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 ...

Core Insights - Weyerhaeuser Company (WY) reported second-quarter 2025 results with earnings and net sales exceeding Zacks Consensus Estimates [1][5] - Year-over-year, both earnings and net sales declined due to lower domestic sales realizations and increased costs in the Timberlands segment [2][10] Financial Performance - Adjusted earnings were 12 cents per share, beating the consensus estimate of 10 cents by 20%, but down 42.9% from 21 cents in the previous year [5][10] - Net sales reached $1.88 billion, surpassing the consensus mark of $1.83 billion by 2.7%, but down 2.8% from $1.94 billion in the same quarter last year [5][10] - Adjusted EBITDA was $336 million, an 18% decrease from $410 million in the year-ago period [5] Segment Performance - Timberlands segment net sales were $529 million, down from $555 million year-over-year, with adjusted EBITDA of $152 million, up 3.4% from $147 million [6] - Real Estate, Energy, and Natural Resources segment saw net sales of $154 million, a 41.3% increase from $109 million year-over-year, with adjusted EBITDA of $143 million, up from $102 million [7] - Wood Products segment sales totaled $1.357 billion, down 4.5% from $1.421 billion year-over-year, with adjusted EBITDA of $101 million, down 55.1% from $225 million [8] Outlook - For Q3 2025, the Timberlands segment is expected to see earnings and adjusted EBITDA approximately $10 million lower than Q2 due to cost pressures [12] - The Real Estate, Energy, and Natural Resources segment anticipates earnings to be about $60 million lower than Q2, with adjusted EBITDA expected to decrease by about $80 million [13] - Wood Products segment is expected to maintain comparable earnings and adjusted EBITDA levels to Q2, excluding changes in average sales realizations [14] Financial Position - As of June 30, 2025, Weyerhaeuser had cash and cash equivalents of $592 million, down from $684 million at the end of 2024, and net long-term debt of $4.27 billion, down from $4.87 billion [11]

Financial Data and Key Metrics Changes - Weyerhaeuser reported second quarter GAAP earnings of $87 million or $0.12 per diluted share on net sales of $1.9 billion, with adjusted EBITDA totaling $336 million, a slight increase over the first quarter of 2025 [5][24] - Cash from operations was $396 million, ending the quarter with approximately $600 million in cash and total debt of just under $5.2 billion [24][26] - Share repurchase activity totaled $100 million in the second quarter, marking the highest quarterly level since late 2022 [24] Business Line Data and Key Metrics Changes - Timberlands contributed $88 million to second quarter earnings, with adjusted EBITDA of $152 million, a $15 million decrease compared to the first quarter, primarily due to higher costs in Western operations [10] - Real Estate, Energy, and Natural Resources contributed $106 million to second quarter earnings and $143 million to adjusted EBITDA, with a $61 million increase from the prior quarter driven by the timing and mix of real estate sales [14] - Wood Products contributed $46 million to second quarter earnings and $101 million to adjusted EBITDA, with a $29 million decrease compared to the first quarter due to lower product pricing and slightly higher log costs [15][18] Market Data and Key Metrics Changes - Log demand in the Western domestic market was healthy at the start of the second quarter but weakened as the quarter progressed, leading to lower log prices [10] - In Japan, log markets remained stable, with average sales realizations for export logs increasing moderately compared to the first quarter [11] - Southern sawlog demand was muted in the second quarter, while demand for fiber logs improved as mills transitioned from spring maintenance outages [12] Company Strategy and Development Direction - The company is acquiring 117,000 acres of timberlands in North Carolina and Virginia for $375 million, expected to enhance its footprint in a growing sawlog and fiber market [6][8] - Weyerhaeuser aims to achieve a multi-year target of $1 billion in investments to grow its timberlands portfolio by the end of 2025 [8] - The company is committed to active portfolio management, including targeted acquisitions and divestitures of non-strategic acreage [7][9] Management's Comments on Operating Environment and Future Outlook - Management noted that the housing market has softened, with total housing starts averaging 1.3 million units in the second quarter, impacted by weaker consumer confidence and elevated mortgage rates [38] - There is optimism for potential catalysts for improvement in the second half of the year, including clarity on tax bills and possible Fed support on interest rates [39] - The long-term fundamentals for a strong housing market remain intact, supported by favorable demographic trends and an underbuilt housing stock [40] Other Important Information - The company expects third quarter earnings and adjusted EBITDA for Timberlands to be approximately $10 million lower compared to the second quarter, driven by lower sales realizations and higher costs [28] - Capital expenditures were $107 million in the second quarter, with a total investment for the new engineered wood products facility in Arkansas expected to be approximately $500 million through 2027 [26][27] Q&A Session Summary Question: Outlook for Wood Products segment and operational excellence - Management emphasized the importance of operational excellence and flexibility to navigate down cycles, focusing on cost control and production alignment with demand [50][52] Question: Timberland acquisition environment - The Timberlands market is described as solid, with expectations for continued strong demand for timberland packages despite a potential decrease in overall transaction volume [54][55] Question: EWP pricing trends and catalysts for reversal - The decline in EWP pricing is attributed to a slowdown in single-family construction, with potential catalysts for recovery including increased housing activity and repair and remodel demand [64][66] Question: Impact of the "big beautiful bill" on natural climate solutions - The bill is viewed as a net positive for Weyerhaeuser, with ongoing projects expected to align with new incentives for renewable energy [74][76] Question: Current market conditions for lumber - Lumber pricing dynamics are influenced by anticipated duties and production adjustments, with expectations for pricing to stabilize and potentially increase in the fall [81][84] Question: Divestiture funding for acquisitions - The acquisition will be funded primarily through divestitures of non-core timberlands, with a focus on completing transactions within a specified timeline [98][99]

Weyerhaeuser Company (WY) Q2 2025 Earnings Call July 25, 2025 10:00 AM ET Speaker0Greetings, and welcome to the Weyerhaeuser Second Quarter twenty twenty five Earnings Conference Call. At this time, all participants are on a listen only mode. After the speakers' remarks, there will be a question and answer session. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Andy Taylor, Vice President of Investor Relations.Thank you, Mr. Taylor. You may begin.Speaker1Than ...

Date:August 7, 2025Time:1:00 PM (Eastern Time) EDMUNDSTON, New Brunswick, July 18, 2025 (GLOBE NEWSWIRE) -- Acadian Timber Corp. will release its 2025 second quarter results after market close on Wednesday, August 6, 2025, which will be available on our website at www.acadiantimber.com/financial-information/. The release will be followed by a conference call and webcast on Thursday, August 7, 2025, at 1:00 p.m. (Eastern Time) to discuss with members of senior management our financial and operating results ...

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]

Financial Performance - Total Adjusted EBITDA for 2019 was $179 million, the 3rd highest since becoming a REIT in 2006 [4] - Cash Available for Distribution (CAD) was $82 million [8] - $133 million was returned to shareholders through dividends and share repurchases [9] - Real Estate segment's EBITDA was $63 million in 2019 [12, 51] Segment Results - Timberlands Adjusted EBITDA was $134 million with 5.6 million tons harvested [12] - Wood Products Adjusted EBITDA was $13 million with 1.07 BBF lumber shipped [12] - Real Estate sold 24,000 rural acres, 148 residential lots, and 38 commercial acres [12] - Northern Timberlands Adjusted EBITDA in Q4 2019 was $20.6 million, compared to $24.4 million in Q3 2019 [27, 30] - Southern Timberlands Adjusted EBITDA in Q4 2019 was $17.4 million, compared to $18.6 million in Q3 2019 [35, 38] Capital Structure - $190 million of debt was refinanced, lowering the weighted average interest rate by 80 bps [13] - Net debt was reduced by $35 million [13] - The company had $460 million of liquidity at year-end [13] - Net debt to enterprise value was 18.8% [66]

Group 1 - Conifex Timber Inc. held its annual general meeting on June 27, 2025, where all management nominees were elected as directors [1] - The voting results for the directors showed that Kenneth A. Shields, David E. Roberts, and Michael Costello received 77.15% of votes in favor, while Janine North and Charles P. Miller received 77.13% and 77.14% respectively [1] - PricewaterhouseCoopers LLP was appointed as the Company's auditor for the upcoming year, with the board authorized to fix the auditor's remuneration [1] Group 2 - Conifex Timber Inc. engages in timber harvesting, reforestation, forest management, sawmilling, and value-added lumber finishing and distribution [2] - The Company's lumber products are marketed in the United States, Canada, and Japan [2] - Conifex also produces bioenergy at its power generation facility located in Mackenzie, British Columbia [2]

Group 1 - The first contract for log futures, LG2507, is approaching physical delivery, with market participants showing increased understanding and preparation for the delivery process [1] - Multiple enterprises have expressed willingness to participate in the LG2507 contract delivery, despite a seasonal downturn in the downstream real estate market and stable supply from New Zealand [2][3] - The Dalian Commodity Exchange has organized eight simulation deliveries in key regions to ensure a smooth delivery process, enhancing delivery resources and quality inspection capabilities [2] Group 2 - Companies are actively engaging in training for log delivery processes, with events held in major log distribution ports to educate industry clients on delivery rules and procedures [3] - The introduction of national standards for log measurement has improved understanding and acceptance among downstream clients, leading to increased willingness to adopt standardized pricing [4][5] - The log futures market is fostering a clearer understanding of price differences between futures and spot markets, promoting a unified national market for logs [6] Group 3 - The log futures market is seen as a significant opportunity for the industry, providing tools for proactive price risk management and enhancing quality consistency across the sector [6][7] - There is a call for more timber companies to engage with the log futures market to drive better integration between futures and spot markets, promoting high-quality market development [7]

Group 1: Market Dynamics and Investment Strategies - The concept of "gravity" in investing suggests that assets trend toward an intrinsic value, leading to cyclical patterns in price movements [2][3][4] - Buy-the-dip strategies, also known as "swing trading," rely on the pendulum-like gravitational pull of asset prices [4][5] - Timing market swings is challenging, and quantitative tools are increasingly used to identify smart money purchases and unusual price signals [5] Group 2: Company-Specific Insights - Salesforce Inc. (CRM) reported earnings per share of $2.58, beating Wall Street forecasts by 1.4%, and raised full-year guidance, with Agentforce generating over $100 million in annual recurring revenue [11][12] - Weyerhaeuser Co. (WY) is positioned to benefit from the depletion of cheap wood supplies, with analysts expecting a narrowing of losses and a potential 9% increase in shares over the next 30 days [16][18] - Magna International Inc. (MGA) has seen shares drop 65% since 2021, but analysts have recently upgraded 2025 earnings estimates by 7%, indicating a potential 11% return over the next 30 days [19][21][27] Group 3: Historical Context and Future Outlook - The timber market is recovering from a slump caused by Hurricane Helene, with a stabilization in mortgage rates and an increase in new housing starts [15][18] - Historical performance shows that strong companies can withstand market volatility, making them attractive for investment during downturns [22][23] - The upcoming "Countdown to Chaos" event will provide insights into anticipated market volatility and investment strategies [7][25]