Corporation PotlatchDeltic's (PCH) Q2 2025 Earnings Conference Transcript

Corporation PotlatchDeltic's (PCH) Q2 2025 Earnings Conference Transcript

PotlatchDeltic Corporation (NASDAQ: PCH) recently held a Q2 2025 Earnings Conference Call on July 29, 2025. The call was operated by John and led by Eric J. Cremers, President and CEO, and Wayne Wasechek, Vice President and Chief Financial Officer.

The corporation reported mixed results for Q2 2025. Earnings per share (EPS) fell short at $0.09 versus the $0.12 forecast, representing a 25% miss. However, revenue beat expectations at $275 million compared to the forecast of about $262 million, a roughly 5% positive surprise.

Despite ongoing macroeconomic and trade policy uncertainty, PotlatchDeltic's overall performance remains solid, primarily driven by its Timberlands and Real Estate segments. The Wood Products segment, on the other hand, faced challenges due to weaker lumber prices and higher costs, impacting its margins.

The Wood Products EBITDA dropped sharply from $12 million in Q1 to $2 million in Q2 because of soft lumber markets. In contrast, the Real Estate segment EBITDA stayed steady at $23 million. Operational resilience was evident in the 13% increase in lumber shipments to 303 million board feet.

PotlatchDeltic maintained a strong liquidity position of $395 million (including $95 million cash), repurchased 1.42 million shares for $56 million, and continued its dividend payments—the dividend remained stable at $0.45 per share.

CEO Eric Cremers expressed confidence in long-term fundamentals despite near-term pressures, citing discipline in capital allocation and a strong balance sheet. The company anticipates a significant rise in Q3 EBITDA and lumber prices.

Post-announcement, the stock price rose 2.81%, but some analyses suggest the stock may be overvalued currently with moderate market sensitivity (beta 1.16).

In the earnings call transcript, management discussed ongoing economic and trade policy uncertainties affecting the Wood Products segment, continued focus on shareholder returns via dividends and share buybacks, and optimism about longer-term demand supported by timberland and real estate assets.

Participants on the call included analysts from Citigroup Inc., Raymond James Ltd., BofA Securities, BMO Capital Markets, D.A. Davidson & Co., Seaport Research Partners, RBC Capital Markets, and Truist Securities. The call contained forward-looking statements, and participants were advised to review cautionary statements in the press release, presentation slides, and SEC filings.

In summary, PotlatchDeltic’s Q2 2025 results reflect short-term challenges in lumber product profitability but strength in other business segments and strategic capital deployment. Management remains optimistic about the coming quarters and long-term fundamentals.

[1] PotlatchDeltic Corporation Q2 2025 Earnings Conference Call Transcript. (2025, July 29). Seeking Alpha. Retrieved from https://seekingalpha.com/news/3793414-potlatchdeltic-corporation-q2-2025-earnings-conference-call-transcript

[2] PotlatchDeltic Corporation Q2 2025 Earnings Release. (2025, July 29). Business Wire. Retrieved from https://www.businesswire.com/news/home/20250729005105/en/PotlatchDeltic-Corporation-Announces-Second-Quarter-2025-Results

[3] PotlatchDeltic Corporation Q2 2025 Earnings Presentation. (2025, July 29). SlideShare. Retrieved from https://www.slideshare.net/PotlatchDeltic/potlatchdeltic-corporation-q2-2025-earnings-presentation

[4] PotlatchDeltic Corporation Q2 2025 Earnings Fact Sheet. (2025, July 29). PotlatchDeltic Corporation. Retrieved from https://www.potlatchdeltic.com/investors/financial-results/earnings-releases/default.aspx

1. Despite challenges in the Wood Products segment due to weaker lumber prices and higher costs, PotlatchDeltic's overall performance in Q2 2025 was solid, mainly driven by the Timberlands and Real Estate segments, showcasing the corporation's resilience in various business sectors.
2. Management during the PotlatchDeltic Q2 2025 Earnings Conference Call discussed ongoing economic and trade policy uncertainties affecting the Wood Products segment, but also emphasized their continued focus on shareholder returns via dividends and share buybacks, indicating that investing in the company could be beneficial for its strong balance sheet and strategic capital deployment.

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