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Jun 30, 2025
Rayonier Q2 2025 Earnings Report
Rayonier reported a significant increase in net income and Adjusted EBITDA for the second quarter of 2025, driven by a gain on the sale of discontinued operations and strong performance in Real Estate and Pacific Northwest Timber segments.
Key Takeaways
Rayonier Inc. reported a net income of $408.7 million, or $2.63 per share, on revenues of $106.5 million for the second quarter of 2025. This substantial increase was primarily due to a $404.4 million gain on the sale of its New Zealand joint venture interest. Pro forma net income, excluding this gain and other adjustments, was $9.6 million, or $0.06 per share. Adjusted EBITDA increased by 35% to $44.9 million, driven by strong results in Real Estate and Pacific Northwest Timber, partially offset by a decline in Southern Timber.
Net income attributable to Rayonier surged to $408.7 million ($2.63 per share) in Q2 2025, largely due to a $404.4 million gain from the sale of the New Zealand joint venture.
Pro forma net income for the quarter was $9.6 million ($0.06 per share), a significant improvement from a pro forma net loss in the prior year period.
Adjusted EBITDA increased by 35% year-over-year to $44.9 million, primarily driven by strong performance in the Real Estate and Pacific Northwest Timber segments.
The company completed the disposition of its New Zealand Timber and Log Trading businesses, enhancing financial flexibility and enabling further share repurchases, with 1.5 million shares repurchased for $34.9 million in the quarter.
Revenue by Segment
Forward Guidance
Rayonier anticipates achieving full-year Adjusted EBITDA and pro forma EPS consistent with prior guidance. The company expects significantly higher results in Southern Timber in the second half of the year, consistent performance in Pacific Northwest Timber, and Real Estate Adjusted EBITDA at or modestly above the high end of prior guidance.
Positive Outlook
- Full-year Adjusted EBITDA and pro forma EPS are on track to meet prior guidance.
- Southern Timber expects materially higher harvest volumes and modestly higher pine net stumpage realizations in the second half of the year.
- Pacific Northwest Timber expects full-year harvest volumes consistent with prior guidance and modestly higher weighted-average log pricing in the second half.
- Real Estate segment is encouraged by its transaction pipeline and expects significant closing activity, with full-year Adjusted EBITDA at or modestly above the high end of prior guidance.
- Third quarter Adjusted EBITDA is projected to be strong, ranging from $80 million to $100 million.
Challenges Ahead
- Southern Timber full-year harvest volumes are expected toward the lower end of the prior guidance range.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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