PotlatchDeltic (PCH) Q4 2024 earnings summary

Executive summary

• Reported total adjusted EBITDA of $232.1 million for 2024, driven by strong real estate and stable Timberlands operations, despite weak lumber pricing for much of the year.

• Achieved record annual lumber shipments of over 1.1 billion board feet, even with downtime for Waldo sawmill modernization.

• Completed and ramped up the Waldo sawmill expansion, expected to add $25 million in incremental EBITDA annually and drive future cost reductions.

• Returned $177 million to shareholders in 2024, including $35 million in share repurchases, and maintained investment grade credit rating and strong liquidity.

• Full year 2024 net income was $21.9 million on $1.1 billion in revenue, with Q4 net income of $5.2 million on $258.1 million in revenue.

Financial highlights

• Timberlands division generated $139 million in adjusted EBITDA for 2024, harvesting 7.6 million tons as planned.

• Wood products segment posted an adjusted EBITDA loss of $8 million for 2024, but turned positive in Q4 with $9 million on improved lumber prices.

• Q4 total adjusted EBITDA was $53.3 million, up from $46 million in Q3, driven by higher lumber prices and improved cost recovery.

• Real estate segment generated $19 million in Q4 adjusted EBITDA, including a $10 million conservation land sale.

• FY 2024 capital expenditures totaled $107 million, including $44 million for Waldo sawmill expansion.

Outlook and guidance

• 2025 outlook is cautiously optimistic for lumber markets, with balanced supply-demand and expected improvement in the spring building season.

• Plan to harvest 7.4 million tons in 2025, slightly down from 2024 due to normal variability and land sales.

• Expect to ship 1.2 billion board feet of lumber in 2025, with Waldo sawmill reaching full capacity by mid-year.

• Projected capital expenditures for 2025 are $60–$65 million, returning to normalized levels post-Waldo project.

• First quarter 2025 adjusted EBITDA expected to be in line with Q4 2024.