Core Viewpoint - Boise Cascade Company (BCC) reported mixed first-quarter 2025 results, with earnings missing estimates while sales exceeded expectations, reflecting a decline in both metrics year-over-year due to lower selling prices and sales volumes, alongside operational challenges [1][3]. Financial Performance - Adjusted earnings per share (EPS) for Q1 2025 were $1.06, missing the Zacks Consensus Estimate of $1.36 by 22.1%, and down from $2.61 in the same quarter last year [3]. - Quarterly sales reached $1.54 billion, surpassing the consensus mark of $1.45 billion by 5.7%, but decreased by 7% year-over-year [3]. - Adjusted EBITDA was $91.6 million, a significant decline of 46% from the prior-year quarter [3]. Segment Analysis - **Wood Products**: Sales totaled $415.8 million, down 11% year-over-year due to lower engineered wood products and sales prices. Adjusted EBITDA fell to $40.2 million, down 11% from $95.6 million a year ago [4]. - **Building Materials Distribution (BMD)**: Sales decreased by 7% year-over-year to $1.41 billion, attributed to lower plywood sales prices and reduced sales volumes. Adjusted EBITDA dropped 25% year-over-year to $62.8 million [5]. Liquidity and Debt - As of March 31, 2025, total liquidity was $957.5 million, down from $1.109 billion at the end of 2024, with cash and cash equivalents at $561.8 million [6]. - Net long-term debt slightly increased to $446.4 million from $446.2 million at the end of 2024 [6]. Share Repurchase Activity - In Q1 2025, the company repurchased 482,700 shares for a total value of $53.9 million, followed by an additional repurchase of 179,445 shares for approximately $17 million in April 2025 [7][8]. Market Outlook - The company plans to remain flexible in response to evolving market conditions in the second quarter, supported by a strong balance sheet for continued investments in residential construction trends [2].

Financial Data and Key Metrics Changes - Consolidated first quarter sales were $1.5 billion, down 7% from Q1 2024 [7] - Net income was $40.3 million or $1.06 per share, compared to $104.1 million or $2.61 per share in the prior year quarter [7] - Wood Products sales were $415.8 million, down 11% year-over-year [9] - Wood Products segment EBITDA decreased to $40.2 million from $95.6 million in the previous year [9] - BMD sales were $1.4 billion, down 7% from Q1 2024, with segment EBITDA of $62.8 million compared to $83.6 million [10] Business Line Data and Key Metrics Changes - Wood Products segment saw lower EWP and plywood sales prices and volumes, with a significant impact from the Oakdale outage [9] - BMD's gross margin was 14.7%, a decline of 40 basis points year-over-year [10] - LVL and I joists volumes were down 3%, better than the 6% decline in single-family housing starts [10] - Plywood sales volume was 363 million feet, down from 372 million feet in Q1 2024 [11] Market Data and Key Metrics Changes - U.S. housing starts decreased 26% year-over-year, impacting demand [7] - Daily sales pace in BMD improved in April, approximately 13% higher than Q1 2025 [15] - Weather significantly influenced sales activity, with January and February below $21.5 million daily, rebounding in March [12] Company Strategy and Development Direction - The company is focused on strategic investments and capital returns to shareholders, supported by a strong balance sheet [8] - Continued emphasis on two-step distribution model to support customer inventory management [26] - Ongoing modernization projects at Oakdale are expected to enhance EWP production capabilities [17] Management's Comments on Operating Environment and Future Outlook - The management expressed uncertainty regarding 2025 end market demand, with forecasts ranging from flat to mid-single digit declines [21] - Long-term demand drivers remain strong, characterized by housing undersupply and aging housing stock [22] - The company remains agile and prepared to respond to economic changes while focusing on customer service [22] Other Important Information - Capital expenditures in Q1 were $53 million, with a range of $220 million to $240 million expected for 2025 [17] - The company repurchased $71 million of common stock in the first four months of 2025 [19] - The Oakdale facility is expected to be fully operational by the end of Q2 2025 [17] Q&A Session Summary Question: Thoughts on general line side of the business and inventory positions - Management noted that customers are relying on two-step distribution for inventory management and new product introductions [26] Question: Update on Oakdale project and ramp-up - The Oakdale facility is expected to shift veneer back into EWP production as it comes back online [29] Question: Capital allocation priorities and M&A pipeline - Management indicated a quiet M&A pipeline but remains open to opportunities while focusing on organic growth and share repurchases [30] Question: EWP pricing expectations for Q2 - Management expects low single-digit sequential pricing declines, with competitive pressures remaining [40] Question: Competitive pressures in EWP - Competitive challenges are primarily from existing EWP producers rather than dimensional lumber or open web trusses [52] Question: Impact of recent transactions in the industry - Management emphasized the importance of executing at a high level amidst ongoing industry consolidation [82]

Financial Data and Key Metrics Changes - Consolidated first quarter sales were $1.5 billion, down 7% from Q1 2024 [6] - Net income was $40.3 million or $1.06 per share, compared to $104.1 million or $2.61 per share in the prior year quarter [6] - Wood Products sales were $415.8 million, down 11% year-over-year [8] - BMD sales were $1.4 billion, down 7% from Q1 2024 [9] - Overall EBITDA for Wood Products was $40.2 million, significantly lower than $95.6 million in the previous year [8] Business Line Data and Key Metrics Changes - Wood Products segment EBITDA decreased primarily due to lower EWP and plywood sales prices and volumes [8] - BMD's gross margin was 14.7%, a decline of 40 basis points year-over-year [10] - EWP volumes were down 3%, which was better than the 6% decline in single-family housing starts [10] - Plywood sales volume was 363 million feet, down from 372 million feet in Q1 2024 [11] Market Data and Key Metrics Changes - U.S. housing starts decreased by 26% year-over-year, impacting demand [6] - Daily sales pace in BMD improved in March, exceeding $24 million per day [12] - April's daily sales pace was approximately 13% higher than Q1 2025, indicating a rebound in demand [15] Company Strategy and Development Direction - The company is focused on strategic investments and returning capital to shareholders, supported by a strong balance sheet [7] - Capital expenditures for 2025 are projected between $220 million and $240 million, with significant investments in EWP production capabilities [16] - The company is prepared to respond to economic changes while maintaining a focus on long-term demand drivers in residential construction [20] Management's Comments on Operating Environment and Future Outlook - Management noted that 2025 end market demand expectations are difficult to predict, with forecasts ranging from flat to mid-single-digit declines [20] - The company remains confident in its ability to execute across all market conditions, emphasizing the strength of its team [21] - Long-term demand drivers remain strong, characterized by an undersupply of housing units and aging housing stock [22] Other Important Information - The Oakdale facility's modernization is expected to be completed by the end of Q2, which will enhance EWP production [7] - The company repurchased $71 million of common stock in the first four months of 2025 [18] - A quarterly dividend of $10 million was paid during the quarter, with plans for future dividends [17] Q&A Session Summary Question: Thoughts on general line side of the business and inventory positions - Management noted that customers are relying heavily on two-step distribution for inventory management and just-in-time services [25] Question: Update on the Oakdale project and macro environment - The Oakdale facility is expected to resume operations, with veneer supply shifting back to EWP production [29] Question: Capital allocation priorities and M&A pipeline - Management indicated a quiet M&A pipeline but remains open to opportunities that align with growth strategy [30] Question: EWP pricing expectations for Q2 - Management expects low single-digit sequential pricing declines, similar to Q1 [38] Question: Competitive pressures in EWP - Competitive challenges are primarily from existing EWP producers rather than dimensional lumber or open web trusses [49] Question: Update on LVL volumes and share gains - LVL volumes are starting to outpace production, indicating a positive trend [62] Question: Inventory levels and market conditions - Management feels confident about inventory levels, which are aligned with market demands [76] Question: Impact of recent transactions in the industry - Management believes they are well-positioned amidst ongoing industry consolidation and will focus on high-level execution [78]

Financial Performance - Boise Cascade's Q1 2025 sales were $1.5 billion, a decrease of 7% compared to Q1 2024[4] - Net income for Q1 2025 was $40.3 million, or $1.06 per share, significantly lower than the $104.1 million, or $2.61 per share, in Q1 2024[4] - Adjusted EBITDA decreased by 46%, from $168.5 million in 1Q 2024 to $91.6 million in 1Q 2025[6] Segment Performance - Building Materials Distribution (BMD) sales were $1.4071 billion in 1Q 2025, down from $1.505 billion in 1Q 2024[6] - Wood Products sales were $415.8 million in 1Q 2025, down from $468.9 million in 1Q 2024[6] - BMD segment EBITDA was $62.8 million in 1Q25, compared to $83.6 million in 1Q24[28] - Wood Products segment EBITDA was $40.2 million in 1Q25, compared to $95.6 million in 1Q24[28] Capital Allocation - Capital expenditures totaled $53 million in 1Q 2025, with $31 million allocated to Wood Products and $22 million to BMD[23] - Share repurchases amounted to $54 million in 1Q 2025, with a total of $71 million repurchased year-to-date through April[23] - $10 million in dividends were paid in 1Q 2025[23] Outlook - The company anticipates that most housing starts forecasts ranging between flat to mid-single digit year-over-year declines[24]

分组1 - Boise Cascade reported quarterly earnings of $1.06 per share, missing the Zacks Consensus Estimate of $1.36 per share, and down from $2.61 per share a year ago, representing an earnings surprise of -22.06% [1] - The company posted revenues of $1.54 billion for the quarter, surpassing the Zacks Consensus Estimate by 5.67%, but down from $1.65 billion year-over-year [2] - Over the last four quarters, Boise Cascade has surpassed consensus revenue estimates four times, but has only exceeded EPS estimates once [2] 分组2 - The stock has underperformed, losing about 19.1% since the beginning of the year, compared to the S&P 500's decline of -3.3% [3] - The current consensus EPS estimate for the coming quarter is $2.29 on revenues of $1.81 billion, and for the current fiscal year, it is $7.97 on revenues of $6.54 billion [7] - The Zacks Industry Rank for Building Products - Wood is currently in the bottom 24% of over 250 Zacks industries, indicating potential underperformance compared to higher-ranked industries [8]

PART I—FINANCIAL INFORMATION This section presents the company's unaudited financial statements, management's analysis, market risks, and internal controls for the quarter [ITEM 1. FINANCIAL STATEMENTS](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) Presents unaudited consolidated financial statements including operations, balance sheets, cash flows, and notes for Q1 2025 [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) Details the company's sales, income from operations, net income, and earnings per share for the quarter Financial Performance (Three Months Ended March 31) | Metric | 2025 (thousands) | 2024 (thousands) | Change (YoY) | | :------------------------------------------------ | :--------------- | :--------------- | :----------- | | Sales | $1,536,494 | $1,645,420 | -6.6% | | Income from operations | $54,519 | $132,982 | -59.0% | | Net income | $40,348 | $104,124 | -61.2% | | Basic EPS | $1.06 | $2.63 | -59.7% | | Diluted EPS | $1.06 | $2.61 | -59.7% | | Dividends declared per common share | $0.21 | $0.20 | +5.0% | [Consolidated Statements of Comprehensive Income](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Presents net income and other comprehensive income components, leading to total comprehensive income for the period Comprehensive Income (Three Months Ended March 31) | Metric | 2025 (thousands) | 2024 (thousands) | Change (YoY) | | :----------------------- | :--------------- | :--------------- | :----------- | | Net income | $40,348 | $104,124 | -61.2% | | Other comprehensive income, net of tax | $6 | $8 | -25.0% | | Comprehensive income | $40,354 | $104,132 | -61.2% | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) Outlines the company's financial position, including assets, liabilities, and stockholders' equity at period-end Balance Sheet Highlights (as of) | Metric | March 31, 2025 (thousands) | December 31, 2024 (thousands) | Change | | :-------------------------------- | :------------------------- | :-------------------------- | :------- | | Total assets | $3,481,644 | $3,369,383 | +3.3% | | Total current assets | $1,979,524 | $1,886,068 | +4.9% | | Cash and cash equivalents | $561,781 | $713,260 | -21.3% | | Inventories | $921,434 | $803,296 | +14.7% | | Total liabilities | $1,354,567 | $1,218,109 | +11.2% | | Total stockholders' equity | $2,127,077 | $2,151,274 | -1.1% | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Summarizes cash flows from operating, investing, and financing activities, and the net change in cash for the quarter Cash Flow Summary (Three Months Ended March 31) | Metric | 2025 (thousands) | 2024 (thousands) | Change (YoY) | | :------------------------------------ | :--------------- | :--------------- | :----------- | | Net cash provided by (used for) operations | $(28,476) | $27,462 | -203.7% | | Net cash used for investment | $(52,225) | $(37,158) | +40.6% | | Net cash used for financing | $(70,778) | $(49,631) | +42.6% | | Net decrease in cash and cash equivalents | $(151,479) | $(59,327) | +155.3% | | Balance at end of the period | $561,781 | $890,247 | -36.9% | [Consolidated Statements of Stockholders' Equity](index=9&type=section&id=Consolidated%20Statements%20of%20Stockholders%27%20Equity) Details changes in stockholders' equity, including net income, treasury stock, and dividends, for the reporting period - Stockholders' equity at March 31, 2025, was **$2,127,077 thousand**, reflecting net income of **$40,348 thousand**, offset by treasury stock purchases of **$(53,884) thousand** and common stock dividends of **$(8,060) thousand**[23](index=23&type=chunk) - For the three months ended March 31, 2024, stockholders' equity was **$2,257,202 thousand**, with net income of **$104,124 thousand**, treasury stock purchases of **$(26,971) thousand**, and common stock dividends of **$(8,677) thousand**[26](index=26&type=chunk) [Condensed Notes to Unaudited Quarterly Consolidated Financial Statements](index=11&type=section&id=Condensed%20Notes%20to%20Unaudited%20Quarterly%20Consolidated%20Financial%20Statements) Provides detailed disclosures on accounting policies, segment information, and other financial notes supporting the statements [1. Nature of Operations and Consolidation](index=11&type=section&id=1.%20Nature%20of%20Operations%20and%20Consolidation) Describes the company's business segments and the basis of presentation for the unaudited financial statements - Boise Cascade operates two reportable segments: Wood Products (manufactures engineered wood products and plywood) and Building Materials Distribution (wholesale distributor of building materials)[29](index=29&type=chunk) - The accompanying quarterly consolidated financial statements are unaudited but include all adjustments necessary for fair presentation, with certain information condensed or omitted compared to annual statements[30](index=30&type=chunk) [2. Summary of Significant Accounting Policies](index=11&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) Outlines key accounting principles, estimates, revenue recognition, inventory valuation, and new accounting standards - Management makes estimates and assumptions for financial statements, including valuation of accounts receivable, inventories, goodwill, intangible assets, and legal contingencies, which are evaluated on an ongoing basis[32](index=32&type=chunk) - Revenue is recognized when control of promised goods or services is transferred to customers. Shipping and handling fees charged to customers are included in 'Sales'[33](index=33&type=chunk)[34](index=34&type=chunk) - Customer rebates are estimated and recorded as a decrease in 'Sales', totaling **$66.5 million** at March 31, 2025. Vendor rebates reduce 'Materials, labor, and other operating expenses'[35](index=35&type=chunk)[36](index=36&type=chunk) Inventories (as of) | Category | March 31, 2025 (thousands) | December 31, 2024 (thousands) | | :-------------------------- | :------------------------- | :-------------------------- | | Finished goods and work in process | $812,218 | $695,901 | | Logs | $49,726 | $50,152 | | Other raw materials and supplies | $59,490 | $57,243 | | **Total Inventories** | **$921,434** | **$803,296** | Property and Equipment, Net (as of) | Category | March 31, 2025 (thousands) | December 31, 2024 (thousands) | | :------------------------------------------ | :------------------------- | :-------------------------- | | Land | $94,591 | $94,591 | | Buildings | $364,038 | $360,518 | | Improvements | $88,674 | $87,512 | | Mobile equipment, information technology, and office furniture | $302,529 | $296,604 | | Machinery and equipment | $1,093,056 | $1,089,117 | | Construction in progress | $179,138 | $147,668 | | Less: accumulated depreciation | $(1,046,560) | $(1,028,927) | | **Total Property and Equipment, Net** | **$1,075,466** | **$1,047,083** | - The company uses an interest rate swap to mitigate variable interest rate exposure, fixing the rate on **$50.0 million** of variable rate debt at an annual fixed rate of **0.41%**, expiring in June 2025[47](index=47&type=chunk) - Receivables from two customers accounted for approximately **17%** and **10%** of total receivables at March 31, 2025, indicating a concentration of credit risk[48](index=48&type=chunk) - The company is evaluating the impact of new accounting standards ASU 2023-09 (Income Taxes) and ASU 2024-03 (Expense Disaggregation Disclosures) on its financial statements[49](index=49&type=chunk)[50](index=50&type=chunk) [3. Income Taxes](index=15&type=section&id=3.%20Income%20Taxes) Details the income tax provision and effective tax rates for the reporting period Income Tax Provision (Three Months Ended March 31) | Metric | 2025 (millions) | 2024 (millions) | Effective Rate | | :-------------------- | :-------------- | :-------------- | :------------- | | Income tax provision | $13.8 | $32.8 | 25.5% (2025), 24.0% (2024) | - Cash paid for taxes, net of refunds, decreased to **$1.5 million** in Q1 2025 from **$1.9 million** in Q1 2024[53](index=53&type=chunk) [4. Net Income Per Common Share](index=15&type=section&id=4.%20Net%20Income%20Per%20Common%20Share) Presents the calculation of basic and diluted earnings per common share for the quarter Net Income Per Common Share (Three Months Ended March 31) | Metric | 2025 | 2024 | Change (YoY) | | :------------------------------------------------ | :--- | :--- | :----------- | | Net income | $40,348 | $104,124 | -61.2% | | Weighted average common shares outstanding (basic) | 38,017 | 39,608 | -4.0% | | Weighted average common shares (diluted) | 38,215 | 39,956 | -4.4% | | Basic EPS | $1.06 | $2.63 | -59.7% | | Diluted EPS | $1.06 | $2.61 | -59.7% | [5. Goodwill and Intangible Assets](index=16&type=section&id=5.%20Goodwill%20and%20Intangible%20Assets) Reports the carrying values and changes in goodwill and other intangible assets - Goodwill remained constant at **$171.9 million** for both March 31, 2025, and December 31, 2024, allocated between Building Materials Distribution (**$45.8 million**) and Wood Products (**$126.2 million**)[57](index=57&type=chunk) - Net intangible assets decreased from **$173.0 million** at December 31, 2024, to **$167.9 million** at March 31, 2025, with amortization expense of **$5.1 million** in Q1 2025[57](index=57&type=chunk)[58](index=58&type=chunk) [6. Debt](index=16&type=section&id=6.%20Debt) Details the company's long-term debt structure, recent financing activities, and interest payments Long-term Debt (as of) | Category | March 31, 2025 (thousands) | December 31, 2024 (thousands) | | :------------------------------------ | :------------------------- | :-------------------------- | | Asset-based credit facility term loan due 2027 | $50,000 | $50,000 | | 4.875% senior notes due 2030 | $400,000 | $400,000 | | Deferred financing costs | $(3,611) | $(3,833) | | **Total Long-term debt** | **$446,389** | **$446,167** | - On April 14, 2025, the company entered into a new **$450.0 million** revolving facility, maturing April 14, 2030, and used **$50.0 million** from it to repay the ABL Term Loan, terminating the previous Amended Agreement[70](index=70&type=chunk)[72](index=72&type=chunk)[73](index=73&type=chunk) - Cash payments for interest were **$9.2 million** for the three months ended March 31, 2025, a decrease from **$10.0 million** in the prior year[79](index=79&type=chunk) [7. Leases](index=20&type=section&id=7.%20Leases) Summarizes total lease costs, cash flows from leases, and future minimum lease payment obligations Total Lease Cost (Three Months Ended March 31) | Metric | 2025 (thousands) | 2024 (thousands) | Change (YoY) | | :---------------- | :--------------- | :--------------- | :----------- | | Total lease cost | $7,651 | $7,627 | +0.3% | - Operating cash flows from operating leases were **$3.365 million** and from finance leases were **$0.502 million** for the three months ended March 31, 2025[81](index=81&type=chunk) - As of March 31, 2025, total future minimum lease payments are **$63.5 million** for operating leases and **$43.8 million** for finance leases[82](index=82&type=chunk) [8. Stock-Based Compensation](index=21&type=section&id=8.%20Stock-Based%20Compensation) Reports stock-based compensation expense, unit grants, and unrecognized compensation expense Stock-Based Compensation Expense (Three Months Ended March 31) | Metric | 2025 (thousands) | 2024 (thousands) | Change (YoY) | | :---------------- | :--------------- | :--------------- | :----------- | | PSUs | $1,832 | $2,277 | -19.6% | | RSUs | $1,925 | $1,828 | +5.3% | | **Total** | **$3,757** | **$4,105** | **-8.4%** | - During Q1 2025, the company granted **83,616** Performance Stock Units (PSUs) and **98,327** Restricted Stock Units (RSUs)[84](index=84&type=chunk)[86](index=86&type=chunk) - Total unrecognized compensation expense related to nonvested share-based compensation arrangements was **$30.9 million** as of March 31, 2025, expected to be recognized over a weighted-average period of **2.2 years**[87](index=87&type=chunk) [9. Stockholders' Equity](index=23&type=section&id=9.%20Stockholders%27%20Equity) Details dividend declarations and common stock repurchase activities during the period - On May 1, 2025, the board declared a quarterly dividend of **$0.21** per share, payable on June 18, 2025[90](index=90&type=chunk) Stock Repurchases (Three Months Ended March 31) | Metric | 2025 | 2024 | Change (YoY) | | :-------------------------------- | :------- | :------- | :----------- | | Shares repurchased | 482,700 | 205,938 | +134.4% | | Cost of repurchases (millions) | $53.9 | $27.0 | +99.6% | | Average price per share | $111.63 | $130.97 | -14.8% | - As of March 31, 2025, **1,325,516 shares** of common stock remained authorized for repurchase under the program[93](index=93&type=chunk) [10. Transactions With Related Party](index=23&type=section&id=10.%20Transactions%20With%20Related%20Party) Reports sales and purchases with a related party, Louisiana Timber Procurement Company, L.L.C - Related-party sales to Louisiana Timber Procurement Company, L.L.C. (LTP) from the Wood Products segment decreased to **$1.6 million** in Q1 2025 from **$2.6 million** in Q1 2024[96](index=96&type=chunk) - Related-party wood fiber purchases from LTP decreased to **$14.8 million** in Q1 2025 from **$19.8 million** in Q1 2024[97](index=97&type=chunk) [11. Segment Information](index=25&type=section&id=11.%20Segment%20Information) Provides financial data broken down by Wood Products and Building Materials Distribution segments Segment Sales to External Customers (Three Months Ended March 31) | Segment | 2025 (millions) | 2024 (millions) | Change (YoY) | | :-------------------------- | :-------------- | :-------------- | :----------- | | Wood Products | $129.4 | $140.4 | -7.8% | | Building Materials Distribution | $1,407.1 | $1,505.0 | -6.6% | | **Total** | **$1,536.5** | **$1,645.4** | **-6.6%** | Segment Income from Operations (Three Months Ended March 31) | Segment | 2025 (thousands) | 2024 (thousands) | Change (YoY) | | :-------------------------- | :--------------- | :--------------- | :----------- | | Wood Products | $17,709 | $71,238 | -75.1% | | Building Materials Distribution | $48,417 | $72,463 | -33.2% | | **Total Income from Operations** | **$54,519** | **$132,982** | **-59.0%** | Capital Expenditures (Three Months Ended March 31) | Segment | 2025 (thousands) | 2024 (thousands) | Change (YoY) | | :-------------------------- | :--------------- | :--------------- | :----------- | | Wood Products | $30,689 | $19,643 | +56.2% | | Building Materials Distribution | $22,431 | $14,672 | +52.9% | | Corporate | $85 | $15 | +466.7% | | **Total Capital Expenditures** | **$53,205** | **$34,330** | **+55.0%** | [12. Commitments, Legal Proceedings and Contingencies, and Guarantees](index=27&type=section&id=12.%20Commitments%2C%20Legal%20Proceedings%20and%20Contingencies%2C%20and%20Guarantees) Addresses material changes in commitments, legal actions, and guarantees since the last annual report - There have been no material changes to the company's long-term log supply agreements, purchase obligations, or other commitments since the 2024 Form 10-K[105](index=105&type=chunk) - The company does not believe any current legal action could reasonably be expected to have a material adverse effect on its financial position, results of operations, or cash flows[106](index=106&type=chunk) - No material changes to the company's guarantees have occurred since the 2024 Form 10-K[108](index=108&type=chunk) [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=29&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses financial performance, condition, and operational results for Q1 2025, highlighting income decline and liquidity [Understanding Our Financial Information](index=29&type=section&id=Understanding%20Our%20Financial%20Information) Introduces the company's business model and the forward-looking nature of the financial discussion - Boise Cascade is an integrated wood products manufacturer and building materials distributor, operating through Wood Products and Building Materials Distribution segments[110](index=110&type=chunk) - The discussion includes forward-looking statements based on management's estimates and assumptions, which are inherently uncertain and subject to numerous risks[109](index=109&type=chunk) [Executive Overview](index=30&type=section&id=Executive%20Overview) Summarizes key financial results, including income from operations, segment performance, and liquidity position - Income from operations decreased significantly to **$54.5 million** in Q1 2025 from **$133.0 million** in Q1 2024, driven by lower sales prices and volumes in both Wood Products and BMD segments[112](index=112&type=chunk) - The Wood Products segment's income decreased by **$53.5 million** due to lower EWP and plywood sales prices, higher per-unit conversion costs from modernization downtime, and lower EWP sales volumes[112](index=112&type=chunk) - The BMD segment's income decreased by **$24.0 million**, primarily due to a **$20.4 million** gross margin decrease from lower sales volumes and reduced margins on commodity and EWP products[112](index=112&type=chunk) - The company ended Q1 2025 with **$957.5 million** in total available liquidity (**$561.8 million** cash and **$395.7 million** undrawn bank line), despite using **$151.5 million** cash for working capital, capital spending, treasury stock purchases, and dividends[113](index=113&type=chunk) - 2025 end market demand expectations are uncertain, with housing starts forecasts ranging from flat to mid-single digit year-over-year declines, influenced by macroeconomic factors like mortgage rates and home affordability[114](index=114&type=chunk) [Factors That Affect Our Operating Results and Trends](index=30&type=section&id=Factors%20That%20Affect%20Our%20Operating%20Results%20and%20Trends) Identifies key external and internal factors influencing the company's operational performance and financial trends - Operating results are influenced by commodity product price movements, industry competition, demand declines, disruptions to information systems, and major equipment failures at manufacturing facilities[116](index=116&type=chunk) - Other influencing factors include labor disruptions or shortages, dependence on third-party suppliers, cost and availability of raw materials, ability to execute growth strategies, and compliance with government regulations[117](index=117&type=chunk) [Our Operating Results](index=32&type=section&id=Our%20Operating%20Results) Analyzes sales, expenses, and income performance across segments, detailing year-over-year changes and drivers Operating Results (Three Months Ended March 31) | Metric | 2025 (millions) | 2024 (millions) | Change (YoY) | | :------------------------------------------------ | :-------------- | :-------------- | :----------- | | Sales | $1,536.5 | $1,645.4 | -6.6% | | Materials, labor, and other operating expenses | $1,276.2 | $1,307.4 | -2.4% | | Income from operations | $54.5 | $133.0 | -59.0% | | Income before income taxes | $54.2 | $137.0 | -60.5% | | Net income | $40.3 | $104.1 | -61.2% | - Total U.S. housing starts decreased **2%** in Q1 2025 compared to Q1 2024, with single-family housing starts down **6%**[120](index=120&type=chunk) - Wood Products sales decreased **$53.1 million (11%)** due to lower sales prices (**9%** for LVL and I-joists) and volumes (**3%** for LVL and I-joists, **2%** for plywood)[121](index=121&type=chunk) - Building Materials Distribution sales decreased **$97.9 million (7%)** due to overall sales volume and price decreases of **5%** and **2%**, respectively, impacting commodity, general line, and EWP products[122](index=122&type=chunk) - Wood Products' materials, labor, and other operating expenses (MLO) rate increased by **1,100 basis points**, primarily due to lower EWP and plywood sales prices and decreased leveraging of manufacturing costs[123](index=123&type=chunk) - BMD's MLO rate increased **40 basis points**, driven by lower margin percentages on commodity and EWP products[123](index=123&type=chunk) - Segment income for Wood Products decreased by **$53.5 million** to **$17.7 million**, while Building Materials Distribution segment income decreased by **$24.0 million** to **$48.4 million**[128](index=128&type=chunk)[129](index=129&type=chunk) - Interest income decreased **$5.1 million** to **$5.5 million** due to lower average balances of cash equivalents and lower interest rates[131](index=131&type=chunk) - The income tax provision decreased to **$13.8 million** in Q1 2025 from **$32.8 million** in Q1 2024, with effective rates of **25.5%** and **24.0%** respectively, primarily due to state taxes[133](index=133&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) Discusses the company's cash position, available liquidity, cash flow activities, and planned capital expenditures - The company maintained strong liquidity with **$957.5 million** available at March 31, 2025, comprising **$561.8 million** in cash and cash equivalents and **$395.7 million** in undrawn committed bank line availability[134](index=134&type=chunk) - Cash and cash equivalents decreased by **$151.5 million** in Q1 2025, used to fund seasonal working capital increases, capital spending, treasury stock purchases, and dividends[134](index=134&type=chunk) - Operating activities used **$28.5 million** of cash in Q1 2025, a **$55.9 million** decrease compared to cash generated in Q1 2024, primarily due to a decrease in income from operations[139](index=139&type=chunk) - Working capital increased by **$123.7 million** in Q1 2025, mainly driven by higher receivables and inventories in preparation for the spring building season[139](index=139&type=chunk)[140](index=140&type=chunk) - Capital expenditures for property and equipment increased to **$53.2 million** in Q1 2025 from **$34.3 million** in Q1 2024[141](index=141&type=chunk) - Expected capital expenditures for 2025 are **$220 million** to **$240 million**, including multi-year investments at the Thorsby EWP mill, Oakdale veneer and plywood mills, and greenfield distribution centers[142](index=142&type=chunk) - Financing activities used **$70.8 million** of cash in Q1 2025, including **$53.9 million** for common stock repurchases and **$10.5 million** for dividend payments[144](index=144&type=chunk) - Post-quarter-end, on April 14, 2025, the company entered into a new **$450.0 million** revolving facility, using **$50.0 million** to repay the ABL Term Loan and terminating the previous credit agreement[136](index=136&type=chunk) [Guarantees](index=37&type=section&id=Guarantees) Confirms no material changes to the company's guarantees since the last annual report - There have been no material changes to the company's guarantees as disclosed in the 2024 Form 10-K[148](index=148&type=chunk) [Seasonal Influences](index=37&type=section&id=Seasonal%20Influences) Explains how seasonal weather patterns impact sales volumes, working capital, and operating costs - The company experiences lower sales volumes in the first and fourth quarters due to poor weather impacting construction, with higher sales volumes typically in the second and third quarters[149](index=149&type=chunk) - Working capital is typically higher in the first and second quarters in preparation for the building season, and cold weather increases energy consumption costs at manufacturing facilities[149](index=149&type=chunk) [Employees](index=38&type=section&id=Employees) Provides employee count and details on collective bargaining agreements and their potential impact - As of April 27, 2025, the company had approximately **7,670 employees**, with about **17%** working under collective bargaining agreements[150](index=150&type=chunk) - Two collective bargaining agreements covering approximately **750 employees** at the Oakdale and Florien plywood plants are set to expire on July 15, 2025, posing potential risks of labor disruptions or increased costs[150](index=150&type=chunk) [Disclosures of Financial Market Risks](index=38&type=section&id=Disclosures%20of%20Financial%20Market%20Risks) States no material changes to the company's exposure to financial market risks since the 2024 Form 10-K - There have been no material changes to the company's exposure to financial market risks, including commodity prices, interest rates, and foreign currency exchange rates, since the 2024 Form 10-K[151](index=151&type=chunk) [Environmental](index=38&type=section&id=Environmental) Confirms no material changes to environmental issues previously disclosed in the 2024 Form 10-K - There have been no material changes to environmental issues disclosed in the 2024 Form 10-K[152](index=152&type=chunk) [Critical Accounting Estimates](index=38&type=section&id=Critical%20Accounting%20Estimates) Reports no material changes to critical accounting estimates from those in the 2024 Form 10-K - There have been no material changes to the company's critical accounting estimates from those disclosed in the 2024 Form 10-K[153](index=153&type=chunk) [New and Recently Adopted Accounting Standards](index=38&type=section&id=New%20and%20Recently%20Adopted%20Accounting%20Standards) Refers to Note 2 for information on new and recently adopted accounting standards - For information related to new and recently adopted accounting standards, refer to Note 2, Summary of Significant Accounting Policies, in Item 1 of this Form 10-Q[154](index=154&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=38&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) No material changes in the company's exposure to market risk have occurred since the 2024 Form 10-K - No material changes in the company's exposure to market risk have occurred since the 2024 Form 10-K[155](index=155&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=39&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Confirms the effectiveness of disclosure controls and reports no material changes in internal control over financial reporting [Evaluation of Disclosure Controls and Procedures](index=39&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) Confirms the effectiveness of the company's disclosure controls and procedures as of March 31, 2025 - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of March 31, 2025, ensuring timely and accurate reporting of required information[156](index=156&type=chunk) [Changes in Internal Control Over Financial Reporting](index=39&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) Reports no material changes in internal control over financial reporting during the first quarter of 2025 - There were no changes in internal control over financial reporting during the three months ended March 31, 2025, that materially affected, or are reasonably likely to materially affect, internal control over financial reporting[157](index=157&type=chunk) PART II—OTHER INFORMATION This section covers legal proceedings, risk factors, equity sales, defaults, and other miscellaneous disclosures [ITEM 1. LEGAL PROCEEDINGS](index=40&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company is involved in routine legal proceedings but does not anticipate any material adverse effects on its financial position, results of operations, or cash flows - The company does not believe any current legal action could reasonably be expected to have a material adverse effect on its financial position, results of operations, or cash flows[159](index=159&type=chunk) - A disclosure threshold of **$1 million** or more is used for proceedings arising under federal, state, or local environmental provisions[160](index=160&type=chunk) [ITEM 1A. RISK FACTORS](index=40&type=section&id=ITEM%201A.%20RISK%20FACTORS) This section advises readers that the report contains forward-looking statements and directs them to review the comprehensive risk factors detailed in the company's 2024 Form 10-K - The report contains forward-looking statements, and readers should review the risk factors listed in 'Item 1A. Risk Factors' in the 2024 Form 10-K for potential risks and uncertainties[161](index=161&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=40&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) The company repurchased 482,700 shares of common stock for $53.9 million during Q1 2025 under its authorized repurchase program, with 1,325,516 shares remaining for future repurchases Share Repurchases (Q1 2025) | Period | Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | The Maximum Number of Shares That May Yet Be Purchased Under the Plans or Programs | | :--------------------------------- | :--------------- | :--------------------------- | :----------------------------------------------------------------------- | :-------------------------------------------------------------------------------- | | January 1, 2025 - January 31, 2025 | 250,000 | $120.51 | 250,000 | 1,558,216 | | February 1, 2025 - February 28, 2025 | 80,000 | $105.27 | 80,000 | 1,478,216 | | March 1, 2025 - March 31, 2025 | 152,700 | $100.43 | 152,700 | 1,325,516 | | **Total** | **482,700** | **$111.63** | **482,700** | **1,325,516** | - On October 30, 2024, the board authorized the repurchase of an additional **1.4 million shares** of common stock under the existing program[162](index=162&type=chunk) [ITEM 3. DEFAULTS UPON SENIOR SECURITIES](index=40&type=section&id=ITEM%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) The company reported no defaults upon senior securities during the period - No defaults upon senior securities were reported[164](index=164&type=chunk) [ITEM 4. MINE SAFETY DISCLOSURES](index=40&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) This item is not applicable to the company - This item is not applicable[165](index=165&type=chunk) [ITEM 5. OTHER INFORMATION](index=41&type=section&id=ITEM%205.%20OTHER%20INFORMATION) None of Boise Cascade's directors or officers adopted, terminated, or modified a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement during the three months ended March 31, 2025 - None of Boise Cascade's directors or officers adopted, terminated, or modified a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement during the three months ended March 31, 2025[166](index=166&type=chunk) [ITEM 6. EXHIBITS](index=41&type=section&id=ITEM%206.%20EXHIBITS) This section lists all exhibits filed with the Form 10-Q, including various stock unit agreements, CEO/CFO certifications, and Inline XBRL documents - Exhibits include forms for 2025 Restricted Stock Unit Agreement, 2025 Performance Stock Unit Agreement, 2025 Director Restricted Stock Unit Agreement, CEO/CFO Certifications (Sarbanes-Oxley Act), and Inline XBRL documents[167](index=167&type=chunk) [Signatures](index=42&type=section&id=Signatures) The report is formally signed by Kelly E. Hibbs, Senior Vice President, Chief Financial Officer and Treasurer, on behalf of Boise Cascade Company - The report is signed by Kelly E. Hibbs, Senior Vice President, Chief Financial Officer and Treasurer, on May 5, 2025[171](index=171&type=chunk)

Boise Cascade Company Exhibit 99.1 1111 West Jefferson Street, Suite 300 Boise, ID 83702 For Immediate Release: May 5, 2025 Boise Cascade Company Reports First Quarter 2025 Results BOISE, Idaho - Boise Cascade Company ("Boise Cascade," the "Company," "we," or "our") (NYSE: BCC) today reported net income of $40.3 million, or $1.06 per share, on sales of $1.5 billion for the first quarter ended March 31, 2025, compared with net income of $104.1 million, or $2.61 per share, on sales of $1.6 billion for the fir ...

Company Overview - Boise Cascade (BCC) has undergone a significant transformation over the past 5 years and is currently experiencing near-term tailwinds [1] Financial Performance - Revenue increased by 45% from 2020 to 2021, driven by a boom in the housing market [1]

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