Rayonier Posts Strong Quarterly Beat in First Post-Merger Report

Rayonier Inc., a timber-focused real estate investment trust, has delivered a robust set of quarterly figures, comfortably surpassing market forecasts. The company's fourth-quarter 2025 results, released after the U.S. market close yesterday, represent its first financial report since finalizing its transformative merger.

The company reported a strong financial beat for the final quarter of 2025. Pro-forma earnings per share came in at $0.20, significantly ahead of the $0.12 consensus estimate among analysts. Revenue also outperformed, reaching $117.5 million against expectations that had clustered around $109 million.

Rayonier posted attributable net income of $25.9 million for the quarter. When adjusted for costs related to its recent corporate combination, the pro-forma net result was $32.1 million. Adjusted EBITDA for the period stood at $61.7 million.

Merger Creates Timberland Giant and Sets New Course

These results arrive on the heels of a major strategic move. Rayonier completed its merger with PotlatchDeltic on January 30, 2026, creating one of the premier land-based resources REITs in the market. Management has already outlined specific operational targets for the newly combined entity for the full 2026 year.

For its Southern Timber segment, the company anticipates a harvest volume between 12.1 and 12.6 million tons. The Northwest Timber segment is targeting a harvest of 2.0 to 2.3 million tons. Leadership expects adjusted EBITDA from the Real Estate segment to land in a range of $180 million to $200 million.

Should investors sell immediately? Or is it worth buying Rayonier?

The company's outlook suggests a moderate recovery in southern U.S. pine stumpage realizations from fourth-quarter levels as supply and demand dynamics stabilize. However, the annual average price for the merged company is projected to be below Rayonier's prior-year figure, a shift primarily attributed to the changed geographic mix following the combination.

Real Estate Segment Drives Results

A standout performance from the real estate business was a key driver behind the quarterly strength. This segment's contribution helped propel the overall results beyond what market experts had projected. The critical question for investors is whether this momentum can be sustained by the newly formed timber giant throughout the current year.

Timber Market Presents a Mixed Picture

The broader market environment for timber products remains characterized by volatility. While lumber prices saw an uptick as of February 10, driven by mill capacity constraints and Canadian tariffs, other economic indicators present a more cautious picture. A notable decline in pending U.S. home sales during December has introduced some uncertainty regarding construction demand just as the key spring building season begins.

Looking ahead, Rayonier's focus for 2026 will center on realizing the synergies from its large-scale merger. Achieving the upper end of its real estate EBITDA target, up to $200 million, will be heavily contingent on the ongoing health of the U.S. construction economy in the months to come.