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Mar 31
Rayonier Q1 2025 Earnings Report
Rayonier reported a net loss in the first quarter of 2025, with revenues decreasing compared to the prior year, primarily due to the reclassification of New Zealand operations as discontinued.
Key Takeaways
Rayonier Inc. reported a first quarter net loss attributable to Rayonier of $3.4 million, or ($0.02) per share, on revenues of $82.9 million. This compares to a net income of $1.4 million, or $0.01 per share, on revenues of $113.7 million in the prior year quarter. The reclassification of New Zealand operations to discontinued operations significantly impacted the reported figures.
First quarter net loss attributable to Rayonier was $3.4 million (($0.02) per share), with pro forma net loss of $2.7 million (($0.02) per share), and Adjusted EBITDA of $27.1 million.
Full-year 2025 guidance was revised to account for discontinued operations treatment of New Zealand operations, with expected full-year net income attributable to Rayonier of $424 to $458 million ($2.71 to $2.93 per share), pro forma EPS of $0.34 to $0.41, and Adjusted EBITDA of $215 to $235 million.
First quarter operating income was $0.1 million, down from $8.6 million in the prior year period, primarily due to restructuring charges.
Cash provided by operating activities was $27.7 million, a decrease from $52.3 million in the prior year period, and cash available for distribution (CAD) was $20.3 million.
Rayonier
Rayonier
Rayonier Revenue by Segment
Revenue by Segment
Southern Timber Revenue
CapyFin.comPacific Northwest Timber Revenue
CapyFin.comReal Estate Revenue
CapyFin.com Forward Guidance
Rayonier's revised 2025 guidance reflects the reclassification of New Zealand operations to discontinued operations and an updated outlook for the full year, with expectations for net income attributable to Rayonier between $424 million and $458 million, and Adjusted EBITDA between $215 million and $235 million.
Positive Outlook
- Anticipated significant additional capital allocation capacity following the New Zealand transaction closing, to be deployed toward value-enhancing uses including share repurchases.
- Expect pine stumpage realizations in Southern Timber to trend higher from first quarter levels as salvage efforts moderate and operating conditions normalize.
- Full-year weighted-average log pricing in Pacific Northwest Timber is expected to trend higher due to higher lumber prices, healthy demand from domestic sawmills, and increased duties on Canadian lumber.
- Transaction pipeline for Real Estate segment is encouraged, with closing activity heavily concentrated in the third and fourth quarters.
- Second quarter Adjusted EBITDA is expected to be between $30 million and $40 million, a modest improvement from the first quarter.
Challenges Ahead
- Southern Timber harvest volumes are expected to be toward the lower end of the prior guidance range (6.9 to 7.0 million tons) due to opportunistic volume flexing in response to market conditions.
- The impact of salvage volume entering the market following Hurricane Helene in 2024 continues to negatively impact some Southern Timber operating areas.
- Lower non-timber income is expected for full-year 2025 in Southern Timber compared to the prior year.
- Real Estate segment closing activity is expected to be heavily concentrated in the third and fourth quarters, implying a slower second quarter.
- Revised guidance assumes a year-end 2025 transaction closing date for New Zealand and excludes any contribution from New Zealand operations (or assumed redeployment of disposition proceeds) in Adjusted EBITDA and pro forma EPS.