Financial Data and Key Metrics Changes - Total adjusted EBITDA for the first quarter of 2025 was $63 million, an increase of $10 million from $53 million in the fourth quarter of 2024, reflecting improved performance across all business segments [22][3][21] - The Timberlands segment's adjusted EBITDA rose from $34 million in Q4 to $42 million in Q1, driven by higher harvest volumes and increased sawlog prices [23][22] - Wood Products adjusted EBITDA increased from $9 million in Q4 to $12 million in Q1, attributed to slightly higher average lumber prices [25][22] Business Line Data and Key Metrics Changes - Timberlands harvested 1.968 million tons in Q1, exceeding plans, with Idaho sawlog prices increasing by 9% per ton [23][24] - Wood Products shipped 290 million board feet of lumber in Q1, surpassing guidance by 10 million board feet, primarily due to the Waldo sawmill's performance [10][26] - Real Estate segment generated adjusted EBITDA of $23 million in Q1, up from $19 million in Q4, with over 7,000 acres sold at an average price of $3,300 per acre [27][22] Market Data and Key Metrics Changes - Lumber markets faced tepid demand, with Southern yellow pine prices remaining firm while SPF prices increased due to tariff discussions [5][4] - U.S. housing starts remained stable at nearly 1.4 million units, with single-family homebuilding starts resilient near 1 million units [16][17] - The multifamily homebuilding segment faced challenges due to restrictive financing and oversupply [18] Company Strategy and Development Direction - The company is focused on natural climate solutions, expanding solar option contracts and exploring lithium development opportunities [12][14] - A balanced capital allocation strategy is maintained, with share repurchases prioritized over timberland acquisitions due to stock trading at a discount to net asset value [15][14] - The company anticipates a favorable long-term outlook despite near-term volatility, with expectations for lumber demand to improve as housing affordability constraints ease [20][21] Management's Comments on Operating Environment and Future Outlook - Management noted that while the near-term environment is uncertain, long-term fundamentals in the industry remain strong, driven by demographic shifts and housing undersupply [20][21] - The company expects second-quarter total adjusted EBITDA to be lower than Q1 due to seasonally lower harvest volumes and higher forest management costs [33][32] - Management expressed confidence in the Waldo sawmill's contribution to future EBITDA growth, despite current pricing challenges [57][56] Other Important Information - The company has $447 million in liquidity, including $147 million in cash, and plans to refinance $100 million of maturing debt [29][30] - Capital expenditures in Q1 totaled $23 million, with a full-year CapEx forecast of $60 million to $65 million [30][29] Q&A Session Summary Question: Can you talk about demand trends in the new IT channel and R&R channel? - Management described the current lumber market as decent, with the South performing better than the North, and noted that prices are higher in the South [36][38] Question: How would you characterize channel inventories? - Management indicated that the industry operates at relatively low inventory levels, with some northern species experiencing inventory hangover from tariff concerns [41][42] Question: What impact did the recent tariff announcements have on order books? - Management stated that there was no significant change in end consumer demand, although some advanced ordering may have occurred [48][50] Question: What is the expected impact of higher Canadian lumber duties? - Management anticipates that some Canadian competitors may absorb costs, while smaller operators may face challenges, potentially leading to mill closures [51][52] Question: Can you provide insights on cedar log prices? - Management noted that cedar prices are driven by regional demand and that customers have been short on cedar, leading to price increases [93] Question: What is the timeline for solar and lithium opportunities? - Management expects that one or two solar deals may close next year, with option periods typically lasting three to five years [83][84] Question: How does the company reconcile increased production with tepid demand? - Management clarified that increased production does not necessarily indicate falling demand, as the overall market is expected to grow modestly [110]

Financial Data and Key Metrics Changes - Total adjusted EBITDA increased by $10 million, rising from $53 million in the fourth quarter to $63 million in the first quarter [24][5][6] - The Timberlands segment's adjusted EBITDA increased from $34 million in the fourth quarter to $42 million in the first quarter [25][24] - Wood Products adjusted EBITDA rose from $9 million in the fourth quarter to $12 million in the first quarter [27][24] Business Line Data and Key Metrics Changes - Timberlands harvested 1.968 million tons in the first quarter, exceeding the Q1 plan by almost 170,000 tons [26][25] - Wood Products shipped 290 million board feet of lumber, which was 10 million board feet over the upper range of Q1 guidance [12][28] - Real Estate segment generated adjusted EBITDA of $23 million in the first quarter compared to $19 million in the fourth quarter [28][24] Market Data and Key Metrics Changes - The Random Lengths Western SPF composite price rose by $60 during the quarter, while Southern yellow pine markets remained relatively firm [6][7] - U.S. housing starts averaged nearly 1.4 million units, with single-family homebuilding starts near 1 million units [20][19] - Existing home inventory has risen, but sales remain on pace with last year's low levels due to elevated interest rates [21][20] Company Strategy and Development Direction - The company is focused on natural climate solutions, including solar and lithium development, with an estimated net present value of around $475 million for solar options [14][15] - The capital allocation strategy remains balanced, with share repurchases prioritized over timberland acquisitions due to the stock trading at a significant discount to net asset value [17][18] - The company anticipates a favorable long-term outlook despite near-term volatility, driven by structural tailwinds in the housing market [22][23] Management's Comments on Operating Environment and Future Outlook - Management noted that the current lumber market is characterized by tepid demand, but expects price risks to be to the upside in the latter half of the year [41][40] - The company plans to harvest between 1.6 million and 1.7 million tons in the second quarter, with expectations for stable Southern sawlog pricing [32][33] - Management expressed confidence in the long-term fundamentals of the industry, despite current economic uncertainties [22][23] Other Important Information - The company has $447 million in liquidity, including $147 million in cash, and plans to refinance $100 million of debt maturing in August [30][24] - Capital expenditures totaled $23 million in the first quarter, with an anticipated full-year spend of $60 million to $65 million [31][24] Q&A Session Summary Question: Can you talk about demand trends in the new IT channel and the R&R channel? - Management described the current market environment for lumber as decent, with the South on firmer footing than the North, and noted that prices are higher in the South [37][38] Question: How would you characterize channel inventories? - Management indicated that the industry is operating at relatively low inventory levels, with some northern species experiencing a slight inventory hangover [42][43] Question: What impact did the recent tariffs have on order books? - Management stated that there was no significant change in end consumer demand, although some advanced ordering may have occurred [51][52] Question: What do you expect regarding Canadian lumber volumes with increased duties? - Management expects a mix of outcomes, with larger competitors potentially absorbing costs while smaller operators may face challenges [55][56] Question: Can you discuss the performance of the Waldo mill? - Management noted that the mill is running well, but pricing has not yet reached desired levels, with expectations for improvement as the year progresses [60][62] Question: What is the outlook for larger real estate transactions? - Management indicated that while smaller transactions are strong, larger transactions may see increased activity as clarity on NCS opportunities improves [66][68] Question: What is the timeline for solar and lithium opportunities? - Management anticipates that one or two deals may close next year, with option periods ranging from three to five years [85][86] Question: Are homebuilders switching to yellow pine due to potential duties? - Management confirmed that substitution has been occurring and is expected to continue as Southern yellow pine production grows [90][91] Question: What is the impact of cedar log prices in Idaho? - Management noted that cedar prices are driven by regional demand and customers being short on cedar [93][94] Question: How will Section 232 tariffs impact timberland valuations? - Management stated that the impact is uncertain and depends on the size and duration of the tariffs [95][94]

Financial Performance - Total Adjusted EBITDA for Q1 2025 was $634 million, with a 236% margin[10] - Cash Available for Distribution (CAD) reached $1253 million[10] - The company returned cash through a $142 million annual dividend run rate, yielding 40%[11] - Share repurchases amounted to $41 million at $45 per share[11] Segment Results - Timberlands Adjusted EBITDA was $424 million, with 19 million tons harvested[10] - Wood Products Adjusted EBITDA was $117 million, shipping 290 MMBF of lumber[10] - Real Estate Adjusted EBITDA was $227 million, including the sale of 70K rural acres and 11 residential lots[10] Timberlands - Northern sawlog prices increased by 9% due to higher indexed and cedar sawlog prices[22] - Northern sawlog harvest volume increased by 17000 tons from Q4 2024 to 354000 tons in Q1 2025[27] - Southern sawlog prices decreased, primarily due to a higher mix of smaller diameter logs[22] Wood Products - Average lumber price increased by 2% to $454 per thousand board feet (MBF) in Q1 2025[41] - Lumber shipment volume increased by 7 MMBF from Q4 2024 to 290 MMBF in Q1 2025[47] Real Estate - 7043 rural acres were sold at an average price of $3303 per acre[53, 55] - 11 residential lots were sold at an average price of $112745 per lot[54] Capital Structure - The company maintains a strong liquidity position with $447 million available[11] - Net debt to enterprise value is at 200%[11]

Exhibit 99.1 News Release For immediate release: Contact: Investors Media Wayne Wasechek Anna Torma 509.835.1521 509.835.1558 PotlatchDeltic Corporation Reports First Quarter 2025 Results SPOKANE, Wash., April 28, 2025 (BUSINESS WIRE) – PotlatchDeltic Corporation (Nasdaq: PCH) today reported net income of $25.8 million, or $0.33 per diluted share, on revenues of $268.3 million for the quarter ended March 31, 2025. Net loss was $0.3 million, or $0.00 per diluted share, on revenues of $228.1 million for the q ...

Core Insights - The U.S. construction sector is experiencing a deceleration, influenced by high borrowing costs, labor shortages, material price volatility, and regulatory complexity [1] Group 1: Sector Performance - Public sector investments in infrastructure and manufacturing have supported growth, while residential remodeling and selective new home construction have posed challenges [1] - The construction sector's total earnings have decreased by 20% year-over-year, with revenues down by 4.2% [2] - Approximately 35.3% of the construction sector's market capitalization on the S&P 500 Index has reported earnings, with 57.1% beating EPS estimates and 42.9% surpassing revenue estimates [2] Group 2: Influencing Factors - Federal spending through the Infrastructure Investment and Jobs Act (IIJA) has been a significant tailwind, particularly in transportation, water infrastructure, and broadband projects [3] - Industrial construction projects related to the CHIPS Act and Inflation Reduction Act have also contributed to growth, focusing on semiconductor fabs, EV battery plants, and clean energy facilities [3] Group 3: Residential Market Challenges - The residential construction market faces high mortgage rates, seasonal impacts, inflationary pressures, and rising costs, which have negatively affected performance [4] - Homebuilders are under pressure due to increased incentives and lower average selling prices, impacting margins [4] Group 4: Commercial Construction Insights - The commercial construction market shows mixed but resilient performance, with industrial and warehouse projects benefiting from e-commerce and supply chain reshoring [5] - Data center construction is gaining traction due to cloud computing and AI infrastructure needs, while hospitality construction is recovering alongside rebounding travel [5] Group 5: Q1 Earnings Expectations - The construction sector is expected to see a 12.8% decline in earnings for Q1, a decrease from the previous quarter's growth of 1.1% [6] - Revenues are projected to decline by 3.3%, indicating a slowdown from the prior quarter's growth of 1.6% [6] Group 6: Company Highlights - Dream Finders Homes is expected to report a first-quarter EPS of 61 cents, reflecting a 10.9% growth year-over-year [11] - Primoris Services anticipates a first-quarter EPS of 72 cents, representing a 53.2% increase from the previous year [13] - Potlatch is projected to report a first-quarter EPS of 20 cents, improving from break-even earnings a year ago [14] - Martin Marietta Materials expects a first-quarter EPS of $1.92, a slight decline from the previous year [15] - MasTec is likely to report a first-quarter EPS of 34 cents, indicating a significant 361.5% growth year-over-year [16]

For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Potlatch (PCH) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Construction peers, we might be able to answer that question.Potlatch is one of 90 companies in the Construction group. The Construction gro ...

Core Viewpoint - Potlatch (PCH) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for Potlatch for the fiscal year ending December 2025 is projected at $0.80 per share, reflecting a substantial increase of 185.7% compared to the previous year [9]. - Over the past three months, the Zacks Consensus Estimate for Potlatch has seen a 1% increase, indicating a trend of rising earnings estimates [9]. Zacks Rating System - The Zacks rating system is based solely on a company's earnings picture, tracking EPS estimates from sell-side analysts, which helps investors make informed decisions [2][3]. - The Zacks Rank system classifies stocks into five groups, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988, showcasing the effectiveness of the system [8]. Market Implications - The upgrade to Zacks Rank 1 positions Potlatch in the top 5% of Zacks-covered stocks, suggesting a strong potential for price appreciation in the near term due to favorable earnings estimate revisions [11]. - Rising earnings estimates and the corresponding rating upgrade imply an improvement in Potlatch's underlying business, which could lead to increased investor interest and stock price appreciation [6].

Core Viewpoint - Appia Rare Earths & Uranium Corp. announced exceptional overlimit assay results from its diamond drilling program at the PCH project in Goias, Brazil, confirming high-grade mineralization in the carbonatitic breccia zone [1][2] Group 1: Drilling Results - The diamond drilling program included three drillholes that intercepted significant Total Rare Earth Oxide (TREO), Niobium Oxide (Nb2O5), and Phosphate Oxide (P2O5) [1] - A total of 97 intervals out of 516 samples showed 'overlimit readings' for elements such as La, Ce, Pr, Nd, and Nb [11] - The average TREO grades increased by 19% and average Niobium grades by 23% compared to original values reported [2][11] Group 2: Mineralization Types - The PCH project features two distinct styles of mineralization: Ionic Adsorption Clay (IAC) and hard rock carbonatitic breccia [11] - Recent results from the IAC zone were also highlighted, indicating a comprehensive mineralization potential [11] Group 3: Project Location and Community Relations - The PCH project is located in a favorable area with easy access to road and power infrastructure [8] - The company maintains a supportive relationship with the local cattle farming community, which may facilitate operations [8] Group 4: Company Overview - Appia Rare Earths & Uranium Corp. is a publicly traded Canadian company focused on rare earth elements and uranium [15] - The company holds rights to acquire up to a 70% interest in the PCH Ionic Adsorption Clay Project, covering an area of 42,932.24 hectares in Goiás State, Brazil [15]

Core Viewpoint - PotlatchDeltic Corporation (PCH) is rated a buy due to a positive outlook for timber prices, which is expected to drive asset appreciation for the company [1] Group 1: Financial Health and Investment Strategy - The balance sheet of PotlatchDeltic Corporation is described as healthy, indicating strong financial stability [1] - The investment recommendations are based on data-driven analyses rather than momentum-driven strategies, utilizing a combination of three models: REIT AMM, DDM, and NAV to assess the company's present and future value [1] - The focus on income-yielding assets aims to build a long-term resilient portfolio that can withstand market turmoil and outperform most capital markets [1]

Timberland Operations - PotlatchDeltic Corporation owns 2.1 million acres of timberland across nine states, with a significant portion of its operations focused on timberland management and wood products manufacturing[14]. - The Timberlands segment generated approximately 26% of its revenues from internal log sales to Wood Products facilities in 2024, indicating a strong integration between segments[21]. - Approximately 29% of the total harvest volume was sold under long-term log supply agreements with third parties in 2024, with expectations to maintain similar percentages in 2025[22]. - The estimated volume of current standing merchantable timber inventory is updated annually, reflecting increases from young growth and decreases from harvests, with significant reliance on statistical methods for estimation[26]. - Estimated standing timber inventory as of December 31, 2024, is 111.3 million tons, a decrease of 2.1 million tons (1.85%) from 2023[27]. - Total timber harvested in 2024 was 7.636 million tons, with the Northern region contributing 1.467 million tons and the Southern region contributing 6.169 million tons[29]. - The projected total harvest for 2025 is approximately 7.4 million tons, based on constant timberland holdings and market conditions[29]. - The Timberlands segment's revenues are influenced by domestic production of wood-based building products and the overall health of the U.S. housing market[17]. - The company has identified approximately 135,000 acres of non-core timberland real estate intended for sale over time, indicating a strategy to optimize asset value[18]. Wood Products Segment - The company ranks as a top-10 softwood lumber producer in the U.S. with a capacity of approximately 1.2 billion board feet and an industrial-grade plywood mill with 150 million square feet of capacity[18]. - The Wood Products segment has a capacity of 1.2 billion board feet (MMBF) for softwood lumber and 150 million square feet (MMSF) for plywood[31][34]. - Actual sawmill production for 2024 was 1.120 billion board feet, indicating operational efficiency[34]. - In 2024, 100% of timber consumption at Wood Products facilities was SFI Fiber Sourcing certified, reflecting commitment to sustainable sourcing[38]. - Wood Products segment revenues also decreased to $601,924 in 2024 from $635,672 in 2023, a decline of 5.3%[388]. Financial Performance - PotlatchDeltic Corporation reported revenues of $1,062,076,000 for the year ended December 31, 2024, a 3.7% increase from $1,024,075,000 in 2023[314]. - Operating income decreased significantly to $33,192,000 in 2024, compared to $85,750,000 in 2023, marking a decline of 61.2%[314]. - Net income for 2024 was $21,876,000, down from $62,101,000 in 2023, representing a decrease of 64.8%[314]. - The company’s total assets decreased to $3,305,443,000 in 2024 from $3,431,256,000 in 2023, a decline of 3.7%[318]. - Comprehensive income for 2024 was $32,985,000, down from $67,481,000 in 2023, a decrease of 51.1%[316]. - Cash flows from operating activities increased to $188,470,000 in 2024, up 18.4% from $159,111,000 in 2023, but down from $491,901,000 in 2022[320]. Environmental and Sustainability Initiatives - The company is committed to corporate responsibility, focusing on environmental stewardship and sustainable management of its timberlands[18]. - At the end of 2023, the company's forests stored approximately 487 million metric tons of Carbon Dioxide Equivalent (CO2e), with about 93 million metric tons of CO2e in merchantable above-ground portions[65]. - In 2023, total net above-ground carbon removal was approximately 6.4 million metric tons of CO2e, including harvest and other inventory adjustments[67]. - The company aims to achieve a 42% reduction in Scope 1 and Scope 2 GHG emissions by 2030, based on a 2021 baseline[69]. - The company has established GHG reduction targets, including a goal to achieve net-zero GHG emissions by 2050[69]. - Timberland acreage impacted by wildfires has increased since 2000, prompting the company to implement practices to mitigate wildfire risk[55]. Corporate Governance and Workforce - The board of directors consists of nine members, with seven being independent and three being women, including one who is ethnically diverse[81]. - The company employs 1,383 team members, with hourly workers representing approximately 73% of the total workforce[73]. - Women represent 33% of the salaried workforce, 14% of the hourly workforce, and 19% of the total workforce as of December 31, 2024[78]. - The company has implemented comprehensive safety programs, including safety audits and training, to prioritize employee health and safety[74]. Risk Management and Compliance - The company faces various risks, including changes in timber prices, economic conditions, and environmental factors that could impact its operations and financial performance[10]. - The company utilizes an Enterprise Risk Management (ERM) framework to identify, assess, and mitigate significant risks, including environmental and social governance topics[87]. - The company conducts regular internal audits to ensure compliance with environmental, safety, financial, and disclosure regulations[88]. - The company is subject to various federal and state laws and regulations affecting its manufacturing operations, including air emissions and water quality standards[96]. - The company anticipates that increasingly strict environmental laws may lead to additional operational restrictions and increased costs[100]. Real Estate Segment - The company develops about 130 residential lots annually in the Chenal Valley area, with approximately 1,200 potential residential lots available for future development[46]. - The Real Estate segment includes the sale of non-strategic land holdings and development projects, enhancing the company's asset utilization[386]. - Real Estate segment revenues increased significantly to $170,629 in 2024 from $87,988 in 2023, a growth of 94%[388]. Mergers and Acquisitions - The company issued $176,000,000 in long-term debt in 2024, significantly higher than $40,000,000 in 2023[320]. - The CatchMark merger resulted in an allocation of $782.3 million to timber and timberlands, $3.0 million to intangible assets, and $32.0 million to other assets[333]. - The company assumed $323.1 million of liabilities, including $300.0 million of outstanding long-term debt, in the CatchMark merger[333].