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Sep 30
Rayonier Q3 2025 Earnings Report
Rayonier reported strong third quarter 2025 results with significant increases in net income, pro forma net income, and Adjusted EBITDA, driven by robust performance in Real Estate and Southern Timber segments.
Key Takeaways
Rayonier Inc. delivered a strong third quarter, with net income attributable to Rayonier more than doubling to $43.2 million, or $0.28 per share, on revenues of $177.5 million. Pro forma net income also saw a substantial increase to $50.2 million, or $0.32 per share, compared to $11.1 million, or $0.07 per share, in the prior year period. Adjusted EBITDA reached $114.3 million, nearly double the prior year, primarily due to strong performance in the Real Estate and Southern Timber segments.
Net income attributable to Rayonier increased significantly to $43.2 million ($0.28 per share) from $28.8 million ($0.19 per share) in the prior year quarter.
Pro forma net income surged to $50.2 million ($0.32 per share) from $11.1 million ($0.07 per share) in the prior year period.
Adjusted EBITDA nearly doubled to $114.3 million, driven by strong results in the Real Estate and Southern Timber segments.
The company is on track to achieve full-year Adjusted EBITDA at or above the higher end of its prior guidance range.
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 expects full-year Adjusted EBITDA and pro forma EPS to be at or above the higher end of its prior guidance range, driven by strong Real Estate performance, despite anticipated softness in Southern Timber and Pacific Northwest Timber segments.
Positive Outlook
- Full-year Adjusted EBITDA and pro forma EPS are expected to be at or above the higher end of the prior guidance range.
- Real Estate segment's full-year Adjusted EBITDA is expected to exceed the high end of its prior guidance range due to strong third-quarter results and a robust transaction pipeline.
- The merger of equals with PotlatchDeltic is expected to create a premier land resources company, well-positioned for long-term shareholder value.
- Quarter-end cash balance of $919.6 million provides significant future capital allocation flexibility.
- Anticipated fourth quarter net income attributable to Rayonier of $13 million to $17 million.
Challenges Ahead
- Southern Timber segment's full-year Adjusted EBITDA is expected to be modestly below its prior guidance range due to continued softness in end-market demand.
- Southern Timber segment anticipates lower harvest volumes.
- Pacific Northwest Timber segment's full-year Adjusted EBITDA is expected toward the lower end of its prior guidance range.
- Anticipated improvement in lumber markets for Pacific Northwest Timber has been slower to materialize than previously expected.
- No specific negative forward guidance points were explicitly stated beyond the segment-specific adjustments.