Boise Cascade(US:BCC)2025-08-05 16:00Financial 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]