Loading...
01/11 04:06
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call reflects mixed signals: while there are positive aspects like LVL volume growth and strong general line product performance, there are concerns with declining EWP pricing, plywood sales, and lower EBITDA margins. The Q&A section highlights competitive challenges and uncertain demand, with management not providing clear guidance on wallet share gains. The market cap suggests moderate sensitivity to these factors. Overall, the mixed performance and lack of strong guidance or new partnerships lead to a neutral sentiment, expecting minimal stock price movement in the short term.
Total U.S. housing starts and single-family housing starts Decreased 1% and 8%, respectively, compared to the prior-year quarter.
Consolidated second quarter sales $1.7 billion, down 3% from second quarter of 2024. Reasons: Affordability challenges, elevated existing home inventory, and consumer uncertainty.
Net income $62 million or $1.64 per share, compared to $112.3 million or $2.84 per share in the year-ago quarter. Reasons: Lower sales prices and volumes, unfavorable profit and inventory adjustments, and scheduled outages.
Wood product sales $447.2 million, down 9% compared to second quarter 2024. Reasons: Lower EWP and plywood sales prices, lower plywood volumes, and unfavorable profit and inventory adjustments.
Wood Products segment EBITDA $37.3 million compared to $95.1 million in the year-ago quarter. Reasons: Lower sales prices and volumes, unfavorable profit and inventory adjustments, and scheduled outages.
BMD sales $1.6 billion, down 2% from second quarter 2024. Reasons: 2% decrease in prices, flat sales volumes.
BMD segment EBITDA $91.8 million compared to $97.1 million in the prior-year quarter. Reasons: Increased selling and distribution expenses of $12.1 million, partially offset by increased gross margin dollars.
BMD gross margin 15.4%, a 60 basis point year-over-year improvement. Reasons: Increased margins on general line products, partially offset by decreased margins on commodity and EWP products.
LVL volumes Up 8% year-over-year and 18% sequentially.
I-joists volumes Down 5% year-over-year and up 14% sequentially.
Plywood sales volume 356 million feet compared to 383 million feet in second quarter 2024. Reasons: Planned outage at Oakdale mill and downtime at Kettle Falls mill for maintenance.
Plywood net sales price $342 per thousand, down 6% year-over-year and flat compared to first quarter 2025.
Commodity sales Decreased 5% year-over-year.
General line product sales Increased 4% year-over-year.
EWP sales Decreased 12% year-over-year.
BMD EBITDA margin 5.7% for the quarter, down from 5.9% in the year-ago quarter, but up from 4.5% in the first quarter.
Oakdale mill modernization: Substantially complete, enhancing operational efficiency and reliability, and advancing veneer production capabilities.
Market expansion in San Antonio: Construction of a greenfield distribution center in Hondo, Texas, nearly complete, expected to service the San Antonio market by the end of Q3 2025.
Capital expenditures: $132 million spent in the first half of 2025, with $70 million in Wood Products and $62 million in BMD.
Gross margin improvement: BMD's gross margin increased to 15.4%, a 60 basis point year-over-year improvement.
Operational challenges: Scheduled outages at Oakdale and Kettle Falls mills impacted production and sales.
Shareholder returns: Paid $18 million in dividends in H1 2025 and repurchased $96 million of common stock.
Long-term growth strategy: Focused on sustainable growth through investments in assets, M&A opportunities, and shareholder returns.
Housing Market Challenges: Total U.S. housing starts and single-family housing starts decreased by 1% and 8%, respectively, compared to the prior-year quarter. Affordability challenges, elevated existing home inventory, and consumer uncertainty are constraining demand.
Revenue and Profit Decline: Consolidated second quarter sales decreased by 3% year-over-year, and net income dropped significantly from $112.3 million to $62 million. Wood Products segment EBITDA fell sharply due to lower sales prices, volumes, and unfavorable inventory adjustments.
Operational Disruptions: Scheduled outages at the Oakdale and Kettle Falls mills negatively impacted production and sales volumes, particularly in plywood.
Competitive Pressures: Pricing pressures led to sequential declines in LVL and I-joists prices by 3% and 2%, respectively. Competitive dynamics are also expected to persist in the near term.
Economic and Market Uncertainty: Uncertainties in trade and tariff policies create potential for significant pricing volatility in plywood, lumber, and other commodity products. Consumer confidence remains low due to economic uncertainty and high interest rates.
Repair and Remodeling Market Weakness: Diminished levels of existing home turnover and high costs of accessing equity have delayed large repair and remodeling projects, impacting demand in this segment.
Residential Construction Activity: Headwinds for residential construction activity are expected to persist in the third quarter of 2025. Homebuilders are anticipated to moderate their starts pace to align with new home sales, and channel partners are expected to reduce inventory levels.
Wood Products Segment EBITDA: Third quarter EBITDA is estimated to be between $20 million and $30 million. EWP volumes are expected to decline high single digits sequentially, with low to mid-single-digit sequential declines in EWP pricing due to competitive pressures. Plywood volumes are expected to increase mid-single digits sequentially, while plywood pricing is anticipated to decline approximately 5%.
Building Materials Distribution (BMD) Segment EBITDA: Third quarter EBITDA is estimated to be between $70 million and $80 million. Daily sales pace in July was approximately 3% below the second quarter sales pace, with the balance of the third quarter dependent on end-market demand, product pricing, and customer reliance on next-day out-of-warehouse service.
Capital Expenditures: Capital spending for 2025 remains unchanged at $220 million to $240 million. Investments include multiyear enhancements to EWP production capabilities in the Southeast, with the Thorsby line expected to be operational in the first half of 2026. A new greenfield distribution center in Hondo, Texas, is expected to begin servicing the San Antonio market by the end of the third quarter.
Market Trends and Long-Term Demand Drivers: Long-term demand drivers for residential construction remain robust, supported by the undersupply of housing units, aging U.S. housing stock, high levels of homeowner equity, and generational tailwinds from millennials and Gen Z. Repair and remodeling activity is expected to grow with improved consumer confidence, lower interest rates, and greater economic clarity.
Regular Dividends Paid: $18 million in the first half of 2025
Quarterly Dividend Increase: Board approved a $0.22 per share quarterly dividend, representing a $0.01 per share or approximately 5% increase, to be paid in mid-September
Share Repurchase Program: Repurchased approximately $96 million of common stock in the first 7 months of 2025, including $32 million in Q2 and $10 million in July
Remaining Shares for Repurchase: Approximately 850,000 shares available for repurchase under the current program
The earnings call presents a mixed outlook. While there are positive elements, such as growth opportunities in multifamily and strong partnerships, there are concerns about seasonal slowdowns, operational inefficiencies, and unclear guidance on certain key metrics. The stable financial performance and strategic focus on expansion and partnerships are offset by challenges in maintaining margins and uncertainties in specific segments, resulting in a neutral sentiment. Given the company's market cap of $4.68 billion, the stock is likely to show limited movement, staying within the -2% to 2% range over the next two weeks.
The earnings call reflects mixed signals: while there are positive aspects like LVL volume growth and strong general line product performance, there are concerns with declining EWP pricing, plywood sales, and lower EBITDA margins. The Q&A section highlights competitive challenges and uncertain demand, with management not providing clear guidance on wallet share gains. The market cap suggests moderate sensitivity to these factors. Overall, the mixed performance and lack of strong guidance or new partnerships lead to a neutral sentiment, expecting minimal stock price movement in the short term.
The earnings call revealed a decline in financial performance, with significant drops in sales, net income, and EBITDA across segments. The Q&A highlighted competitive pressures and lack of clarity on future M&A opportunities. Although there are some positives like the Oakdale project's progress and improved daily sales, the overall sentiment is negative due to weak financial results and guidance, coupled with uncertainties in pricing and margins. Given the company's market cap, the stock is likely to experience a negative reaction in the range of -2% to -8% over the next two weeks.
The earnings call reveals disappointing financial results with declining net income, EPS, and sales. Although there is some optimism in BMD margins and shareholder returns, the Q&A indicates uncertainties around tariffs and competitive pressures. The management's vague responses to key questions further contribute to a negative sentiment. Given the company's market cap, these factors are likely to result in a stock price decline of -2% to -8%.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
