Rayonier Inc. Reports $3.1 Million Net Loss and 27% Revenue Decline in Q1 2025

Rayonier Inc. reported a net loss of $3.1 million for the first quarter of 2025, a significant decline from a net income of $2.3 million in the same period last year. The company's total revenue for the quarter was $82.9 million, down 27% from $113.7 million in the prior year. This decline was primarily driven by reduced sales in the Southern Timber segment, which fell to $50.9 million from $70.0 million, and a decrease in the Real Estate segment, which saw sales drop to $10.2 million from $15.6 million. The Pacific Northwest Timber segment also experienced a decrease in sales, reporting $21.4 million compared to $25.2 million in the previous year.

The company's operating income was $0.1 million, a sharp decline from $8.6 million in the prior year, largely due to lower stumpage realizations and reduced harvest volumes. The Southern Timber segment's operating income fell to $10.1 million from $23.0 million, while the Pacific Northwest Timber segment improved to an operating income of $0.7 million from a loss of $4.4 million. Rayonier's Adjusted EBITDA for the quarter was $27.1 million, down from $44.6 million in the same period last year, reflecting the overall decline in revenue and operating performance.

In terms of strategic developments, Rayonier announced plans to divest its 77% interest in its New Zealand operations, which are now classified as discontinued operations. This decision is expected to close in 2025 and is part of the company's strategy to streamline its operations and focus on its core timberland assets in the United States. The company also issued a special dividend of $1.80 per share in January 2025, which included both cash and common shares, reflecting its commitment to returning value to shareholders.

Operationally, Rayonier's total cash and cash equivalents decreased to $216.2 million as of March 31, 2025, down from $303.1 million at the end of 2024. The company reported cash provided by operating activities of $27.7 million, a decrease from $52.3 million in the prior year, primarily due to lower operating results and changes in working capital. The company also utilized $21.4 million for investing activities and $116.5 million for financing activities, which included higher dividend payments and share repurchases.

Looking ahead, Rayonier expects to achieve full-year harvest volumes of 6.9 to 7.0 million tons in its Southern Timber segment, with anticipated improvements in stumpage realizations as market conditions normalize. The Pacific Northwest Timber segment is projected to maintain harvest volumes of approximately 0.9 million tons, with expectations for higher log pricing due to increased demand. The company remains optimistic about its transaction pipeline in the Real Estate segment, although it anticipates that closing activity will be concentrated in the latter half of the year.