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Rayonier, Inc. RYN reported a first-quarter 2025 pro-forma net loss of 2 cents per share against the Zacks Consensus Estimate for pro-forma net income of 8 cents. The reported figure compares unfavorably with the prior-year quarter’s net income of 1 cent per share.
Results reflect lower-than-anticipated pro forma earnings per share (EPS). The company’s Southern Timber and Real Estate segments displayed a decline in pro forma operating income. However, a strength in the Pacific Northwest Timber was noticed.
Total revenues were $82.9 million, which missed the Zacks Consensus Estimate of $157 million. On a year-over-year basis, the figure decreased by 27.1%. Adjusted EBITDA came in at $27.1 million, down from $44.6 million in the prior-year period.
According to Mark McHugh, president and CEO of Rayonier, “Following the anticipated closing of the New Zealand transaction later this year, we expect to have significant additional capital allocation capacity, which we plan to deploy toward value-enhancing uses, including additional share repurchases.”
As a result of the company’s previously announced agreement to sell entities that hold its entire 77% New Zealand joint venture interest, the contribution from the company’s New Zealand operations are now reported as discontinued operations in its consolidated financial statements, with all prior periods adjusted retrospectively.
RYN’s Segmental Performance
In the first quarter, the pro-forma operating income in the company’s Southern Timber segment came in at $10.1 million, which decreased 56.1% from the prior-year quarter. The fall was due to lower net stumpage realizations, lower volumes, higher costs, lower non-timber income, partly offset by lower depletion expense.
The Pacific Northwest Timber segment reported a pro-forma operating income of $0.7 million against a loss of $4.4 million reported a year ago. This was driven by lower costs, lower depletion expenses, higher net stumpage realizations, lower variable costs and higher non-timber income.
Real Estate’s pro-forma operating loss was $1 million compared to a $0.1 million loss in the year-ago period. The fewer acres sold and unfavorable deferred revenues adjustments led to this loss, partially offset by higher weighted-average prices.
The Trading segment reported an operating loss of $0.5 million versus breakeven results in the prior-year quarter.
RYN’s Balance Sheet
Rayonier exited the first quarter of 2025 with $216.2 million in cash and cash equivalents, down from $303.1 million as of Dec. 31, 2024.
RYN’s Q2 2025 Outlook
In the second quarter of 2025, management expects net income attributable to Rayonier to be in the band of $3-$8 million. Pro forma EPS is expected to be between 1 cent and 4 cents. The Zacks Consensus Estimate is currently pegged at 13 cents. Adjusted EBITDA is projected in the range of $30-$40 million.