Rayonier (NYSE:RYN) plans to pursue additional timberland sales over the next 12 to 18 months to support share repurchases and other capital priorities, as management seeks to capitalize on what it sees as a gap between public and private timberland valuations.
The company reported third-quarter 2026 earnings of $123 million, or $0.41 per share, including $91 million of income from a large timberland disposition in Washington. Excluding pro forma items, including that disposition and $7 million of merger-related costs, net income was $40 million, or $0.13 per share.
Adjusted EBITDA was $145 million, well above the prior-year period, primarily because of contributions from the PotlatchDeltic operations and solid performance across Rayonier’s segments, President and CEO Mark McHugh said on the earnings call.
Asset Sales and Buybacks
Rayonier’s board approved a $300 million increase to its share repurchase authorization, EVP and CFO Wayne Wasechek said. The company had $66 million remaining under its prior authorization at the end of the third quarter.
Rayonier repurchased approximately 2.8 million shares for $60 million during the quarter and 7.8 million shares for $163 million through the first nine months of 2026. Wasechek said management believes the stock is trading at a significant discount to net asset value.
McHugh declined to specify how much timberland the company might sell or how much stock it would repurchase in any given quarter. He said asset-sale decisions would depend on buyer interest and market conditions, while proceeds could provide greater capacity for buybacks and debt reduction.
“We’re going to continue to be measured as to how much we deploy at any one point in time, particularly just given how volatile market conditions have been here recently,” McHugh said. He added that Rayonier is focused on maintaining balance sheet flexibility and its investment-grade credit rating.
Rayonier ended the quarter with $361 million in cash and approximately $1.9 billion in debt. Cash available for distribution was $287 million for the first nine months, up from $154 million a year earlier, primarily reflecting PotlatchDeltic contributions and improved Real Estate results. The measure excluded the $145 million Washington disposition.
Merger and Segment Results
McHugh said Rayonier has achieved more than $20 million in annual run-rate synergies from its merger with PotlatchDeltic and remains on track for its $40 million target by the second anniversary of the closing. The company expects to open its new Atlanta headquarters early next year.
Southern Timber adjusted EBITDA rose 23% from a year earlier to $52 million as a 56% increase in harvest volume more than offset lower pricing. The volume increase primarily reflected approximately 1.4 million tons from PotlatchDeltic timberlands.
Average delivered Southern sawlog prices were $45 per ton, down 5% from standalone Rayonier prices a year earlier but up 2% from the second quarter. Delivered pulpwood prices were $31 per ton, down 15% year over year and up 3% sequentially. McHugh said pulpwood prices appear to have generally stabilized in Rayonier’s primary markets, although conditions remain challenging.
Northwest Timber adjusted EBITDA rose to $32 million from $6 million a year earlier, with harvest volumes more than doubling, primarily because of the addition of PotlatchDeltic’s Idaho timberlands. Delivered sawlog prices increased 29% year over year to $129 per ton, largely because of higher Idaho pricing.
Wood Products generated $27 million of adjusted EBITDA, its strongest quarterly result since PotlatchDeltic’s third quarter of 2022. Average lumber price realization was $528 per thousand board feet, up about 5% from the second quarter, while shipments totaled 327 million board feet.
Real Estate revenue totaled $208 million on approximately 43,000 acres sold, including the Washington transaction. Excluding that disposition, pro forma sales were $63 million on roughly 7,000 acres. Segment adjusted EBITDA of $49 million exceeded the company’s prior $25 million to $35 million guidance range, partly because some closings occurred earlier than expected.
Fourth-Quarter Outlook
Wasechek said Rayonier expects Southern Timber harvest volumes of 3 million to 3.2 million tons in the fourth quarter and relatively stable regional sawtimber and pulpwood prices compared with the third quarter. Northwest harvest volumes are expected to be 500,000 to 550,000 tons, with lower overall sawtimber prices, primarily because of lower indexed prices in Idaho.
The company expects fourth-quarter lumber shipments of 295 million to 305 million board feet and lower price realizations than in the third quarter. At the end of October, its average quarter-to-date realization was approximately 6% below the third-quarter average, Wasechek said.
For Real Estate, Rayonier expects fourth-quarter adjusted EBITDA of $60 million to $70 million, putting its full-year result toward the upper end of its prior $180 million to $200 million guidance range.
McHugh said land values have held up well despite challenging timber markets. He also said acreage under option for energy projects had declined modestly as some developers focused on existing pipelines, although he believes the remaining options have a higher probability of conversion.
About Rayonier (NYSE:RYN)
Rayonier Inc (NYSE:RYN) is a real estate investment trust that owns and manages timberlands and other rural land assets. The company’s primary business is the sustainable management of forest resources, with timber harvested and sold for use in lumber, paper, packaging, and other wood products.
Rayonier’s timber operations are located primarily in the U.S. South, the Pacific Northwest, and New Zealand. Its activities include forest management, timber sales, land conservation, and the sale of higher and better use properties, such as land suitable for residential, commercial, or industrial development.
In addition to its timber business, Rayonier generates value from real estate transactions, renewable energy opportunities, conservation initiatives, and other alternative uses of its land portfolio.
