10 Best Lumber Stocks To Buy Right Now

6. PotlatchDeltic Corporation (NASDAQ:PCH)

Number of Hedge Fund Holders: 28

PotlatchDeltic Corporation (NASDAQ:PCH) is a prominent timberland owner and one of the top lumber manufacturers in the United States. The company manages nearly 2.2 million acres of timberland across nine states and operates seven manufacturing facilities that produce lumber and plywood. PotlatchDeltic Corporation (NASDAQ:PCH) ranks among the best lumber stocks to buy.

In the third quarter of 2024, the corporation reported a net income of $3.3 million and revenues of $255.1 million. This is a decrease from the same quarter in the previous year, when the company reported a net income of $23.7 million and revenues of $265.5 million. Despite this decline, PotlatchDeltic Corporation (NASDAQ:PCH) generated a total adjusted EBITDA of $45.9 million, reflecting an 18% margin, which indicates solid operational performance amid a challenging lumber market.

A significant development in Q3 2024 for PotlatchDeltic Corporation (NASDAQ:PCH) is the completion of its sawmill expansion and modernization project in Waldo, Arkansas. This strategic investment is expected to enhance the mill’s capacity by 85 million board feet annually and improve recovery rates while reducing processing costs by about 30%. Once fully operational, this facility is expected to generate an additional $25 million in adjusted EBITDA under mid-cycle sales conditions. Ongoing improvements in production capacity combined with a focus on operational efficiency and strategic investments position PotlatchDeltic Corporation (NASDAQ:PCH) well for future growth.