Financial Data and Key Metrics Changes - Net profit for FY 25 reached $58.5 million, exceeding the guided range of $55 to $58 million, reflecting a strong performance [2] - Earnings per share increased by 61%, driven by share buybacks [2] - EBITDA margin improved to 24% from 21% in the previous year, primarily due to price growth across the portfolio [3] - Gearing decreased significantly from 34.8% to 27.5%, attributed to strong operating cash flows [3][22] Business Line Data and Key Metrics Changes - Sales volume increased by approximately 11% to 2,768, with settlements up by 9% [4] - The company reported a strong contracts on hand position of $612 million as of June 25, up from $481 million a year ago [4][30] - The land bank activation rate stands at 71%, indicating a high percentage of land bank within active projects [4][13] Market Data and Key Metrics Changes - Australia is experiencing strong population growth of 1.7%, driven by overseas migration, alongside a chronic housing shortage of 400,000 dwellings [5][6] - Low vacancy rates in major capitals and an improving borrowing environment for customers are noted [6][7] - The company is well-positioned to leverage favorable market conditions, with strong appetite for capital in the Australian residential sector [7] Company Strategy and Development Direction - The company is undergoing a strategic review to capitalize on favorable market dynamics, with Goldman Sachs appointed to lead the review [9][10] - Strategic pillars remain focused on master plan communities, townhouses, and low-rise apartments, with geographic diversity across the portfolio [12] - The company aims to strengthen its position and unlock value for future growth [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the medium-term outlook, citing macro factors such as population growth and housing supply constraints as supportive of growth [32][33] - The company anticipates continued strong operating cash flows and earnings growth in FY 26 [33] Other Important Information - The company declared a final dividend of 5¢ per share, totaling 7.75¢ for the year [2] - The buyback program has reduced shares on issue by around 4% since its inception [25] Q&A Session Summary Question: Is a potential outcome of the strategic review a sale of the company? - Management clarified that while the market is strong, the intent of the strategic review is to ensure optimal positioning and not to shop the company around [34][35] Question: When do you expect to get the results of the strategic review? - The strategic review is underway, with an update expected at the AGM scheduled for later in November [36] Question: How do you think of 2026 cash generation and reinvestment needs? - Strong cash flow is expected, but there will be a need for reinvestment to sustain ongoing settlements [38][39] Question: Any updates on the University of Canberra project? - The project is progressing well, with first sales anticipated in FY 28 [40][41] Question: How do sales activity in Victoria and ACT compare to last year? - Sales in Victoria increased from 7% to 10%, while ACT saw a rise from zero to approximately 70-80 sales [42][43] Question: Guidance on operating cash flow for FY 2026? - Operating cash flows are expected to remain strong, but timing of settlements will impact the figures [45][46] Question: What percentage of current presales is expected to settle in FY 2026? - A high percentage of lots currently under contract is expected to settle in FY 26 [48]

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]

Financial Data and Key Metrics Changes - The company reported a net loss of $37 million or $0.70 per diluted share for Q2 2025, with adjusted EBITDA of $144 million [19] - Free cash flow generated during the quarter was $131 million, with capital expenditures amounting to $89 million [19] - The company returned $87 million to investors through share buybacks and dividends, totaling $194 million returned in the first two quarters of 2025 [8][20] Business Line Data and Key Metrics Changes - The high CV thermal segment achieved a significant increase in sales volumes while markedly lowering unit costs [6] - The metallurgical platform, excluding the outage at Leer South, performed well, with the Leer mine achieving a second consecutive quarterly production record [6] - The Powder River Basin segment also delivered strong performance as power generators accelerated shipments ahead of the summer season [6] Market Data and Key Metrics Changes - Domestic thermal markets are strengthening due to rising demand, while seaborne thermal demand is recovering, particularly in Asia [12] - Global coking coal markets remain soft, pressured by sluggish steel production in Europe and China [12] - Coking coal exports from primary supply regions are down 7% through May, indicating potential supply cuts [14] Company Strategy and Development Direction - The company aims to return approximately 75% of free cash flow to shareholders through share repurchases and dividends, with a quarterly dividend of $0.10 per share [8] - The company is focused on operational excellence and synergy capture to enhance performance [7] - The recent legislation is expected to lower cash costs and enhance competitiveness in the Powder River Basin and West Elk operations [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of the Leer South mine and its long-term potential despite current challenges [11] - The company anticipates continued demand growth in domestic power markets, driven by increasing energy requirements from AI and data centers [16] - Management highlighted the importance of maintaining existing coal plants to meet future energy demands [27] Other Important Information - The company has authorized $1 billion in share repurchases, with approximately $817 million remaining as of the end of Q2 [10] - The merger-related annual synergy target has been increased to a range of $150 million to $170 million, reflecting better-than-expected cost savings [29] Q&A Session Summary Question: Why was the buyback not larger given the good outlook? - Management noted that they have returned over 100% of free cash flow to shareholders in the first half of the year, indicating a more aggressive approach than initially guided [34][36] Question: Thoughts on the $100 million insurance recovery for Leer South? - Management indicated that these funds are available for capital return programs, as they see value in the stock [37] Question: Confidence in returning to normalized production at Leer South? - Management expressed high confidence in returning to production levels, with plans to recover longwall equipment in early fall [41][43] Question: Pricing expectations for domestic contracting in the metallurgical segment? - Management indicated constructive negotiations and a belief that significant decreases in pricing are unlikely [47] Question: Update on insurance claims and timing for recovery? - Management expects to resolve claims for Leer South and Baltimore Bridge by the end of the year, with a larger business interruption claim to be submitted later [56] Question: Working capital expectations for the second half? - Management anticipates some more working capital unwinding, particularly related to inventory reduction [58] Question: Insights on the recent Union Pacific and Norfolk Southern merger? - Management sees potential benefits in blending coal and improved access to East Coast terminals, but emphasizes the need for high service levels and reasonable rates [70][72] Question: Impact of trade tensions with India on exports? - Management hopes for resolution of trade tensions, emphasizing the flexibility of their coal products in various markets [76] Question: Pricing for high CV thermal coal in 2026? - Management provided pricing expectations linked to API two and indicated a focus on maximizing blending opportunities [64][88]

Financial Data and Key Metrics Changes - The company reported a net loss of $37 million or $0.70 per diluted share for Q2 2025, with adjusted EBITDA of $144 million and free cash flow of $131 million [18][19] - Increased cash and cash equivalents by $25 million and overall liquidity by $90 million, totaling $948 million at the end of Q2 [6][20] - Returned $87 million to investors through share buybacks and dividends, totaling $194 million returned in the first two quarters of 2025 [7][19] Business Line Data and Key Metrics Changes - The high CV thermal segment achieved a significant increase in sales volumes while markedly lowering unit costs [6] - The metallurgical platform executed well, with the flagship Leer mine achieving a second consecutive quarterly production record [6] - The Powder River Basin segment delivered strong performance as power generators accelerated shipments ahead of the summer season [6] Market Data and Key Metrics Changes - Domestic thermal markets are strengthening due to rising demand and summer temperatures, while seaborne thermal demand is recovering, particularly in Asia [11][12] - Global coking coal markets remain soft, pressured by sluggish steel production in Europe and China, with coking coal exports from primary supply regions down 7% through May [12][13] - The PJM capacity market auction cleared at a record price for the second consecutive year, indicating tightness in domestic power markets [14][27] Company Strategy and Development Direction - The company aims to return approximately 75% of free cash flow to shareholders through share repurchases and dividends, with a focus on operational excellence and synergy capture [7][29] - The company is positioned to navigate market troughs with low-cost, high-quality operations and flexible logistics [12][31] - The recent legislation is expected to enhance the competitiveness of the company's operations and reduce cash costs [16][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of the Leer South mine and its ability to return to normalized production levels [41][42] - The company anticipates continued demand growth in domestic power markets, driven by increasing energy requirements from AI and data centers [14][27] - Management remains cautious about the global coking coal market but sees potential for recovery as high-cost production exits the market [12][13] Other Important Information - The company has authorized $1 billion in share repurchases, with approximately $817 million remaining as of the end of Q2 [9] - The merger-related annual synergy target has been increased to a range of $150 million to $170 million, reflecting additional benefits identified in various operational areas [29][30] Q&A Session Summary Question: Why was the buyback not larger given the good outlook? - Management noted that they have returned over 100% of free cash flow to shareholders in the first half of the year, indicating a more aggressive approach than initially guided [34][36] Question: How should the $100 million insurance recovery for Leer South be considered in capital returns? - Management indicated that the funds from the insurance recovery are available for all corporate purposes, including capital returns [34][38] Question: What is the confidence level regarding returning to normalized production at Leer South? - Management expressed high confidence in returning to normalized production levels, with plans to recover longwall equipment in early fall [41][42] Question: How is contracting looking for the metallurgical segment? - Management indicated constructive negotiations in the domestic contracting season, with expectations for stable pricing [46][48] Question: What are the thoughts on the recent Union Pacific and Norfolk Southern merger? - Management sees potential positives in improved access to East Coast terminals and blending opportunities, but emphasizes the need for high service levels and reasonable rates [67][70] Question: How are trade tensions with India affecting the business? - Management expressed hope for resolution of trade tensions, noting that India remains a significant trading partner [71][74]

Core Viewpoint - The Governor of the Bank of Japan, Kazuo Ueda, indicated that fluctuations in ultra-long-term bond yields could impact short-term and medium-term yields, necessitating close monitoring of market dynamics and their effects on the economy [1] Group 1 - The Bank of Japan is focusing on the relationship between ultra-long-term bond yields and their potential influence on shorter-term yields [1] - There is an emphasis on the importance of observing market trends to understand their implications for the broader economy [1]

Financial Data and Key Metrics Changes - The company reported a net income of $1.1 million or $0.02 per diluted share for Q4 2024, a significant decrease from $129 million or $2.47 per diluted share in Q4 2023 [24] - Adjusted EBITDA for Q4 2024 was $53 million, down from $164 million in the same quarter last year, with an adjusted EBITDA margin of 18% compared to 45% in Q4 2023 [25][27] - Total revenues decreased to $297 million in Q4 2024 from $364 million in Q4 2023, primarily due to a 34% drop in average net selling prices [27] Business Line Data and Key Metrics Changes - Sales volume in Q4 2024 was 1.9 million short tons, up from 1.5 million short tons in Q4 2023, driven by better production volumes [12][14] - Production volume increased to 2.1 million short tons in Q4 2024 from 2 million short tons in the same quarter of 2023, with Mine 4 achieving record production of 2.8 million short tons for the year [14][24] - The company achieved a gross price realization of 86% for Q4 2024 and 89% for the full year, influenced by product mix and geography [10] Market Data and Key Metrics Changes - The PLV FOB Australia index ended Q4 2024 at $178 per short ton, down $7 from Q3, while the PLBCFR China index ended at $180 per short ton [10] - Global pig iron production decreased by 1.8% in 2024, with China's production falling by 2.3% [11] - Sales into Asia increased from 25% of the geographic mix in Q4 2023 to 38% in Q4 2024, while sales into Europe decreased from 56% to 36% [13] Company Strategy and Development Direction - The company is focused on the Blue Creek growth project, with total project investment reaching $717 million, funded entirely from internally generated cash flows [18][20] - The company anticipates incremental annualized production of at least 4.8 million short tons after the startup of the longwall, enhancing its cost curve positioning [21] - The company plans to maintain tight capital spending discipline while preparing for the longwall production expected to start by Q2 2026 [20][21] Management's Comments on Operating Environment and Future Outlook - Management noted that weak market conditions are expected to persist, impacting steelmaking coal prices due to excess supply and low demand [9][31] - The company remains confident in its operational performance outlook for 2025, expecting higher sales and production volumes despite market challenges [31] - Management emphasized the importance of maintaining liquidity to complete the Blue Creek project and prepare for future market improvements [20][35] Other Important Information - The company generated cash from operations of over $367 million in 2024, returning over $43 million to stockholders via dividends [7] - Free cash flow for Q4 2024 was negative $88 million, primarily due to capital expenditures related to Blue Creek [30] - The company ended 2024 with total available liquidity of $655 million [30] Q&A Session Summary Question: Contribution from Blue Creek versus Mine 4 and Mine 7 - The company projects about 1 million tons from Blue Creek and over 2 million tons from Mine 4 for the year [40] Question: Cash cost guidance reductions - The lower cash cost guidance is primarily attributed to lower met coal prices affecting transportation and royalties [41][42] Question: Sales by geography and potential shifts - Tons that would have gone to China are expected to flow into other Asian markets without significant transportation cost differentials [43] Question: Shipment timing for Blue Creek - The majority of Blue Creek's shipments are expected in the second half of the year [48] Question: Price realizations for high vol A coal - The company maintains a price realization expectation of 85% to 90% for now, with potential changes as volumes increase [49] Question: Inventory targets for year-end 2025 - The company aims to normalize inventory levels to a couple of hundred thousand tons per mine by year-end 2025 [55] Question: New labor contract negotiations - Ongoing negotiations with the United Mine Workers are still in progress, with uncertain outcomes [64] Question: Future cash balance considerations - The company plans to maintain a higher minimum cash balance as it scales up operations with Blue Creek [66]