PotlatchDeltic(PCH) - 2025 Q3 - Quarterly Results

Financial Performance - PotlatchDeltic Corporation reported net income of $25.9 million, or $0.33 per diluted share, on revenues of $314.2 million for Q3 2025, compared to net income of $3.3 million, or $0.04 per diluted share, on revenues of $255.1 million for Q3 2024[2][5] - Net income for the three months ended September 30, 2025, reached $25,893,000, a substantial increase from $7,354,000 in the previous quarter, marking a growth of 252.5%[21] - Basic and diluted net income per share for the three months ended September 30, 2025, was $0.33, compared to $0.09 in the previous quarter, reflecting a 266.7% increase[21] - Total Adjusted EBITDDA for Q3 2025 was $89.263 million, up 71.5% from $52.025 million in Q2 2025 and 94.5% from $45.902 million in Q3 2024[29] - Operating income for the three months ended September 30, 2025, was $35,058,000, compared to $13,846,000 in the previous quarter, representing a significant increase of 153.5%[21] Segment Performance - The Real Estate segment generated revenues of $69.6 million, a significant increase of $40.5 million compared to Q2 2025, with Adjusted EBITDDA rising by $40.4 million[10][18] - The Timberlands segment reported revenues of $108.0 million, an increase of $6.3 million from Q2 2025, with Adjusted EBITDDA of $41.0 million[6][8] - The Wood Products segment experienced a revenue decline to $165.9 million, down $5.9 million from Q2 2025, with Adjusted EBITDDA dropping to $(2.5) million[7][9] - Timberlands segment revenues increased to $107,989,000 in Q3 2025 from $101,664,000 in Q2 2025 and $105,132,000 in Q3 2024[27] - Wood Products segment reported revenues of $165,881,000 in Q3 2025, a decrease from $171,819,000 in Q2 2025 but an increase from $139,412,000 in Q3 2024[27] - Real Estate segment revenues surged to $69,582,000 in Q3 2025, significantly up from $29,096,000 in Q2 2025 but down from $38,701,000 in Q3 2024[27] Cash Flow and Liquidity - Net cash from operations for Q3 2025 was $65.7 million, compared to $26.5 million in Q3 2024[5] - Cash and cash equivalents decreased to $88,773,000 as of September 30, 2025, from $151,551,000 as of December 31, 2024, a decline of 41.5%[23] - Net cash from operating activities for the nine months ended September 30, 2025, was $155,710,000, compared to $143,062,000 for the same period in 2024, an increase of 8.8%[25] Debt and Liabilities - Long-term debt increased to $1,007,594,000 as of September 30, 2025, from $935,100,000 as of December 31, 2024, an increase of 7.7%[23] - The company reported a total current liabilities of $130,204,000 as of September 30, 2025, down from $200,278,000 as of December 31, 2024, a decrease of 34.8%[23] Mergers and Acquisitions - The company entered into a definitive merger agreement with Rayonier Inc., expected to close in late Q1 or early Q2 2026, aimed at creating a leading U.S. land resources owner[3][4] - The company incurred merger-related expenses of $1,903,000 in Q3 2025, which impacted net income but were accounted for in the Adjusted Net Income calculation[29] Market Conditions - Average lumber prices decreased by 12% to $396 per thousand board feet in Q3 2025, impacting the Wood Products segment's performance[9] - Interest expense for Q3 2025 was $11,461,000, compared to $10,412,000 in Q2 2025 and $9,635,000 in Q3 2024, indicating rising borrowing costs[29] Dividends - The company declared dividends per share of $0.45 for both the three months ended September 30, 2025, and June 30, 2025, maintaining consistency[21]