PotlatchDeltic (PCH) Q1 2025 earnings summary

Executive summary

• Q1 2025 Adjusted EBITDA reached $63.4 million, up $10.1 million sequentially, driven by higher lumber and sawlog pricing, increased harvest volumes, and more rural acres sold, with all business units contributing and the Waldo, Arkansas sawmill ramp-up completed three months ahead of schedule.

• Net income was $25.8 million ($0.33 per diluted share), compared to a net loss of $0.3 million in Q1 2024, with a 23.6% Adjusted EBITDA margin.

• Cash available for distribution for the trailing twelve months was $125.3 million, and cash from operations grew to $49.1 million, up $33.0 million year-over-year.

Financial highlights

• Revenues rose 17.6% year-over-year to $268.3 million, with $164.6 million from Wood Products, $45.1 million from Northern Timberlands, and $27.6 million from Real Estate.

• Adjusted EBITDA margin was 23.6% in Q1 2025, up from 13.0% in Q1 2024.

• Dividend per share was $0.45, with $35.4 million in total dividends distributed and a 4.0% yield.

• Liquidity at quarter-end was $447 million, including $147.5 million in cash.

• Net debt to enterprise value was 20.0%, and weighted average cost of debt was 2.3%.

Outlook and guidance

• Q2 2025 Adjusted EBITDA is expected to be lower than Q1 due to seasonally lower harvest volumes and higher forest management costs.

• Timberland Q2 harvest guidance: 1.6–1.7 million tons, with 82% from the South; lumber shipments projected at 300–310 million board feet.

• Real estate sales guidance: ~8,000 rural acres and 20 residential lots in Q2.

• FY 2025 guidance: ~7.4 million tons timber harvest, 300–310 MMBF lumber shipments, rural land sales of ~26,000 acres at ~$2,800/acre, and $60–$65 million in capital expenditures.