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Segment Information
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
Segment Information

NOTE 2. SEGMENT INFORMATION

Our operations are organized into three reportable segments: Timberlands, Wood Products and Real Estate, all of which are strategic business units that offer different products and services. The segments are managed separately because each business provides different products and utilizes different marketing strategies. Management activities in the Timberlands segment include planting and harvesting trees and building and maintaining roads. The Timberlands segment also generates revenues from non-timber resources such as hunting leases, recreation permits and leases, solar land lease option agreements, mineral rights contracts, oil and gas royalties and carbon sequestration. The Wood Products segment manufactures and sells lumber and plywood. The Real Estate segment includes the sale of land holdings deemed non-strategic or identified as having higher and better use alternatives, a master planned community development and a country club.

Our Timberlands segment supplies our Wood Products segment with a portion of its wood fiber needs. These intersegment revenues are based on prevailing market prices as if the sales were to third parties, and typically represent a sizable portion of the Timberlands segment's total revenues. Our other segments generally do not generate intersegment revenues. These intercompany transactions are eliminated in consolidation. The reportable segments follow the same accounting policies used for our Condensed Consolidated Financial Statements, with the exception of the valuation of inventories, which are reported using the average cost method for purposes of reporting segment results.

The following table presents our revenues by major product:

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

(in thousands)

2025

 

 

2024

 

 

2025

 

 

2024

 

Timberlands

 

 

 

 

 

 

 

 

 

 

 

Northern region

 

 

 

 

 

 

 

 

 

 

 

Sawlogs

$

51,711

 

 

$

46,236

 

 

$

141,578

 

 

$

120,606

 

Pulpwood

 

374

 

 

 

232

 

 

 

2,225

 

 

 

512

 

Other

 

392

 

 

 

365

 

 

 

1,251

 

 

 

1,051

 

Total Northern revenues

 

52,477

 

 

 

46,833

 

 

 

145,054

 

 

 

122,169

 

 

 

 

 

 

 

 

 

 

 

 

 

Southern region

 

 

 

 

 

 

 

 

 

 

 

Sawlogs

 

28,694

 

 

 

31,711

 

 

 

89,281

 

 

 

97,236

 

Pulpwood

 

16,706

 

 

 

18,383

 

 

 

49,087

 

 

 

49,346

 

Stumpage

 

4,911

 

 

 

3,899

 

 

 

13,722

 

 

 

15,619

 

Other

 

5,201

 

 

 

4,306

 

 

 

14,960

 

 

 

12,514

 

Total Southern revenues

 

55,512

 

 

 

58,299

 

 

 

167,050

 

 

 

174,715

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Timberlands revenues

 

107,989

 

 

 

105,132

 

 

 

312,104

 

 

 

296,884

 

 

 

 

 

 

 

 

 

 

 

 

 

Wood Products

 

 

 

 

 

 

 

 

 

 

 

Lumber

 

131,837

 

 

 

107,473

 

 

 

399,657

 

 

 

345,084

 

Residuals and Panels

 

34,044

 

 

 

31,939

 

 

 

102,688

 

 

 

96,505

 

Total Wood Products revenues

 

165,881

 

 

 

139,412

 

 

 

502,345

 

 

 

441,589

 

 

 

 

 

 

 

 

 

 

 

 

 

Real Estate

 

 

 

 

 

 

 

 

 

 

 

Rural real estate

 

51,292

 

 

 

24,409

 

 

 

97,730

 

 

 

114,788

 

Development real estate

 

14,558

 

 

 

10,912

 

 

 

17,684

 

 

 

21,274

 

Other

 

3,732

 

 

 

3,380

 

 

 

10,855

 

 

 

9,478

 

Total Real Estate revenues

 

69,582

 

 

 

38,701

 

 

 

126,269

 

 

 

145,540

 

 

 

 

 

 

 

 

 

 

 

 

 

Total segment revenues

 

343,452

 

 

 

283,245

 

 

 

940,718

 

 

 

884,013

 

Intersegment Timberlands revenues1

 

(29,273

)

 

 

(28,114

)

 

 

(83,294

)

 

 

(80,084

)

Total consolidated revenues

$

314,179

 

 

$

255,131

 

 

$

857,424

 

 

$

803,929

 

 

1.
Intersegment revenues represent logs sold by our Timberlands segment to our Wood Products segment.

The company’s chief operating decision maker (CODM) uses segment information to assess performance, allocate capital and personnel, budget and forecast, and determine compensation of certain employees, among other things. The CODM uses Adjusted EBITDDA to evaluate the operating performance and effectiveness of operating strategies of our segments and allocation of resources to them.

EBITDDA is calculated as net income (loss) before interest expense, net, income taxes, basis of real estate sold, depreciation, depletion and amortization. Adjusted EBITDDA further excludes certain specific items that are considered to hinder comparison of the performance of our businesses either year-on-year or with other businesses. Our calculation of Adjusted EBITDDA may not be comparable to that reported by other companies.

The following tables summarize information for each of the company’s reportable segments and include a reconciliation of Segment operating income (loss) as the closest measurement to GAAP for the reportable segments to Segment Adjusted EBITDDA.

 

 

 

Three Months Ended September 30, 2025

 

(in thousands)

 

Timberlands

 

 

Wood Products

 

 

Real Estate

 

 

Total

 

Revenues from external customers

 

$

78,716

 

 

$

165,881

 

 

$

69,582

 

 

$

314,179

 

Intersegment Timberlands revenues1

 

 

29,273

 

 

 

—

 

 

 

—

 

 

 

29,273

 

 

 

 

107,989

 

 

 

165,881

 

 

 

69,582

 

 

 

343,452

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of goods sold2

 

 

 

 

 

 

 

 

 

 

 

 

Fiber costs2

 

 

—

 

 

 

79,588

 

 

 

—

 

 

 

79,588

 

Freight, logging and hauling2

 

 

53,038

 

 

 

21,946

 

 

 

—

 

 

 

74,984

 

Manufacturing costs2,3

 

 

—

 

 

 

61,913

 

 

 

—

 

 

 

61,913

 

Finished goods inventory change2

 

 

—

 

 

 

1,994

 

 

 

—

 

 

 

1,994

 

Depreciation, depletion and amortization2

 

 

15,797

 

 

 

9,474

 

 

 

142

 

 

 

25,413

 

Basis in real estate sold2

 

 

—

 

 

 

—

 

 

 

26,024

 

 

 

26,024

 

Other4

 

 

11,125

 

 

 

328

 

 

 

4,770

 

 

 

16,223

 

 

 

 

79,960

 

 

 

175,243

 

 

 

30,936

 

 

 

286,139

 

Segment selling, general and administrative expenses5

 

 

3,104

 

 

 

2,934

 

 

 

1,787

 

 

 

7,825

 

Segment operating income (loss)

 

 

24,925

 

 

 

(12,296

)

 

 

36,859

 

 

 

49,488

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization6

 

 

16,083

 

 

 

9,582

 

 

 

162

 

 

 

25,827

 

Basis in real estate sold

 

 

—

 

 

 

—

 

 

 

26,024

 

 

 

26,024

 

(Gain) loss on disposal of assets

 

 

(5

)

 

 

240

 

 

 

—

 

 

 

235

 

Segment Adjusted EBITDDA

 

$

41,003

 

 

$

(2,474

)

 

$

63,045

 

 

$

101,574

 

The footnotes below the table for the nine months ended September 30, 2024 are also applicable to the above table.

 

 

 

 

Three Months Ended September 30, 2024

 

(in thousands)

 

Timberlands

 

 

Wood Products

 

 

Real Estate

 

 

Total

 

Revenues from external customers

 

$

77,018

 

 

$

139,412

 

 

$

38,701

 

 

$

255,131

 

Intersegment Timberlands revenues1

 

 

28,114

 

 

 

—

 

 

 

—

 

 

 

28,114

 

 

 

 

105,132

 

 

 

139,412

 

 

 

38,701

 

 

 

283,245

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of goods sold2

 

 

 

 

 

 

 

 

 

 

 

 

Fiber costs2

 

 

—

 

 

 

67,552

 

 

 

—

 

 

 

67,552

 

Freight, logging and hauling2

 

 

56,829

 

 

 

17,314

 

 

 

—

 

 

 

74,143

 

Manufacturing costs2,3

 

 

—

 

 

 

58,025

 

 

 

—

 

 

 

58,025

 

Finished goods inventory change2

 

 

—

 

 

 

2,883

 

 

 

—

 

 

 

2,883

 

Depreciation, depletion and amortization2

 

 

16,450

 

 

 

8,288

 

 

 

117

 

 

 

24,855

 

Basis in real estate sold2

 

 

—

 

 

 

—

 

 

 

12,908

 

 

 

12,908

 

Other4

 

 

10,294

 

 

 

430

 

 

 

4,584

 

 

 

15,308

 

 

 

 

83,573

 

 

 

154,492

 

 

 

17,609

 

 

 

255,674

 

Segment selling, general and administrative expenses5

 

 

2,513

 

 

 

3,234

 

 

 

2,277

 

 

 

8,024

 

Segment operating income (loss)

 

 

19,046

 

 

 

(18,314

)

 

 

18,815

 

 

 

19,547

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization6

 

 

16,778

 

 

 

8,395

 

 

 

138

 

 

 

25,311

 

Basis in real estate sold

 

 

—

 

 

 

—

 

 

 

12,908

 

 

 

12,908

 

Loss on disposal of assets

 

 

—

 

 

 

338

 

 

 

—

 

 

 

338

 

Segment Adjusted EBITDDA

 

$

35,824

 

 

$

(9,581

)

 

$

31,861

 

 

$

58,104

 

The footnotes below the table for the nine months ended September 30, 2024 are also applicable to the above table.

 

 

 

 

Nine Months Ended September 30, 2025

 

(in thousands)

 

Timberlands

 

 

Wood Products

 

 

Real Estate

 

 

Total

 

Revenues from external customers

 

$

228,810

 

 

$

502,345

 

 

$

126,269

 

 

$

857,424

 

Intersegment Timberlands revenues1

 

 

83,294

 

 

 

—

 

 

 

—

 

 

 

83,294

 

 

 

 

312,104

 

 

 

502,345

 

 

 

126,269

 

 

 

940,718

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of goods sold2

 

 

 

 

 

 

 

 

 

 

 

 

Fiber costs2

 

 

—

 

 

 

236,116

 

 

 

—

 

 

 

236,116

 

Freight, logging and hauling2

 

 

152,544

 

 

 

64,000

 

 

 

—

 

 

 

216,544

 

Manufacturing costs2,3

 

 

—

 

 

 

184,231

 

 

 

—

 

 

 

184,231

 

Finished goods inventory change2

 

 

—

 

 

 

(2,829

)

 

 

—

 

 

 

(2,829

)

Depreciation, depletion and amortization2

 

 

46,148

 

 

 

29,308

 

 

 

402

 

 

 

75,858

 

Basis in real estate sold2

 

 

—

 

 

 

—

 

 

 

47,378

 

 

 

47,378

 

Other4

 

 

29,003

 

 

 

923

 

 

 

12,605

 

 

 

42,531

 

 

 

 

227,695

 

 

 

511,749

 

 

 

60,385

 

 

 

799,829

 

Segment selling, general and administrative expenses5

 

 

8,553

 

 

 

9,999

 

 

 

5,202

 

 

 

23,754

 

Segment operating income (loss)

 

 

75,856

 

 

 

(19,403

)

 

 

60,682

 

 

 

117,135

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization6

 

 

47,089

 

 

 

29,629

 

 

 

461

 

 

 

77,179

 

Basis in real estate sold

 

 

—

 

 

 

—

 

 

 

47,378

 

 

 

47,378

 

(Gain) loss on disposal of assets

 

 

(5

)

 

 

663

 

 

 

—

 

 

 

658

 

Segment Adjusted EBITDDA

 

$

122,940

 

 

$

10,889

 

 

$

108,521

 

 

$

242,350

 

The footnotes below the table for the nine months ended September 30, 2024 are also applicable to the above table.

 

 

 

Nine Months Ended September 30, 2024

 

(in thousands)

 

Timberlands

 

 

Wood Products

 

 

Real Estate

 

 

Total

 

Revenues from external customers

 

$

216,800

 

 

$

441,589

 

 

$

145,540

 

 

$

803,929

 

Intersegment Timberlands revenues1

 

 

80,084

 

 

 

—

 

 

 

—

 

 

 

80,084

 

 

 

 

296,884

 

 

 

441,589

 

 

 

145,540

 

 

 

884,013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of goods sold2

 

 

 

 

 

 

 

 

 

 

 

 

Fiber costs2

 

 

—

 

 

 

216,595

 

 

 

—

 

 

 

216,595

 

Freight, logging and hauling2

 

 

157,158

 

 

 

55,805

 

 

 

—

 

 

 

212,963

 

Manufacturing costs2,3

 

 

—

 

 

 

175,845

 

 

 

—

 

 

 

175,845

 

Finished goods inventory change2

 

 

—

 

 

 

(1,061

)

 

 

—

 

 

 

(1,061

)

Depreciation, depletion and amortization2

 

 

50,210

 

 

 

32,815

 

 

 

348

 

 

 

83,373

 

Basis in real estate sold2

 

 

—

 

 

 

—

 

 

 

73,530

 

 

 

73,530

 

Other4

 

 

28,057

 

 

 

549

 

 

 

12,023

 

 

 

40,629

 

 

 

 

235,425

 

 

 

480,548

 

 

 

85,901

 

 

 

801,874

 

Segment selling, general and administrative expenses5

 

 

7,956

 

 

 

10,979

 

 

 

5,916

 

 

 

24,851

 

Segment operating income (loss)

 

 

53,503

 

 

 

(49,938

)

 

 

53,723

 

 

 

57,288

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization6

 

 

51,193

 

 

 

33,138

 

 

 

412

 

 

 

84,743

 

Basis in real estate sold

 

 

—

 

 

 

—

 

 

 

73,530

 

 

 

73,530

 

Loss (gain) on disposal of assets

 

 

—

 

 

 

275

 

 

 

(8

)

 

 

267

 

Segment Adjusted EBITDDA

 

$

104,696

 

 

$

(16,525

)

 

$

127,657

 

 

$

215,828

 

 

1.
Intersegment revenues represent logs sold by our Timberlands segment to our Wood Products segment.
2.
Significant expense categories align with the segment-level information that is regularly provided to the CODM. Intersegment expenses are included with the amounts shown.
3.
Manufacturing costs include, but are not limited to, wages, benefits, repairs, maintenance, supplies, heat/power, electricity and other utilities, depreciation and amortization, and membership dues.
4.
Includes, but is not limited to, the following:

Timberlands - forest management, roads, employee wages and benefits and property taxes.

Wood Products - pension and other post-retirement benefit plan service costs for active plan participants.

Real Estate - land sale commissions, land sale closing costs, property taxes, and costs from the company-owned country club.

5.
Segment selling, general and administrative expenses includes depreciation and amortization.
6.
Includes depreciation and amortization classified as selling, general and administrative expenses.

The following table reconciles Total Segment Adjusted EBITDDA to Total Adjusted EBITDDA and Income before income taxes. Corporate information is included to reconcile segment data to the Condensed Consolidated Financial Statements.

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

(in thousands)

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Total Segment Adjusted EBITDDA

 

$

101,574

 

 

$

58,104

 

 

$

242,350

 

 

$

215,828

 

Corporate Adjusted EBITDDA1

 

 

(12,042

)

 

 

(12,203

)

 

 

(37,355

)

 

 

(36,624

)

Eliminations and adjustments2

 

 

(269

)

 

 

1

 

 

 

(340

)

 

 

(407

)

Total Adjusted EBITDDA

 

 

89,263

 

 

 

45,902

 

 

 

204,655

 

 

 

178,797

 

Interest expense, net

 

 

(11,461

)

 

 

(9,635

)

 

 

(23,365

)

 

 

(18,049

)

Depreciation, depletion and amortization3

 

 

(26,046

)

 

 

(25,487

)

 

 

(77,820

)

 

 

(85,150

)

Basis in real estate sold

 

 

(26,022

)

 

 

(12,905

)

 

 

(47,370

)

 

 

(73,522

)

Merger-related expenses

 

 

(1,903

)

 

 

—

 

 

 

(1,903

)

 

 

—

 

Environmental charge

 

 

—

 

 

 

—

 

 

 

(490

)

 

 

—

 

Non-operating pension and other postretirement employee benefits

 

 

(351

)

 

 

200

 

 

 

(1,053

)

 

 

602

 

Loss on disposal of assets

 

 

(234

)

 

 

(338

)

 

 

(658

)

 

 

(267

)

Other

 

 

1,222

 

 

 

1,516

 

 

 

1,757

 

 

 

1,348

 

Income (loss) before income taxes

 

$

24,468

 

 

$

(747

)

 

$

53,753

 

 

$

3,759

 

 

1.
Corporate Adjusted EBITDDA includes costs specifically not allocated to the segments including, but not limited to, certain corporate department direct expenses and employee wages and benefits. Corporate Adjusted EBITDDA is regularly provided to the CODM.
2.
Includes elimination of intersegment profit in ending Wood Products inventory for logs purchased from our Timberlands segment and LIFO adjustments.
3.
Excludes amortization of bond discounts and deferred loan fees which are reported within interest expense, net on the Condensed Consolidated Statements of Operations.

The following tables summarize additional reportable segment financial information:

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

(in thousands)

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Depreciation, depletion and amortization:

 

 

 

 

 

 

 

 

 

 

 

 

Timberlands

 

$

16,083

 

 

$

16,778

 

 

$

47,089

 

 

$

51,193

 

Wood Products

 

 

9,582

 

 

 

8,395

 

 

 

29,629

 

 

 

33,138

 

Real Estate

 

 

162

 

 

 

138

 

 

 

461

 

 

 

412

 

Corporate

 

 

219

 

 

 

176

 

 

 

641

 

 

 

407

 

 

 

26,046

 

 

 

25,487

 

 

 

77,820

 

 

 

85,150

 

Bond discounts and deferred loan fees1

 

 

324

 

 

 

406

 

 

 

1,087

 

 

 

1,219

 

Total depreciation, depletion and amortization

 

$

26,370

 

 

$

25,893

 

 

$

78,907

 

 

$

86,369

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basis of real estate sold:

 

 

 

 

 

 

 

 

 

Real Estate

 

$

26,024

 

 

$

12,908

 

 

$

47,378

 

 

$

73,530

 

Eliminations and adjustments

 

 

(2

)

 

 

(3

)

 

 

(8

)

 

 

(8

)

Total basis of real estate sold

 

$

26,022

 

 

$

12,905

 

 

$

47,370

 

 

$

73,522

 

 

1.
Included within interest expense, net in the Condensed Consolidated Statements of Operations.

 

 

(in thousands)

 

September 30, 2025

 

 

December 31, 2024

 

Assets:

 

 

 

 

 

 

Timberlands1

 

$

2,361,963

 

 

$

2,396,642

 

Wood Products

 

 

538,700

 

 

 

537,665

 

Real Estate2

 

 

68,916

 

 

 

67,527

 

 

 

 

2,969,579

 

 

 

3,001,834

 

Corporate

 

 

203,960

 

 

 

303,609

 

Total consolidated assets

 

$

3,173,539

 

 

$

3,305,443

 

 

 

1.
We do not report rural real estate separately from Timberlands as we do not report these assets separately to management.
2.
Real Estate assets primarily consist of a master planned community development and a country club.

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

(in thousands)

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Capital Expenditures:1

 

 

 

 

 

 

 

 

 

 

 

 

Timberlands

 

$

6,612

 

 

$

6,476

 

 

$

18,012

 

 

$

19,321

 

Wood Products

 

 

5,937

 

 

 

25,247

 

 

 

20,650

 

 

 

50,825

 

Real Estate2

 

 

2,905

 

 

 

2,791

 

 

 

9,941

 

 

 

5,828

 

 

 

 

15,454

 

 

 

34,514

 

 

 

48,603

 

 

 

75,974

 

Corporate

 

 

95

 

 

 

120

 

 

 

136

 

 

 

799

 

Total capital expenditures

 

$

15,549

 

 

$

34,634

 

 

$

48,739

 

 

$

76,773

 

 

1.
Does not include the acquisition of timber and timberlands, all of which were acquired by our Timberlands segment.
2.
Real Estate capital expenditures include development expenditures of $2.7 million and $8.8 million for the three and nine months ended September 30, 2025, respectively, and $2.6 million and $5.3 million for the three and nine months ended September 30, 2024, respectively.