RYN

This article first appeared on GuruFocus. Mason Hawkins (Trades, Portfolio), the Chairman and CEO of Southeastern Asset Management since 1975, recently filed his 13F for the second quarter of 2026. A disciplined value investor with an M.B.A. in Finance from the University of Georgia, Hawkins seeks "good business, good people, and a good price." He typically invests in companies trading at 60% or less of their intrinsic value, maintaining a concentrated portfolio of fewer than 25 stocks per fund. This filing reveals a significant new stake in Abbott Laboratories, alongside other strategic moves. Warning! GuruFocus has detected 6 Warning Signs with RYN. Is RYN fairly valued? Test your thesis with our free DCF calculator. Mason Hawkins (Trades, Portfolio) added a total of 2 stocks, among them: The most significant addition was Abbott Laboratories (NYSE:ABT), with 840,747 shares, accounting for 3.98% of the portfolio and a total value of $76.29 million. The second largest addition to the portfolio was Tencent Music Entertainment Group (NYSE:TME), consisting of 2,305,210 shares, representing approximately 1% of the portfolio, with a total value of $19.25 million. Mason Hawkins (Trades, Portfolio) also increased stakes in a total of 8 stocks, among them: The most notable increase was CNX Resources Corp (NYSE:CNX), with an additional 648,942 shares, bringing the total to 4,663,053 shares. This adjustment represents a significant 16.17% increase in share count, a 1.15% impact on the current portfolio, and a total value of $158.22 million. The second largest increase was Albertsons Companies Inc (NYSE:ACI), with an additional 1,216,461 shares, bringing the total to 8,636,262. This adjustment represents a significant 16.39% increase in share count and a total value of $116.85 million. Mason Hawkins (Trades, Portfolio) completely exited 4 of the holdings in the second quarter of 2026, as detailed below: Bio-Rad Laboratories Inc (NYSE:BIO): Mason Hawkins (Trades, Portfolio) sold all 162,804 shares, resulting in a -2.23% impact on the portfolio. Constellation Brands Inc (NYSE:STZ): Mason Hawkins (Trades, Portfolio) liquidated all 3,661 shares, causing a -0.03% impact on the portfolio. Mason Hawkins (Trades, Portfolio) also reduced positions in 25 stocks. The most significant changes include: Reduced People Inc (NASDAQ:PPLI) by 890,894 shares, resulting in a -22.15% decrease in shares and a -1.75% impact on the portfolio. The stock traded at an average price of $42.63 during the quarter and has returned 0.95% over the past 3 months and 3.32% year-to-date. Reduced Rayonier Inc (NYSE:RYN) by 1,271,296 shares, resulting in an -11.81% reduction in shares and a -1.29% impact on the portfolio. The stock traded at an average price of $20.94 during the quarter and has returned 7.98% over the past 3 months and 2.16% year-to-date. At the second quarter of 2026, Mason Hawkins (Trades, Portfolio)'s portfolio included 47 stocks. The top holdings included 10.54% in Rayonier Inc (NYSE:RYN), 8.92% in Mattel Inc (NASDAQ:MAT), 8.25% in CNX Resources Corp (NYSE:CNX), 7.54% in People Inc (NASDAQ:PPLI), and 6.09% in Albertsons Companies Inc (NYSE:ACI). The holdings are mainly concentrated in 10 of all 11 industries: Consumer Defensive, Consumer Cyclical, Communication Services, Real Estate, Industrials, Healthcare, Energy, Technology, Financial Services, and Basic Materials.

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 10 a.m. ET Vice President of Capital Markets and Strategic Planning - Collin Mings President and Chief Executive Officer - Mark McHugh Operator: Hello, everyone. Thank you for joining us, and welcome to the Q2 2026 Rayonier Inc. Earnings Conference Call. [Operator Instructions] I will now hand the conference call over to Collin Mings, Vice President of Capital Markets and Strategic Planning. Collin, please go ahead. Collin Mings: Thank you, and good morning. Welcome to Rayonier's investor teleconference covering second quarter earnings. Our earnings statements and financial supplement were released yesterday afternoon and are available on our website at rayonier.com. I would like to remind you that in these presentations, we include forward-looking statements made pursuant to the safe harbor provisions of federal securities laws. Our earnings release and Forms 10-K and 10-Q filed with the SEC list some of the factors that may cause actual results to differ materially from the forward-looking statements we may make. They are also referenced on Page 2 of our financial supplement. Throughout these presentations, we will also discuss non-GAAP financial measures, which are defined and reconciled to the nearest GAAP measures in our earnings release and supplemental materials. With that, let's start our teleconference with opening comments from Mark McHugh, our President and CEO. Mark? Mark McHugh: Thanks, Collin. Good morning, everyone. Before turning to our second quarter results, I'd like to provide a brief update on our merger of equals with PotlatchDeltic as well as the two timberland transactions we announced yesterday, which further advance our portfolio optimization strategy. Since closing the merger in late January, our team has moved quickly to optimize our organizational structure, capture operational efficiencies and integrate the two companies' cultures into a shared foundation. We also signed a lease on our new corporate headquarters in Atlanta, which we expect to open in early 2027. I'm proud of our team's execution over the past 6 months. We've made significant progress on integration initiatives, and we remain on track to achieve our run rate synergies targets. Moving to the transactions we announced yesterday. Last week, we closed two timberland transactions with Resource Management Service, or RMS. The transactions comprised the sale of approximately 36,000 acres in Southwest Washington for $145 million and the concurrent acquisition of approximately 57,000 acres in Texas and Alabama for $146 million, subject to customary closing adjustments. The transactions were structured as a tax-efficient like-kind exchange and are expected to be accretive to cash flow on a timber-only basis with further upside potential from HBU real estate sales and land-based solutions opportunities. These transactions reflect our continued focus on portfolio optimization as we look to concentrate our capital in markets with the strongest cash flow attributes and the most favorable long-term growth prospects. Notably, we were able to advance these objectives through a land exchange transaction rather than an outright acquisition, thereby preserving our future capital allocation flexibility. Now let's move on to our second quarter results. I'll start with a review of our overall financial results as well as our segment level performance, after which Wayne will review key liquidity and balance sheet metrics as well as our outlook for the balance of the year. For the second quarter, Rayonier reported GAAP earnings of $19 million or $0.06 per share. Adjusting for pro forma items, the majority of which were related to the merger, net income was $32 million or $0.10 per share. Adjusted EBITDA in the second quarter was $124 million, which was well above the prior year period, primarily due to the contributions from the PotlatchDeltic operations, along with solid operational performance across our segments. Moving on to our segment results. Let's start on Page 9 with our Southern Timber segment. Adjusted EBITDA in the second quarter of $53 million was 85% above the prior year quarter as increased harvest volumes more than offset lower pricing. Total harvest volumes more than doubled versus the prior year quarter, primarily due to the addition of roughly 1.5 million tons of volume from the PotlatchDeltic timberland. Turning to pricing in the Southern Timber segment. Recall the beginning last quarter, our reported pricing reflects delivered log prices rather than net stumpage realizations, consistent with the prevalent mode of sale across the combined portfolio. In sawlog markets, demand was steady as lumber prices climbed throughout the second quarter. Looking ahead, we expect that sawmills in the U.S. South will continue to gain market share from Canada and gradually increase production in response to a more favorable lumber pricing environment, which should support stronger sawlog demand within our southern footprint. In pulpwood markets, challenging conditions persisted during the quarter. Demand remained subdued, while historically dry weather across the U.S. South, coupled with salvage harvesting associated with the fires in Florida and Georgia further added to supply. That said, we believe that pulpwood pricing has generally stabilized in our primary market areas, and we're encouraged by recent gains in containerboard pricing as well as improved mill operating rates for our customers. As it relates to the fires in the U.S. South, approximately 9,300 acres of our timberlands in Georgia were affected. Following our assessment of the damage, we recorded a casualty loss of approximately $2 million in the second quarter which was reflected as a pro forma item. Our team moved quickly to initiate salvage operations on the affected tracks, harvesting approximately 50,000 tons during the quarter. These efforts are now largely complete, and we do not expect any material impacts to our business moving forward. Moving on to our Northwest Timber segment on Page 10. Second quarter adjusted EBITDA of $26 million was significantly above the $7 million reported in the prior year quarter. Harvest volumes more than doubled in the second quarter as compared to the prior year period, primarily due to the contribution of 360,000 tons of incremental harvest volume from PotlatchDeltic's Idaho timberlands. Notably, harvest activity in Idaho was strong during the second quarter due to drier than normal weather conditions. Improving lumber prices also helped propel sawlog prices higher in Idaho in the quarter as a significant portion of our sawlog sales in the state are indexed to lumber prices. Turning to Wood Products on Page 11. This segment generated $25 million of adjusted EBITDA in the second quarter, which was above our expectations entering the quarter. Notably, this was the strongest quarterly adjusted EBITDA result that this segment has registered since PotlatchDeltic's third quarter of 2022. Our average lumber price realization was $505 per MBF and shipments totaled 314 million board feet, in line with our prior guidance. Our average lumber price realization increased by roughly 18% from $427 per MBF in the first quarter, including the premerger period. The improvement in lumber markets during the second quarter was driven primarily by supply side factors as mill curtailments coupled with higher tariffs on Canadian imports have limited supply. In addition, industry-wide transportation challenges, especially the limited availability of flatbed trucking have constrained the flow of lumber into certain markets. Our team has been very proactive in navigating these transportation challenges by further leveraging rail transportation alongside our established trucking network, we maintained a reliable product flow to customers throughout the quarter. In addition, the increased transportation costs that we've incurred have largely been passed through to customers. Against this backdrop, overall demand was relatively stable and the seasonal price weakness following the spring building season that we saw in each of the past 2 years, did not materialize this year. In fact, buyers generally encountered less available supply than anticipated during the quarter, which supported pricing. Our home center business also remained healthy through the quarter, which was encouraging as demand from this channel typically tapers off heading into the summer months. Channel inventories remain at normal levels and pricing has remained fairly stable into the early part of the third quarter, with supply and demand generally in balance. Moving to our Real Estate segment on Page 12. In the second quarter, real estate revenue totaled $54 million on approximately 7,500 acres sold at an average price of $6,300 per acre. Sales increased significantly from the prior year quarter due to a higher number of acres sold, partially offset by a slightly lower average price per acre due to the sales mix. Real Estate segment adjusted EBITDA in the second quarter was $38 million, up $20 million from the prior year period. Within improved development, sales totaled $6 million. We continue to see broad-based demand in our Wildlight and Heartwood development projects and activity remains on a favorable trajectory, reflecting the benefit of the investments we've made over the past several years in entitlements, infrastructure and market development. Meanwhile, the Chenal Valley project in Little Rock, which is relatively more mature, remains well positioned to provide a steady stream of cash flow moving forward. Moving to the rural category. Second quarter sales totaled $41 million, consisting of nearly 7,500 acres sold at an average price of roughly $5,400 per acre. The most notable transaction was a 460-acre bolt-on sale to a solar developer for $4.6 million or roughly $10,000 per acre. This sale underscores the continued interest we are seeing from solar developers across our Southern land portfolio. At the end of the second quarter, our pipeline of land under option for lease or sale to solar developers stood at approximately 77,000 acres. More broadly, overall sentiment in the rural land market remains positive, and we continue to achieve strong premiums above timberland value in our rural HBU business. I'll now turn the call over to Wayne to cover key liquidity and balance sheet metrics as well as our outlook for the balance of the year. Wayne Wasechek: Thanks, Mark. Moving to our capital resources and liquidity. Our cash available for distribution, or CAD, was $177 million through the first 6 months of 2026 versus $47 million in the prior year period. The significant increase in CAD was primarily driven by the contribution from the PotlatchDeltic businesses, coupled with significantly improved real estate results. A reconciliation of CAD to cash provided by operating activities and other GAAP measures is provided on Page 8 of the supplement. During the second quarter, we repurchased approximately 3.5 million shares at an average price of $20.95 per share or $72 million in total. We have been very active on this front during the first half of the year as we have repurchased 4.9 million shares for a total of $103 million. As of the end of the second quarter, we had $126 million remaining on our current share repurchase authorization. We continue to believe that our stock price is trading at a significant discount to net asset value. As such, we remain active under our share repurchase program as we believe buybacks represent a compelling use of capital and one of the most attractive opportunities to create value for our shareholders in the near term. Turning to our balance sheet. We continue to maintain a conservative leverage profile and significant capital allocation flexibility. In April, we repaid a $200 million term loan at maturity using cash on hand, which we viewed as a more favorable capital allocation option than refinancing in the current higher interest rate environment. We finished the second quarter with $412 million of cash and roughly $1.9 billion of debt. Our net debt to enterprise value based on our closing stock price at the end of the quarter was 18%. Moving to our outlook. Consistent with the initial 2026 financial guidance we provided in February, full year metrics reflect a pro rata contribution from the PotlatchDeltic operations starting on January 31. With respect to our individual segments, starting with our Southern Timber segment, we expect to achieve full year harvest volumes of 12.2 million to 12.5 million tons, with anticipated harvest volumes of 3.1 million to 3.3 million tons in the third quarter. We expect regional sawtimber and pulpwood prices to remain relatively stable for the third quarter compared to the second quarter. However, as previously discussed, full year and quarterly average pine prices for the combined company's Southern Timber segment are expected to be lower than the stand-alone prices for Rayonier in the prior year based on the geographic mix of the combined company. In our Northwest Timber segment, we expect to achieve full year harvest volumes of 2 million to 2.2 million tons with anticipated harvest volumes of approximately 600,000 tons in the third quarter. We expect overall sawtimber prices to be modestly higher in the third quarter compared to the second quarter, primarily due to higher index sawlog prices on a portion of the volume coming from our Idaho timberlands. We continue to expect that full year 2026 average log pricing for the combined company's Northwest Timber segment will be higher than the stand-alone pricing for Rayonier in the prior year. In our Wood Products segment, we continue to expect lumber shipments to total approximately 1.1 billion board feet for the 11 months of contribution in 2026. We further expect lumber shipments in the third quarter of approximately 320 million to 330 million board feet. We continue to be encouraged by the improvement in lumber prices which has been driven largely by more favorable supply-demand dynamics in addition to broader transportation constraints. As July month end, our average quarter-to-date lumber price realization was modestly higher than our average price realization in the second quarter. In our Real Estate segment, we are pleased by the continued momentum in our sales activity and maintain a healthy pipeline of rural and improved development land sale opportunities as we move forward. Based on our current transaction pipeline and sales closed quarter-to-date, we expect an adjusted EBITDA contribution in the third quarter of $25 million to $35 million. For the full year, we continue to expect an adjusted EBITDA contribution from our Real Estate segment of $180 million to $200 million. As it relates to the land exchange with RMS that Mark discussed earlier, I'd note that our timber harvest guidance includes the impact of these transactions. In addition, the Washington sale will be treated as a large disposition and will have no impact on adjusted EBITDA. We I'll now turn the call back to Mark for closing comments. Mark McHugh: Thanks, Wayne. As I reflect on the first half of the year, I want to commend our employees for their focus and dedication during a period of significant change. Our team has navigated challenging market conditions while advancing key integration initiatives and I remain confident that our merger with PotlatchDeltic will create significant long-term value for our shareholders. While the macroeconomic backdrop remains uncertain, we believe the long-term fundamentals of our industry are promising, and we remain focused on optimizing the value of our land base. In addition, we are continuing to build long-term value per share through disciplined capital allocation and active portfolio management as reflected in our recent share repurchase activity as well as the land exchange transaction with RMS. In sum, I'm very pleased with our operational execution during the second quarter, and I'm proud of our team's resilience and determination. Before turning it back to the operator, I want to take a moment to acknowledge the tragic wildfires near Spokane, Washington. While these fires are not proximate to our timberland ownership, they are certainly impacting our team members based in the Spokane area where PotlatchDeltic previously maintained its headquarters. We are monitoring the situation closely and working to support our team members, their families and the broader community as they cope with these events. Our thoughts go out to all those affected. That concludes our prepared remarks, and I'll now turn the call back to the operator for questions. Operator: [Operator Instructions] Your first question comes from the line of Matthew McKellar with RBC Capital Markets. Matthew McKellar: Maybe first, on the timberland's transaction you've announced beyond the incremental timber EBITDA benefit that you've projected here. Can you give us a sense of how you're thinking about potential HBU real estate and land-based solutions upside opportunities that may exist in the acquired acreage? And is there anything specific on the land-based solutions side that you're looking at, at this stage that would involve that acquired acreage? Mark McHugh: Matthew, this is Mark. I wouldn't say that there's anything particularly unique about these properties as it relates to land-based solutions upside. But recognize these are markets where -- we have a lot of experience, both on the real estate HBU side as well as finding opportunities on the land-based solutions side. So we really just see it as kind of additive to our portfolio in those areas. Matthew McKellar: Okay. Great. Congrats on the acquisition. Last for me, just outside of the benefit of the higher index sawlogs in Idaho that you noted. What trends are you seeing in sawtimber prices in the Pacific Northwest into Q3 here? And is the fire activity having any kind of noticeable impact on supply in the region. Wayne Wasechek: Yes, certainly, you're right, with index sawlogs and where pricing is at, where we're seeing higher index log prices in Idaho. But as it relates to the Pacific Northwest? Yes, that is also having an impact. We see pricing increasing there as well slightly. So it's having a positive impact. As it relates to the fires, no, I don't think that's having a significant impact, whether it be on volume or transactions or pricing there. While it's unfortunate that the fires are happening there in the West. I think we've seen that kind of year after year and no real pricing impact from those fires. Operator: Your next question comes from the line of Anthony Pettinari with Citi. Anthony Pettinari: Mark, I think you said that pulpwood prices, you were seeing some improvement maybe exiting the quarter, and you referenced containerboard price hikes, which I guess we've seen. I'm wondering if you can give any kind of finer point on that into the second half of the year. And just given these outstanding hikes, given recycled fiber prices are, I think, I don't know, 50%, 60% higher than they were 6, 7 months ago, just how that dynamic impacts pulpwood and what you're seeing in that market? Mark McHugh: Yes. I mean I wouldn't say that we have seen a significant amount of positive momentum on pulpwood pricing at this stage. But what we have seen is that markets have generally stabilized. Look, we've -- it's been a challenging few years for pulpwood pricing. We've kind of had this perfect storm of multiple mill closures, coupled with the elevated supply from the hurricane salvage and then just very dry weather conditions across the South. And so we saw several successive quarters of declining prices. We think that, that's generally stabilized. And again, with some better end market dynamics for our customers, improving in containerboard prices, as well as improved operating rates at the mills. I'd say that we're seeing just some green shoots for some potential positive price momentum here in the coming quarters. Anthony Pettinari: Got it. Got it. And then just switching gears to lumber. The Canadian import duties -- can you provide any thoughts on the reset, like the timing of when that will happen, sort of expectations for what the new duty level will be? And the administration has talked about additional 50% tariffs on Canada that I think would hit LVL. I'm not sure if they've hit other wood products, but any thoughts you can share on the import duty and tariff dynamic? Mark McHugh: My understanding is that those incremental tariffs or potential incremental tariffs on certain Canadian imports would not attach to lumber. And look, while the preliminary AR7 would bring duties down modestly from current levels, it's worth putting that in context. Even at the modestly lower preliminary rate, AR7 would still be the highest -- or I'm sorry, the second highest combined rate since the softwood lumber agreement expired in 2015. And when you layer the Section 232 tariff on top of that, the all-in duty burden on Canadian lumber would still be roughly 35%. So even at that lower duty rate, we expect that U.S. lumber producers will continue to gain market share from Canada. We just don't see the mills that have shut down in Canada coming back online, certainly not with the 35% duty and tariff burden. So perhaps we see some incremental volume from Canada at the margin, but it's just hard to envision that this would really move the dial relative to the current market dynamics. And in terms of the timing, my understanding is that one component of the duty actually just got extended by a couple of months. And so our expectation it's going to be a little bit later in the year perhaps than initially anticipated. Operator: Your next question comes from the line of Buck Horne with Raymond James. Buck Horne: A quick question on the harvest volumes planned for the back half of the year. Just it feels like you had a little bit of extra activity in the second quarter. Maybe due to drier weather conditions. I'm just wondering to what degree there is some conservatism maybe built-in if the weather remains dry or if transportation were to free up, is there potential upside to harvest activity in the back half of the year? Wayne Wasechek: Yes, Buck. I think certainly, we tightened our guidance range for the year just a little bit on both ends. But however, really, the midpoint is effectively remain unchanged. I think -- look, we're further through the year. Our team has had some additional opportunity to evaluate the combined harvest plan. They're continuing to optimize. So yes, while we were a little bit higher than we anticipated just given favorable harvest conditions, that doesn't change our overall outlook for the year. Buck Horne: Okay. Perfect. And just one quick one on just higher and better use outcomes. Congrats on the new solar activity and the pipeline there. Any conversations with potential data centers or data center developers or any sort of combination with solar arrays if there's any developments on that front? Mark McHugh: Yes. As we discussed last quarter, we have seen increased interest from data center developers here recently. And I'd say that interest has been pretty varied. It ranges from developers looking to purchase maybe a few hundred acres for the actual data center footprint, other developers looking for several thousand acres for data center co-located power and perhaps even a buffer zone to address community concerns. But needless to say, the site requirements and the due diligence for data center development are even more stringent than what we see for solar development. So these types of opportunities are invariably going to take longer to materialize. With that said, we're certainly focused on identifying these types of opportunities within our land base and really capturing some of that momentum that we see in data center development. We put together a cross-functional team internally to identify what we think are higher potential sites within the portfolio. We've also listed some outside experts to help us with identifying those opportunities as well as marketing the potential side. So optimistic that we'll see this type of use contribute to our portfolio of HBU opportunities. But still a little early to speculate on just orders of magnitude in terms of pricing or number of acres that might ultimately be sold into that use. Operator: Your next question comes from the line of Mike Roxland with Truth Securities. Michael Roxland: First one, just over the last few years, you've been selling timberland in the Pacific Northwest. I think at one point, maybe 2 or 3 years ago, you had more than 400,000 acres in Washington. With the current 1031, you're now at, call it, 260,000 acres. So on the call, Mark, you mentioned optimizing the land base. So is there anything about the location relative to the Pacific Northwest, in particular, relative to the South that makes that region less appealing? Is it tough to get appropriate scale? Is it less attractive outlets for? Like what -- why have you been downsizing your position in the Pacific Northwest? Mark McHugh: It's a great question. I wouldn't say that there's anything about the Northwest. It makes us want to necessarily shrink there. I think it's just a relative opportunity set. Look, in the U.S. South, there was just a lot more embedded option value around HBU Real Estate as well as land-based solutions. We just don't have much in the way of HBU Real Estate activity in the Pacific Northwest. And likewise, the land-based solutions opportunities are pretty limited. You recognize that going back a number of years ago as well, we also generally had a younger age class in the Pacific Northwest and a much higher component of Hemlock within the portfolio. So some of the transactions that we've done on the disposition side in the last several years in the Northwest have really been seeking to upgrade the residual portfolio by minimizing the component of Hemlock in the portfolio and trying to kind of improve the overall age class balance. So you still really like our position there. And I'd say our overall portfolio value on a per acre basis has improved by virtue of the transactions that we've done in the Northwest. And again, at this point, I think we still have sufficient scale to be meaningful in that market. But that's really what's been driving some of those decisions. Michael Roxland: Got it. No, I appreciate the color there. And then just in terms of the share repurchases, obviously, there's been a very wide discount to NAV. You guys have a solid balance sheet post to trigger your transformation in the last few years. Why not be even more opportunistic in buying back an increasing amount of shares here? Obviously, there was a step-up in 2Q relative to 1Q. I realize that, but why not spend $100 million a quarter or more discount to NAV? Mark McHugh: As we said in the prepared remarks, we continue to see buybacks as a very compelling use of capital based on where the stock price sits right now. The balance sheet is in good shape, and we do have capacity remaining under our current authorization. So we do expect to remain active buying back shares if we continue to trade in this range that we've been over the past several months. That said, we also want to be measured as to how aggressive we are at any single point in time as market conditions have been pretty volatile of late. And we also want to maintain some balance sheet flexibility so that we can maintain that ability to be nimble and opportunistic around capital allocation. So again, I think we've been appropriately aggressive with our recent buybacks. I think last quarter was probably the -- our most active quarter ever in terms of buyback volume. And again, I think we still have some balance sheet flexibility to continue to be aggressive. But you recognize our capacity isn't limitless either. We're still committed to maintaining our investment grade credit rating. And again, we want to maintain a conservative balance sheet and maintain that capital allocation capacity. And so again, I think we've been appropriately aggressive, and we want to continue to be opportunistic on that front. Operator: Your next question comes from the line of Mark Weintraub with Seaport Global. Mark Weintraub: Mark, two questions. One, just sort of building on a little bit on the kind of the data center question. And just more generally, housing is not doing great, but we have this massive AI infrastructure build-out going on. And so I'm sure you're looking at all different types of ways in which you can participate and get your share. Can you kind of speak to that beyond, obviously, selling land to data centers and then relatedly, I'm sure solar is a part of this answer. And we've also got energy costs going up and more uncertainties. Are you seeing that translate in any way to increased activity on the solar side? Or is it premature to be drawing any thoughts along those lines? Mark McHugh: Yes, I wouldn't necessarily say we've seen increased activity on the solar option side of things. But I think what we have seen is that developers have really been focused on optimizing their pipeline rather than expanding. They're sorting through interconnection costs. We've obviously seen changes in the regulatory environment and some of the financial incentives around solar. So we actually think our option portfolio could shrink a bit here in coming quarters, but likely with a higher quality mix of projects within that portfolio. So there's certainly momentum on the solar front. And we think that's going to translate to a pretty favorable runway as it relates to long-term solar development. But again, we've been really focused on building out that solar option portfolio now for the last 4 or 5 years. But keep in mind that most of these options have terms in the range of 5 to 7 years. So we're just now reaching that point where we think we'll start to see a more regular turnover of option maturities. 2027 is actually the first year that we see a big step up in those option maturities. So I think over the next 2, 3 years, we should start to get better visibility on what that long-term conversion rate might look like. But again, very optimistic about the pipeline on both the renewable energy side as well as some of the interest that we're seeing on the data center development. And I guess one other point I'd make around just a pickup in energy demand because I think that could also translate to new opportunities around bioenergy and biofuels. That's an area where we've been spending a lot of time really trying to evaluate those types of opportunities, particularly in the U.S. South. Mark Weintraub: Great. And maybe just on the point you made about solar options expiring. Is there any reason why things can't happen before we're coming to the end of solar towards the end solar option expiration? And if not sort of how does -- why is sort of the timing tending to coincide with when things are coming to an end? Mark McHugh: Yes, they certainly can happen before the end of an option expiration, and we've certainly seen that within our portfolio of options where counterparties have converted the option over to a purchase or a lease prior to that option termination. But recognize what's underlying that typical 5- to 7-year term is just the interconnection studies, all the regulatory hurdles that have to be cleared before that project can really get underway. And so I'd say the limiter there is just the period of time that, that requires. There is a pretty protracted regulatory process. And so again, we don't expect that we're going to see really early terminations or really early conversions just because there is a duration of time required for that due diligence. Mark Weintraub: Got you. And is it the counterparty that's basically doing that due diligence? And if so, are you -- how much are you in the know as to how that's proceeding? Mark McHugh: Yes, it's the counterparty that's doing that due diligence, and we usually do get periodic updates. Obviously, to the extent that the counterparty remains in the option and doesn't terminate it early, that suggests that they're making good progress on that due diligence and on that interconnection study and ultimately a power purchase agreement. But yes, we do get periodic updates from those counterparties, but we're not heavily involved in the actual process. Operator: [Operator Instructions] Your next question comes from the line of Ketan Mamtora with BMO Capital Markets. Ketan Mamtora: Maybe first question, coming back to capital allocation. Mark, you talked about keeping the balance sheet conservative, having some flexibility. How would you have us think about what that sort of conservatism looks like? You have us think about it on a net debt to enterprise value basis. Is it debt leverage? And what would be sort of the broad at levels that you are looking at? Mark McHugh: I'd say we think about it on both fronts. To some extent, there's a leverage level that we're comfortable sustaining and recognize that, that has evolved over time. Given that we're in a much higher interest rate environment than we were a few years back. But we're also mindful of just how the rating agencies look at that because we are committed to maintaining that investment-grade credit rating. And so I'd say we look at a host of different leverage metrics and making that determination of where our comfort level. And we published some of those in the past. I mean, most recently, we've said we want to maintain leverage net debt to EBITDA inside of 3x. And we're still, I think, within that range. But like I said, that capacity is not limitless either, and we're certainly mindful even more mindful of leverage levels today just given the higher interest rate environment that we're in. Ketan Mamtora: Got it. That's helpful. And then share repurchase is loud and clear that's kind of an area of focus. Outside of that, are there sort of opportunities for sort of investments maybe downstream in wood products, given that lumber fundamentals have started to improve. Curious if there are opportunities like that, that you see over the next 12 to 24 months? Mark McHugh: Yes. We're going to -- we do look at those types of opportunities, but we're going to look at them through the same lens as we would any other capital allocation alternative. We're going to deploy capital really with a view towards building long-term value per share. As we discussed in the past, the bar for external growth, I'd say, is pretty high right now given the opportunity that we see in buybacks. But we'll certainly consider high-return capital projects or even M&A if we see a compelling opportunity that we believe will create long-term value for shareholders within that Wood Products business. Ketan Mamtora: Got it. And then just one last one for me. On solar, Mark, can you -- just a rough order of magnitude, what percentage of that 77,000 portfolio comes due in 2027 in terms of the option agreement expiring? Mark McHugh: We haven't disclosed that specific percentage. I don't necessarily want to get into the exact number of acres because that's going to change over time. But the point I was making is that 2027 is the first year that we see a much larger slug of option maturities. Again, just given that typical duration of 5 to 7 years and given that we've been building up this portfolio over really the last 3 to 4 years, 2027 is when we kind of start to see a pickup. And then I would say it becomes more normalized thereafter, just given how that option portfolio has built up over the period of the last 4 years. Operator: There are no further questions at this time. I would now like to turn the call back to Collin Mings for closing remarks. Collin Mings: Thanks. I'd like to thank everybody for joining us. Please contact us with any follow-up questions. Operator: And this concludes today's call. Thank you all for attending. You may now disconnect. Before you buy stock in Rayonier, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Rayonier wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,209!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,393!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 13, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Rayonier (RYN) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Rayonier Inc.? Here are five stocks we like better. Rayonier’s Q2 results improved significantly following the PotlatchDeltic merger, with adjusted EBITDA reaching $124 million and adjusted net income totaling $32 million. Management said integration remains on track to meet its synergy targets. The company completed a tax-efficient timberland exchange, selling 36,000 acres in Washington for $145 million and acquiring 57,000 acres in Texas and Alabama for $146 million. The deal is expected to increase timber-only cash flow and create additional real-estate opportunities. Timber, wood products and real estate all showed stronger performance, while Rayonier repurchased $72 million of shares in Q2. Management maintained its full-year real estate EBITDA outlook of $180 million to $200 million and expects stable Southern timber prices with modestly higher Northwest pricing. Rayonier-PotlatchDeltic Merger Signals Industry Upside Rayonier (NYSE:RYN) reported second-quarter GAAP earnings of $19 million, or $0.06 per share, as contributions from the recently completed merger with PotlatchDeltic and stronger operating results across its businesses lifted adjusted EBITDA to $124 million. Adjusted net income was $32 million, or $0.10 per share, after excluding pro forma items that were primarily related to the merger. President and CEO Mark McHugh said the company has made progress integrating PotlatchDeltic since the merger closed in late January and remains on track to achieve its run-rate synergy targets. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling 3 Stocks About to Book Gains on Building Products Demand The company also announced two timberland transactions with Resource Management Service, or RMS, intended to further its portfolio optimization strategy. Rayonier sold about 36,000 acres in southwest Washington for $145 million and concurrently acquired about 57,000 acres in Texas and Alabama for $146 million, subject to customary closing adjustments. McHugh said the transactions were structured as a tax-efficient like-kind exchange and are expected to be accretive to timber-only cash flow, with additional potential from higher-and-better-use real estate sales and land-based solutions opportunities. The Washington sale will be treated as a large disposition and will not affect adjusted EBITDA, according to Chief Financial Officer Wayne Wasechek. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High 3 Construction Stocks Bringing Growth this Fall Southern Timber adjusted EBITDA increased 85% from the prior-year quarter to $53 million. Harvest volumes more than doubled, largely reflecting approximately 1.5 million tons of volume added through the PotlatchDeltic timberlands. Increased harvest activity more than offset lower pricing. McHugh said sawlog demand was steady as lumber prices rose during the quarter. The company expects U.S. South sawmills to gain share from Canadian producers and gradually increase production, which it believes should support sawlog demand in its southern markets. → No Hangover: Revisiting Microsoft One Week After Earnings Pulpwood conditions remained challenging, however, as subdued demand, dry weather and salvage harvesting related to fires in Florida and Georgia added to supply. McHugh said pulpwood pricing has generally stabilized in Rayonier’s main markets, while improved containerboard pricing and mill operating rates have provided what he described as “green shoots” for possible pricing improvement in coming quarters. About 9,300 acres of Rayonier timberlands in Georgia were affected by fires. The company recorded a roughly $2 million casualty loss during the second quarter and harvested about 50,000 tons through salvage operations. McHugh said those efforts are largely complete and that Rayonier does not expect material future business effects from the fires. Northwest Timber adjusted EBITDA rose to $26 million from $7 million a year earlier. Volumes more than doubled, aided by 360,000 tons of incremental harvest volume from PotlatchDeltic’s Idaho timberlands. Drier-than-normal weather supported harvest activity in Idaho, while higher lumber prices contributed to stronger indexed sawlog prices. During the question-and-answer session, Wasechek said Northwest timber pricing was also rising modestly outside the benefit from Idaho indexed logs. He said fires in the West had not created a significant impact on regional volumes, transactions or pricing. Rayonier’s Wood Products business generated $25 million of adjusted EBITDA, exceeding management’s expectations and marking the segment’s strongest quarterly result since PotlatchDeltic’s third quarter of 2022. Average lumber price realization was $505 per thousand board feet, up about 18% from $427 per thousand board feet in the first quarter, including the pre-merger period. Shipments were 314 million board feet, in line with prior guidance. McHugh attributed improved lumber pricing primarily to supply-side conditions, including mill curtailments, higher tariffs on Canadian imports and transportation constraints. The company said it used rail alongside its trucking network to maintain customer deliveries and largely passed increased transportation costs on to customers. Real Estate revenue totaled $54 million from sales of roughly 7,500 acres at an average price of $6,300 per acre. Segment adjusted EBITDA rose $20 million from the prior-year period to $38 million. Rural land sales accounted for $41 million and included a 460-acre bolt-on sale to a solar developer for $4.6 million, or about $10,000 per acre. Rayonier ended the quarter with approximately 77,000 acres under option for lease or sale to solar developers. McHugh said solar developers have been focused on optimizing their pipelines amid interconnection costs and changes in regulatory and financial incentives. He said Rayonier’s solar-option portfolio could shrink in coming quarters but potentially consist of higher-quality projects. The company expects a larger group of option maturities beginning in 2027, which could provide greater visibility into long-term conversion rates. The company is also evaluating data-center opportunities. McHugh said developer interest ranges from sites of several hundred acres for facility footprints to several thousand acres for projects that could include co-located power and buffer zones. He cautioned that data-center development involves more extensive site requirements and due diligence than solar projects. Cash available for distribution totaled $177 million during the first six months of 2026, compared with $47 million in the prior-year period. Wasechek attributed the increase to PotlatchDeltic’s contribution and improved Real Estate results. Rayonier repurchased approximately 3.5 million shares during the second quarter for $72 million, at an average price of $20.95 per share. During the first half, it repurchased 4.9 million shares for $103 million, leaving $126 million available under its authorization at quarter-end. The company repaid a $200 million term loan at maturity in April using cash on hand. It ended the quarter with $412 million in cash and approximately $1.9 billion in debt, with net debt to enterprise value of 18% based on its quarter-end share price. McHugh said Rayonier remains committed to preserving its investment-grade credit rating and has previously targeted net debt-to-EBITDA below three times. For the full year, Rayonier expects Southern Timber harvest volumes of 12.2 million to 12.5 million tons and Northwest Timber harvest volumes of 2 million to 2.2 million tons. Third-quarter harvest expectations are 3.1 million to 3.3 million tons in the South and approximately 600,000 tons in the Northwest. The company expects Southern sawtimber and pulpwood prices to remain relatively stable in the third quarter. Northwest sawtimber prices are expected to rise modestly, principally due to higher indexed sawlog pricing on certain Idaho volume. Wood Products shipments are projected to total approximately 1.1 billion board feet for the 11 months of 2026 contribution, including 320 million to 330 million board feet in the third quarter. Rayonier said its average lumber price realization through July was modestly above the second-quarter average. For Real Estate, Rayonier expects third-quarter adjusted EBITDA of $25 million to $35 million and maintained its full-year forecast of $180 million to $200 million. Rayonier, Inc (NYSE: RYN) is a publicly traded real estate investment trust specializing in timberland ownership and management. The company's core business revolves around sustainably growing, harvesting, and marketing timber and timber-related products. Rayonier's timberland portfolio encompasses approximately 2.7 million acres across the United States and New Zealand, focusing on softwood and hardwood fiber for use in paper, packaging and building materials. Rayonier operates through two primary segments: Timber and Real Estate Solutions. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Rayonier Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Weyerhaeuser Company WY is showing signs of an earnings recovery, but the stock does not offer an easy buy case. Second-quarter results beat expectations and Wood Products improved sharply, while Climate Solutions and engineered wood investments add longer-term growth avenues.The counterweight is valuation. WY trades well above its sub-industry, sector and the S&P 500 on forward earnings, while housing demand and commodity pricing remain uncertain. Second-quarter adjusted earnings of 13 cents per share topped the Zacks Consensus Estimate of six cents by 116.7%. Net sales of $1.87 billion exceeded the $1.80 billion consensus mark by 4%, while Wood Products adjusted EBITDA rose to $129 million from $71 million sequentially.Management expects higher lumber production and sales volumes in the third quarter and slightly lower unit manufacturing costs. Engineered wood products also improved in the second quarter, with adjusted EBITDA rising to $54 million from $39 million. Climate Solutions generated $126 million of sales in the first half of 2026, including a $94 million conservation easement completed in the first quarter. Weyerhaeuser's second solar site began operating in the second quarter, with three additional solar developments under construction.The company also received permits for its first biocarbon facility near its McComb, MS, lumber mill. Weyerhaeuser raised full-year 2026 Strategic Land Solutions adjusted EBITDA guidance by $25 million to approximately $450 million, broadening its earnings sources beyond timber and wood products. WY's forward 12-month price-to-earnings ratio stands at 49.94, compared with 27.18 for its Zacks sub-industry, 20.3 for the Zacks Construction sector and 20.71 for the S&P 500. The stock's five-year median is 30.18.That spread makes execution more important. Investors need stronger earnings improvement to justify a multiple already above relevant benchmarks, leaving less room for operating setbacks or a slower recovery. Weyerhaeuser Company price-consensus-chart | Weyerhaeuser Company Quote Demand remains exposed to housing affordability, mortgage rates in the mid-6% range and weak consumer confidence. Repair-and-remodel activity was steady but muted in the first half, while OSB adjusted EBITDA posted a $6 million loss in the second quarter as supply exceeded demand and costs remained elevated.Commodity sensitivity compounds the risk. Management estimates that a $10 change in lumber prices changes annual EBITDA by roughly $50 million. Louisiana-Pacific Corporation LPX, another housing-linked wood-products producer, reported second-quarter OSB sales down $68 million year over year as prices and volumes declined. Rayonier Inc. RYN, which now combines timberlands and wood products following its January merger with PotlatchDeltic, offers a related reference point for the same timber-and-lumber cycle. Bottom line, WY's investment case remains balanced rather than decisive. Earnings recovery, Wood Products improvement and land-based growth opportunities support the outlook, but a premium valuation and housing-linked volatility keep the risk-reward from looking straightforward.The stock currently carries a Zacks Rank #3 (Hold), pointing to a balanced short-term stance rather than a clear Buy signal. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Its Value Score of D, Growth Score of F, Momentum Score of D and VGM Score of F are less favorable readings within the Style Score framework, which is designed to complement the Zacks Rank. The score mix indicates that value, growth and momentum characteristics are not currently among the stronger Style Score profiles, leaving the fundamental recovery as the key area to watch. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Weyerhaeuser Company (WY) : Free Stock Analysis Report Louisiana-Pacific Corporation (LPX) : Free Stock Analysis Report Rayonier Inc. (RYN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Rayonier (RYN) came out with quarterly earnings of $0.1 per share, beating the Zacks Consensus Estimate of $0.06 per share. This compares to earnings of $0.06 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +66.67%. A quarter ago, it was expected that this forest products company would post earnings of $0.06 per share when it actually produced earnings of $0.07, delivering a surprise of +16.67%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Rayonier, which belongs to the Zacks Building Products - Wood industry, posted revenues of $396.5 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 8.88%. This compares to year-ago revenues of $106.5 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Rayonier shares have added about 1.3% since the beginning of the year versus the S&P 500's gain of 13%. While Rayonier has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Rayonier was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.13 on $411.95 million in revenues for the coming quarter and $0.32 on $1.45 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products - Wood is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Aecom Technology (ACM), another stock in the broader Zacks Construction sector, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 10. This provider of technical and management-support services is expected to post quarterly earnings of $1.54 per share in its upcoming report, which represents a year-over-year change of +14.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Aecom Technology's revenues are expected to be $2.09 billion, up 8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Rayonier Inc. (RYN) : Free Stock Analysis Report AECOM (ACM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Completed a tax-efficient like-kind exchange of 36,000 acres in Washington for 57,000 acres in Texas and Alabama to concentrate capital in markets with stronger cash flow and growth prospects. Southern Timber performance was driven by the integration of PotlatchDeltic operations, which more than doubled harvest volumes and offset lower regional pricing. Northwest Timber results benefited from drier-than-normal weather in Idaho, allowing for strong harvest activity and higher realizations on sawlogs indexed to lumber prices. Wood Products achieved its strongest EBITDA since 2022, driven by supply-side constraints including mill curtailments, higher Canadian tariffs, and transportation bottlenecks. Management proactively mitigated flatbed trucking shortages by leveraging rail networks, successfully passing increased transportation costs through to customers. Pulpwood markets in the South have stabilized following a 'perfect storm' of mill closures, dry weather, and salvage supply, with 'green shoots' appearing from improved containerboard pricing. Real Estate momentum continues through the Wildlight and Heartwood projects, reflecting long-term investments in entitlements and infrastructure. Full-year harvest guidance assumes Southern Timber volumes of 12.2 million to 12.5 million tons, with regional pricing expected to remain stable in the third quarter. Lumber price realizations in July trended modestly higher than Q2 averages, supported by favorable supply-demand dynamics and ongoing transportation constraints. Management expects U.S. South sawmills to continue gaining market share from Canadian producers due to a projected 35% total duty and tariff burden on imports. The solar option portfolio is expected to see a significant step-up in maturities starting in 2027, providing better visibility into long-term conversion rates for leases or sales. Capital allocation will remain focused on share repurchases as long as the stock trades at a significant discount to net asset value, while maintaining a net debt-to-EBITDA ratio below 3x. Recorded a $2 million casualty loss in the second quarter related to wildfires affecting 9,300 acres in Georgia; salvage operations are largely complete with no further material impact expected. The Washington timberland sale will be treated as a large disposition for accounting purposes, meaning it will have no impact on adjusted EBITDA despite the cash flow benefit. Repaid a $200 million term loan at maturity using cash on hand rather than refinancing to avoid the current high-interest-rate environment. Integration of the PotlatchDeltic merger remains on track to achieve run-rate synergy targets, with a new corporate headquarters in Atlanta slated for 2027. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management explained that the South offers higher 'option value' for real estate (HBU) and land-based solutions compared to the Northwest. Recent dispositions in Washington were aimed at 'upgrading' the portfolio by reducing Hemlock exposure and improving the age class balance of the remaining 260,000 acres. Rayonier has formed a cross-functional team and hired outside experts to identify sites for data centers, which require larger footprints and more stringent due diligence than solar. Solar developers are currently focused on optimizing existing pipelines rather than expansion as they navigate interconnection costs and regulatory changes. Management expects U.S. producers to continue gaining share because even if preliminary duty rates decrease slightly, the total burden remains high enough to prevent shuttered Canadian mills from restarting. The timing for the next duty reset has been delayed by a couple of months, likely pushing the impact later into the year.

Second quarter net income attributable to Rayonier of $19.1 million (or $0.06 per diluted share), pro forma net income of $31.5 million (or $0.10 per diluted share), and Adjusted EBITDA of $123.7 million. Repurchased $72.4 million of shares at an average price of $20.95 per share. Debt outstanding of $1.86 billion and cash of $411.8 million as of June 30, 2026. WILDLIGHT, Fla., August 05, 2026--(BUSINESS WIRE)--Rayonier Inc. (NYSE:RYN) today reported second quarter net income attributable to Rayonier of $19.1 million, or $0.06 per diluted share, on revenues of $396.5 million. This compares to net income attributable to Rayonier of $408.7 million, or $2.63 per diluted share, on revenues of $106.5 million in the prior year quarter. The second quarter results included $10.2 million of costs (net of tax) related to the merger with PotlatchDeltic1 and timber write-offs resulting from a casualty event2 of $2.3 million. Excluding these items and adjusting for pro forma net income adjustments attributable to noncontrolling interests,3 second quarter pro forma net income4 was $31.5 million, or $0.10 per diluted share. This compares to pro forma net income4 of $9.6 million, or $0.06 per diluted share, in the prior year period. The following table summarizes results for the current quarter and the comparable prior year period. Consolidated results for the second quarter of 2026 include PotlatchDeltic’s operations for the entire period, while the prior year quarter reflects Rayonier’s results on a standalone basis. Second quarter operating income was $34.6 million versus operating income of $14.5 million in the prior year period. Second quarter operating income included $10.4 million of costs related to the merger with PotlatchDeltic1 and timber write-offs resulting from a casualty event2 of $2.3 million. Excluding these items, pro forma operating income4 was $47.2 million versus $14.5 million in the prior year period. Second quarter Adjusted EBITDA4 was $123.7 million versus $44.9 million in the prior year period. The following table summarizes operating income, pro forma operating income,4 and Adjusted EBITDA4 for the current quarter and the comparable prior-year period. Year-to-date cash provided by operating activities was $145.2 million versus $88.7 million in the prior year period. Year-to-date cash available for distribution (CAD)4 was $177.1 million, which increased $130.5 million versus the prior year period primarily due to higher Adjusted EBITDA4 ($145.9 million) and higher cash interest received (net) ($5.2 million), partially offset by higher capital expenditures ($20.4 million). "Our second quarter results reflected solid performance across all of our business segments, as well as a full quarter of contributions from the legacy PotlatchDeltic businesses, resulting in total Adjusted EBITDA of $123.7 million," said Mark McHugh, President and Chief Executive Officer. "We maintained a strong focus on operational execution during the quarter, while continuing to make significant progress on our integration priorities and positioning the combined company to realize the strategic and financial benefits of the merger. We also deployed capital opportunistically during the quarter, repurchasing $72 million of our common stock, which reflects our commitment to disciplined capital allocation and long-term value creation for our shareholders." "In our Southern Timber segment, Adjusted EBITDA increased 85% versus the prior year quarter to $52.6 million, driven primarily by the contribution of approximately 1.5 million tons of harvest volume from the legacy PotlatchDeltic timberlands. In our Northwest Timber segment, Adjusted EBITDA of $26.3 million was nearly four times higher than the prior year quarter, primarily due to 364,000 tons of incremental harvest volume from the PotlatchDeltic timberlands as well as higher indexed sawlog prices in Idaho." "In our Wood Products segment, Adjusted EBITDA totaled $25.0 million, as lumber price realizations strengthened throughout the quarter and reached their highest level in nearly four years. Additionally, we delivered shipment volumes in line with our targets amid a challenging transportation environment." "In our Real Estate segment, Adjusted EBITDA totaled $38.3 million—above the high-end of our prior quarterly guidance—reflecting strong execution and continued momentum across our real estate categories." Southern Timber Second quarter sales of $107.6 million increased $54.3 million, or 102%, versus the prior year period. Harvest volumes increased 110% to 3.35 million tons versus 1.60 million tons in the prior year period, primarily driven by 1.5 million tons of incremental volume from the PotlatchDeltic timberlands. Average delivered pine sawtimber prices decreased to $44.46 per ton versus $47.87 per ton in the prior year period, largely due to changes in geographic mix from the expanded Southern Timber footprint, coupled with modestly softer market conditions. Average delivered pine pulpwood prices decreased to $30.20 per ton versus $37.35 per ton in the prior year period, reflecting geographic mix impacts associated with the expanded footprint, along with generally weaker pulpwood market conditions. Weighted-average prices on stumpage sales (including hardwood) decreased to $15.37 per ton versus $19.08 per ton in the prior year period. Operating income of $8.1 million decreased $4.5 million versus the prior year period due to higher depletion expense ($9.4 million), lower prices ($5.8 million), higher costs ($3.0 million) and a timber write-off resulting from a casualty event ($2.3 million),2 partially offset by higher volumes ($8.8 million) and higher non-timber income ($7.2 million). Second quarter Adjusted EBITDA4 of $52.6 million was 85%, or $24.2 million, above the prior year period. Northwest Timber Second quarter sales of $66.0 million increased $42.2 million, or 177%, versus the prior year period. Harvest volumes increased 133% to 578,000 tons versus 248,000 tons in the prior year period, driven by 364,000 tons of incremental volume from the legacy PotlatchDeltic timberlands. Average delivered prices for sawtimber increased to $119.66 per ton versus $96.17 per ton in the prior year period, primarily reflecting geographic mix due to the addition of Idaho sawtimber (most of which is indexed to lumber prices), which more than offset modestly lower prices in the Pacific Northwest. Average delivered pulpwood prices increased to $38.78 per ton versus $31.52 per ton in the prior year period, primarily due to geographic mix impacts from the addition of the legacy PotlatchDeltic timberlands. Operating income of $12.6 million increased $11.1 million versus the prior year period due to higher prices ($10.7 million), higher volumes ($8.5 million) and higher non-timber income ($0.7 million), partially offset by higher costs ($7.3 million) and higher depletion expense ($1.5 million). Second quarter Adjusted EBITDA4 of $26.3 million was $19.5 million above the prior year period. Wood Products Second quarter sales totaled $196.2 million, consisting of $158.6 million of lumber sales and $37.5 million of plywood, residual, and other sales. Lumber pricing increased steadily throughout the second quarter as import duties, mill curtailments, and trucking shortages constricted supply. Lumber shipments totaled 314 MMBF, with average lumber price realizations of $505 per thousand board feet. Second quarter operating income and Adjusted EBITDA4 were $15.1 million and $25.0 million, respectively. Real Estate Second quarter sales of $53.7 million increased $24.2 million versus the prior year period, while operating income of $28.3 million increased $18.5 million versus the prior year period. Sales and operating income increased primarily due to higher acres sold (7,500 acres sold versus 3,263 acres sold in the prior year period), partially offset by lower weighted-average prices ($6,290 per acre versus $8,340 per acre in the prior year period). Improved Development sales of $6.4 million included $2.3 million from the Chenal Valley development project in Little Rock, Arkansas, $2.1 million from the Heartwood development project south of Savannah, Georgia, $1.0 million from the Wildlight development project north of Jacksonville, Florida, and $1.0 million from the sale of a 0.5-acre commercial-use parcel in Kitsap County, Washington. Rural sales of $40.7 million consisted of 7,490 acres at an average price of $5,439 per acre, including a 459-acre sale to a solar developer for $10,100 per acre. This compares to prior year period sales of $15.7 million, which consisted of 2,926 acres at an average price of $5,376 per acre. Second quarter Adjusted EBITDA4 of $38.3 million increased $19.7 million versus the prior year period. Other Items Second quarter corporate and other operating expenses of $28.7 million increased $19.4 million versus the prior year period, primarily reflecting the larger scale of the combined company and $10.4 million of costs related to the merger with PotlatchDeltic.1 Second quarter interest expense of $16.9 million increased $10.4 million versus the prior year period, primarily due to incremental debt assumed in the merger with PotlatchDeltic. Second quarter interest income of $4.9 million increased $2.5 million versus the prior year period, primarily due to a higher cash balance following the sale of the Company’s New Zealand joint venture interest in the second quarter of 2025. Second quarter income tax expense of $2.9 million was primarily driven by income generated from the Company’s Wood Products and Real Estate development businesses. Share Repurchases During the second quarter, the Company repurchased approximately 3.5 million shares at an average price of $20.95 per share, or $72.4 million in total. As of June 30, 2026, the Company had $126.0 million remaining on its current share repurchase authorization. Outlook Consistent with the initial 2026 financial guidance we provided in February, the following full-year metrics reflect a pro rata contribution from legacy PotlatchDeltic operations for January 31, 2026 through December 31, 2026. Southern Timber: In our Southern Timber segment, we expect to achieve full-year harvest volumes of 12.2 to 12.5 million tons, with anticipated harvest volumes of 3.1 to 3.3 million tons in the third quarter. We expect regional sawtimber and pulpwood prices to remain relatively stable for the third quarter compared to the second quarter. However, full-year and quarterly average pine prices for the combined company’s Southern Timber segment are expected to be lower than the standalone prices for Rayonier in the prior year based on the geographic mix of the combined company. Northwest Timber: In our Northwest Timber segment, we expect to achieve full-year harvest volumes of 2.0 to 2.2 million tons, with anticipated harvest volumes of approximately 600,000 tons in the third quarter. We expect overall sawtimber prices to be modestly higher in the third quarter compared to the second quarter, primarily due to higher indexed sawlog prices on a portion of the volume coming from our Idaho timberlands. We also continue to expect that full-year 2026 average log pricing for the combined company’s Northwest Timber segment will be higher than the standalone pricing for Rayonier in the prior year. Wood Products: In our Wood Products segment, we continue to expect lumber shipments to total approximately 1.1 billion board feet for the 11 months of contribution in 2026. We further expect lumber shipments in the third quarter of approximately 320 to 330 million board feet. We continue to be encouraged by the improvement in lumber prices, which has been driven largely by more favorable supply/demand dynamics in addition to broader transportation constraints. As of July month-end, our average quarter-to-date lumber price realization was modestly higher than our average price realization in the second quarter. Real Estate: We are pleased by the continued momentum in our Real Estate segment and maintain a strong pipeline of rural and improved development land sales for the balance of the year. Based on our current transaction pipeline and sales closed quarter-to-date, we expect an Adjusted EBITDA contribution in the third quarter of $25 to $35 million. For the full year, we continue to expect an Adjusted EBITDA contribution from our Real Estate segment of $180 to $200 million. Conference Call A conference call and live audio webcast will be held on Thursday, August 6, 2026 at 10:00 AM (ET) to discuss these results. Supplemental materials and access to the conference call and live audio webcast will be available at www.rayonier.com. A replay of the webcast will be archived on the Company’s website and available shortly after the call. Complimentary copies of Rayonier press releases and other financial documents are also available by calling (904) 357-9100. About Rayonier Rayonier is a land resources real estate investment trust (REIT) with a portfolio comprising over four million acres in the U.S. South and U.S. Northwest. The company is focused on managing its timberlands on a sustainable basis while optimizing its overall portfolio value by delivering land to its highest and best use. Rayonier also operates six sawmills, an industrial-grade plywood mill, residential and commercial real estate developments, and a rural land sales program. Rayonier is committed to corporate responsibility, third-party forest certification, and supporting climate change mitigation through its land-based solutions business. More information is available at www.rayonier.com. Forward-Looking Statements - Certain statements in this press release regarding anticipated financial outcomes including Rayonier’s earnings guidance, if any, business and market conditions, outlook, expected dividend rate, acquisition and disposition activity, including the ability to realize the intended benefits of our recent merger with PotlatchDeltic Corporation, expected harvest schedules, timberland acquisitions and dispositions, the anticipated benefits of Rayonier’s business strategies, including the recent sale of the entities holding Rayonier’s interest in the New Zealand joint venture and the anticipated use of proceeds from such sale, and other similar statements relating to Rayonier’s future events, developments or financial or operational performance or results, are "forward-looking statements" made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These forward-looking statements are identified by the use of words such as "may," "will," "should," "expect," "estimate," "believe," "intend," "project," "anticipate," "long-term," "looking ahead" and other similar language. However, the absence of these or similar words or expressions does not mean that a statement is not forward-looking. While management believes that these forward-looking statements are reasonable when made, forward-looking statements are not guarantees of future performance or events and undue reliance should not be placed on these statements. The following important factors, among others, could cause actual results or events to differ materially from those expressed in forward-looking statements that may have been made in this document: our ability to obtain the intended benefits of our merger with PotlatchDeltic Corporation, including future financial and operating results; the cyclical and competitive nature of the industries in which we operate; fluctuations in demand for, or supply of, our forest products and real estate offerings, including any further downturn in the housing market; entry of new competitors into our markets; changes in production and production capacity in the forest products industry; unanticipated manufacturing disruptions or inefficiencies in our supply chain and/or operations; fires at our manufacturing facilities; changes in policy regarding governmental timber sales; changes in global economic conditions and geopolitical tensions, including the war in Ukraine and elevated tensions in the Middle East; business disruptions arising from government shutdowns, public health crises and outbreaks of communicable diseases; the uncertainties of potential impacts of climate-related initiatives; the cost and availability of third-party logging and trucking services; the geographic concentration of a significant portion of our timberland; our ability to identify, finance and complete timberland acquisitions and/or to complete dispositions; changes in timberland values; changes in environmental laws and regulations regarding timber harvesting, delineation of wetlands, endangered species and development of real estate generally, that may restrict or adversely impact our ability to conduct our business, or increase the cost of doing so; adverse weather conditions, natural disasters and other catastrophic events such as hurricanes, wind storms and wildfires; the lengthy, uncertain and costly process associated with the ownership, entitlement and development of real estate, especially in Florida and Washington, including changes in law, policy and political factors beyond our control; the availability and cost of financing for real estate development and mortgage loans; changes in tariffs, taxes or treaties relating to the import and export of our products, our customers’ products or those of our and our customers’ competitors; changes in key management and personnel; and our ability to meet all necessary legal requirements to continue to qualify as a real estate investment trust ("REIT") and changes in tax laws that could adversely affect beneficial tax treatment. For additional factors that could impact future results, please see Item 1A - Risk Factors in the Company’s most recent Annual Report on Form 10-K and similar discussion included in other reports that we subsequently file with the Securities and Exchange Commission (the "SEC"). Forward-looking statements are only as of the date they are made, and the Company undertakes no duty to update its forward-looking statements except as required by law. You are advised, however, to review any further disclosures we make on related subjects in our subsequent reports filed with the SEC. Non-GAAP Financial Measures - To supplement Rayonier’s financial statements presented in accordance with generally accepted accounting principles in the United States ("GAAP"), Rayonier uses certain non-GAAP measures, including "cash available for distribution," "pro forma operating income (loss)," "pro forma net income," and "Adjusted EBITDA," which are defined and further explained in this communication. Reconciliation of such measures to the nearest GAAP measures can also be found in this communication. Rayonier’s definitions of these non-GAAP measures may differ from similarly titled measures used by others. These non-GAAP measures should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP. View source version on businesswire.com: https://www.businesswire.com/news/home/20260804433677/en/ Contacts Investors/Media Collin [email protected]

Trex (TREX) came out with quarterly earnings of $0.62 per share, missing the Zacks Consensus Estimate of $0.64 per share. This compares to earnings of $0.74 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -3.13%. A quarter ago, it was expected that this maker of fencing and decking products would post earnings of $0.51 per share when it actually produced earnings of $0.59, delivering a surprise of +15.69%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Trex, which belongs to the Zacks Building Products - Wood industry, posted revenues of $418.02 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.01%. This compares to year-ago revenues of $387.8 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Trex shares have added about 27.8% since the beginning of the year versus the S&P 500's gain of 11%. While Trex has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Trex was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.48 on $302.31 million in revenues for the coming quarter and $1.78 on $1.24 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products - Wood is currently in the top 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Rayonier (RYN), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This forest products company is expected to post quarterly earnings of $0.06 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 38.9% higher over the last 30 days to the current level. Rayonier's revenues are expected to be $364.15 million, up 241.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Trex Company, Inc. (TREX) : Free Stock Analysis Report Rayonier Inc. (RYN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Rayonier (RYN), which belongs to the Zacks Building Products - Wood industry. This forest products company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 41.67%. For the most recent quarter, Rayonier was expected to post earnings of $0.06 per share, but it reported $0.07 per share instead, representing a surprise of 16.67%. For the previous quarter, the consensus estimate was $0.12 per share, while it actually produced $0.2 per share, a surprise of 66.67%. Thanks in part to this history, there has been a favorable change in earnings estimates for Rayonier lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank. Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Rayonier currently has an Earnings ESP of +66.67%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #2 (Buy) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on August 5, 2026. With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss. Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate. Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Rayonier Inc. (RYN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research