Rayonier 2025 Q3 Earnings Surges 43.1% as Net Income Jumps 43.6%

Rayonier (RYN) reported Q3 2025 earnings on Nov 8, 2025, with revenue and EPS surpassing expectations. The company raised full-year guidance, citing strong real estate performance and merger synergies with PotlatchDeltic.

Revenue

Rayonier’s total revenue surged 43.1% to $177.53 million in Q3 2025, driven by robust real estate sales. Southern Timber generated $66.80 million, while the Real Estate segment contributed $90.80 million, reflecting a large conservation sale and development gains. The Pacific Northwest Timber segment reported $19.90 million, though harvest volumes declined due to prior dispositions. Corporate and Other segments totaled $0, with total sales aligning at $177.50 million.

Earnings/Net Income

Earnings per share (EPS) rose 47.4% to $0.28, with net income climbing 43.6% to $43.71 million. The Real Estate segment’s $74 million adjusted EBITDA and Southern Timber’s 13% growth underscored profitability. Despite a $7 million asset impairment charge, pro forma net income reached $50 million ($0.32 per share), exceeding prior guidance. EPS of $0.28, up 47.4%, highlights strong earnings growth.

Price Action

Rayonier’s stock edged up 2.08% during the latest trading day and climbed 4.35% over the week, though it tumbled 13.62% month-to-date.

CEO Commentary

President and CEO Mark McHugh emphasized the proposed merger with PotlatchDeltic, stating, “This transaction will deliver significant strategic and financial benefits, including $40 million in estimated annual synergies.” He highlighted the creation of a premier land resources company spanning 4 million acres and noted the merger’s expected closure in late Q1 or early Q2 2026. McHugh praised Q3 results, citing “strong performance in Real Estate and Southern Timber,” while acknowledging Pacific Northwest challenges. The tone remained optimistic, with a focus on long-term value creation.

Guidance

CFO April Tice outlined full-year adjusted EBITDA at or above $235 million and pro forma EPS of $0.41. Fourth-quarter guidance includes net income of $13–17 million, EPS of $0.08–$0.11, and adjusted EBITDA of $50–60 million. Southern Timber’s adjusted EBITDA is expected to be modestly below prior estimates, while Real Estate will exceed its range.

Additional News

Rayonier announced a $40 million synergy target from its merger with PotlatchDeltic, expected to close by late 2026. The company repurchased 1.2 million shares for $30 million at an average price of $24.55. Management also highlighted a $154 million cash available for distribution in the first nine months of 2025, up from $77 million in 2024.