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PotlatchDeltic Corporation Reports Fourth Quarter and Full Year 2024 Results

General News
Potlatch Deltic Logo - Lumber Mill

PotlatchDeltic Corporation reported net income of $5.2 million, or $0.07 per diluted share, on revenues of $258.1 million for the quarter ended December 31, 2024. Net loss was $0.1 million, or $0.00 per diluted share, on revenues of $254.5 million for the quarter ended December 31, 2023.

Net income for the full year 2024 was $21.9 million, or $0.28 per diluted share, on revenues of $1.1 billion. Net income for the full year 2023 was $62.1 million, or $0.77 per diluted share, on revenues of $1.0 billion. Excluding after tax special items consisting of gain on insurance recoveries and CatchMark merger-related expenses, adjusted net income was $35.0 million, or $0.43 per diluted share, for 2023.

2024 Highlights

  • Generated Total Adjusted EBITDDA of $232.1 million and Total Adjusted EBITDDA margin of 22%
  • Completed the Waldo, Arkansas sawmill expansion and modernization project
  • Sold 34,100 acres of four-year average age Southern timberlands for $57 million or $1,700 per acre
  • Acquired 16,000 acres of high-quality mature Southern timberlands for $31 million or $1,900 per acre
  • Repurchased 847,000 shares for $35 million, or $41 per share
  • Refinanced $176 million in debt during 2024 at below market rates
  • Maintained strong liquidity of $451 million as of December 31, 2024

“I am pleased with our performance across all our business segments in 2024, especially against challenging market conditions,” said Eric Cremers, President and Chief Executive Officer. “Our results reflect the strong performance of our Real Estate business and the stability provided by our Timberland operations. Additionally, we successfully achieved several strategic initiatives for the year, highlighted by the completion of the expansion and modernization project at our Waldo, Arkansas sawmill. In 2024, our balanced and disciplined capital allocation strategy focused on returning $177 million in capital to our shareholders through our quarterly dividend and value-enhancing share repurchases, investing in high-return capital projects and making an accretive timberland acquisition. As we look ahead in 2025, while ongoing challenges to housing affordability continue to create headwinds, we are optimistic about the prospects of improving lumber markets and remain confident in the demand fundamentals that drive growth in our businesses. With a strong balance sheet and a continued focus on operational excellence, we believe we are well-positioned to drive sustainable, long-term value for our shareholders,” stated Mr. Cremers.

Business Performance: Q4 2024 vs. Q3 2024

Timberlands

Fourth Quarter 2024 Highlights

  • Timberlands Adjusted EBITDDA decreased $1.8 million from Q3 2024
  • Northern harvest volumes decreased due to normal seasonality
  • Northern sawlog prices increased primarily due to higher indexed sawlog prices
  • Southern sawlog and pulpwood prices were relatively stable

Wood Products

Fourth Quarter 2024 Highlights

  • Wood Products Adjusted EBITDDA increased $18.4 million from Q3 2024
  • Average lumber prices increased 11% to $445 per thousand board feet (MBF) in Q4 2024
  • Lower per-unit manufacturing costs primarily due to increased production at the Waldo sawmill following the restart in Q3 2024 related to the expansion and modernization project
  • Log costs decreased primarily due to improved log recovery

Real Estate

Fourth Quarter 2024 Highlights

  • Real Estate Adjusted EBITDDA decreased $12.4 million from Q3 2024
  • Sold 5,919 acres of rural land at an average price of $2,923 per acre
  • Sold 45 residential lots at an average price of $101,400 per lot

For full results click here.

About PotlatchDeltic

PotlatchDeltic Corporation (Nasdaq: PCH) is a leading Real Estate Investment Trust (REIT) that owns over 2.1 million acres of timberlands in Alabama, Arkansas, Georgia, Idaho, Louisiana, Mississippi and South Carolina. Through its taxable REIT subsidiary, the company also operates six sawmills, an industrial-grade plywood mill, a residential and commercial real estate development business and a rural timberland sales program. PotlatchDeltic, a leader in sustainable forest management, is committed to environmental and social responsibility and to responsible governance. More information can be found at www.potlatchdeltic.com .

Contact:

Wayne Wasechek – Investor Relations – (509) 835-1521

Source: PotlatchDeltic Corporation