Core Viewpoint - DA Davidson has lowered the price target for Boise Cascade (BCC) to $95 from $100 while maintaining a Buy rating on the shares, indicating a cautious outlook on the company's performance in the engineered wood products sector [1] Company Summary - The price target for Boise Cascade (BCC) has been adjusted to $95 from $100, reflecting ongoing price pressure in the Engineered Wood Products (EWP) market [1] - Despite the lowered price target, the firm retains a Buy rating on Boise Cascade shares, suggesting confidence in the company's long-term prospects [1] Industry Summary - The Engineered Wood Products (EWP) sector is experiencing continued price pressure, with expectations of low to mid single-digit sequential declines persisting through Q1 [1] - If competition remains intense and prices continue to decline, a significant portion of the EWP industry may operate at or below cash production costs, potentially leading to a supply response [1]

Financial Data and Key Metrics Changes - Consolidated second quarter sales were $1.7 billion, down 3% from 2024 [7] - Net income was $62 million or $1.64 per share, compared to $112.3 million or $2.84 per share in the prior year quarter [7] - Included in the results were a $7.7 million pre-tax gain on asset sales [7] Business Line Data and Key Metrics Changes - Wood Products sales were $447.2 million, down 9% year-over-year, with segment EBITDA at $37.3 million compared to $95.1 million in the prior year [10] - Building Materials Distribution (BMD) sales were $1.6 billion, down 2% from the previous year, with segment EBITDA of $91.8 million compared to $97.1 million [10] - BMD's gross margin was 15.4%, a 60 basis point year-over-year improvement despite increased selling and distribution expenses [11] Market Data and Key Metrics Changes - U.S. housing starts and single-family housing starts decreased by 18% compared to the prior year quarter [7] - Plywood sales volume was 356 million feet, down from 383 million feet in the second quarter of 2024 [13] - Average plywood net sales price was $342 per 1,000 feet, down 6% year-over-year [13] Company Strategy and Development Direction - The company is focused on addressing near-term challenges while maintaining service standards and investing in sustainable growth opportunities [9] - The modernization project at the Oakdale Mill is substantially complete, enhancing operational efficiency and reliability [8] - The company aims to solidify and expand its market-leading national distribution presence [16] Management's Comments on Operating Environment and Future Outlook - Management expects headwinds for residential construction activity to persist, with a range of potential EBITDA outcomes for the third quarter [19] - Long-term demand drivers for residential construction remain robust, supported by structural and generational factors [22][23] - The company anticipates consumer confidence to improve with lower interest rates and greater clarity on U.S. economic policy [23] Other Important Information - Capital expenditures for the first half of 2025 were $132 million, with a commitment to a capital spending range of $220 million to $240 million for the year [15] - The company paid $18 million in regular dividends and repurchased approximately $96 million of common stock in 2025 [18] Q&A Session Summary Question: Performance gap between LVL and I-joist volumes - Management noted that LVL has better resiliency due to diverse application opportunities, while I-joist is more limited [27] Question: EWP destocking and its impact - Management indicated that purchase profiles are changing, with less mill directs and more activity in distribution [47] Question: Operating rates and EWP pricing outlook - Operating rates were in the low 80s for EWP, with expectations of a decline to 65-70% depending on demand [49] Question: Update on the strike at the Billings facility - The strike involves 19 employees at one BMD location, with no anticipated material impact on operations [51][52] Question: General line business performance - General line categories performed well, with expectations to remain strong due to customer reliance on distribution inventories [58]

Group 1 - Avanos Medical, Inc. (AVNS) is a medical technology company focusing on delivering medical device solutions, with a Zacks Consensus Estimate for its current year earnings revised 17.7% downward over the last 60 days [1] - Boise Cascade Company (BCC) is a manufacturer of wood products and building materials, with a Zacks Consensus Estimate for its current year earnings revised 1.6% downward over the last 60 days [1] - Amplify Energy Corp. (AMPY) is an explorer and producer of oil and natural gas, with a Zacks Consensus Estimate for its current year earnings revised 48.5% downward over the last 60 days [2]

Core Viewpoint - Owens Corning reported better-than-expected results for Q1 2025, marking the 24th consecutive earnings beat, with adjusted earnings and net sales surpassing estimates, although the bottom line declined year over year [1][4]. Financial Performance - Adjusted EPS was $2.97, exceeding the Zacks Consensus Estimate of $2.82 by 5.3%, down from $3.40 in the same quarter last year [5]. - Net sales reached $2.53 billion, slightly above the consensus mark of $2.52 billion, reflecting a 25% year-over-year increase [5]. - Adjusted EBITDA improved 9.7% year-over-year to $565 million, but the adjusted EBITDA margin contracted 400 basis points to 22% [8]. Segment Performance - **Roofing Segment**: Net sales were $1.12 billion, up 2% from $1.1 billion a year ago, driven by higher selling prices of $37 million, partially offset by lower volumes [5]. - **Insulation Segment**: Net sales were $909 million, down 5% year-over-year due to lower sales volumes of about 6% and a $10 million unfavorable impact from foreign currency translation, partially offset by higher selling prices of $22 million [6]. - **Doors Segment**: Reported net sales of $540 million, attributed to the acquisition of Masonite, with EBITDA of $68 million and an EBITDA margin of 13% [7]. Guidance and Outlook - For Q2 2025, revenues are expected to grow in high single digits year-over-year, with adjusted EBITDA margin anticipated in the low-to-mid 20% range [11]. - Roofing segment revenues are expected to increase in low-single digits, while Insulation revenues are anticipated to decline in mid-single digits [12]. - The Doors segment's revenues are expected to rise in low-single digits sequentially [13]. Financial Position - As of March 31, 2025, cash and cash equivalents were $400 million, up from $321 million at the end of 2024, while long-term debt decreased to $5.05 billion from $5.07 billion [10]. - Net cash used by operating activities was $49 million, compared to net cash provided of $24 million in the same period last year, with free cash flow at $(252) million [10]. Corporate Strategy - The company aims to focus on business growth and profitability through 2025, executing capital-efficient investments to strengthen market position and drive long-term growth [4][14].

Core Viewpoint - TopBuild Corp. reported mixed results for Q1 2025, with adjusted earnings exceeding estimates while net sales fell short, reflecting a year-over-year decline in both metrics [1][4]. Financial Performance - Adjusted EPS was $4.63, surpassing the Zacks Consensus Estimate of $4.43 by 4.5%, but down from $4.81 in the previous year [4]. - Net sales reached $1.23 billion, missing the consensus mark of $1.24 billion by 0.6% and declining 3.6% year over year [4]. - M&A contributed a 2.6% increase in sales, while prices rose by 1.2%, but volume decreased by 7.4% [4]. Segment Performance - **Installation Segment**: - Accounted for 57.1% of total net sales, with net sales of $745.5 million, down 6.7% year over year. M&A contributed 1.8% and pricing added 1.1%, while volume declined by 9.6% [5]. - Adjusted operating margin contracted by 110 basis points to 18.5% [5]. - **Specialty Distribution Segment**: - Represented 42.9% of total net sales, with net sales rising 2.6% year over year to $559.8 million. M&A contributed 3.4% and pricing added 1.4%, while volume decreased by 2.2% [6]. - Adjusted operating margin reduced by 50 basis points to 13.6% [7]. Operating Highlights - Adjusted gross margin contracted by 70 basis points to 29.6% [8]. - Adjusted SG&A expenses as a percentage of sales increased by 40 basis points to 13.9% [8]. - Adjusted EBITDA fell 7.5% year over year to $234.8 million, with the adjusted EBITDA margin contracting by 80 basis points to 19% [8]. Financial Position - As of March 31, 2025, cash and cash equivalents were $308.8 million, down from $400.3 million at the end of 2024 [9]. - Long-term debt was $1.31 billion, a decrease from $1.33 billion at the end of 2024 [9]. - Net cash provided by operations was $152.6 million, down from $178.8 million a year ago [9]. - The company repurchased 693,881 shares for a total of $215.6 million during the quarter [9]. Strategic Moves - In April 2025, TopBuild completed the acquisition of Seal-Rite Insulation, which generates approximately $15 million in annual revenues, aimed at expanding its market base [10]. Guidance - TopBuild expects net sales for the full year to be between $5.05 billion and $5.35 billion, compared to $5.33 billion reported last year [11]. - Adjusted EBITDA is projected to be between $925 million and $1.075 billion, compared to $725.8 million in 2024 [11]. - Residential sales are expected to decline in the high-single digits, while Commercial/Industrial sales are anticipated to grow in the low-single digits [11]. - M&As are expected to contribute about $85 million to full-year net sales [12].

Core Viewpoint - Louisiana-Pacific Corporation (LPX) reported better-than-expected first-quarter 2025 results, with adjusted earnings and net sales surpassing the Zacks Consensus Estimate, although the bottom line declined year-over-year while the top line remained flat [1][4]. Financial Performance - Adjusted earnings per share (EPS) were $1.27, exceeding the Zacks Consensus Estimate of $1.13 by 12.4%, down from $1.53 in the prior year [4]. - Net sales reached $724 million, surpassing the consensus mark of $693 million by 4.5%, remaining flat year-over-year [4]. - Adjusted EBITDA was $162 million, down 11% from the prior-year quarter, primarily due to lower OSB selling prices and volumes, partially offset by higher Siding net sales [5]. Segment Analysis - **Siding Segment**: Sales increased 11% year-over-year to $402 million, driven by a 9% rise in volume and a 2% increase in average selling prices. Adjusted EBITDA for this segment was $106 million, up 17% from the previous year [6][7]. - **OSB Segment**: Sales decreased 15% year-over-year to $267 million, with a $32 million drop in selling prices and a $13 million decline in sales volumes. Adjusted EBITDA fell 40% year-over-year to $54 million [8]. - **LP South America (LPSA)**: Sales grew 11% year-over-year to $52 million, with adjusted EBITDA increasing 22% to $12 million, largely due to higher sales volumes despite unfavorable currency fluctuations [9]. Cash Flow and Balance Sheet - As of March 31, 2025, the company had $1 billion in liquidity, with cash and cash equivalents at $256 million, down from $340 million at the end of 2024. Long-term debt remained flat at $348 million [10]. - Net cash provided by operations was $64 million compared to $105 million in the same period last year [10]. - The company repurchased 0.6 million shares for $61 million during the first quarter, with $177 million remaining under share repurchase authorizations [11]. Future Outlook - For Q2 2025, LPX expects Siding net sales to range between $445 million and $455 million, reflecting 9-11% growth year-over-year, with adjusted EBITDA between $110 million and $120 million [12]. - For the full year, Siding's net sales are anticipated to grow over 9%, reaching approximately $1.7 billion, with adjusted EBITDA expected between $425 and $435 million [14]. - Consolidated adjusted EBITDA is now projected to be between $535 million and $555 million, down from previous expectations [15].

Company Overview - Louisiana-Pacific (LPX) is expected to report a year-over-year decline in earnings, with a projected EPS of $1.13, reflecting a decrease of 26.1% [3] - Revenues for the quarter are anticipated to be $692.85 million, down 4.3% from the previous year [3] Earnings Expectations - The earnings report is scheduled for release on May 6, 2025, and actual results that exceed expectations could lead to a stock price increase, while a miss may result in a decline [2] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from covering analysts [4] Earnings Surprise Prediction - The Most Accurate Estimate for Louisiana-Pacific is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -2.44%, suggesting a bearish sentiment among analysts [10] - The company currently holds a Zacks Rank of 4, making it challenging to predict an earnings beat [11] Historical Performance - In the last reported quarter, Louisiana-Pacific exceeded the expected EPS of $0.79 by delivering $1.03, resulting in a surprise of +30.38% [12] - Over the past four quarters, the company has beaten consensus EPS estimates four times [13] Industry Comparison - Boise Cascade (BCC), another player in the Zacks Building Products - Wood industry, is expected to report earnings of $1.36 per share, reflecting a year-over-year decline of 47.9% [17] - Boise Cascade's revenues are projected to be $1.45 billion, down 11.6% from the previous year [17] - The company has an Earnings ESP of 9.56% and a Zacks Rank of 3, indicating a higher likelihood of beating the consensus EPS estimate [18]

Company Performance - UFP Industries reported quarterly earnings of $1.30 per share, missing the Zacks Consensus Estimate of $1.59 per share, and down from $1.96 per share a year ago [1] - The earnings surprise was -18.24%, and the company has surpassed consensus EPS estimates only once in the last four quarters [2] - Revenues for the quarter were $1.6 billion, missing the Zacks Consensus Estimate by 2.19%, and down from $1.64 billion year-over-year [3] Market Context - UFP Industries shares have declined about 5.3% since the beginning of the year, compared to a decline of -6.1% for the S&P 500 [4] - The current consensus EPS estimate for the upcoming quarter is $2.17 on revenues of $1.9 billion, and for the current fiscal year, it is $7.05 on revenues of $6.77 billion [8] Industry Outlook - The Building Products - Wood industry is currently in the bottom 37% of over 250 Zacks industries, indicating a challenging environment [9] - Boise Cascade, a competitor in the same industry, is expected to report quarterly earnings of $1.36 per share, reflecting a year-over-year decline of -47.9% [10]