PotlatchDeltic Reports 17.6% Revenue Increase to $268.3 Million in Q1 2025

PotlatchDeltic Corporation reported a significant increase in financial performance for the first quarter of 2025, with revenues reaching $268.3 million, up from $228.1 million in the same period last year, marking a 17.6% increase. The company achieved a net income of $25.8 million, compared to a net loss of $0.3 million in the first quarter of 2024. This turnaround was attributed to higher lumber prices, increased shipments from the Waldo, Arkansas sawmill, and a rise in rural real estate sales, despite some offsetting factors such as lower Southern sawlog prices and fewer residential lot closings.

In terms of operational metrics, PotlatchDeltic's total Adjusted EBITDDA for the quarter was $63.4 million, a substantial increase of $33.6 million compared to the previous year. The Timberlands segment generated revenues of $102.5 million, up from $93.0 million, driven by increased sawlog prices and harvest volumes. The Wood Products segment also saw growth, with revenues rising to $164.6 million from $148.6 million, largely due to improved lumber pricing and production efficiencies. The Real Estate segment reported revenues of $27.6 million, significantly higher than the $11.1 million recorded in the prior year, reflecting a successful increase in rural real estate sales.

The company’s balance sheet showed total assets of $3.26 billion as of March 31, 2025, a slight decrease from $3.31 billion at the end of 2024. Current liabilities increased to $206.0 million from $200.3 million, primarily due to a rise in the current portion of long-term debt. PotlatchDeltic's long-term debt stood at $907.7 million, down from $935.1 million, indicating a strategic focus on managing debt levels. The company maintained a strong cash position with $147.5 million in cash and cash equivalents, slightly lower than the previous quarter.

Strategically, PotlatchDeltic has continued to invest in its operations, with capital expenditures totaling $22.8 million in the first quarter, compared to $14.0 million in the same period last year. This includes ongoing investments in the modernization of the Waldo sawmill, which is expected to enhance production capacity and efficiency. The company also repurchased 93,100 shares of its common stock for $4.1 million under its existing share repurchase program, which has a remaining authorization of $85.9 million.

Looking ahead, PotlatchDeltic expressed optimism about its growth prospects, particularly in the context of the U.S. housing market and demand for lumber products. The company anticipates continued strength in its Timberlands and Wood Products segments, supported by favorable pricing dynamics and operational improvements. However, it remains vigilant regarding potential market risks, including fluctuations in timber prices, interest rates, and the impact of trade policies on its operations.