Leadership Promotions - Boise Cascade announced the promotion of Dennis Fringuelli to Vice President of Sales and Marketing for the Building Materials Distribution division and Jeff Dracup to Vice President of Sales and Marketing for Engineered Wood Products, effective January 19, 2026 [1] - These promotions are part of a succession planning process aimed at developing internal talent and recognizing leaders who embody the company's values and have shown exceptional performance [4] Executive Backgrounds - Dennis Fringuelli has been with Boise Cascade since 1999, starting as a national account manager and progressing through various roles, including director of BMD sales and marketing [2] - Jeff Dracup joined Boise Cascade in 2004, initially in sales and product management, and has held several progressive positions, including director of EWP sales and marketing [3] Company Overview - Boise Cascade is a leading wholesale distributor of building materials and a major manufacturer of engineered wood products and plywood in North America, operating over 60 distribution and manufacturing facilities across the U.S. and Canada [5] - The company employs over 7,500 people and focuses on delivering outstanding service through an integrated model and national distribution footprint [5]

Group 1: Company Overview - Energizer (ENR) is a leading manufacturer and distributor of batteries and lighting products [1] - CAE (CAE) specializes in simulation and modeling technologies, providing integrated training services to the civil aviation industry and defense forces [2] - Boise Cascade (BCC) is one of the largest wood products manufacturers and a leading wholesale distributor of building products in the United States [3] Group 2: Earnings Estimates - The Zacks Consensus Estimate for Energizer's current year earnings has been revised downward by almost 8.8% over the last 60 days [1] - CAE's current year earnings estimate has been revised downward by 6.5% over the last 60 days [2] - Boise Cascade's current year earnings estimate has been revised downward by almost 5.7% over the last 60 days [3]

Core Insights - Boise Cascade Company (BCC) has successfully acquired Holden Humphrey, a prominent distributor of building materials, enhancing its market position in the northeastern United States [1][2][5] Company Overview - Holden Humphrey specializes in a variety of building product categories and is a significant supplier of James Hardie siding, serving customers across New England, New York, and New Jersey [2] - The acquisition is expected to add approximately $145 million in revenues to BCC, further solidifying its distribution partnerships with CertainTeed and Henry [3][9] Strategic Growth Initiatives - BCC prioritizes its Building Materials Distribution (BMD) segment as a key growth engine, operating 39 distribution facilities and a manufacturing plant across the U.S. [4] - The growth strategy includes expanding product offerings, increasing market penetration through acquisitions, and enhancing customer and supplier relationships [4][5] - The acquisition of Holden Humphrey aligns with BCC's strategy to broaden its geographic footprint and product range [5] Financial Performance - BCC's shares have increased by 14% over the past month, outperforming the Zacks Building Products - Wood industry's growth of 3.4% [7][9] - The company has made disciplined investments in acquisitions, totaling $5.6 million in the first nine months of 2025, including $2.2 million for a door and millwork operation [6] Market Challenges - Despite the positive growth initiatives, challenges such as slower single-family housing starts, lower volumes, and unfavorable commodity pricing remain concerns for the company [8]

Core Viewpoint - Boise Cascade Company has completed the acquisition of Humphrey Company, enhancing its distribution capabilities in the northeast region of the U.S. [1][2] Group 1: Acquisition Details - The acquisition involves Humphrey Company, Inc., a two-step distributor of building materials located in Chicopee, Massachusetts [1] - This strategic move is expected to strengthen Boise Cascade's existing distribution partnerships and expand product offerings for customers in the northeast [2] Group 2: Company Overview - Boise Cascade is recognized as one of the largest producers of engineered wood products and plywood in North America [2] - The company is also a leading wholesale distributor of building products in the U.S. [2]

Core Insights - Boise Cascade is favored over Nature Wood Group based on various financial metrics and analyst recommendations [3][4][9] Institutional & Insider Ownership - 96.2% of Boise Cascade shares are owned by institutional investors, while 1.0% are owned by company insiders, indicating strong institutional confidence in long-term growth [1] Analyst Recommendations - Boise Cascade has a consensus rating score of 2.50, with 1 sell, 2 hold, and 5 buy ratings, while Nature Wood Group has a score of 1.00 with no buy ratings [3][4] - The consensus price target for Boise Cascade is $102.50, suggesting a potential upside of 33.91% [3][4] Profitability - Boise Cascade has a net margin of 2.96%, return on equity of 9.00%, and return on assets of 5.64%, while Nature Wood Group does not have available data for these metrics [5][4] Risk & Volatility - Boise Cascade has a beta of 1.27, indicating it is 27% more volatile than the S&P 500, while Nature Wood Group has a beta of 1.87, indicating it is 87% more volatile [6] Valuation and Earnings - Boise Cascade reported gross revenue of $6.72 billion, a price/sales ratio of 0.42, net income of $376.35 million, earnings per share of $5.06, and a price/earnings ratio of 15.13 [8] - In contrast, Nature Wood Group reported gross revenue of $21.54 million, a price/sales ratio of 0.90, and a net loss of $8.73 million [8] Summary - Boise Cascade outperforms Nature Wood Group in 10 out of 12 evaluated factors, indicating a stronger overall position [9]

Leadership Transition - Nate Jorgensen, the current CEO of Boise Cascade, will retire on March 2, 2026, and Jeff Strom, the Chief Operating Officer, has been appointed as his successor effective March 3, 2026 [1][2] - The transition is part of a planned succession strategy to ensure stability and continued momentum in the company's operations [2] Leadership Background - Nate Jorgensen has led Boise Cascade for six years, guiding the company through significant challenges, including a global pandemic [2] - Jeff Strom has over 34 years of experience in the building materials industry and has been with Boise Cascade since 2006, holding various leadership roles [2] Company Overview - Boise Cascade is one of the largest producers of engineered wood products and plywood in North America and a leading wholesale distributor of building products in the U.S. [3] - The company reported revenues of $6.7 billion and a net income of $376 million for the year 2024 [5][11]

Group 1 - Boise Cascade Company (BCC) has been added to the Zacks Rank 5 (Strong Sell) List, with a 17.9% downward revision in the consensus estimate for its current year earnings over the last 60 days [1] - Eastman Chemical Company (EMN) is also on the Zacks Rank 5 (Strong Sell) List, experiencing a 6.6% downward revision in the consensus estimate for its current year earnings over the last 60 days [1] - Innospec Inc. (IOSP) has been included in the Zacks Rank 5 (Strong Sell) List, with a 5.6% downward revision in the consensus estimate for its current year earnings over the last 60 days [2]

Core Viewpoint - Boise Cascade's recent earnings report shows a significant decline in earnings and sales year over year, reflecting challenges in demand and pricing within the industry [3][4][10]. Financial Performance - Adjusted earnings for Q3 2025 were 58 cents per share, matching estimates but down 75% from $2.33 in the prior year [4]. - Sales reached $1.67 billion, exceeding the consensus estimate of $1.62 billion by 2.8%, but decreased by 3% year over year [4]. - Adjusted EBITDA fell 52% year over year to $74.4 million from $154.5 million, indicating a sharp contraction in profitability across segments [7]. Segment Analysis - The Wood Products segment reported a loss of $12.1 million, down from a profit of $53.9 million last year, with sales dropping 13% to $396.4 million [5]. - The Building Materials Distribution segment had sales of $1.56 billion, nearly flat year over year, but income fell 27% to $54.3 million due to weaker pricing [6]. Balance Sheet and Capital Returns - Boise Cascade ended the quarter with $511.8 million in cash and $907 million in total liquidity, alongside $450 million in long-term debt [8]. - The company repurchased 1.13 million shares for $111 million in the first nine months of 2025 and announced a new $300 million buyback program [8]. Market Outlook - Management anticipates persistent challenges from high interest rates and housing affordability issues, expecting 2026 housing activity to mirror 2025 levels with gradual improvement later in the year [10]. - Estimates for the company have trended downward, with a significant -52.03% shift in consensus estimates [11][13]. Industry Comparison - Boise Cascade operates within the Zacks Building Products - Wood industry, where UFP Industries reported a revenue decline of 5.4% year over year, indicating similar challenges faced by industry peers [14].

Group 1 - Boise Cascade Company (BCC) has been added to the Zacks Rank 5 (Strong Sell) List due to a 17.9% downward revision in the consensus estimate for its current year earnings over the last 60 days [1] - CAE Inc. (CAE) is also on the Zacks Rank 5 (Strong Sell) List, with a 6.5% downward revision in the consensus estimate for its current year earnings over the last 60 days [1] - Carter's, Inc. (CRI) has seen a 5.9% downward revision in the consensus estimate for its current year earnings over the last 60 days, leading to its inclusion in the Zacks Rank 5 List [2]

Core Insights - Three stocks have been added to the Zacks Rank 5 (Strong Sell) List, indicating a negative outlook for these companies [1][2]. Company Summaries - **Bank OZK (OZK)**: Provides retail and commercial banking services. The Zacks Consensus Estimate for its current year earnings has been revised 3.1% downward over the last 60 days [1]. - **Boise Cascade Company (BCC)**: A manufacturer of wood products and building materials. The Zacks Consensus Estimate for its current year earnings has been revised 17.9% downward over the last 60 days [1]. - **Climb Global Solutions, Inc. (CLMB)**: A value-added IT solutions company. The Zacks Consensus Estimate for its current year earnings has been revised 7.6% downward over the last 60 days [2].