But Russia's nominal GDP is now $2.2 trillion, about the same level it was in 2013, the year before Russia annexed Crimea.During Putin's first two terms as president from 2000 to 2008, Russia's economy soared to $1.7 trillion from less than $200 billion in 1999.Russia's Center for Macroeconomic Analysis and Short-term Forecasting - an influential research non-profit - said sectors of the economy not connected with the military had contracted by 5.4% since the start of the year. The Center forecasts a major ...

Core Viewpoint - Weyerhaeuser Company has completed the sale of its lumber mill in Princeton, British Columbia, to the Gorman Group, which includes associated timber licenses that will transfer separately in the coming months [1][2]. Company Overview - Weyerhaeuser Company is one of the largest private owners of timberlands, controlling approximately 10.4 million acres in the U.S. and additional public timberlands in Canada [3]. - The company generated $7.1 billion in net sales in 2024 and employs around 9,400 people globally [3]. - Weyerhaeuser operates as a real estate investment trust and is listed on the New York Stock Exchange under the symbol WY [3]. Transaction Details - Weyerhaeuser received approximately $60 million USD from the sale of the lumber facility, with additional proceeds expected from the timber license transfer [2]. - The company recognized a gain on the sale and anticipates a tax liability of about $11 million USD related to the transaction [2]. Gorman Group Overview - The Gorman Group is a family-owned company with operations in Southern British Columbia and northern Washington state, employing 900 people [4]. - Founded in 1951, the Gorman Group focuses on high-value lumber products for home finishing and renovation markets [4].

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 - Consolidated second quarter sales were $1.7 billion, down 3% from 2024 [6] - 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 [6] - Included in the results were a $7.7 million pre-tax gain on asset sales [6] Business Line Data and Key Metrics Changes - Wood Products sales were $447.2 million, down 9% year-over-year, with segment EBITDA of $37.3 million compared to $95.1 million in the prior year [9] - Building Material Distribution (BMD) sales were $1.6 billion, down 2% year-over-year, with segment EBITDA of $91.8 million compared to $97.1 million in the prior year [11] - LVL volumes increased by 818% year-over-year, while I-joist volumes decreased by 5% [12] Market Data and Key Metrics Changes - U.S. housing starts and single-family housing starts decreased by 18% compared to the prior year quarter [6] - Plywood sales volume was 356 million feet, down from 383 million feet in the prior year quarter [13] - BMD's gross margin was 15.4%, a 60 basis point year-over-year improvement [11] Company Strategy and Development Direction - The company is focused on addressing near-term challenges while maintaining service standards [8] - Investments are being made to drive sustainable growth, supported by strong structural demand drivers in residential construction [8] - The modernization project at the Oakdale Mill is substantially complete, enhancing operational efficiency [7] Management's Comments on Operating Environment and Future Outlook - Management expects headwinds for residential construction activity to persist [19] - Anticipated third quarter EBITDA for Wood Products is estimated between $20 million and $30 million [19] - Long-term demand drivers for residential construction remain robust, supported by demographic trends [23] Other Important Information - Capital expenditures for the first half of 2025 were $132 million, with a capital spending range for 2025 unchanged at $220 million to $240 million [15] - The company paid $18 million in regular dividends and repurchased approximately $96 million of common stock in 2025 [17] Q&A Session Summary Question: What has driven the 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: How do you see EWP pricing going forward? - Management indicated that operating rates were in the low 80s for EWP, with expectations of a potential decline in rates depending on demand [52] Question: Can you provide an update on the strike at the Billings facility? - The strike involves 19 employees and is limited to one of the 38 BMD locations, with no anticipated material impact [55]

Financial Performance - Boise Cascade's Q2 2025 sales were $1.7 billion, a decrease of 3% compared to Q2 2024[6] - Net income for Q2 2025 was $62.0 million, or $1.64 per share, compared to $112.3 million, or $2.84 per share, in Q2 2024[6] - Adjusted EBITDA for Q2 2025 was $119.0 million, a decrease of 34% compared to $181.2 million in Q2 2024[8] Segment Performance - Building Materials Distribution (BMD) sales were $1.6149 billion in Q2 2025, down from $1.6552 billion in Q2 2024[8] - Wood Products sales were $447.2 million in Q2 2025, down from $489.8 million in Q2 2024[8] - BMD Adjusted EBITDA was $91.8 million in Q2 2025, compared to $97.1 million in Q2 2024[8] - Wood Products Adjusted EBITDA was $37.3 million in Q2 2025, compared to $95.1 million in Q2 2024[8] Capital Allocation - Capital expenditures year-to-date (YTD) 2025 totaled $132 million, with $70 million allocated to Wood Products and $62 million to BMD[25] - Share repurchases YTD July 2025 amounted to approximately $96 million[25] Outlook for Q3 2025 - Wood Products Adjusted EBITDA is projected to be $20 - $30 million[26] - BMD Adjusted EBITDA is projected to be $70 - $80 million[26] - Total Company Adjusted EBITDA is projected to be $80 - $100 million, net of approximately $10 million of estimated unallocated corporate costs[26]

Financial Data and Key Metrics Changes - Total adjusted EBITDA for Q2 2025 was $52 million, down from $63 million in Q1 2025, primarily due to seasonally lower harvest volumes and higher forest management costs in the Timberland segment, along with an inventory impairment charge in Wood Products [21][5][6] - Adjusted EBITDA for the Timberlands segment decreased from $42 million in Q1 to $40 million in Q2, with a slight decrease in harvest volumes [22][21] - Adjusted EBITDA for Wood Products dropped from $12 million in Q1 to $2 million in Q2, driven by lower lumber prices and increased processing costs [25][21] Business Line Data and Key Metrics Changes - The Wood Products division earned $2 million in adjusted EBITDA during Q2, impacted by lower lumber prices and several nonrecurring items [6][25] - Timberlands harvested 1.86 million tons in Q2, with Idaho's sawlog prices increasing by 9% per ton compared to Q1, while Southern sawlog prices rose by 2% [22][24] - The Real Estate segment produced adjusted EBITDA of $23 million in Q2, matching Q1 results, with 7,500 acres sold at an average price of $3,100 per acre [26][21] Market Data and Key Metrics Changes - Average total housing starts were just above 1.3 million units in Q2, with single-family starts around 900,000 units, indicating a stable housing market despite economic uncertainty [17][18] - The repair and remodel sector remains subdued, but slight gains in expenditures are forecasted for 2025 and modest growth in 2026 [19][18] Company Strategy and Development Direction - The company is focused on capital allocation strategies that create long-term value, including maintaining dividends, key capital investments, and opportunistic share repurchases [14][15] - The company anticipates higher lumber prices due to increased duties on Canadian softwood lumber and potential tariffs, which could positively impact domestic lumber prices [11][20] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term fundamentals driving demand in the industry, despite near-term uncertainties [20][18] - The company expects improved results in the Wood Products division in Q3, as challenges faced in Q2 are not anticipated to recur [31][30] Other Important Information - The company repurchased $56 million of its common stock in Q2 at an average price of $39 per share, marking the largest share repurchase volume in a single quarter since becoming a REIT in 2006 [14][15] - The company has $395 million in liquidity, including $95 million in cash, and plans to refinance $100 million of debt maturing in August [27][28] Q&A Session Summary Question: Can you walk us through the lumber price forecast? - Management indicated that duties are coming into effect, which will force supply adjustments in the marketplace, leading to a potential increase in prices by September [36][38] Question: Will the unfavorable costs in Wood Products reverse in Q3? - Management confirmed that the challenges faced in Q2, including inventory charges and freight issues, are expected to reverse in Q3, leading to improved earnings [40][41] Question: How does the company view share repurchases amid uncertainty? - Management emphasized the importance of protecting dividends and the balance sheet, while also being aggressive with share repurchases due to the stock trading at a significant discount to NAV [44][48] Question: What is the outlook for solar options and incentives? - Management remains optimistic about solar opportunities, indicating that recent changes in incentives have not significantly impacted their solar projects [58][66] Question: What is the company's stance on Timberland M&A? - Management expressed a desire to be an incremental buyer of Timberland but noted that current prices make it challenging to achieve acceptable returns on investment [92][93]

Financial Data and Key Metrics Changes - Total adjusted EBITDA for Q2 2025 was $52 million, down from $63 million in Q1 2025, primarily due to lower harvest volumes and higher forest management costs in the Timberland segment, along with an inventory impairment charge in Wood Products [19][3][4] - Adjusted EBITDA for the Timberlands segment decreased from $42 million in Q1 to $40 million in Q2, while Wood Products saw a drop from $12 million to $2 million [20][22] Business Line Data and Key Metrics Changes - The Wood Products division earned $2 million in adjusted EBITDA during Q2, impacted by lower lumber prices and several nonrecurring items totaling approximately $7 million [4][22] - Timberlands harvested 1.86 million tons in Q2, with Idaho's sawlog prices increasing by 9% per ton compared to Q1, while Southern sawlog prices rose by 2% [20][21] - Real estate segment produced adjusted EBITDA of $23 million in Q2, matching Q1 results, with 7,500 acres sold at an average price of $3,100 per acre [23][24] Market Data and Key Metrics Changes - Average total housing starts were just above 1.3 million units in Q2, with single-family starts around 900,000 units, indicating a stable market despite economic uncertainty [14][15] - The repair and remodel sector remains subdued, but slight gains in expenditures are forecasted for 2025 and modest growth in 2026 [16][17] Company Strategy and Development Direction - The company is focused on capital allocation strategies that create long-term shareholder value, including maintaining dividends, key capital investments, and opportunistic share repurchases [12] - The company anticipates improved results in Wood Products for Q3, driven by the resolution of temporary challenges faced in Q2 [29][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term fundamentals driving demand in the industry, despite near-term headwinds [18] - Lumber prices are expected to trend higher as Canadian softwood lumber duties and potential tariffs come into effect [9][18] Other Important Information - The company repurchased $56 million of its common stock in Q2 at an average price of $39 per share, marking the largest share repurchase volume in a single quarter since becoming a REIT in 2006 [12][13] - The company has $395 million in liquidity, including $95 million in cash, and plans to refinance $100 million of debt maturing in August [25][26] Q&A Session Summary Question: What are the assumptions behind the forecast of flat lumber prices for Q3 despite a 9% decline quarter-to-date? - Management indicated that duties are coming into effect, which will force supply adjustments in the marketplace, leading to a gradual increase in prices [34][35] Question: Will the unfavorable costs and inventory charge in Wood Products largely go away in Q3? - Management confirmed that the challenges faced in Q2 are expected to reverse in Q3, leading to improved earnings [38][39] Question: How does the company balance near-term uncertainty with attractive discounts to NAV for share repurchases? - Management emphasized the importance of protecting dividends and the balance sheet while utilizing free cash flow for shareholder value [42][46] Question: What is the outlook for tariffs and duties on lumber? - Management speculated that a tariff may be imposed on top of the duties, based on historical actions of the administration [51][52] Question: Is the company inclined to be an incremental buyer or seller of Timberland? - Management expressed a desire to buy Timberland but noted that current prices may not yield acceptable returns, leading to a more cautious approach [88][90] Question: What are the expectations for capital expenditures in the Wood Products business? - Management indicated that opportunities exist for growth and improvement in the Wood Products business, with plans to revisit expansion opportunities later in the year [99][100]

Company Strategy & Fundamentals - PotlatchDeltic has the highest direct leverage to lumber prices among timber REITs[4] - The company's strategy leverages favorable fundamentals in US housing, including housing starts, building permits, and existing home sales[4] - Timberlands provide stability, capturing incremental land value and offering working forest benefits[4] Timberlands Segment - PotlatchDeltic owns 1.9 million acres of high-quality timberlands[6,7] - The company plants approximately 25 million seedlings every year, managing timberlands on a long-term sustainable basis[7] - The company has 86 million tons of merchantable timber inventory, with 64% being sawlogs[11,12] - In Idaho, sawlogs represent 90% of the harvest volume, and about 70% of sawlog prices are indexed to lumber prices[16] Wood Products Segment - PotlatchDeltic ranks as a top-10 lumber producer in the U S with 1 2 billion board feet of capacity[6,20] - Lumber shipments have increased by 60% in six years due to high-return capital projects and acquisitions[20] Real Estate Segment - The company has identified approximately 210,000 rural acres for sale at a premium to timberland value[23] - The company owns a 4,800-acre master-plan community in Little Rock, Arkansas, with approximately 65% of residential lots sold and 54% of commercial acres sold[23] Capital Allocation - Returning cash to shareholders through a sustainable and growing dividend is a key capital allocation strategy[25] - The company repurchased $25 million of shares in the first half of 2019 at $37 per share[28] - The dividend per share has increased by 29% since 2012, reaching $1.60 in 2019[27]

Financial Performance - The company's total shareholder return was 347% in the five years ending December 2024[4] - The company's last twelve months (LTM) revenue was $6.6 billion[4] - The company's revenue compound annual growth rate (CAGR) from 2019 to LTM is 7%[4] - The Wood Products division's LTM revenue was $1.78 billion with a 15.1% LTM EBITDA margin, up from 8.8% in 2019[40] - The Building Materials Distribution (BMD) division's LTM revenue was $6.1 billion, with an 8.8% CAGR from IPO in 2013 to LTM[49] Capital Allocation and Share Growth - The company has invested $1.58 billion in the company via M&A/Capex and $1.35 billion in shareholder returns since 2019[4] - The company's sales per housing start have grown at a 5% CAGR[32] - The company's laminated veneer lumber (LVL) market share is 40% of industry production, and I-joist market share is 37% of industry production[41] Market Position and Strategy - Independent pro dealers account for 49% of the company's customer segments[36] - Engineered Wood Products (EWP) account for 62% of the Wood Products division's LTM sales[41] - General line products account for 43% of the Building Materials Distribution (BMD) division's LTM sales[50]

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].