Rayonier Inc. reported Q1 2025 net loss of $3.4 million, or $0.02 per share, on revenues of $82.9 million. This compares to net income of $1.4 million, or $0.01 per share, on revenues of $113.7 million in the prior year quarter. Due to the Company’s previously announced agreement to sell entities that hold its entire 77% New Zealand joint venture interest, the contribution from the Company’s New Zealand operations are now reflected as discontinued operations on its consolidated financial statements, and all prior periods have been retrospectively adjusted accordingly.
Q1 2025 operating income was $0.1 million versus $8.6 million in the prior year period. Q1 operating income included $1.1 million of restructuring charges. Excluding this item, pro forma operating income was $1.2 million. This compares to pro forma operating income of $8.6 million in the prior year period. Q1 2025 Adjusted EBITDA was $27.1 million versus $44.6 million in the prior year period.
“We continued to advance key strategic initiatives during the Q1, underscored by our announcement of an agreement to sell our New Zealand joint venture interest in March,” said Mark McHugh, President and CEO. “To date, we’ve now completed or announced pending dispositions totaling $1.45 billion, which has allowed us to reduce leverage and return meaningful capital to shareholders. To this end, we’ve completed ~$13 million of share repurchases year-to-date (through April 30), as we’ve looked to create long-term value for our shareholders amid the ongoing disparity between public and private timberland values. Following the anticipated closing of the New Zealand transaction later this year, we expect to have significant additional capital allocation capacity, which we plan to deploy toward value-enhancing uses, including additional share repurchases.”
“Turning to our Q1 financial results, we generated total Adjusted EBITDA of $27.1 million – representing a 39% decline compared to the prior year period –as lower results in our Southern Timber and Real Estate segments were partially offset by stronger results in our Pacific Northwest Timber segment. Q1 results were negatively impacted by several factors, including the timing of real estate closings, challenging timber market conditions in the U.S. South, and reduced harvest volumes due to our 2024 disposition activities.”
Rayonier is a leading timberland real estate investment trust with assets located in some of the most productive softwood timber growing regions in the United States and New Zealand.
