Executive Summary

Q2 2025 pro forma EPS of $0.06 and Adjusted EBITDA of $44.9M materially improved versus prior year; GAAP EPS of $2.63 was inflated by a $404.4M gain from the sale of the New Zealand JV .
Revenue of $106.5M beat S&P Global consensus (~~$95.3M) and pro forma EPS of $0.06 beat consensus (~~$0.023), driven by stronger Real Estate closings and improved Pacific Northwest pricing; Southern Timber remained pressured by salvage volume and mill outages ; estimates from S&P Global*.
Management maintained full-year Adjusted EBITDA and pro forma EPS guidance ranges, raised Real Estate to “at or modestly above” the high end, and guided Q3 Adjusted EBITDA to $80–$100M and EPS $0.18–$0.28, setting up a stronger H2 on reduced salvage and higher duties on Canadian lumber .
Strategic progress and capital deployment: completed NZ JV sale, increased cash to $892.3M, repurchased ~1.5M shares for $34.9M ($23.71/sh); S&P upgraded credit rating post-transaction, and management reiterated buybacks as a compelling use of capital at current valuation .

What Went Well and What Went Wrong

What Went Well
- Real Estate outperformed: Adjusted EBITDA $18.6M versus $4.5M prior year; higher acres sold (3,263 vs 1,494) and higher prices ($8,340/acre vs $6,722) with notable commercial parcels in Heartwood and Wildlight; “exceeded our expectations entering the quarter due to the accelerated timing of certain transactions” .
- Pacific Northwest Timber margins improved despite lower harvests: Adjusted EBITDA up 17% YoY to $7.0M on higher domestic sawtimber pricing (+6% to $96.17/ton) and lower costs; management sees tailwind from increased duties on Canadian lumber .
- Balance sheet flexibility: cash rose to $892.3M post-disposition; share repurchases of ~1.5M shares ($34.9M) underscore capital returns; management emphasized buybacks given NAV disconnect .
What Went Wrong
- Southern Timber pricing/volume headwinds: sawtimber stumpage down 9% YoY to $26.75/ton; pulpwood down 25% to $13.05/ton; weighted-average net stumpage down 14% to $19.18/ton; Adjusted EBITDA down 16% YoY to $28.4M due to salvage volume and mill downtime .
- Trading segment still negligible: sales $1.4M and operating loss of ~$0.1M despite higher volumes (18k tons), offering minimal contribution .
- Outlook tempered for Southern Timber: full-year harvest volumes toward lower end of prior guidance, with H2 improvement expected but full-year Adjusted EBITDA near lower end of range .

Financial Results

Metric	Q2 2024	Q1 2025	Q2 2025
Revenue ($USD Millions)	$99.6	$82.9	$106.5
GAAP Diluted EPS ($USD, total)	$0.01	($0.02)	$2.63
Pro forma EPS ($USD)	($0.02)	($0.02)	$0.06
Operating Income ($USD Millions)	$4.5	$0.1	$14.5
Adjusted EBITDA ($USD Millions)	$33.3	$27.1	$44.9

Segment Sales ($USD Millions):

Segment	Q2 2024	Q1 2025	Q2 2025
Southern Timber	$59.3	$50.9	$53.3
Pacific Northwest Timber	$24.3	$21.4	$22.4
Real Estate	$15.5	$10.2	$29.4
Trading	$0.6	$0.4	$1.4
Total Sales	$99.6	$82.9	$106.5

Segment Adjusted EBITDA ($USD Millions):

Segment	Q2 2024	Q1 2025	Q2 2025
Southern Timber	$33.9	$27.0	$28.4
Pacific Northwest Timber	$5.9	$6.4	$7.0
Real Estate	$4.5	$2.0	$18.6
Trading	$0.0	($0.5)	($0.1)
Corporate & Other	($11.0)	($7.9)	($8.9)
Total Adjusted EBITDA	$33.3	$27.1	$44.9

KPIs and Operating Drivers:

KPI	Q4 2024	Q1 2025	Q2 2025
Cash & Cash Equivalents ($USD Millions)	$323.2	$216.2	$892.3
Long-term Debt ($USD Millions)	$1,089.8	$1,044.6	$844.9
Current Maturities of Long-term Debt ($USD Millions)	$19.4	—	$200.0
CAD YTD ($USD Millions)	—	$20.3	$46.7
Share Repurchases (shares; $)	488,017; $14.7M (Q4)	95,000; $2.6M (Q1) + 404,000; $10.0M (Apr)	~1.5M; $34.9M
Southern harvest volume (MM tons)	—	1.58	1.60
Southern sawtimber stumpage ($/ton)	$29.28 (PY)	$25.86	$26.75
Southern pulpwood stumpage ($/ton)	$17.38 (PY)	$14.10	$13.05
PNW delivered sawtimber ($/ton)	$90.70 (PY)	$90.58	$96.17
PNW pulpwood ($/ton)	$30.20 (PY)	$30.05	$31.52

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Consolidated Adjusted EBITDA ($M)	FY 2025	$215–$235	On track to be consistent with prior range	Maintained
Pro forma EPS ($)	FY 2025	$0.34–$0.41	On track to be consistent with prior range	Maintained
Southern Timber Adjusted EBITDA	FY 2025	$135–$140	Near lower end of prior range	Lowered (toward low end)
Pacific Northwest Timber Adjusted EBITDA	FY 2025	$22–$26	Consistent with prior range	Maintained
Real Estate Adjusted EBITDA	FY 2025	$90–$100	At or modestly above high end	Raised
Net Income ($M), EPS ($)	Q3 2025	—	Net Income $29–$44; EPS $0.18–$0.28	New quarterly guide
Adjusted EBITDA ($M)	Q3 2025	—	$80–$100	New quarterly guide

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2024, Q1 2025)	Current Period (Q2 2025)	Trend
AI/Technology and Energy Demand	Land-Based Solutions pipeline expanded; solar options ~17k acres added in 2024	AI-driven data center demand supports utility-scale solar growth; economics viable even without IRA; optioned ~40k acres; momentum intact	Accelerating utility-scale solar opportunity
Supply chain/salvage timber	Southern stumpage pressured by salvage; non-timber revenue offset in Q4 ; salvage headwinds to moderate over months (Q1)	Markets normalizing in Atlantic region; expect H2 uplift as salvage volume declines and mills resume	Improving from trough
Tariffs/macro (Canadian duties)	Anticipated duty impacts cited (Q1)	Higher antidumping/countervailing duties (~20.6% AD; combined ~35%) expected to lift U.S. sawmill demand; Section 232 wood product tariffs could add tailwind	Positive for U.S. pricing in H2
Regional trends (U.S. South, PNW, exports)	PNW improved QoQ; export exposure moderated (Q1)	PNW domestic pricing firmer; export demand constrained by China log ban; Japan demand improving	Domestic mix strength; limited exports
Regulatory/legal (CCS/45Q/permitting)	CCS acres ~154k leased YE 2024	154k acres leased; ~53 wells in Class VI permitting; 45Q preserved; admin aiming ~2-year permit timelines	Execution milestones advancing
Real Estate HBU/dev.	Strong Q4 closings; premium per-acre pricing	Significant Q3 closings expected ($50–$65M Adjusted EBITDA), possible shift to Q4; Q2 beat driven by accelerated closings	Lumpy but robust pipeline

Management Commentary

“We generated adjusted EBITDA of $45M and pro forma net income of $10M ($0.06 per share).… markets most impacted by salvage operations are normalizing, and we expect both volume and pricing in this [Southern] segment to improve in the second half of the year.”
“With the closing of the New Zealand transaction, we have now completed dispositions totaling $1.45B… we believe share repurchases represent the most compelling use of capital.”
“We currently expect net income attributable to Rayonier of $29–$44M, EPS of $0.18–$0.28, and Adjusted EBITDA of $80–$100M [in Q3].”
“AI and data centers are driving significant growth in energy demand… utility solar remains poised to play a major role.”
“We currently have 154,000 acres under lease for CCS… nearly half represented in various Class VI well permit applications.”

Q&A Highlights

Tariff impact and pricing cadence: PNW pricing firmed; mills anticipate reduced Canadian supply; price response may lag due to pre-duty shipments clearing the supply chain .
Hurricane/salvage risk: Company “hardening” coastal stands (less thinning near coast) to reduce vulnerability; early forecast suggests fewer Southeast-directed storms; salvage normalization underway .
OBBA and solar/CCS: Developers accelerating some conversions; solar options stabilized; CCS pipeline advancing with ~53 wells in permitting and potential faster approvals (~2 years) .
Capital allocation and special distribution: Management reiterated nimble approach, prioritizing buybacks; expects a $1.00–$1.40/share special distribution later this year (cash/stock mix TBD) .
Post-quarter buybacks: Management continued repurchases after Q2 (details to be disclosed with earnings) .

Estimates Context

Metric	Consensus (S&P Global)	Actual	Beat/Miss
Revenue ($USD)	~$95.3M*	$106.5M	Bold beat
Primary EPS ($)	~$0.023*	$0.06 (pro forma EPS)	Bold beat
EBITDA ($USD)	~$37.2M*	~$38.1M*; Company Adjusted EBITDA $44.9M	Slight beat vs SPGI EBITDA; company Adjusted EBITDA higher

Values retrieved from S&P Global*.
Note: Company-reported Adjusted EBITDA ($44.9M) differs from SPGI EBITDA definition and is the management’s preferred operating metric .

Key Takeaways for Investors

Real Estate strength was the key upside surprise in Q2; accelerated closings and higher per-acre pricing drove a material beat on revenue and pro forma EPS versus consensus .
Southern Timber headwinds (salvage, outages) are easing; management guided to materially higher H2 volumes and modestly higher stumpage realizations, with full-year segment EBITDA near the range’s low end .
PNW poised to benefit from higher Canadian duties and potential Section 232 tariffs; expect modest pricing uplift and steady domestic demand in H2 .
Balance sheet optionality: $892.3M cash, lower long-term debt, and ongoing buybacks provide multiple paths to per-share value creation; S&P credit upgrade supports cost of capital .
H2 catalyst path: Q3 Adjusted EBITDA guide of $80–$100M and Real Estate segment guide ($50–$65M) highlight lumpy but visible transactions; announcement of special distribution ($1.00–$1.40/share) later this year could be a stock catalyst .
Land-Based Solutions optionality: 40k acres under solar option and 154k CCS acres with ~53 wells in permitting create medium-term monetization upside (royalty potential) .
Tactical stance: Near-term trading skew positive on H2 operational normalization and Real Estate closings; medium-term thesis levered to tariff tailwinds, disciplined capital returns, and monetization of land-based solutions.

References: Earnings press release and 8-K (Item 2.02) dated Aug 6, 2025 ; Q2 2025 earnings call transcript dated Aug 7, 2025 ; Q1 2025 press release (Apr 30, 2025) ; Q4 2024 press release (Feb 5, 2025) .

RAYONIER INC (RYN)·Q2 2025 Earnings Summary