| Schedule of Segment Reporting Information |
The following tables summarize the segment information for the three and six months ended June 30, 2026 and 2025: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | Southern Timber | | Northwest Timber | | Wood Products | | Real Estate | | | | Total | | June 30, 2026 | | | | | | | | | | | | | Sales from external customers | $96,921 | | | $49,734 | | | $196,160 | | | $53,664 | | | | | $396,479 | | | Intersegment revenue (a) | 10,671 | | | 16,254 | | | — | | | — | | | | | 26,925 | | | Total sales | $107,592 | | | $65,988 | | | $196,160 | | | $53,664 | | | | | $423,404 | | | Costs and Expenses | | | | | | | | | | | | | Freight, logging and hauling | (42,433) | | | (30,465) | | | (27,109) | | | — | | | | | (100,007) | | | | | | | | | | | | | | | Fiber costs | — | | | — | | | (80,346) | | | — | | | | | (80,346) | | | Manufacturing costs | — | | | — | | | (63,859) | | | — | | | | | (63,859) | | | Finished goods inventory change | — | | | — | | | 3,374 | | | — | | | | | 3,374 | | | Depreciation, depletion and amortization | (42,173) | | | (13,750) | | | (9,900) | | | (3,949) | | | | | (69,772) | | | Non-cash cost of land and improved development | — | | | — | | | — | | | (6,048) | | | | | (6,048) | | | Other costs and expenses (b) | (14,872) | | | (9,178) | | | (3,172) | | | (15,414) | | | | | (42,636) | | | Reportable segment operating income | $8,114 | | | $12,595 | | | $15,148 | | | $28,253 | | | | | $64,110 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Add: Depreciation, depletion and amortization | 42,173 | | | 13,750 | | | 9,900 | | | 3,949 | | | | | 69,772 | | | Add: Non-cash cost of land and improved development | — | | | — | | | — | | | 6,048 | | | | | 6,048 | | | | | | | | | | | | | | | Add: Timber write-offs resulting from casualty events (c) | 2,284 | | | — | | | — | | | — | | | | | 2,284 | | | Reportable segment adjusted EBITDA | $52,571 | | | $26,345 | | | $25,048 | | | $38,250 | | | | | $142,214 | | | | | | | | | | | | | | | Reconciliation of reportable segment results to consolidated income before taxes | | All other EBITDA (d) | ($17,688) | | | Intersegment eliminations (e) | (812) | | | Interest, net and miscellaneous expense | (12,065) | | | Depreciation, depletion and amortization | (70,416) | | | Non-cash cost of land and improved development | (6,048) | | | Non-operating expense | (478) | | | | | | | Costs related to the merger with PotlatchDeltic (f) | (10,351) | | | Timber write-offs resulting from casualty events (c) | (2,284) | | | Income from Continuing Operations Before Income Taxes | $22,072 | | | Income tax expense | (2,829) | | | | | Net Income | $19,243 | | | | | | | | | | | | | | | | | | | |
(a)Intersegment revenue reflects logs sold from the Timber segments to Wood Products. (b)Other costs and expenses for each reportable segment primarily includes other direct and indirect cost of sales and selling and general expenses. (c)Timber write-offs resulting from casualty events includes the write-off of merchantable and pre-merchantable timber volume damaged by casualty events that cannot be salvaged. Timber write-offs resulting from casualty events are recorded within the Consolidated Statements of Income and Comprehensive Income (Loss) under the caption “Cost of Sales.” (d)All other EBITDA includes corporate and other expenses. (e)Intersegment eliminations reflects the elimination of profit on log sales from the Timber segments to Wood Products that remain in inventory at the end of the period. (f)Costs related to the merger with PotlatchDeltic include professional services fees, employee-related costs, accelerated stock-based compensation, and other integration-related costs incurred in connection with the merger, which closed on January 30, 2026. Costs related to the merger with PotlatchDeltic are recorded within the Consolidated Statements of Income and Comprehensive Income (Loss) under the caption “Other operating expense, net.” | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | Southern Timber | | Northwest Timber | | Wood Products | | Real Estate | | | | Total | | June 30, 2025 | | | | | | | | | | | | | Sales | $53,324 | | | $23,782 | | | — | | | $29,432 | | | | | $106,538 | | | Costs and Expenses | | | | | | | | | | | | | Freight, logging and hauling | (13,202) | | | (9,841) | | | — | | | — | | | | | (23,043) | | | | | | | | | | | | | | | Depreciation, depletion and amortization | (15,788) | | | (5,351) | | | — | | | (1,882) | | | | | (23,021) | | | Non-cash cost of land and improved development | — | | | — | | | — | | | (6,902) | | | | | (6,902) | | | Other costs and expenses (a) | (11,739) | | | (7,096) | | | — | | | (10,869) | | | | | (29,704) | | | Reportable segment operating income | $12,595 | | | $1,494 | | | — | | | $9,779 | | | | | $23,868 | | | | | | | | | | | | | | | Add: Depreciation, depletion and amortization | 15,788 | | | 5,351 | | | — | | | 1,882 | | | | | 23,021 | | | Add: Non-cash cost of land and improved development | — | | | — | | | — | | | 6,902 | | | | | 6,902 | | | | | | | | | | | | | | | Reportable segment adjusted EBITDA | $28,383 | | | $6,845 | | | — | | | $18,563 | | | | | $53,791 | | | | | | | | | | | | | | | Reconciliation of reportable segment results to consolidated income before taxes | | All other EBITDA (b) | ($8,907) | | | Interest, net and miscellaneous expense | (4,215) | | | Depreciation, depletion and amortization | (23,437) | | | Non-cash cost of land and improved development | (6,902) | | | Non-operating expense | (561) | | | | | | | | | | | Income from Continuing Operations | $9,769 | | | Loss from operations of discontinued operations, net of tax | (625) | | | Gain on sale of discontinued operations | 404,463 | | | Net Income (c) | $413,607 | |
(a)Other costs and expenses for each reportable segment primarily includes other direct and indirect cost of sales and selling and general expenses. (b)All other EBITDA includes corporate and other expenses. (c)As no income tax expense was recognized for the three months ended June 30, 2025, net income is equal to income before taxes. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended | Southern Timber | | Northwest Timber | | Wood Products | | Real Estate | | | | Total | | June 30, 2026 | | | | | | | | | | | | | Sales from external customers | $177,973 | | | $77,202 | | | $304,644 | | | $113,447 | | | | | $673,266 | | | Intersegment revenue (a) | 18,312 | | | 20,853 | | | — | | | — | | | | | 39,165 | | | Total sales | $196,285 | | | $98,055 | | | $304,644 | | | $113,447 | | | | | $712,431 | | | Costs and Expenses | | | | | | | | | | | | | Freight, logging and hauling | (72,764) | | | (46,593) | | | (40,285) | | | — | | | | | (159,642) | | | | | | | | | | | | | | | Fiber costs | — | | | — | | | (129,650) | | | — | | | | | (129,650) | | | Manufacturing costs | — | | | — | | | (104,700) | | | — | | | | | (104,700) | | | Finished goods inventory change | — | | | — | | | 5,746 | | | — | | | | | 5,746 | | | Depreciation, depletion and amortization | (75,286) | | | (22,781) | | | (16,566) | | | (10,813) | | | | | (125,446) | | | Non-cash cost of land and improved development | — | | | — | | | — | | | (18,033) | | | | | (18,033) | | | Other costs and expenses (b) | (27,727) | | | (16,535) | | | (5,064) | | | (28,976) | | | | | (78,302) | | | Reportable segment operating income | $20,508 | | | $12,146 | | | $14,125 | | | $55,625 | | | | | $102,404 | | | | | | | | | | | | | | | | | | | | | | | | | | | Add: Depreciation, depletion and amortization | 75,286 | | | 22,781 | | | 16,566 | | | 10,813 | | | | | 125,446 | | | Add: Non-cash cost of land and improved development | — | | | — | | | — | | | 18,033 | | | | | 18,033 | | | | | | | | | | | | | | | Add: Timber write-offs resulting from casualty events (c) | 2,284 | | | — | | | — | | | — | | | | | 2,284 | | | Add: Inventory purchase price adjustment in cost of sales (d) | — | | | — | | | 1,153 | | | — | | | | | 1,153 | | | Reportable segment adjusted EBITDA | $98,078 | | | $34,927 | | | $31,844 | | | $84,471 | | | | | $249,320 | | | | | | | | | | | | | | | Reconciliation of reportable segment results to consolidated loss before taxes | | All other EBITDA (e) | ($29,459) | | | Intersegment eliminations (f) | (2,019) | | | Interest, net and miscellaneous expense | (19,210) | | | Depreciation, depletion and amortization | (126,656) | | | Non-cash cost of land and improved development | (18,033) | | | Non-operating income | 376 | | | Costs related to the merger with PotlatchDeltic (g) | (80,754) | | | | | | | | | Timber write-offs resulting from casualty events (c) | (2,284) | | | Inventory purchase price adjustment in cost of sales (d) | (1,153) | | | Loss from Continuing Operations Before Income Taxes | ($29,872) | | | Income tax benefit (h) | 36,601 | | | | | | | | | Net Income | $6,729 | |
(a)Intersegment revenue reflects logs sold from the Timber segments to Wood Products. (b)Other costs and expenses for each reportable segment primarily includes other direct and indirect cost of sales and selling and general expenses. (c)Timber write-offs resulting from casualty events includes the write-off of merchantable and pre-merchantable timber volume damaged by casualty events that cannot be salvaged. Timber write-offs resulting from casualty events are recorded within the Consolidated Statements of Income and Comprehensive Income (Loss) under the caption “Cost of Sales.” (d)Inventory purchase price adjustment in cost of sales reflects a non-cash, one-time charge reflecting the excess of fair value over PotlatchDeltic’s historical cost on acquired finished goods inventory sold post-closing. The inventory purchase price adjustment is recorded within the Consolidated Statements of Income and Comprehensive Income (Loss) under the caption “Cost of sales.” (e)All other EBITDA includes corporate and other expenses. (f)Intersegment eliminations reflects the elimination of profit on log sales from the Timber segments to Wood Products that remain in inventory at the end of the period. (g)Costs related to the merger with PotlatchDeltic include professional services fees, employee-related costs, accelerated stock-based compensation, and other integration-related costs incurred in connection with the merger, which closed on January 30, 2026. Costs related to the merger with PotlatchDeltic are recorded within the Consolidated Statements of Income and Comprehensive Income (Loss) under the caption “Other operating expense, net.” (h)Includes a $40.3 million tax benefit from the release of a valuation allowance. See Note 22 — Income Taxes for additional information. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended | Southern Timber | | Northwest Timber | | Wood Products | | Real Estate | | | | Total | | June 30, 2025 | | | | | | | | | | | | | Sales | $104,268 | | | $45,592 | | | — | | | $39,599 | | | | | $189,459 | | | Costs and Expenses | | | | | | | | | | | | | Freight, logging and hauling | (25,723) | | | (19,199) | | | — | | | — | | | | | (44,922) | | | | | | | | | | | | | | | Depreciation, depletion and amortization | (32,688) | | | (10,957) | | | — | | | (2,445) | | | | | (46,090) | | | Non-cash cost of land and improved development | — | | | — | | | — | | | (9,302) | | | | | (9,302) | | | Other costs and expenses (a) | (23,112) | | | (13,649) | | | — | | | (19,023) | | | | | (55,784) | | | Reportable segment operating income | $22,745 | | | $1,787 | | | — | | | $8,829 | | | | | $33,361 | | | Add: Depreciation, depletion and amortization | 32,688 | | | 10,957 | | | — | | | 2,445 | | | | | 46,090 | | | Add: Non-cash cost of land and improved development | — | | | — | | | — | | | 9,302 | | | | | 9,302 | | | | | | | | | | | | | | | Reportable segment adjusted EBITDA | $55,433 | | | $12,744 | | | — | | | $20,576 | | | | | $88,753 | | | | | | | | | | | | | | | Reconciliation of reportable segment results to consolidated income before taxes | | All other EBITDA (b) | ($16,807) | | | Interest, net and miscellaneous expense | (7,733) | | | Depreciation, depletion and amortization | (46,930) | | | Non-cash cost of land and improved development | (9,302) | | | Non-operating expense (c) | (2,404) | | | | | Restructuring charges (d) | (1,110) | | | Income from Continuing Operations Before Income Taxes | $4,467 | | | Income tax expense | (291) | | | Income from Continuing Operations | $4,176 | | | Income from operations of discontinued operations, net of tax | 1,883 | | | Gain on sale of discontinued operations | 404,463 | | | Net Income | $410,522 | |
(a)Other costs and expenses for each reportable segment primarily includes other direct and indirect cost of sales and selling and general expenses. (b)All other EBITDA includes corporate and other expenses. (c)Non-operating expense includes $1.7 million of net costs associated with legal settlements. Net costs associated with legal settlements are recorded within the Consolidated Statements of Income (Loss) under the caption “Other miscellaneous (expense) income, net.” (d)Restructuring charges include severance costs related to workforce optimization initiatives. Restructuring charges are recorded within the Consolidated Statements of Income and Comprehensive Income (Loss) under the caption “Other operating expense, net.” | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended
June 30, | | Six Months Ended
June 30, | | 2026 | | 2025 | | 2026 | | 2025 | | Capital Expenditures (a) | | | | | | | | | Southern Timber | $11,510 | | | $8,103 | | | $25,485 | | | $17,718 | | | Northwest Timber | 6,924 | | | 2,264 | | | 10,934 | | | 4,630 | | | Wood Products | 3,634 | | | — | | | 6,068 | | | — | | | Real Estate | 28 | | | 36 | | | 41 | | | 79 | | | | | | | | | | | Corporate and other | 261 | | | — | | | 261 | | | — | | | Total Capital Expenditures | $22,357 | | | $10,403 | | | $42,789 | | | $22,427 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Real Estate Development Investments (b) | $5,031 | | | $4,089 | | | $9,572 | | | $8,176 | | | | | | | | | | | Total Gross Capital Expenditures | $27,388 | | | $14,492 | | | $52,361 | | | $30,603 | |
(a)Excludes real estate development investments presented separately. (b)Represents investments in master infrastructure or entitlements in our real estate development projects. Real Estate Development Investments are amortized as the underlying properties are sold and included in Non-Cash Cost of Land and Improved Development.
|