Financial Data and Key Metrics Changes - The company generated adjusted EBITDA of $45 million in Q2 2025, a 35% increase compared to the prior year quarter, driven by improved results in the Pacific Northwest Timber and Real Estate segments [6][11] - Pro forma net income was $10 million or $0.06 per share, with total sales of $107 million and operating income of $15 million [10][11] - Cash available for distribution (CAD) for the first half of the year was $47 million, up from $38 million in the prior year period [11] Business Line Data and Key Metrics Changes - Southern Timber segment adjusted EBITDA was $28 million, down 16% from the prior year due to a 5% decrease in harvest volumes and a 14% decline in weighted average net stumpage realizations [14][15] - Pacific Northwest Timber segment adjusted EBITDA increased 17% to $7 million, despite a 15% decline in harvest volumes, due to lower costs and higher log prices [19][20] - Real Estate segment adjusted EBITDA was $19 million, significantly above expectations, driven by strong demand and accelerated transaction timing [23][26] Market Data and Key Metrics Changes - Average sawlog stumpage pricing in the Southern Timber segment decreased by 9% to $27 per ton, while pulpwood pricing fell 25% to approximately $13 per ton [15] - In the Pacific Northwest, average delivered domestic sawlog pricing increased 6% to $96 per ton, with pulpwood pricing up 4% to $32 per ton [19][20] - The company anticipates improved market conditions for pulpwood due to increased mill operating rates and reduced salvage volume [18] Company Strategy and Development Direction - The company plans to use at least 50% of the sale proceeds from the New Zealand transaction to reduce leverage and return capital to shareholders through share repurchases and a special dividend [5] - The company remains focused on opportunistic capital allocation, including share buybacks and potential reinvestment into synergistic acquisitions [5][51] - The company is optimistic about the long-term growth potential in its land-based solutions business, particularly in solar and carbon capture projects [34][35] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for improved timber market conditions in the second half of 2025, driven by reduced salvage operations and increased lumber production in the U.S. [30][32] - The company expects a stronger contribution from the Real Estate segment in the second half of the year, with significant closing activity anticipated [26][28] - Management highlighted the importance of adapting to climate change and improving resilience against potential hurricane impacts on timber assets [60] Other Important Information - The company completed the sale of its New Zealand joint venture interest for $710 million, exceeding its original target of $1 billion in asset dispositions [4] - The company’s credit rating was upgraded from BBB- to BBB following the New Zealand transaction [13] Q&A Session Summary Question: Are you seeing increasing tension in timber prices due to upcoming Canadian duties? - Management noted improved pricing during the quarter, with steady conditions expected as the market anticipates the impact of duties [42][44] Question: What is the company's growth strategy post-transformation? - Management emphasized a nimble and opportunistic approach to capital allocation, focusing on share buybacks and maintaining a leverage target below 3x net debt to EBITDA [50][53] Question: How does the upcoming hurricane season affect timber assets? - Management indicated that while predictions suggest an above-average hurricane season, they have adapted their practices to reduce vulnerability to storm damage [58][60] Question: What is the outlook for real estate demand? - Management reported strong demand across various real estate categories, with significant transactions expected in the second half of the year [62] Question: What impact does the One Big Beautiful Bill have on solar projects? - Management remains optimistic about solar development activity, with ongoing negotiations for new projects despite uncertainties from the legislation [68][70]

Core Viewpoint - Base Carbon Inc. reported its first-quarter 2025 financial results, highlighting a focus on free cash flow generation, project de-risking, and portfolio growth opportunities while reducing shares outstanding by over 4% since year-end 2024 [2][4]. Financial Highlights - Realized cash settled gains on investments in carbon credit projects amounted to $790,000 for Q1 2025, with total operating expenses of $1,800,000, resulting in an operating loss of $1,010,000 [3]. - The company recognized unrealized gains of $1,580,000 on investments in carbon credit projects, compared to a loss of $18,881,000 in the same period last year [3]. - Comprehensive income for the period was $518,000, a significant improvement from a loss of $19,838,000 in Q1 2024 [3]. - Total assets increased to $112,279,000, with total liabilities at $8,924,000 and total shareholders' equity at $103,354,000 [3]. Operational Highlights - The company achieved net cash proceeds of $800,000 from carbon credit sales related to the Vietnam water purifier project, marking the fourth consecutive quarter of revenue from carbon credit sales [4][6]. - Significant progress was made in the biochar initiatives, with a focus on key development opportunities [4]. - The company repurchased over 0.7 million shares during Q1 2025 and an additional 3.75 million shares post-quarter, reducing total shares outstanding to 104.75 million [4]. Project Performance - The Vietnam household devices project generated $789,621 in net cash proceeds and recognized an unrealized gain of $1,388,701 during Q1 2025 [6][7]. - The Rwanda cookstoves project also saw an unrealized gain of $191,700, reflecting positive reassessment of carbon credit issuance timing [8]. - The India Afforestation, Reforestation, and Revegetation (ARR) project is expected to issue its first carbon credits in the second half of 2025, with project registration anticipated soon [10]. Market Position and Strategy - The company is actively pursuing Requests for Proposals (RFPs) for ARR projects, indicating a growing demand for high-quality carbon removal solutions [11]. - Management remains confident in the strength and resilience of its assets and the disciplined execution of its projects [5]. Upcoming Events - An investor update call is scheduled for May 27, 2025, to discuss Q1 financial results and provide a commercial update [12][13].