Summary of Rayonier's Conference Call Company Overview - **Company**: Rayonier - **Event**: Citi's 2026 Global Property CEO Conference - **Key Speakers**: CEO Mark McHugh, CFO Wayne Wasechek Merger with PotlatchDeltic - The merger is characterized as a merger of equals, aimed at creating a stronger organization that can achieve benefits unattainable independently [2][3] - The combined timberland portfolio now comprises approximately **4.1 million acres**, with **3.2 million acres** in the U.S. South and **930,000 acres** in the Northwest [3][4] - Targeting annual run rate synergies of **$40 million**, which is expected to enhance overall portfolio value [3][4] - The merger is expected to improve trading liquidity and reduce the cost of capital over time [3][4] Asset Profile - The combined company owns **6 sawmills** with a total capacity of **1.2 billion board feet annually** and **1 plywood facility** [4] - The real estate segment includes **3 development projects** and a leading rural HBU (Highest and Best Use) platform [5] - The company has **80,000 acres** under option for solar development and **154,000 acres** under lease for carbon capture and storage [5] Growth Opportunities - Transitioning land use towards higher value purposes, such as rural HBU and land-based solutions, is a key growth strategy [6][7] - The company sells **1% to 1.5%** of its land base into HBU markets at premiums ranging from **50% to over 100%** above timberland value [6] - Potential value uplift per acre from transitioning land use can increase by up to **15 times** for improved development uses [9][10] Timberland Market Conditions - 2025 was challenging for the southern timber business due to hurricane salvage volume and dry weather, but a modest uptick in pricing is expected in 2026 [16][17] - Sawlog pricing showed greater stability compared to pulpwood pricing, with expectations for momentum in sawtimber prices in 2026 [18][19] - Timberland valuations remain strong, with around **$10 billion** of capital available for timberland M&A [26] Wood Products Manufacturing - Rayonier is now positioned as a top 10 lumber producer in the U.S. due to the merger, which adds a low-cost, scalable manufacturing platform [11][32] - Current market conditions for wood products show a positive backdrop with a projected **$112 million** EBITDA, driven by a recovery in lumber prices [34] Real Estate and HBU - The real estate business has seen significant increases in HBU value realizations, with land values continuing to appreciate [12][42] - The company is focused on enhancing land value through investments in horizontal infrastructure improvements rather than vertical development [46][48] Land-Based Solutions - Solar development is seen as a near-term growth opportunity, with potential cash flow increases from solar land leases [51][52] - The carbon markets are becoming more compelling, with large-scale buyers seeking quality projects [53][54] - Carbon capture and storage opportunities are expected to take longer to materialize but are viewed positively for long-term growth [55][56] Capital Allocation - The company aims to maintain a net leverage of less than or equal to **3 times** net debt-to-EBITDA [60] - Plans include returning capital to shareholders through dividends and opportunistic share repurchases [15][61] - The company is currently active in the buyback market to capitalize on the disconnect between private market values and stock trading [64] Conclusion - Rayonier is optimistic about the merger with PotlatchDeltic, anticipating significant synergies and improved capital allocation flexibility [63][64]

Core Viewpoint - Boise Cascade reported a decline in fourth-quarter sales and net income, attributing part of the weakness to seasonality and legal accruals, while highlighting ongoing investments in distribution and engineered wood products [1][2][3][6]. Financial Performance - Consolidated sales for the fourth quarter were $1.5 billion, down 7% year-over-year, with net income of $8.7 million or $0.24 per share, compared to $68.9 million or $1.78 per share a year earlier [2][6]. - For the full year 2025, net income was reported at $132.8 million or $3.53 per share [2][6]. Segment Performance - Building Materials Distribution (BMD) sales were $1.4 billion, down 5% year-over-year, with EBITDA of $56.4 million, a decrease from $84.5 million in the prior-year quarter [5][7]. - Wood Products sales were $354 million, down 16% year-over-year, with EBITDA of $12.3 million, compared to $56.6 million in the year-ago quarter [5][8]. Legal and Compliance Issues - A $6 million legal accrual related to a Lacey Act investigation impacted earnings by approximately $0.16 per share after tax [1][11]. - The investigation pertains to plywood purchases at the company's Pompano, Florida distribution facility, with the company cooperating with the U.S. Department of Justice [11][12]. Capital Expenditures and Shareholder Returns - Capital expenditures for 2025 were $241 million, with guidance for 2026 set at $150 million to $170 million [4][12]. - The company raised its quarterly dividend by 5% and repurchased approximately $181 million of stock in 2025, with an additional $39 million repurchased in early 2026 [4][13]. Future Outlook - For the first quarter of 2026, the company anticipates EBITDA ranges of $45 million to $55 million for BMD and $25 million to $35 million for Wood Products, with expectations of sequential volume increases in Wood Products due to seasonal strengthening [14][15]. - The effective tax rate for the first quarter is expected to be between 26% and 27% [15]. Management Changes - CEO Nate Jorgensen announced his retirement after 10 years with the company, with Jeff Strom set to take over [6][17].

Core Insights - The company reported consolidated fourth quarter sales of $1.5 billion, a decrease of 7% from the same quarter in 2024, with net income dropping to $8.7 million or $0.24 per share compared to $68.9 million or $1.78 per share in the previous year [2][4] - The company is focusing on strategic investments in its Engineered Wood Products (EWP) production capabilities, particularly in the Southeast, to drive above-market growth in the coming years [3][20] - The transition of leadership with Jeff Strom taking over as CEO is part of a planned succession strategy, with confidence in the leadership team to continue the company's success [1][22] Financial Performance - Fourth quarter results were negatively impacted by a $6 million charge related to legal proceedings in the BMD segment, which affected earnings by $0.16 per share [2][5] - BMD sales for the quarter were $1.4 billion, down 5% year-over-year, with segment EBITDA decreasing to $56.4 million from $84.5 million in the prior year [5][6] - Wood Products segment sales were $354 million, down 16% compared to the previous year, with EBITDA dropping to $12.3 million from $56.6 million [6][12] Market Dynamics - Total U.S. housing starts and single-family housing starts increased by 4% and 7% respectively compared to the prior year quarter, indicating some recovery in the housing market [3] - The company noted a decline in EWP sales prices by approximately 10% year-over-year, but prices stabilized sequentially in the fourth quarter [11][31] - The legal matter involving a Lacey Act investigation has led to increased compliance measures within the company, which are expected to enhance operational integrity [9][10] Strategic Initiatives - The company has made significant capital investments totaling $241 million in 2025, with plans to reduce capital spending to between $150 million and $170 million in 2026 [13][14] - Shareholder returns included a 5% increase in quarterly dividends and over $180 million in share repurchases, reflecting a balanced approach to capital allocation [14][18] - The acquisition of Holden Humphrey is expected to enhance the company's distribution capabilities in the Northeast, providing access to new customer segments and product categories [18][50] Future Outlook - The company anticipates first quarter EBITDA for BMD to be between $45 million and $55 million, with expectations for improved sales pace as the quarter progresses [16][17] - EWP volumes are expected to increase sequentially, reflecting seasonal strengthening, while plywood pricing is projected to be slightly above the fourth quarter average [17][12] - The company remains optimistic about long-term demand drivers for residential construction, including housing supply shortages and favorable economic conditions [21][19]

Financial Data and Key Metrics Changes - Full-year net income for 2025 was $132.8 million, or $3.53 per share, compared to $68.9 million, or $1.78 per share in the fourth quarter of 2024 [4][6] - Consolidated fourth-quarter sales were $1.5 billion, down 7% from the fourth quarter of 2024 [5][6] - Fourth-quarter net income was $8.7 million, or $0.24 per share, compared to $68.9 million, or $1.78 per share in the year-ago quarter [6][7] Business Line Data and Key Metrics Changes - Building Materials Distribution (BMD) sales in the fourth quarter were $1.4 billion, down 5% from the fourth quarter of 2024, with segment EBITDA of $56.4 million compared to $84.5 million in the prior year [8][9] - Wood Products sales in the fourth quarter were $354 million, down 16% compared to the fourth quarter of 2024, with segment EBITDA of $12.3 million compared to $56.6 million in the year-ago quarter [8][9] Market Data and Key Metrics Changes - Total U.S. housing starts increased by 4% year-over-year, while single-family housing starts increased by 7% [5] - Plywood sales volume was 354 million feet, down from 371 million feet in the fourth quarter of 2024, with average net sales price down 6% year-over-year [14][15] Company Strategy and Development Direction - The company is focused on expanding its distribution business and enhancing EWP production capabilities, with significant investments made in the last three years [4][16] - The acquisition of Holden Humphrey is expected to enhance the company's footprint and product offerings in the Northeast region [20][79] Management's Comments on Operating Environment and Future Outlook - Management noted that single-family starts fell short of 2024 levels by approximately 7% and are expected to be flat or modestly down in 2026 due to affordability challenges [20][21] - The company remains confident in long-term demand drivers for residential construction, including persistent undersupply of housing and high levels of homeowner equity [22][23] Other Important Information - The company repurchased approximately $181 million of common stock in 2025, including $70 million in the fourth quarter [16] - Capital expenditures for 2025 were $241 million, with expectations for 2026 spending between $150 million and $170 million [15][16] Q&A Session Summary Question: Can you talk about the share gains in the general line within BMD? - Management noted strong demand for general line products, achieving an all-time high in 2025, with continued growth expected [28] Question: How is the channel positioned for EWP as builders target low single-digit volume growth? - Management indicated that restocking has begun in Q1, and they are aligned with strong partners on the builder and dealer side [31] Question: What areas will the new CEO focus on? - The new CEO emphasized maintaining strategic priorities, increasing earnings stability, and becoming the employer of choice for associates [32][34] Question: Can you provide more color on the Holden Humphrey acquisition? - The acquisition is expected to enhance efficiency and access to new product categories in the Northeast region [79][80] Question: What factors could drive BMD margins back to 5%? - Management indicated that improved sales velocity and a favorable mix of products could help achieve this margin level [47][49]

Financial Data and Key Metrics Changes - Full-year net income for 2025 was $132.8 million, or $3.53 per share, compared to $68.9 million, or $1.78 per share in the previous year [4][6] - Fourth-quarter consolidated sales were $1.5 billion, down 7% from the fourth quarter of 2024 [5] - Fourth-quarter net income was $8.7 million, or $0.24 per share, compared to $68.9 million, or $1.78 per share in the year-ago quarter [6] Business Line Data and Key Metrics Changes - Building Materials Distribution (BMD) sales in the fourth quarter were $1.4 billion, down 5% from the fourth quarter of 2024, with segment EBITDA of $56.4 million compared to $84.5 million in the prior year [8][9] - Wood Products sales in the fourth quarter were $354 million, down 16% compared to the fourth quarter of 2024, with segment EBITDA of $12.3 million compared to $56.6 million in the year-ago quarter [8][9] Market Data and Key Metrics Changes - Total U.S. housing starts increased by 4% year-over-year, while single-family housing starts increased by 7% [5] - Plywood sales volume was 354 million feet, down from 371 million feet in the fourth quarter of 2024, with average net sales price down 6% year-over-year [14][15] Company Strategy and Development Direction - The company is focused on expanding its distribution business and enhancing EWP production capabilities, with significant investments made in the last three years [4][16] - The acquisition of Holden Humphrey is expected to enhance the company's footprint and product offerings in the Northeast region [20][77] Management's Comments on Operating Environment and Future Outlook - Management noted that single-family starts are expected to be flat or modestly down in 2026 due to affordability challenges for homebuyers [20][21] - The company remains confident in long-term demand drivers for residential construction, including housing undersupply and aging housing stock [22] Other Important Information - The company repurchased approximately $181 million of common stock in 2025, with an additional $39 million repurchased in the first quarter of 2026 [16][17] - A $6 million charge related to legal proceedings in the BMD segment was noted, stemming from a Lacey Act investigation [7][11] Q&A Session Summary Question: Can you talk about the share gains in the general line within BMD? - Management indicated strong demand for general line products, with significant growth in categories like James Hardie and Trex, and a focus on home center business [28] Question: How is the channel positioned for EWP with builders targeting low single-digit volume growth? - Management noted some restocking in Q1 and strong partnerships with builders and dealers, indicating readiness for market recovery [31] Question: What areas will the new CEO focus on? - The new CEO emphasized maintaining strategic priorities, increasing efficiencies, and becoming the employer of choice for associates [34] Question: Can you provide more color on the Holden Humphrey acquisition? - The acquisition is expected to enhance efficiency and access to new product categories in the Northeast, with opportunities to leverage relationships across the region [77] Question: What is the outlook for BMD margins? - Management indicated that achieving normal margins will depend on seasonal demand and product mix, with expectations for improvement in the second and third quarters [46][48]

Financial Data and Key Metrics Changes - Full-year net income for 2025 was $132.8 million, or $3.53 per share, compared to $68.9 million, or $1.78 per share in the prior year quarter [3][4] - Consolidated fourth-quarter sales were $1.5 billion, down 7% from the fourth quarter of 2024 [4] - Fourth-quarter net income was $8.7 million, or $0.24 per share, compared to $68.9 million, or $1.78 per share in the year-ago quarter [4][5] Business Line Data and Key Metrics Changes - Building Materials Distribution (BMD) sales in the fourth quarter were $1.4 billion, down 5% from the fourth quarter of 2024, with segment EBITDA of $56.4 million compared to $84.5 million in the prior year quarter [7][8] - Wood Products sales in the fourth quarter were $354 million, down 16% compared to the fourth quarter of 2024, with segment EBITDA of $12.3 million compared to $56.6 million in the year-ago quarter [7][8] Market Data and Key Metrics Changes - Total U.S. housing starts increased by 4% year-over-year, while single-family housing starts increased by 7% compared to the prior year quarter [4] - Plywood sales volume was 354 million feet, down from 371 million feet in the fourth quarter of 2024, with average net sales price down 6% year-over-year [12][13] Company Strategy and Development Direction - The company continues to focus on expanding its distribution business and enhancing EWP production capabilities, with significant investments made in the last three years [3][4] - The acquisition of Holden Humphrey is expected to enhance the company's footprint and product offerings in the Northeast region [19][77] Management's Comments on Operating Environment and Future Outlook - Management noted that single-family starts fell short of 2024 levels by approximately 7% and are expected to be flat or modestly down in 2026 due to affordability challenges for homebuyers [20] - The company remains confident in long-term demand drivers for residential construction, including persistent undersupply of housing and high levels of homeowner equity [22] Other Important Information - The company repurchased approximately $181 million of common stock in 2025, including $70 million in the fourth quarter [15] - Capital expenditures for 2025 were $241 million, with expectations for 2026 spending to be between $150 million and $170 million [14][15] Q&A Session Summary Question: Can you talk about the share gains in the general line within BMD? - Management noted strong demand in general line products, achieving an all-time high in 2025, with continued growth expected [27][28] Question: How is the channel positioned for EWP as builders target low single-digit volume growth? - Management indicated that restocking has begun in Q1, and strong partnerships with builders and dealers position the company well for market recovery [30] Question: What areas will the new CEO focus on? - The new CEO emphasized maintaining strategic priorities, increasing earnings stability, and becoming the employer of choice for associates [31][32] Question: Can you provide more color on the Holden Humphrey acquisition? - The acquisition is expected to enhance efficiency and access to new product categories in the Northeast, allowing for expanded relationships with key suppliers [76][78] Question: What factors will drive BMD margins back to 5%? - Management indicated that improved sales velocity, mix shift, and seasonal strength in the second and third quarters could help achieve this margin target [46][60]

Core Viewpoint - Boise Cascade Company will host a webcast and conference call on February 24, 2026, to discuss its fourth quarter and full year earnings for 2025, highlighting its ongoing commitment to transparency and investor engagement [1]. Group 1: Company Overview - Boise Cascade is one of the largest wholesale distributors of building materials in the U.S. and a leading manufacturer of engineered wood products and plywood in North America [1]. - The company operates over 60 distribution and manufacturing facilities across the U.S. and Canada, employing more than 7,500 people [1]. - In 2024, Boise Cascade reported revenues of $6.7 billion and a net income of $376 million [1]. Group 2: Executive Leadership Changes - The company announced the promotion of Angella Broesch to Senior Vice President of Human Resources and Chris Forrey to Senior Vice President of Finance & Investor Relations, effective February 9, 2026 [1]. - Additionally, Dennis Fringuelli was named Vice President of Sales and Marketing for the Building Materials Distribution division, and Jeff Dracup was named Vice President of Sales and Marketing for Engineered Wood Products, both effective January 19, 2026 [1]. Group 3: Dividend Announcement - Boise Cascade's Board of Directors declared a quarterly dividend of $0.22 per share, which will be paid on March 18, 2026, to stockholders of record on February 23, 2026 [1].

Core Insights - The merger between PotlatchDeltic and Rayonier is expected to create significant strategic and financial benefits, including an enhanced real estate portfolio and estimated synergies of $40 million through operational efficiencies [2][3][4]. Group 1: Merger and Financial Outlook - The transaction is anticipated to close in late Q1 or early Q2 of 2026, pending regulatory and shareholder approvals [1]. - The combined company will own nearly 4.2 million acres of timberlands across 11 states and will maintain a wood products manufacturing capacity of 1.2 billion board feet of lumber and 150 million square feet of plywood [3]. - The merger is expected to result in a strong pro forma balance sheet and improved capital markets presence [2]. Group 2: Q3 Operational Performance - Total adjusted EBITDA for Q3 was $89 million, up from $52 million in Q2, driven by strong performance in the real estate segment [4][16]. - The Timberlands segment achieved a Q3 harvest volume of 1.9 million tons, with Idaho producing its highest quarterly volume of the year [1][18]. - The Wood Products segment reported an EBITDA loss of $2 million in Q3, attributed to weak lumber prices despite strong operational performance [5][19]. Group 3: Market Dynamics and Pricing - Lumber prices have declined, with average prices falling by 12% from $450 to $396 per thousand board feet in Q3 [20]. - Factors contributing to the price decline include increased Canadian shipments ahead of higher duties and a lack of meaningful upward momentum despite tariffs and curtailments [7][15]. - The company anticipates a stabilization in lumber prices as supply-demand dynamics improve towards the end of the year [8][14]. Group 4: Real Estate Segment Performance - The real estate segment generated adjusted EBITDA of $63 million in Q3, significantly up from $23 million in Q2, with notable sales in rural real estate [21]. - Approximately 15,600 acres were sold at an average price of nearly $3,300 per acre, including two large transactions in Georgia totaling $39 million [21]. - Demand for rural real estate remains strong, driven by factors such as conservation and recreation [9][21]. Group 5: Future Outlook - The company expects to harvest between 1.7 million and 1.8 million tons in Q4, with a projected decline in sawlog prices in Idaho by approximately 13% [24]. - Total adjusted EBITDA in Q4 is anticipated to be lower than in Q3 due to fewer rural real estate acres sold and reduced development activity [26]. - The long-term fundamentals of the housing market remain intact, with expectations for improved housing activity as affordability increases [12][14].

Leadership Promotions - Boise Cascade announced the promotion of Dennis Fringuelli to Vice President of Sales and Marketing for the Building Materials Distribution division and Jeff Dracup to Vice President of Sales and Marketing for Engineered Wood Products, effective January 19, 2026 [1] - These promotions are part of a succession planning process aimed at developing internal talent and recognizing leaders who embody the company's values and have shown exceptional performance [4] Executive Backgrounds - Dennis Fringuelli has been with Boise Cascade since 1999, starting as a national account manager and progressing through various roles, including director of BMD sales and marketing [2] - Jeff Dracup joined Boise Cascade in 2004, initially in sales and product management, and has held several progressive positions, including director of EWP sales and marketing [3] Company Overview - Boise Cascade is a leading wholesale distributor of building materials and a major manufacturer of engineered wood products and plywood in North America, operating over 60 distribution and manufacturing facilities across the U.S. and Canada [5] - The company employs over 7,500 people and focuses on delivering outstanding service through an integrated model and national distribution footprint [5]

Core Viewpoint - Boise Cascade Company has completed the acquisition of Humphrey Company, enhancing its distribution capabilities in the northeast region of the U.S. [1][2] Group 1: Acquisition Details - The acquisition involves Humphrey Company, Inc., a two-step distributor of building materials located in Chicopee, Massachusetts [1] - This strategic move is expected to strengthen Boise Cascade's existing distribution partnerships and expand product offerings for customers in the northeast [2] Group 2: Company Overview - Boise Cascade is recognized as one of the largest producers of engineered wood products and plywood in North America [2] - The company is also a leading wholesale distributor of building products in the U.S. [2]