PotlatchDeltic (PCH) Raymond James & Associates’ 46th Annual Institutional Investors Conference 2025 summary

Business overview and operations

• Operates three main units: timberlands (2.1 million acres), wood products (seven mills, 1.2 billion board feet/year), and real estate (rural land sales and master-planned community in Arkansas).

• Timberlands are sustainably managed, with 30 million seedlings planted annually and diverse end-use customers.

• Real estate sales generate higher returns than timber use, with rural land sold at 3–5x timber value and residential/commercial lots in Little Rock.

• Wood products division ranks as the 10th largest U.S. lumber producer, with competitive margins and a specialty plywood mill.

Natural climate solutions and emerging businesses

• Solar farm land options total 35,000 acres, expected to reach 45,000 by year-end and potentially 75,000 acres in coming years.

• Solar leases/purchases valued at $10,000–$15,000 per acre NPV, with long-term contracts and $70–$100 million incremental EBITDA potential.

• Lithium extraction opportunity in Arkansas, with a 30-year production life and royalty-based income; development requires significant capital and a five-year planning phase.

• Additional NCS opportunities include carbon offsets and carbon capture/storage.

Market dynamics and financial sensitivity

• Highly leveraged to lumber prices; a $10 change in lumber price impacts EBITDA by $15 million.

• Recent $100/1,000 board feet increase in lumber prices translates to $150 million incremental EBITDA.

• U.S. duties on Canadian lumber expected to rise to 25–30% by fall, likely causing further Canadian mill closures and supporting higher U.S. lumber prices.

• Housing and repair/remodel drive 75–85% of lumber demand; underbuilt U.S. housing market and favorable demographics could boost future demand and pricing.

• Lumber pricing power increases as industry capacity utilization approaches 85%.