PotlatchDeltic (PCH) Q3 2025 Earnings Transcript

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Nov. 4, 2025 astatine 12 p.m. ET

• President and Chief Executive Officer — Eric Cremers

• Vice President, Chief Financial Officer, and Treasurer — Wayne Wasechek

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Eric Cremers: Well, convey you, Wayne. Good morning, everyone. Thanks for joining us. Yesterday, we announced 3rd 4th full adjusted EBITDA of $89 million. Our wide results were driven by a beardown show successful our existent property concern from some the agrarian and the improvement portion of the business. Additionally, I'm pleased with the beardown operational show delivered crossed each segments this quarter, particularly fixed the challenging marketplace backdrop we proceed to navigate through. Before I sermon each of our concern segments, I wanted to concisely remark connected our caller associated announcement with Rayonier connected our projected merger of equals transaction.

As we highlighted connected the telephone a mates of weeks agone announcing the transaction, we judge that the merger betwixt our 2 companies volition effect successful important strategical and fiscal benefits beyond what either of america could execute independently. PotlatchDeltic and Rayonier stock complementary concern models, akin cultures and superior allocation philosophies and a long-standing committedness to sustainability. This merger volition importantly summation the standard of some companies arsenic the combined institution volition ain astir 4.2 cardinal acres of timberlands crossed 11 states. The combined institution volition besides proceed to run our businesslike and scalable wood products manufacturing concern with 1.2 cardinal committee feet of lumber capableness and 150 cardinal quadrate feet of plywood capacity.

In addition, the operation volition effect successful a divers existent property portfolio, including 3 progressive existent property improvement projects and robust opportunities to supply land-based and earthy clime solutions. From a fiscal perspective, the combined institution volition person a beardown pro forma equilibrium expanse arsenic good arsenic an enhanced superior markets presence. Through this combination, determination is besides a important accidental to make worth done synergies, operational efficiencies and the sharing of champion practices. We estimation synergies of $40 million, which volition beryllium chiefly driven by firm and operational outgo optimization.

We expect to adjacent the transaction successful precocious the archetypal 4th oregon aboriginal the 2nd 4th of 2026, taxable to the restitution of customary closing conditions, including receipt of required regulatory approvals and the support of PotlatchDeltic's and Rayonier's shareholders. Now shifting to our 3rd 4th operations, starting with Timberlands. The part delivered connected its Q3 planned harvest measurement of 1.9 cardinal tons with Idaho producing its highest quarterly measurement truthful acold this year, which follows emblematic seasonal patterns. Indexed sawlog prices successful Idaho softened successful enactment with broader lumber terms declines, portion cedar sawlog prices remained elevated, supported by beardown determination demand.