BOISE CASCADE Co Q1 FY2025 earnings call

• U.S. housing starts and single-family housing starts decreased. Boise Cascade's consolidated first quarter sales were $1.5 billion, down 7% from Q1 2024, with net income $40.3 million vs $104.1 million in Q1 2024.
• Oakdale, Louisiana plywood and veneer facility outage negatively impacted Q1 results, but modernization is on schedule to complete by end of Q2 and will boost EWP franchise.
• For Q2, EWP volumes expected mid- to high single-digit sequential increase, low single-digit sequential price decline. Plywood expected mid-single-digit sequential volume increase with Oakdale partial restart. BMD April daily sales pace accelerated, greenfield distribution in Hondo, Texas ~80% complete.

Wood Products: First quarter sales including sales to distribution segment were $415.8 million, down 11% from Q1 2024. Segment EBITDA was $40.2 million compared to $95.6 million in the prior year quarter, due primarily to lower EWP and plywood sales prices and volumes, plus the Oakdale outage. BMD: First quarter sales were $1.4 billion, down 7% from Q1 2024. Segment EBITDA was $62.8 million compared to $83.6 million in the prior year quarter. Gross margin was 14.7%, a 40 basis point decline year-over-year, driven by lower volumes and margins on certain products.

• EWP volumes expected mid- to high single-digit sequential increase in Q2, low single-digit sequential price decline.
• Plywood expected mid-single-digit sequential volume increase, Oakdale partial restart to negatively impact financial results by ~$5 million in Q2.
• BMD daily sales pace dependent on end market demand, expecting improved EBITDA margins in Q2. Capital expenditures range $220M-$240M.

• Housing market uncertainty affecting demand.
• Economic uncertainty lowering consumer and builder confidence.
• Weather impact on sales activity.
• Competition per share putting pressure on pricing.
• Challenges with Oakdale restart affecting financial results.

Q: Susan Maklari asked about general line business, supplier inventories, and two-step distribution.

A: Nate Jorgensen stated general line is dependent on two-step distribution for out-of-warehouse support, new products, and managing working capital.

Q: Kurt Yinger inquired about EWP pricing, Oakdale impact.

A: Kelly Hibbs said EWP pricing expected low single-digit sequential decline, Oakdale expected to impact Q2 results by ~$5 million.

Q: George Staphos asked about BMD momentum, doors strategy, and tariffs.

A: Kelly Hibbs mentioned BMD daily sales pace continued, Jeff Strom said doors strategy is going well, Nate Jorgensen noted limited tariff impact overall.

Q: Zack Pacheco asked about LVL volume and BMD EBITDA margins.

A: Troy Little and Kelly Hibbs discussed LVL volume expectations, Kelly Hibbs expressed confidence in BMD EBITDA margins improving in Q2.

Q: Ketan Mamtora asked about Q2 EWP volumes, inventories.

A: Jeff Strom talked about inventory position and confidence, Kelly Hibbs discussed EWP volume drivers.

Q: Reuben Garner asked about volume vs price dynamics and capacity utilization.

A: Nathan Jorgensen discussed home size and location impact on volume, Kelly Hibbs talked about capacity realization and operating rates.