PotlatchDeltic reported operating income of $35.1 million for the quarter ended September 30, 2025, a 153% increase from $13.8 million in the previous quarter, propelled by significantly higher real estate sales, according to PotlatchDeltic.
The company's results included $1.9 million in pre-tax merger-related expenses. Adjusted net income, which excludes these special items, was $27.8 million, or $0.36 per diluted share.
The Timberlands segment reported a 4% rise in Adjusted EBITDDA to $41.0 million. Harvest volumes increased in the Northern region due to normal seasonality, but sawlog prices decreased. Southern sawlog and pulpwood prices were stable, while higher log and haul costs were driven by a seasonal mix of steep terrain logging in Idaho and longer haul distances.
The Wood Products segment's Adjusted EBITDDA was a loss of $2.5 million, a decrease of $4.2 million from the previous quarter. This was primarily due to a 12% decrease in the average lumber price to $396 per thousand board feet. These headwinds were partially offset by decreased log costs from improved log recovery and lower per-unit manufacturing costs from increased lumber production.
Net cash from operating activities was $65.7 million. The company maintained strong liquidity of $388 million as of September 30, 2025, and paid a dividend of $0.45 per share.
Operational delivery volumes included the sale of 15,636 acres of rural timberland and 55 residential lots.
The company remains focused on executing its operational and financial priorities. PotlatchDeltic confirmed its pending merger with Rayonier Inc., a transaction it describes as transformative, is expected to close in late first quarter or early Q2 2026. The company stated the merger will create a premier land resources company with a strong pro forma balance sheet, well-positioned for growth and delivering long-term shareholder value.
