Rayonier Reports $276.8 Million in Sales Following PotlatchDeltic Merger

Rayonier Inc. reported significant financial changes in its latest quarterly filing, reflecting the impact of its recent merger with PotlatchDeltic Corporation. For the three months ending March 31, 2026, the company recorded total sales of $276.8 million, a substantial increase from $82.9 million in the same period last year. This surge in revenue was primarily driven by the addition of PotlatchDeltic's operations, which contributed approximately $158.6 million in revenue since the merger was completed on January 30, 2026. However, the company also faced an operating loss of $45.7 million, compared to a slight operating income of $0.1 million in the prior year, largely due to merger-related costs totaling $70.4 million.

The merger has led to a notable expansion in Rayonier's operational footprint, with the company now managing approximately 4.1 million acres of timberlands across the U.S. South and Northwest. The Southern Timber segment reported sales of $88.7 million, up 74% year-over-year, while the Northwest Timber segment saw sales increase by 47% to $32.1 million. The Wood Products segment, newly established post-merger, generated $108.5 million in sales, reflecting strong demand for lumber and plywood. The Real Estate segment also performed well, with sales rising to $59.8 million, driven by increased acreage sold.

In terms of operational metrics, Rayonier's total timber sales volume increased significantly, with the Southern Timber segment harvesting 2.78 million tons, a 76% increase compared to the previous year. However, average prices for delivered pine sawtimber and pulpwood decreased, reflecting changes in geographic mix and market conditions. The company reported an Adjusted EBITDA of $94.1 million for the quarter, a substantial increase from $27.1 million in the prior year, indicating improved operational performance despite the overall net loss.

Looking ahead, Rayonier anticipates continued growth in its Southern Timber and Northwest Timber segments, with expected harvest volumes of 12.1 to 12.6 million tons for the full year. The company expects stable pricing for sawtimber and pulpwood in the second quarter, although it acknowledges that average pine prices may be lower than the previous year due to the geographic mix of its operations. Rayonier's management remains optimistic about the integration of PotlatchDeltic and the potential for enhanced operational efficiencies and market opportunities in the coming quarters.