Potlatchdeltic Corp
NASDAQ:PCH
Potlatchdeltic Corp
PotlatchDeltic Corporation, a name that resonates with a deep connection to America's sprawling forests, operates with a clear-eyed strategic focus on timberland resources and real estate development. Born from the merger of Potlatch Corporation and Deltic Timber Corporation, the company stands as a testament to the enduring value of sustainable forestry and innovative land management. PotlatchDeltic controls a vast expanse of woodlands across the United States, primarily in the Northwest, and oversees a vertically integrated timber operation. This integration encompasses everything from the meticulous work of managing timberland and nurturing forest growth to the efficient harvest and milling of timber products. These operations culminate in the sale of lumber and wood-related products, which forms the company's backbone.
However, PotlatchDeltic's vision extends beyond just timber. The company astutely recognizes the diverse value potential of its land holdings. In addition to traditional timber sales, it is actively involved in real estate, leveraging parts of its vast tracts for development or sale, thus diversifying its revenue streams. By doing so, PotlatchDeltic maximizes the financial return from its land assets, engaging in both rural and recreational land sales and selectively converting timberland to higher-value uses when markets allow. The dual focus on sustainable forestry practices and strategic land development not only ensures steady cash flows but also aligns PotlatchDeltic with current market trends that favor responsible environmental stewardship and innovative real estate development.
PotlatchDeltic Corporation, a name that resonates with a deep connection to America's sprawling forests, operates with a clear-eyed strategic focus on timberland resources and real estate development. Born from the merger of Potlatch Corporation and Deltic Timber Corporation, the company stands as a testament to the enduring value of sustainable forestry and innovative land management. PotlatchDeltic controls a vast expanse of woodlands across the United States, primarily in the Northwest, and oversees a vertically integrated timber operation. This integration encompasses everything from the meticulous work of managing timberland and nurturing forest growth to the efficient harvest and milling of timber products. These operations culminate in the sale of lumber and wood-related products, which forms the company's backbone.
However, PotlatchDeltic's vision extends beyond just timber. The company astutely recognizes the diverse value potential of its land holdings. In addition to traditional timber sales, it is actively involved in real estate, leveraging parts of its vast tracts for development or sale, thus diversifying its revenue streams. By doing so, PotlatchDeltic maximizes the financial return from its land assets, engaging in both rural and recreational land sales and selectively converting timberland to higher-value uses when markets allow. The dual focus on sustainable forestry practices and strategic land development not only ensures steady cash flows but also aligns PotlatchDeltic with current market trends that favor responsible environmental stewardship and innovative real estate development.
EBITDA Beat: Adjusted EBITDA was $89 million in Q3, a significant increase from $52 million in Q2, driven by strong real estate results.
Merger Update: PotlatchDeltic and Rayonier are moving forward with a planned merger of equals, expected to close in late Q1 or early Q2 2026, with $40 million in anticipated synergies.
Wood Products Headwinds: The Wood Products segment posted a $2 million EBITDA loss as lumber prices fell 12% sequentially, but operational costs hit multi-year lows.
Real Estate Strength: Real estate sales were robust thanks to two large transactions in Georgia and strong demand in rural and development segments, including conservation sales.
Lumber Pricing Stabilizing: Lumber prices are seen as having bottomed and are expected to stabilize or rise modestly in Q4, helped by industry production curtailments and tariffs.
Pulpwood Pressure: Pulpwood prices in the U.S. South remain under pressure due to mill closures, but PotlatchDeltic's scale provides resilience.
Natural Climate Solutions: Progress continues, with over 34,000 acres under solar option agreements and 5,000 acres under mineral lease for lithium development.
Guidance: Q4 adjusted EBITDA is expected to be lower than Q3, with fewer real estate sales and seasonally weaker Timberlands and Wood Products segments.
