Rayonier Inc. Q1 FY2026 earnings call

• Merger of equals with Potlatch Deltic: Closed ahead of schedule in late January, integration efforts ongoing, on track to achieve $40 million annual run rate synergies within 24 months; retained Rainier name and introduced refreshed logo. - First quarter financial results: Reported a GAAP loss of $12 million or 5 cents per share, but pro forma net income was $17 million or 7 cents per share; adjusted EBITDA was $94 million. - Southern Timber Segment: Harvest volumes up, but pulpwood pricing pressured; forest fires in US South not expected to have significant impact. - Northwest Timber Segment: Harvest volumes up, lumber pricing improved. - Wood Products Segment: Lumber pricing improved initially but moderated recently. - Real Estate Segment: Strong revenue and adjusted EBITDA, favorable development projects.

Southern Timber Segment: Adjusted EBITDA in Q1 was $46 million, 68% above prior year; harvest volumes up 76% due to addition of Potlatch Deltic timberlands; pricing revised to delivered log prices. Northwest Timber Segment: Adjusted EBITDA in Q1 was $9 million, 45% above prior year; harvest volumes up 38% due to Potlatch-Deltax Idaho Timberlands contribution. Wood Products Segment: Generated $7 million of adjusted EBITDA in Q1, modestly above expectations; average lumber price realization $437 per MBF in post-merger period. Real Estate Segment: Real estate revenue totaled $60 million in Q1; adjusted EBITDA was $46 million, up significantly from prior year; rural sales totaled $49 million, with a notable 2,200-acre sale to a solar developer.

• Southern Timber: Full-year harvest volumes 12.1 - 12.6 million tons, Q2 harvest 2.9 - 3.1 million tons; prices relatively stable in Q2 but full-year average lower than prior year. - Northwest Timber: Full-year harvest volumes 2 - 2.3 million tons, Q2 harvest ~500,000 tons; saw timber prices higher in Q2 than Q1. - Wood Products: Expect lumber shipments ~1.1 billion board feet in 2026, Q2 shipments 310 - 320 million board feet; adjusted EBITDA contribution higher in Q2 than Q1. - Real Estate: Expect adjusted EBITDA contribution in Q2 $25 - $35 million, full-year $180 - $200 million.

• Market volatility: Impact on lumber pricing and related segments. - Macroeconomic conditions: Could affect real estate and other segments. - Supply-demand imbalances: Impact on log and lumber prices. - Regulatory changes: Potential impact on solar land sales and leases. - Seasonal factors: Impact on harvest volumes and other segment performance.

Q: There was a solar developer sale in the quarter, and interest in purchasing vs leasing parcels.

A: Interest is balanced, current option portfolio heavier on lease but both sides seen.

Q: Log markets in Pacific Northwest, supply response to lumber prices.

A: Timber markets balanced, lumber price improvement gives optimism for log prices.

Q: Log and haul costs, impact of diesel.

A: Higher oil prices impact, passed on to customers where possible.

Q: Data centers and land use.

A: Incremental opportunity, some interest but hard to quantify.

Q: Solar developer sale, more sales in future.

A: Option portfolio 80,000 acres, solar sales/leases to be significant, strong pipeline.

Q: Guidance on segments.

A: Intend to provide volume guidance as lumber pricing volatile makes annual guidance imprudent.

Q: North timber trends and EBITDA drop.

A: Lumber pricing impact, Q1 had limited potlatch Celtic contribution and early spring breakup.

Q: South pulp demand trends.

A: Pulpwood pricing pressured by mill closures, dry weather, but long-term fundamentals favorable.