7.4 | $25.8 | $13.7 | | Net income per diluted share | $0.09 | $0.33 | $0.17 | | Total Adjusted EBITDDA | $52.0 | $63.4 | $103.2 | | Total Adjusted EBITDDA Margin | 18.9% | 23.6% | 32.2% | | Net cash from operations | $41.0 | $49.1 | $100.6 | - CEO Eric Cremers noted that overall financial results were solid despite economic uncertainty, with strong performance from the Timberlands and Real Estate businesses offsetting soft demand in the Wood Products segment[2](index=2&type=chunk) - The company executed its capital allocation strategy by repurchasing **1,418,800 shares** for **$55.9 million**, at an average price of **$39 per share**, and paid its regular quarterly dividend of **$0.45 per share**[2](index=2&type=chunk)[3](index=3&type=chunk)[4](index=4&type=chunk) - The company maintained strong liquidity of **$395 million** as of June 30, 2025[3](index=3&type=chunk) Business Segment Performance (Q2 2025 vs. Q1 2025) [Timberlands](index=2&type=section&id=Timberlands) The Timberlands segment saw a slight decrease in performance, with Adjusted EBITDDA falling by $2.8 million compared to Q1 2025, primarily due to lower harvest volumes and higher forest management costs, partially offset by increased Northern sawlog prices Timberlands Performance (Q2 2025 vs Q1 2025) | Metric (in millions) | Q2 2025 | Q1 2025 | Change (in millions) | | :--- | :--- | :--- | :--- | | Timberlands Revenues | $101.7 | $102.5 | $(0.8) | | Timberlands Adjusted EBITDDA | $39.6 | $42.4 | $(2.8) | - Northern sawlog prices increased, driven by higher cedar prices[7](index=7&type=chunk) - Southern harvest volumes decreased due to lower stumpage sales[7](index=7&type=chunk) - Forest management costs rose due to seasonally higher activity[7](index=7&type=chunk) [Wood Products](index=2&type=section&id=Wood%20Products) The Wood Products segment experienced a significant decline, with Adjusted EBITDDA decreasing by $10.0 million from the previous quarter, driven by lower lumber prices, increased log costs, higher inventory charges, and unfavorable manufacturing impacts Wood Products Performance (Q2 2025 vs Q1 2025) | Metric (in millions) | Q2 2025 | Q1 2025 | Change (in millions) | | :--- | :--- | :--- | :--- | | Wood Products Revenues | $171.8 | $164.6 | $7.2 | | Wood Products Adjusted EBITDDA | $1.7 | $11.7 | $(10.0) | - Average lumber price decreased **1%** to **$450 per thousand board feet (MBF)**[8](index=8&type=chunk) - Log costs increased, particularly due to higher indexed pricing in Idaho[8](index=8&type=chunk) - A **$3.0 million** higher lumber inventory charge compared to Q1[8](index=8&type=chunk) - Manufacturing costs were unfavorably impacted by **$2.8 million** due to an equipment upgrade and a power supply issue[8](index=8&type=chunk) [Real Estate](index=3&type=section&id=Real%20Estate) The Real Estate segment delivered stable results, with Adjusted EBITDDA remaining flat compared to Q1 2025, supported by significant rural land and residential lot sales Real Estate Performance (Q2 2025 vs Q1 2025) | Metric (in millions) | Q2 2025 | Q1 2025 | Change (in millions) | | :--- | :--- | :--- | :--- | | Real Estate Revenues | $29.1 | $27.6 | $1.5 | | Real Estate Adjusted EBITDDA | $22.7 | $22.7 | $— | - **7,457 acres** of rural land sold at an average price of **$3,108 per acre**[18](index=18&type=chunk) - **18 residential lots** sold at an average price of **$102,222 per lot**[18](index=18&type=chunk) Consolidated Financial Statements [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section presents the company's unaudited income statement for the three and six months ended June 30, 2025, compared to the same periods in 2024 and the prior quarter, detailing revenues, costs, operating income, and net income Income Statement Highlights (Three Months Ended June 30) | Metric (in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Revenues | $274,985 | $320,671 | | Operating income | $13,846 | $17,446 | | Net income | $7,354 | $13,678 | | Diluted EPS | $0.09 | $0.17 | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides the company's unaudited balance sheet as of June 30, 2025, compared to December 31, 2024, outlining the company's assets, liabilities, and stockholders' equity Balance Sheet Highlights | Metric (in thousands) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $95,277 | $151,551 | | Total current assets | $258,854 | $299,130 | | Total assets | $3,184,703 | $3,305,443 | | Total liabilities | $1,262,776 | $1,267,773 | | Total stockholders' equity | $1,921,927 | $2,037,670 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section details the company's cash inflows and outflows from operating, investing, and financing activities for the three and six months ended June 30, 2025, showing a net decrease in cash for the quarter Cash Flow Summary (Three Months Ended June 30, 2025) | Activity (in thousands) | Amount | | :--- | :--- | | Net cash from operating activities | $40,999 | | Net cash from investing activities | $(554) | | Net cash from financing activities | $(91,969) | | **Change in cash and cash equivalents** | **$(51,524)** | [Segment Information](index=9&type=section&id=Segment%20Information) This section provides a detailed breakdown of revenues and Adjusted EBITDDA by business segment (Timberlands, Wood Products, Real Estate) for the three and six-month periods ended June 30, 2025 and 2024 Segment Revenues (Three Months Ended June 30) | Segment (in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Timberlands | $101,664 | $98,802 | | Wood Products | $171,819 | $153,579 | | Real Estate | $29,096 | $95,732 | Segment Adjusted EBITDDA (Three Months Ended June 30) | Segment (in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Timberlands | $39,566 | $34,124 | | Wood Products | $1,723 | $(6,805) | | Real Estate | $22,720 | $89,568 | | **Total Adjusted EBITDDA** | **$52,025** | **$103,173** | Supplementary Information [Non-GAAP Measures & Reconciliations](index=3&type=section&id=Non-GAAP%20Measures) This section defines and explains the rationale for using non-GAAP financial measures such as Total Adjusted EBITDDA and Adjusted Net Income, providing reconciliations to comparable GAAP measures to reflect core business operations - Management uses non-GAAP measures like Total Adjusted EBITDDA and Adjusted Net Income to evaluate operational performance and enhance comparability period-over-period[10](index=10&type=chunk)[11](index=11&type=chunk)[12](index=12&type=chunk) Reconciliation of Net Income to Total Adjusted EBITDDA (Q2 2025) | Item (in thousands) | Amount | | :--- | :--- | | Net income (GAAP) | $7,354 | | Interest expense, net | $10,412 | | Income taxes | $(3,530) | | Depreciation, depletion and amortization | $26,370 | | Basis of real estate sold | $11,481 | | Other adjustments | $(119) | | **Total Adjusted EBITDDA** | **$52,025** | [Other Information](index=3&type=section&id=Other%20Information) This section contains details about the upcoming investor conference call, an overview of the company's REIT operations, and important forward-looking statements outlining potential risks and uncertainties - The company is a leading Real Estate Investment Trust (REIT) owning **2.1 million acres** of timberlands across seven states and operates **six sawmills** and an **industrial-grade plywood mill**[16](index=16&type=chunk) - A conference call to discuss Q2 2025 results is scheduled for July 29, 2025, at 9:00 a.m. Pacific Time[14](index=14&type=chunk) - Forward-looking statements are subject to numerous risks, including changes in the U.S. housing market, timber prices, interest rates, trade policies, and production capacity in the forest products industry[19](index=19&type=chunk)

Company Overview - Appia Rare Earths & Uranium Corp. is a publicly traded Canadian company focused on the rare earth element and uranium sectors [3] - The company holds the right to acquire up to a 70% interest in the PCH Ionic Adsorption Clay Project, which spans 42,932.24 hectares in Goiás State, Brazil [3] - Appia is also engaged in delineating high-grade critical rare earth elements and gallium on the Alces Lake property, and exploring for high-grade uranium in the Athabasca Basin across multiple properties [3] Recent Developments - On July 17, 2025, Appia announced the issuance of 500,000 common shares as part of the Quotaholders Agreement with Beko Invest Ltd. and Antonio Vitor Junior [1] - The shares issued are subject to a hold period that will expire on November 18, 2025 [2] - The company can earn up to a 70% interest in Appia Brasil, with further details referenced in a previous press release dated December 4, 2023 [2] Share Structure - Appia has 168 million common shares outstanding and 205 million shares fully diluted [4]

Financial Highlights - Total Adjusted EBITDDA reached a record of $195 million, driven by strong lumber markets[4] - The company's Cash Available for Distribution (CAD) for the trailing twelve months ended March 31, 2021, was $4131 million[7] - The company has a strong liquidity position with $761 million available[13] Segment Performance - Timberlands Adjusted EBITDDA was $679 million, with 13 million tons harvested[12] - Wood Products Adjusted EBITDDA was $1255 million, with 258 MMBF of lumber shipped[12] - Real Estate Adjusted EBITDDA was $166 million, including the sale of 7K rural acres, 51 residential lots, and 11 commercial acres[12] Timberlands - Northern Timberlands Adjusted EBITDDA was $542 million, with sawlog harvest volume of 427 thousand tons and a price of $178 per ton[26, 29] - Southern Timberlands Adjusted EBITDDA was $137 million, with sawlog harvest volume of 508 thousand tons and a price of $44 per ton[34, 37] Wood Products - Wood Products Adjusted EBITDDA was $1255 million, with lumber shipments of 258 MMBF and an average lumber price of $890 per MBF[12, 44] - The average lumber price realizations increased 41% to $890 per MBF in Q1 2021[42] Real Estate - Real Estate Adjusted EBITDDA was $166 million, with 7,083 acres of rural land sold at an average price of $1,415 per acre[12, 53] - 51 residential lots were sold at an average price of $99,000 per lot[53] Outlook - The company anticipates Q2 2021 Total Adjusted EBITDDA will be higher than Q1 2021, potentially setting a new quarterly record[68]

Financial Performance - Total Adjusted EBITDDA was $283 million with a margin of 16%[13] - Cash Available for Distribution (CAD) was $1094 million for the trailing twelve months ended March 31 2019[7] - The company repurchased 278947 shares at an average price of $3639 per share totaling $102 million[15] - The dividend payout was $160 per share resulting in a 42% yield[10] Segment Results - Resource Adjusted EBITDDA was $269 million with a harvest volume of 13 million tons[13] - Wood Products Adjusted EBITDDA was $72 million with lumber shipments of 238 MMBF and an average lumber price of $380 per MBF[13] - Real Estate Adjusted EBITDDA was $27 million[13] Q1 2019 vs Q4 2018 Comparison - Total Adjusted EBITDDA decreased by $81 million from Q4 2018 levels[21] - Wood Products Adjusted EBITDDA increased by $36 million due to an increase in lumber prices[21] - Real Estate Adjusted EBITDDA decreased by $99 million due to fewer residential lots and no commercial acres sold in Q1 2019[21]

Q2 2019 Financial Performance - Total Adjusted EBITDDA was $49 million with a 23% margin[10] - Cash Available for Distribution (CAD) reached $936 million[10] - Real Estate segment sold 1,800 HBU acres at $11,000 per acre and 44 residential lots averaging $85,000 per lot[10] Timberlands Segment - Timberlands Adjusted EBITDDA was $261 million[10] - Northern sawlog prices increased by 8% due to higher lumber prices[17] - Southern Timberlands Adjusted EBITDDA increased $1 million from Q1 2019 to $142 million in Q2 2019[17, 28] - Northern sawlog harvest volume decreased from 374,000 tons in Q1 2019 to 325,000 tons in Q2 2019[22] - Southern sawlog harvest volume increased from 413,000 tons in Q1 2019 to 449,000 tons in Q2 2019[28] Wood Products Segment - Wood Products Adjusted EBITDDA was negative $(20) million[10] - Lumber shipments increased by 14% to 273 MMBF[33] - Average lumber price was $378 per MBF[10] Real Estate Segment - Real Estate Adjusted EBITDDA increased by $286 million from Q1 2019 to $313 million in Q2 2019[15, 40] - Rural land sales involved 12,375 acres at an average price of $2,450 per acre[43] - 44 residential lots were sold at an average price of $85,000 per lot[10, 43]

Q3 2019 Financial Performance - Total Adjusted EBITDDA was $550 million with a 24% margin[12] - Cash Available for Distribution (CAD) was $758 million for the trailing twelve months ended September 30, 2019[7] - The dividend was $160 per share, representing a 39% yield based on the September 30, 2019 closing stock price[9] Timberlands Segment - Timberlands Adjusted EBITDDA was $430 million[12] - Harvest volume reached 16 million tons[12] - Northern Timberlands Adjusted EBITDDA increased by $125 million from Q2 2019 to $244 million in Q3 2019[26] - Southern Timberlands Adjusted EBITDDA increased by $44 million from Q2 2019 to $186 million in Q3 2019[31] Wood Products Segment - Wood Products Adjusted EBITDDA was $59 million[12] - Lumber shipments totaled 299 MMBF[12] - The average lumber price was $363 per MBF[12] - Wood Products Adjusted EBITDDA increased $79 million from Q2 2019 levels[35] Real Estate Segment - Real Estate Adjusted EBITDDA was $147 million[12] - 6 commercial acres were sold for $512500 per acre[12] - 42 residential lots were sold for $110500 per lot[12]