PotlatchDeltic Corporation (NASDAQ:PCH) Q2 2024 Results Conference Call July 30, 2024 12:00 PM ET
Company Participants
Wayne Wasechek - Interim VP and CFO
Eric Cremers - President and CEO
Conference Call Participants
Anthony Pettinari - Citi
Michael Roxland - Truist Securities
George Staphos - Bank of America
Matthew McKellar - RBC Capital Markets
Kurt Yinger - D.A. Davidson
Mark Weintraub - Seaport Research Partners
Operator
Good morning. My name is Greg, and I will be your conference operator today. At this time, I would like to welcome everyone to the PotlatchDeltic Second Quarter 2024 Conference Call. [Operator Instructions]
I would now like to turn the call over to Mr. Wayne Wasechek, Vice President and Chief Financial Officer, for opening remarks. Sir, you may proceed.
Wayne Wasechek
Good morning, and welcome to PotlatchDeltic's Second Quarter 2024 earnings conference call. Joining me on the call is Eric Cremers, PotlatchDeltic's President and Chief Executive Officer.
This call will contain forward-looking statements. Please review the warning statements in our press release, on the presentation slides and in our filings with the SEC regarding the risks associated with these forward-looking statements. Also, please note that a reconciliation of non-GAAP measures can be found in the appendix to the presentation slides and on our website at www.potlatchdeltic.com.
I'll turn the call over to Eric for some comments and then review our second quarter results and our outlook.
Eric Cremers
Well, thank you, and good morning, everyone. Thank you for joining us. Yesterday, after the market closed, we reported second quarter total adjusted EBITDA of $103 million. This is a $73 million increase from the first quarter and was largely driven by strong real estate performance. Overall, we had solid operational execution across each of our business segments, despite the current economic environment and languishing lumber markets.
Turning to our second quarter results, starting with our Timberlands division. This segment generated adjusted EBITDA of $34 million in the second quarter. We harvested 1.9 million tons, exceeding our Q2 harvest plan as better-than-expected weather conditions in both our Northern and our Southern regions provided favorable logging and hauling conditions.
Sawlog prices in Idaho increased due to our indexed agreements, coupled with higher cedar prices. For the South, our average Southern log price realizations were comparable to the first quarter despite challenging lumber market conditions.
Moving to our Wood Products segment results. Adjusted EBITDA was a loss of $7 million in the second quarter compared to breakeven in the first quarter. During the second quarter, lumber markets remained challenging as seasonal homebuilding activity did not result in tightening lumber markets. While there is weakness across all lumber markets, it has been most notable for our Southern Yellow Pine.