Financial Data and Key Metrics Changes - Consolidated third-quarter sales were $1.7 billion, down 3% from Q3 2024 [3] - Net income was $21.8 million, or $0.58 per share, compared to $91 million, or $2.33 per share, in the year-ago quarter [3] - Wood product sales were $396.4 million, down 13% compared to Q3 2024, with segment EBITDA of $14.5 million compared to $77.4 million in the prior year [5] - BMD sales were $1.6 billion, down 1% from Q3 2024, with segment EBITDA of $69.8 million compared to $87.7 million in the prior year [5][6] - Gross margin was 15.1%, a 60 basis point year-over-year decline [9] Business Line Data and Key Metrics Changes - Wood products experienced lower sales volumes and competitive pricing pressure, particularly in EWP and plywood [3][4] - I-joist and LVL volumes were down 10% and 7% respectively compared to the year-ago quarter [6] - BMD's commodity sales decreased 3%, while general line product sales increased 6% [8] - EWP volumes were down 15% sequentially, with pricing pressures leading to declines of 6% and 5% for I-joist and LVL respectively [7][9] Market Data and Key Metrics Changes - U.S. housing starts data for September 2025 was not released, but total U.S. housing starts increased 2% when comparing July and August 2025 to the same periods in 2024 [3] - Single-family housing starts decreased 3% [3] - BMD's daily sales pace in October was approximately 5% below the Q3 sales pace [16] Company Strategy and Development Direction - The company remains focused on executing strategic priorities, including a two-step distribution model and enhancing product offerings [4][10] - Capital expenditures for the first nine months of 2025 were $187 million, with a commitment to a capital spending range of $230-$250 million for the year [11][12] - The company anticipates a cautious market in the first half of 2026, with gradual improvement expected later in the year [18][20] Management's Comments on Operating Environment and Future Outlook - Management noted demand weakness, trade policy uncertainties, and seasonal factors will influence financial results [13][15] - EWP prices have stabilized, and management expects low single-digit sequential declines due to market adjustments [15] - The company is confident in long-term demand drivers for residential construction, including housing supply shortages and demographic trends [19][20] Other Important Information - The company paid $27 million in regular dividends in the nine months ended September 30, 2025, and repurchased approximately $120 million of common stock [12] - A new share repurchase program of up to $300 million was authorized [12] Q&A Session Summary Question: Can you talk about share gains in the general line part of the business? - Management highlighted strong demand in general line product categories and significant investments in capacity to support growth [22][23] Question: What are the competitive dynamics in EWP? - Management noted price stabilization and a focus on maintaining cycle times for builders as key factors influencing EWP pricing [25][28] Question: What are the constraints for generating higher margins in BMD? - Management expressed confidence in maintaining gross margins above 15% and emphasized the importance of enriching the product mix [33][34] Question: How is the company planning to balance M&A with share repurchases? - Management stated that capital allocation priorities remain focused on investing in existing assets and pursuing organic growth, with share repurchases expected to continue in the absence of meaningful M&A [73]