Segment Information

6 Months Ended

Jun. 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, 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 June 30,						Six Months Ended June 30,
(in thousands)	2025			2024			2025			2024
Timberlands
Northern region
Sawlogs	$	46,003		$	40,564		$	89,867		$	74,370
Pulpwood		1,122			215			1,851			280
Other		387			375			859			686
Total Northern revenues		47,512			41,154			92,577			75,336
Southern region
Sawlogs		30,958			34,309			60,587			65,525
Pulpwood		15,163			15,315			32,381			30,963
Stumpage		3,692			4,088			8,811			11,720
Other		4,339			3,936			9,759			8,208
Total Southern revenues		54,152			57,648			111,538			116,416
								-
Total Timberlands revenues		101,664			98,802			204,115			191,752
Wood Products
Lumber		136,372			120,888			267,820			237,611
Residuals and Panels		35,447			32,691			68,644			64,566
Total Wood Products revenues		171,819			153,579			336,464			302,177
Real Estate
Rural real estate		23,177			84,853			46,438			90,379
Development real estate		1,882			7,488			3,126			10,362
Other		4,037			3,391			7,123			6,098
Total Real Estate revenues		29,096			95,732			56,687			106,839
Total segment revenues		302,579			348,113			597,266			600,768
Intersegment Timberlands revenues1		(27,594	)		(27,442	)		(54,021	)		(51,970	)
Total consolidated revenues	$	274,985		$	320,671		$	543,245		$	548,798

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 June 30, 2025
(in thousands)	Timberlands		Wood Products			Real Estate		Total
Revenues from external customers	$	74,070	$	171,819		$	29,096	$	274,985
Intersegment Timberlands revenues1		27,594		—			—		27,594
		101,664		171,819			29,096		302,579
Cost of goods sold2
Fiber costs2		—		80,373			—		80,373
Freight, logging and hauling2		48,556		21,627			—		70,183
Manufacturing costs2,3		—		64,269			—		64,269
Finished goods inventory change2		—		244			—		244
Depreciation, depletion and amortization2		15,172		10,388			139		25,699
Basis in real estate sold2		—		—			11,486		11,486
Other4		10,945		414			4,497		15,856
		74,673		177,315			16,122		268,110
Segment selling, general and administrative expenses5		2,924		3,604			1,899		8,427
Segment operating income (loss)		24,067		(9,100	)		11,075		26,042
Depreciation, depletion and amortization6		15,499		10,495			159		26,153
Basis in real estate sold		—		—			11,486		11,486
Loss on disposal of assets		—		328			—		328
Segment Adjusted EBITDDA	$	39,566	$	1,723		$	22,720	$	64,009

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

	Three Months Ended June 30, 2024
(in thousands)	Timberlands		Wood Products			Real Estate		Total
Revenues from external customers	$	71,360	$	153,579		$	95,732	$	320,671
Intersegment Timberlands revenues1		27,442		—			—		27,442
		98,802		153,579			95,732		348,113
Cost of goods sold2
Fiber costs2		—		75,583			—		75,583
Freight, logging and hauling2		51,992		20,390			—		72,382
Manufacturing costs2,3		—		60,111			—		60,111
Finished goods inventory change2		—		389			—		389
Depreciation, depletion and amortization2		16,463		12,119			115		28,697
Basis in real estate sold2		—		—			56,528		56,528
Other4		9,989		25			4,256		14,270
		78,444		168,617			60,899		307,960
Segment selling, general and administrative expenses5		3,024		3,928			1,929		8,881
Segment operating income (loss)		17,334		(18,966	)		32,904		31,272
Depreciation, depletion and amortization6		16,790		12,227			136		29,153
Basis in real estate sold		—		—			56,528		56,528
Gain on disposal of assets		—		(66	)		—		(66	)
Segment Adjusted EBITDDA	$	34,124	$	(6,805	)	$	89,568	$	116,887

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

	Six Months Ended June 30, 2025
(in thousands)	Timberlands		Wood Products			Real Estate		Total
Revenues from external customers	$	150,094	$	336,464		$	56,687	$	543,245
Intersegment Timberlands revenues1		54,021		—			—		54,021
		204,115		336,464			56,687		597,266
Cost of goods sold2
Fiber costs2		—		156,529			—		156,529
Freight, logging and hauling2		99,506		42,054			—		141,560
Manufacturing costs2,3		—		122,318			—		122,318
Finished goods inventory change2		—		(4,823	)		—		(4,823	)
Depreciation, depletion and amortization2		30,350		19,833			260		50,443
Basis in real estate sold2		—		—			21,354		21,354
Other4		17,879		597			7,835		26,311
		147,735		336,508			29,449		513,692
Segment selling, general and administrative expenses5		5,448		7,065			3,416		15,929
Segment operating income (loss)		50,932		(7,109	)		23,822		67,645
Depreciation, depletion and amortization6		31,005		20,048			300		51,353
Basis in real estate sold		—		—			21,354		21,354
Loss on disposal of assets		—		424			—		424
Segment Adjusted EBITDDA	$	81,937	$	13,363		$	45,476	$	140,776

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

	Six Months Ended June 30, 2024
(in thousands)	Timberlands		Wood Products			Real Estate			Total
Revenues from external customers	$	139,782	$	302,177		$	106,839		$	548,798
Intersegment Timberlands revenues1		51,970		—			—			51,970
		191,752		302,177			106,839			600,768
Cost of goods sold2
Fiber costs2		—		149,043			—			149,043
Freight, logging and hauling2		100,329		38,491			—			138,820
Manufacturing costs2,3		—		117,820			—			117,820
Finished goods inventory change2		—		(3,944	)		—			(3,944	)
Depreciation, depletion and amortization2		33,760		24,527			231			58,518
Basis in real estate sold2		—		—			60,622			60,622
Other4		17,763		118			7,440			25,321
		151,852		326,055			68,293			546,200
Segment selling, general and administrative expenses5		5,443		7,745			3,639			16,827
Segment operating income (loss)		34,457		(31,623	)		34,907			37,741
Depreciation, depletion and amortization6		34,415		24,743			274			59,432
Basis in real estate sold		—		—			60,622			60,622
Gain on disposal of assets		—		(64	)		(7	)		(71	)
Segment Adjusted EBITDDA	$	68,872	$	(6,944	)	$	95,796		$	157,724

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 June 30,						Six Months Ended June 30,
(in thousands)	2025			2024			2025			2024
Total Segment Adjusted EBITDDA	$	64,009		$	116,887		$	140,776		$	157,724
Corporate Adjusted EBITDDA1		(13,164	)		(11,756	)		(25,313	)		(24,421	)
Eliminations and adjustments2		1,180			(1,958	)		(71	)		(408	)
Total Adjusted EBITDDA		52,025			103,173			115,392			132,895
Interest expense, net		(10,412	)		(8,696	)		(11,904	)		(8,414	)
Depreciation, depletion and amortization3		(26,370	)		(29,268	)		(51,774	)		(59,663	)
Basis in real estate sold		(11,481	)		(56,525	)		(21,348	)		(60,617	)
Environmental charge		—			—			(490	)		—
Non-operating pension and other postretirement employee benefits		(351	)		201			(702	)		402
Loss (gain) on disposal of assets		(328	)		66			(424	)		71
Other		741			(23	)		535			(168	)
Income before income taxes	$	3,824		$	8,928		$	29,285		$	4,506

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 June 30,						Six Months Ended June 30,
(in thousands)	2025			2024			2025			2024
Depreciation, depletion and amortization:
Timberlands	$	15,499		$	16,790		$	31,005		$	34,415
Wood Products		10,495			12,227			20,048			24,743
Real Estate		159			136			300			274
Corporate		217			115			421			231
		26,370			29,268			51,774			59,663
Bond discounts and deferred loan fees1		381			406			763			813
Total depreciation, depletion and amortization	$	26,751		$	29,674		$	52,537		$	60,476
Basis of real estate sold:
Real Estate	$	11,486		$	56,528		$	21,354		$	60,622
Eliminations and adjustments		(5	)		(3	)		(6	)		(5	)
Total basis of real estate sold	$	11,481		$	56,525		$	21,348		$	60,617

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

(in thousands)	June 30, 2025		December 31, 2024
Assets:
Timberlands1	$	2,339,787	$	2,396,642
Wood Products		533,168		537,665
Real Estate2		95,703		67,527
		2,968,658		3,001,834
Corporate		216,045		303,609
Total consolidated assets	$	3,184,703	$	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 June 30,				Six Months Ended June 30,
(in thousands)	2025		2024		2025		2024
Capital Expenditures:1
Timberlands	$	4,048	$	4,940	$	11,400	$	12,845
Wood Products		2,964		20,869		14,713		25,578
Real Estate2		3,358		1,843		7,036		3,037
		10,370		27,652		33,149		41,460
Corporate		41		483		41		679
Total capital expenditures	$	10,411	$	28,135	$	33,190	$	42,139

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 $2.8 million and $6.1 million for the three and six months ended June 30, 2025, respectively, and $1.6 million and $2.7 million for the three and six months ended June 30, 2024, respectively.