PotlatchDeltic (PCH) Q1 2025 earnings summary

Executive summary

• Q1 2025 net income was $25.8 million ($0.33 per diluted share) on revenues of $268.3 million, up from a net loss of $0.3 million on $228.1 million in Q1 2024, reflecting improved performance across all business units and successful ramp-up of the Waldo, Arkansas sawmill.

• Total Adjusted EBITDDA reached $63.4 million, up $10.1 million sequentially and $33.6 million year-over-year, with a margin of 23.6%.

• Cash Available for Distribution (CAD) for the trailing twelve months was $125.3 million.

• Cash from operations grew to $49.1 million, up $33.0 million year-over-year, with higher customer receipts and disciplined expense management.

• Waldo, Arkansas sawmill modernization completed three months ahead of schedule, achieving targeted production metrics and expected to add $25 million in annual EBITDA.

Financial highlights

• Revenues for Q1 2025 were $268.3 million, up 17.6% year-over-year, with $27.6 million from Real Estate, $164.6 million from Wood Products, and $45.1 million from Northern Timberlands.

• Operating income reached $27.5 million, up from a loss of $4.8 million in the prior year quarter.

• Dividend yield stood at 4.0% with a $142 million annual dividend run rate; $35.4 million in total dividends distributed.

• Cash and cash equivalents stood at $147.5 million at quarter-end; liquidity at $447 million.

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

Outlook and guidance

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

• Timberland harvest guidance for Q2: 1.6–1.7 million tons, with 82% from the South; northern harvest volumes to decline seasonally.

• Lumber shipments projected at 300–310 million board feet in Q2, setting a new record, with average prices up 5% quarter-to-date.

• Real estate sales expected to include ~8,000 acres of rural land and 20 residential lots in Q2.

• Full-year CapEx expected at $60–$65 million.