RAYONIER INCRYN
RAYONIER INC Segments Disclosure
SEGMENT AND GEOGRAPHICAL INFORMATION
As of December 31, 2025, and for all periods presented, we operated in three reportable segments: Southern Timber, Pacific Northwest Timber and Real Estate. In June 2025, we completed the sale of our 77% interest in the New Zealand joint venture. Consequently, these operations are classified as discontinued operations for all periods presented. See Note 2 — Discontinued Operations for additional information.
Effective with the third quarter of 2025, we realigned our reportable segments to reflect how our chief operating decision maker (“CODM”), the Chief Executive Officer, evaluates performance and allocates capital. As part of the realignment, the previously reported Trading segment’s log trading activities conducted in the U.S. South and Pacific Northwest are now reported in the respective Southern Timber or Pacific Northwest Timber segments based on geographical location for all periods presented.
Intersegment sales are based on estimated fair market value, and are eliminated in consolidation. The CODM evaluates segment performance using Adjusted Earnings before Interest, Taxes, Depreciation, Depletion and Amortization (“Adjusted EBITDA”). Total assets by segment are not disclosed as they are not used by the CODM for resource allocation or performance assessment.
Adjusted EBITDA is defined as earnings before interest, taxes, depreciation, depletion, amortization, the non-cash cost of land and improved development, non-operating expense and income, income from operations of discontinued operations, gain on sale of discontinued operations, costs related to the merger with PotlatchDeltic, asset impairment charges, restructuring charges, costs related to disposition initiatives and Large Dispositions.
We believe that Operating income, as defined by U.S. GAAP, is the most appropriate earnings measurement for reconciling Adjusted EBITDA. Adjusted EBITDA should not be considered as an alternative to Operating income as determined in accordance with U.S. GAAP. Operating income as presented in the Consolidated Statements of Income and Comprehensive Income (Loss) includes the results of both reportable segments and corporate activities. Segment Operating income (loss) represents the operating results of the company’s reportable segments only and does not include corporate-level amounts. As a result, segment Operating income (loss) may differ from the total Operating income reported in the consolidated financial statements.
The following tables summarize the segment information for the three years ended December 31:
| Year Ended | Southern Timber | Pacific Northwest Timber | Real Estate | Total | |||||||||||||||||||
| December 31, 2025 | |||||||||||||||||||||||
| Sales | $228,309 | $83,564 | $172,612 | $484,485 | |||||||||||||||||||
| Costs and Expenses | |||||||||||||||||||||||
| Cut and haul costs | (53,386) | (35,758) | — | (89,144) | |||||||||||||||||||
| Port and freight costs | — | (18) | — | (18) | |||||||||||||||||||
| Depreciation, depletion and amortization | (68,998) | (21,792) | (13,983) | (104,773) | |||||||||||||||||||
| Non-cash cost of land and improved development | — | — | (43,714) | (43,714) | |||||||||||||||||||
| Other costs and expenses (a) | (44,821) | (24,077) | (52,590) | (121,488) | |||||||||||||||||||
| Reportable segment operating income | $61,104 | $1,919 | $62,325 | $125,348 | |||||||||||||||||||
| Add: Asset impairment charge (b) | — | — | 7,048 | 7,048 | |||||||||||||||||||
| Add: Depreciation, depletion and amortization | 68,998 | 21,792 | 13,983 | 104,773 | |||||||||||||||||||
| Add: Non-cash cost of land and improved development | — | — | 43,714 | 43,714 | |||||||||||||||||||
| Reportable segment adjusted EBITDA | $130,102 | $23,711 | $127,070 | $280,883 | |||||||||||||||||||
| Reconciliation of reportable segment results to consolidated income before taxes | |||||||||||||||||||||||
| All other EBITDA (c) | ($32,918) | ||||||||||||||||||||||
| Interest, net and miscellaneous expense | (2,057) | ||||||||||||||||||||||
| Depreciation, depletion and amortization | (106,454) | ||||||||||||||||||||||
| Non-cash cost of land and improved development | (43,714) | ||||||||||||||||||||||
| Non-operating expense (d) | (6,685) | ||||||||||||||||||||||
| Costs related to the merger with PotlatchDeltic (e) | (6,303) | ||||||||||||||||||||||
| Asset impairment charge (b) | (7,048) | ||||||||||||||||||||||
| Restructuring charges (f) | (1,110) | ||||||||||||||||||||||
| Income from Continuing Operations Before Income Taxes | $74,594 | ||||||||||||||||||||||
| Income tax expense | (527) | ||||||||||||||||||||||
| Income from Continuing Operations | $74,067 | ||||||||||||||||||||||
| Income from operations of discontinued operations, net of tax | 1,883 | ||||||||||||||||||||||
| Gain on sale of discontinued operations | 404,463 | ||||||||||||||||||||||
| Net Income | $480,413 | ||||||||||||||||||||||
(a)Other costs and expenses for each reportable segment primarily includes other direct and indirect cost of sales and selling and general expenses.
(b)Asset impairment charge reflects an impairment charge recognized on certain real estate assets located in Washington, which were acquired in the 2020 merger with Pope Resources. The asset impairment charge is recorded within the Consolidated Statements of Income and Comprehensive Income (Loss) under the caption “Cost of sales.”
(c)All other EBITDA includes corporate and other expenses.
(d)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.”
(e)Costs related to the merger with PotlatchDeltic include legal, accounting, due diligence, consulting and other costs related to the merger with PotlatchDeltic, which subsequently closed on January 30, 2026.
(f)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) income, net.”
| Year Ended | Southern Timber | Pacific Northwest Timber | Real Estate | Total | |||||||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||
| Sales (a) | $251,642 | $108,019 | $628,268 | $987,929 | |||||||||||||||||||
| Costs and Expenses | |||||||||||||||||||||||
| Cut and haul costs | (51,041) | (42,001) | — | (93,042) | |||||||||||||||||||
| Port and freight costs | (2,883) | (5,077) | — | (7,960) | |||||||||||||||||||
| Depreciation, depletion and amortization (a) | (73,409) | (31,668) | (162,941) | (268,018) | |||||||||||||||||||
| Non-cash cost of land and improved development (a) | — | — | (78,962) | (78,962) | |||||||||||||||||||
| Other costs and expenses (b) | (46,406) | (35,569) | (51,243) | (133,218) | |||||||||||||||||||
| Reportable segment operating income (loss) | $77,903 | ($6,296) | $335,122 | $406,729 | |||||||||||||||||||
| Add: Depreciation, depletion and amortization (c) | 73,409 | 31,668 | 6,986 | 112,063 | |||||||||||||||||||
| Add: Non-cash cost of land and improved development (c) | — | — | 41,368 | 41,368 | |||||||||||||||||||
| Less: Large Dispositions (d) | — | — | (291,078) | (291,078) | |||||||||||||||||||
| Reportable segment adjusted EBITDA | $151,312 | $25,372 | $92,398 | $269,082 | |||||||||||||||||||
| Reconciliation of reportable segment results to consolidated income before taxes | |||||||||||||||||||||||
| All other EBITDA (e) | ($38,843) | ||||||||||||||||||||||
| Interest, net and miscellaneous expense (f) | (25,544) | ||||||||||||||||||||||
| Depreciation, depletion and amortization (c) | (113,854) | ||||||||||||||||||||||
| Non-cash cost of land and improved development (c) | (41,368) | ||||||||||||||||||||||
| Non-operating income (g) | 1,275 | ||||||||||||||||||||||
| Costs related to disposition initiatives (h) | (849) | ||||||||||||||||||||||
| Restructuring charges (i) | (1,139) | ||||||||||||||||||||||
| Large Dispositions (d) | 291,078 | ||||||||||||||||||||||
| Income from Continuing Operations Before Income Taxes | $339,838 | ||||||||||||||||||||||
| Income tax benefit (j) | 1,022 | ||||||||||||||||||||||
| Income from Continuing Operations | $340,860 | ||||||||||||||||||||||
| Income from operations of discontinued operations, net of tax | 28,123 | ||||||||||||||||||||||
| Net Income | $368,983 | ||||||||||||||||||||||
(a)Real Estate segment sales, depreciation, depletion and amortization, and non-cash cost of land and improved development includes $495.0 million, $156.0 million, and $37.6 million, respectively, from Large Dispositions.
(b)Other costs and expenses for each reportable segment primarily includes other direct and indirect cost of sales and selling and general expenses.
(c)Excludes depreciation, depletion and amortization, and non-cash cost of land and improved development of $156.0 million, and $37.6 million, respectively, from Large Dispositions.
(d)Large Dispositions are defined as transactions involving the sale of productive timberland assets that exceed $20 million in size and do not reflect a demonstrable premium relative to timberland value. The year ended December 31, 2024 includes the sale of approximately 200,000 acres for an aggregate sale price of $495.0 million. These dispositions consisted of approximately 91,000 acres in Southeast Oklahoma and 109,000 acres on the Olympic Peninsula in Northwest Washington.
(e)All other EBITDA includes general corporate expenses.
(f)Includes a $1.6 million gain from a terminated cash flow hedge. The gain from a terminated cash flow hedge is recorded within the Consolidated Statements of Income and Comprehensive Income (Loss) under the caption “Interest expense, net.”
(g)Non-operating income includes $8.0 million of net recoveries associated with legal settlements, which is partially offset by $6.0 million of pension settlement charges. Net recoveries associated with legal settlements and pension settlement charges are recorded within the Consolidated Statements of Income and Comprehensive Income (Loss) under the caption “Other miscellaneous (expense) income, net.”
(h)Costs related to disposition initiatives include legal, advisory, and other due diligence costs incurred in connection with the Company’s asset disposition plan, which was announced in November 2023. Costs related to disposition initiatives are recorded within the Consolidated Statements of Income and Comprehensive Income (Loss) under the caption “Other operating (expense) income, net.”
(i)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) income, net.”
(j)Includes a $1.2 million income tax benefit related to the pension settlement.
| Year Ended | Southern Timber | Pacific Northwest Timber | Real Estate | Total | |||||||||||||||||||
| December 31, 2023 | |||||||||||||||||||||||
| Sales (a) | $265,134 | $133,276 | $389,963 | $788,373 | |||||||||||||||||||
| Costs and Expenses | |||||||||||||||||||||||
| Cut and haul costs | (57,964) | (56,565) | — | (114,529) | |||||||||||||||||||
| Port and freight costs | (4,893) | (8,730) | — | (13,623) | |||||||||||||||||||
| Depreciation, depletion and amortization (a) | (79,974) | (36,924) | (109,085) | (225,983) | |||||||||||||||||||
| Non-cash cost of land and improved development (a) | — | — | (73,458) | (73,458) | |||||||||||||||||||
| Other costs and expenses (b) | (45,968) | (39,725) | (50,815) | (136,508) | |||||||||||||||||||
| Reportable segment operating income (loss) | $76,335 | ($8,668) | $156,605 | $224,272 | |||||||||||||||||||
| Add: Depreciation, depletion and amortization (c) | 79,974 | 36,924 | 17,955 | 134,853 | |||||||||||||||||||
| Add: Non-cash cost of land and improved development (c) | — | — | 29,768 | 29,768 | |||||||||||||||||||
| Less: Large Dispositions (d) | — | — | (105,078) | (105,078) | |||||||||||||||||||
| Reportable segment adjusted EBITDA | $156,309 | $28,256 | $99,250 | $283,815 | |||||||||||||||||||
| Reconciliation of reportable segment results to consolidated income before taxes | |||||||||||||||||||||||
| All other EBITDA (e) | ($37,864) | ||||||||||||||||||||||
| Interest, net and miscellaneous expense | (43,367) | ||||||||||||||||||||||
| Depreciation, depletion and amortization (c) | (136,565) | ||||||||||||||||||||||
| Non-cash cost of land and improved development (c) | (29,768) | ||||||||||||||||||||||
| Non-operating income (f) | 18,278 | ||||||||||||||||||||||
| Large Dispositions (d) | 105,078 | ||||||||||||||||||||||
| Income from Continuing Operations Before Income Taxes | $159,607 | ||||||||||||||||||||||
| Income tax expense | (293) | ||||||||||||||||||||||
| Income from Continuing Operations | $159,314 | ||||||||||||||||||||||
| Income from operations of discontinued operations, net of tax | 19,181 | ||||||||||||||||||||||
| Net Income | $178,495 | ||||||||||||||||||||||
(a)Real Estate segment sales, depreciation, depletion and amortization, and non-cash cost of land and improved development includes $242.2 million, $91.1 million, and $43.7 million, respectively, from Large Dispositions.
(b)Other costs and expenses for each reportable segment primarily includes other direct and indirect cost of sales and selling and general expenses.
(c)Excludes depreciation, depletion and amortization, and non-cash cost of land and improved development of $91.1 million and $43.7 million, respectively, from Large Dispositions.
(d)Large Dispositions are defined as transactions involving the sale of productive timberland assets that exceed $20 million in size and do not reflect a demonstrable premium relative to timberland value. The year ended December 31, 2023 includes the sale of approximately 55,000 acres in Oregon for $242.2 million.
(e)All other EBITDA includes general corporate expenses.
(f)Non-operating income includes $20.7 million of net recoveries associated with legal settlements, which is partially offset by a $2.0 million pension settlement charge. Net recoveries associated with legal settlements and pension settlement charges are recorded within the Consolidated Statements of Income and Comprehensive Income (Loss) under the caption “Other miscellaneous (expense) income, net.”
| Gross Capital Expenditures | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Capital Expenditures (a) | |||||||||||||||||
| Southern Timber | $41,561 | $48,398 | $46,506 | ||||||||||||||
| Pacific Northwest Timber | 8,263 | 13,340 | 17,371 | ||||||||||||||
| Real Estate | 225 | 323 | 302 | ||||||||||||||
| Corporate and other | — | 33 | 605 | ||||||||||||||
| Total capital expenditures | $50,049 | $62,094 | $64,784 | ||||||||||||||
| Timberland Acquisitions | |||||||||||||||||
| Southern Timber | — | $22,753 | $10,471 | ||||||||||||||
| Pacific Northwest Timber | — | — | 3,591 | ||||||||||||||
| Total timberland acquisitions | — | $22,753 | $14,062 | ||||||||||||||
| Total Gross Capital Expenditures | $50,049 | $84,847 | $78,846 | ||||||||||||||
(a)Excludes timberland acquisitions presented separately, in addition to real estate development investments of $22.4 million, $25.8 million, and $23.1 million in the years ended December 31, 2025, 2024, and 2023, respectively.
| Geographical Operating Information (a) | |||||||||||||||||||||||||||||||||||||||||||||||
| Sales | Operating Income | Identifiable Assets | |||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | 2025 | 2024 | ||||||||||||||||||||||||||||||||||||||||
| United States | $484,485 | $987,929 | $788,373 | $83,336 | $364,107 | $184,696 | $3,404,653 | $2,998,500 | |||||||||||||||||||||||||||||||||||||||
| Total | $484,485 | $987,929 | $788,373 | $83,336 | $364,107 | $184,696 | $3,404,653 | $2,998,500 | |||||||||||||||||||||||||||||||||||||||
(a)The geographical information presented above reflects the results of the Company's continuing operations. Sales and Operating Income for the New Zealand operations have been retrospectively excluded from this table for the years ended December 31, 2024 and 2023. Identifiable Assets for the New Zealand operations have been retrospectively excluded for the year ended December 31, 2024. Sales, Operating Income, and Identifiable Assets for the New Zealand Operations are included in the disclosures for Discontinued Operations. See Note 2 — Discontinued Operations for additional information.
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.