Boise Cascade Company (NYSE:BCC) is one of the stocks Jim Cramer mentioned in his latest comments. When a caller inquired about the stock during the lightning round, Cramer stated: “Well, I mean, look, the problem is this is connected housing. Anything connected to housing is just bad. We have to see the Fed cut rates. If the Fed cut rates, I’d rather see you in one of the major big box home companies than I would see [you in] Boise because Boise’s too levered to only a certain part of the food chain. I’m ...

Financial Data and Key Metrics Changes - Net sales decreased by 6.9% to $3.9 billion, driven by lower core organic sales and commodity deflation, partially offset by growth from acquisitions [15][16] - Gross profit was $1.2 billion, a decrease of 13.5% compared to the prior year, with a gross margin of 30.4%, down 240 basis points [17] - Adjusted EBITDA was $434 million, down approximately 31%, with an adjusted EBITDA margin of 11%, down 380 basis points from the prior year [18] - Adjusted EPS was $1.88, a decrease of 39% compared to the prior year [18] Business Line Data and Key Metrics Changes - Core organic sales decreased by 4% in single-family due to lower starts and a 20% decline in multifamily, in line with expectations amid muted activity levels [16] - Repair and remodel sales decreased by 1% due to consumer uncertainty [16] - The company generated $11 million in productivity savings in Q3, primarily through targeted supply chain initiatives [8] Market Data and Key Metrics Changes - Single-family construction remains soft, with builders managing the pace of starts due to affordability concerns and elevated new home inventories [6] - Multifamily market activity is expected to remain muted through year-end, although there are signs of improvement in quoting activity as financing costs improve [7] - The company expects single-family starts to decline by 9% for the year and multifamily starts to decline in the mid-teens [21] Company Strategy and Development Direction - The company is focused on operational excellence, disciplined capital deployment, and expanding value-added solutions [4][8] - Investments of over $20 million in value-added solutions were made in Q3 to expand product offerings [7] - The company has made 38 acquisitions since the BMC merger in 2021, representing over $2 billion in annual sales, indicating a strong focus on inorganic growth [10] Management's Comments on Operating Environment and Future Outlook - Management noted that the current market is weak but expressed confidence in the company's ability to outperform competitors as the market recovers [4][6] - The company is closely monitoring the current environment and remains agile to mitigate downside risks while investing strategically for the future [22] - Management expects free cash flow of $800 million to $1 billion for 2025, reflecting strong execution in a below-normal starts environment [21] Other Important Information - The company has consolidated 16 facilities year-to-date, including eight in Q3, while maintaining a 92% on-time delivery rate [8] - The company has no long-term debt maturities until 2030, allowing for operational and financial discipline [20] Q&A Session Summary Question: Can you clarify the margin outlook for 2026? - Management indicated that the margin outlook is based on current market conditions and competitive dynamics, suggesting stabilization is expected [26][27] Question: What is driving the improvement in Q4 sales expectations? - Management noted a lapping effect from prior year comparisons and a gradual closing of the gap in performance [34][36] Question: How does multifamily recovery factor into future scenarios? - Management expects multifamily starts to remain flat due to the lag in transitioning starts to sales, despite overall market recovery [42] Question: What are the major factors affecting contribution margins moving forward? - Management highlighted that contribution margins will depend on market conditions, productivity savings, and cost inflation [66][68] Question: How does the company plan to maintain market share in a challenging environment? - Management expressed confidence in the company's ability to take share, particularly in value-added segments, despite current market challenges [78]