Boise Cascade Co (BCC) 2025 Q2 法說會逐字稿

Good morning. My name is Corey, and I will be your conference facilitator today. At this time, I would like to welcome everyone to Boise Cascade's second-quarter 2025 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.

早安.我叫科里 (Corey)，今天我將擔任你們的會議主持人。現在，我歡迎大家參加博伊西卡斯卡德 2025 年第二季財報電話會議。（操作員指示）請注意，今天的會議正在錄音。

It is now my pleasure to introduce Chris Forrey, Vice President of Finance and Investor Relations of Boise Cascade. Mr. Forrey, you may begin your conference.

現在我很高興介紹博伊西卡斯卡德公司財務和投資者關係副總裁克里斯福雷 (Chris Forrey)。福雷先生，您可以開始您的會議了。

Thank you, Corey, and good morning, everyone. I'd like to welcome you to Boise Cascade's second-quarter 2025 earnings call and business update. Joining me on today's call are Nate Jorgensen, our CEO; Jeff Strom, our COO; Kelly Hibbs, our CFO; Troy Little, Head of our Wood Products Operations; and Joe Barney, Head of our Building Materials Distribution operations.

謝謝你，科里，大家早安。歡迎您參加 Boise Cascade 2025 年第二季財報電話會議和業務更新。參加今天電話會議的還有我們的執行長 Nate Jorgensen、我們的營運長 Jeff Strom、我們的財務長 Kelly Hibbs、我們的木製品業務主管 Troy Little 和我們的建築材料分銷業務主管 Joe Barney。

Turning to slide 2. This call will contain forward-looking statements. Please review the warning statements in our press release, on the presentation slides, and in our filings with the SEC regarding the risks associated with these forward-looking statements. Also, please note that the appendix includes reconciliations from our GAAP net income to EBITDA and adjusted EBITDA and segment income to segment EBITDA.

翻到幻燈片 2。本次電話會議將包含前瞻性陳述。請查看我們的新聞稿、簡報以及我們向美國證券交易委員會提交的文件中有關這些前瞻性陳述相關風險的警告聲明。另外，請注意，附錄包括從我們的 GAAP 淨收入到 EBITDA 和調整後的 EBITDA 以及分部收入到分部 EBITDA 的對帳。

I will now turn the call over to Nate.

我現在將電話轉給 Nate。

Thanks, Chris. Good morning, everyone. Thank you for joining us on our earnings call today. I'm on slide number 3.

謝謝，克里斯。大家早安。感謝您今天參加我們的財報電話會議。我在幻燈片 3 上。

Total US housing starts and single-family housing starts decreased 1% and 8% respectively compared to the prior-year quarter. Our consolidated second quarter sales of $1.7 billion were down 3% from second quarter of 2024. Our net income was $62 million or $1.64 per share compared to net income of $112.3 million or $2.84 per share in the year-ago quarter. Included in our second-quarter results are $7.7 million of pretax gain on asset sales where I'm happy to report we monetize nonoperating properties in both Wood Products and BMD.

與去年同期相比，美國新屋開工總數和獨棟住宅開工數分別下降了 1% 和 8%。我們第二季的綜合銷售額為 17 億美元，較 2024 年第二季下降 3%。我們的淨收入為 6,200 萬美元，即每股 1.64 美元，而去年同期的淨收入為 1.123 億美元，即每股 2.84 美元。我們第二季的業績包括 770 萬美元的資產出售稅前收益，我很高興地報告，我們將 Wood Products 和 BMD 的非經營性資產貨幣化。

We experienced sequential volume growth driven by seasonally stronger activity. However, underlying demand continued to be constrained due to affordability challenges, elevated existing home inventory, and consumer uncertainty. I'm pleased to share that the modernization project at our Oakdale mill is substantially complete, which represents a significant milestone for our Southeast manufacturing system.

受季節性活動增強的推動，我們的銷售量實現了連續成長。然而，由於負擔能力挑戰、現有房屋庫存增加以及消費者不確定性，潛在需求繼續受到限制。我很高興地告訴大家，我們奧克代爾工廠的現代化計畫已基本完成，這對我們的東南製造系統來說是一個重要的里程碑。

I want to thank our associates across our organization who made this project successful. We will benefit from enhanced operational efficiency and reliability while advancing our distinct competitive advantage to drive incremental value creation through our self-sufficient veneer production. As we navigate a dynamic marketplace, our actions will address near-term challenges without sacrificing the service standards that our customer and supplier partners have come to expect from us.

我要感謝我們組織內的同事，是他們讓這個計畫成功了。我們將受益於提高的營運效率和可靠性，同時提升我們獨特的競爭優勢，透過自給自足的單板生產來推動增量價值創造。當我們在充滿活力的市場中前進時，我們的行動將解決近期的挑戰，同時不會犧牲我們的客戶和供應商合作夥伴對我們的期望的服務標準。

At the same time, we are well positioned to continue to invest in opportunities that drive enduring sustainable growth in the years ahead, supported by the strong structural demand drivers we see in residential construction over the long term.

同時，在住宅建設長期強勁的結構性需求驅動因素的支持下，我們已做好準備，繼續投資於推動未來幾年持久可持續增長的機會。

Kelly will now walk through our segment financial results, capital allocation priorities, and guidance on our third quarter results, after which I'll make closing comments before we take your questions. Kelly?

凱利現在將介紹我們各部門的財務表現、資本配置重點以及第三季業績指引，之後我將在回答大家的問題之前發表結束語。凱莉？

Thank you, Nate, and good morning, everyone. Wood product sales in the second quarter, including sales to our distribution segment were $447.2 million, down 9% compared to second-quarter 2024. The Wood Products segment EBITDA was $37.3 million compared to EBITDA of $95.1 million reported in the year-ago quarter. The decrease in segment EBITDA was due primarily to lower EWP and plywood sales prices as well as lower plywood volumes and an unfavorable profit and inventory adjustments.

謝謝你，內特，大家早安。第二季木製品銷售額（包括分銷部門的銷售額）為 4.472 億美元，與 2024 年第二季相比下降 9%。木製品部門的 EBITDA 為 3,730 萬美元，而去年同期的 EBITDA 為 9,510 萬美元。分部 EBITDA 的下降主要是由於 EWP 和膠合板銷售價格下降、膠合板產量下降以及利潤和庫存調整不利。

In addition, the scheduled Oakdale outage negatively impacted year-over-year EBITDA comparisons. These decreases in segment EBITDA were offset partially by a $3.9 million gain on the sale of a nonoperating property. In BMD, our sales in the quarter were $1.6 billion, down 2% from second-quarter 2024. BMD reported segment EBITDA of $91.8 million in the second quarter compared to segment EBITDA of $97.1 million in the prior-year quarter. The decrease in segment EBITDA was driven primarily by increased selling and distribution expenses of $12.1 million.

此外，奧克代爾的預定停電對年比 EBITDA 產生了負面影響。該部門 EBITDA 的減少被出售非經營性資產所得的 390 萬美元收益部分抵銷。在 BMD，我們本季的銷售額為 16 億美元，較 2024 年第二季下降 2%。BMD 報告第二季分部 EBITDA 為 9,180 萬美元，而去年同期分部 EBITDA 為 9,710 萬美元。分部 EBITDA 的下降主要是因為銷售和分銷費用增加 1,210 萬美元。

However, BMD's gross margin dollars increased $3.4 million from second-quarter 2024 and our gross margin was 15.4%, a 60-basis-point year-over-year improvement.

然而，BMD 的毛利率較 2024 年第二季增加了 340 萬美元，毛利率為 15.4%，年增 60 個基點。

In an environment where demand was stagnant and many product prices were declining, we are pleased with our gross margin performance, a reflection of very good execution by our team, and our focus to increase the portion of our sales in best-in-class general line products. In addition, segment income benefited from a $3.8 million gain on the sale of a nonoperating property.

在需求停滯、許多產品價格下跌的環境下，我們對毛利率表現感到滿意，這反映了我們團隊的出色執行力，以及我們專注於增加一流通用產品銷售份額。此外，該部門的收入還得益於出售非經營性資產所獲得的 380 萬美元收益。

Turning to slide 5. Year-over-year and sequentially, second-quarter LVL volumes were up 8% and 18%, respectively, while I-joists volumes for the same comparative periods were down 5% and up 14%. As referenced earlier, Wood Products second-quarter income included an adjustment to reverse profits associated with inventory sold through our distribution segment that is yet to be sold into the marketplace. This adjustment resulted in an unfavorable sequential variance of approximately $6 million. As it relates to pricing, competitive pressures drove sequential declines for LVL and I-joists of 3% and 2%, respectively.

翻到幻燈片 5。與去年同期和上一季相比，第二季 LVL 產量分別成長 8% 和 18%，而同期 I 型托樑產量分別下降 5% 和成長 14%。如前所述，木製品第二季度的收入包括與透過我們的分銷部門銷售但尚未在市場上銷售的庫存相關的利潤調整。此項調整導致環比差異約為 600 萬美元。就定價而言，競爭壓力導致 LVL 和 I 型托樑的價格分別連續下降 3% 和 2%。

Turning to slide 6. Our second-quarter plywood sales volume was 356 million feet compared to 383 million feet in second-quarter 2024. The decrease was primarily driven by the planned outage at our Oakdale mill as well as downtime at our Kettle Falls mill to complete a scheduled maintenance project. The 342 per thousand average plywood net sales price in the second quarter was down 6% on a year-over-year basis and flat compared to first-quarter 2025.

翻到幻燈片 6。我們第二季的膠合板銷售量為 3.56 億英尺，而 2024 年第二季為 3.83 億英尺。產量下降的主要原因是我們的 Oakdale 工廠計劃停工，以及我們的 Kettle Falls 工廠為完成預定的維護項目而停工。第二季合板平均淨銷售價格為每千塊 342 美元，年減 6%，與 2025 年第一季持平。

Moving to slide 7 and 8. BMD's year-over-year second-quarter sales decline of 2% was driven by a 2% decrease in prices as sales volumes were flat. By product line, commodity sales decreased 5%. General line product sales increased 4%, and sales of EWP decreased 12%. However, our sequential sales results reflected seasonally stronger activity with our sales increasing 15% from first quarter. As I mentioned earlier, BMD's second quarter gross margin percentage was 15.4%, up 60 basis points year over year.

移至投影片 7 和 8。BMD 第二季銷售額年減 2%，原因是因為銷售量持平導致價格下降 2%。依產品線劃分，商品銷售額下降5%。通用產品銷售額成長 4%，EWP 銷售額下降 12%。然而，我們的連續銷售業績反映了季節性的強勁成長，我們的銷售額較第一季成長了 15%。正如我之前提到的，BMD 第二季的毛利率為 15.4%，較去年同期成長 60 個基點。

In particular, gross margin dollars were affected by increased margins on general line products, offset partially by decreased margins on commodity and EWP products. BMD's EBITDA margin was 5.7% for the quarter, down from the 5.9% reported in the year-ago quarter, but up from the 4.5% reported in the first quarter. After market conditions led to a slow start to the year, increased sales activity in the second quarter and good execution by the BMD team allowed our EBITDA margins to rebound nicely.

具體而言，毛利率受到一般產品利潤率增加的影響，但商品和 EWP 產品利潤率下降部分抵消了這一影響。BMD 本季的 EBITDA 利潤率為 5.7%，低於去年同期的 5.9%，但高於第一季的 4.5%。在市場狀況導致年初業績緩慢之後，第二季銷售活動的增加以及 BMD 團隊的良好執行使我們的 EBITDA 利潤率實現了良好反彈。

I'm now on slide 9. We had capital expenditures of $132 million in the six months ended June 2025, with $70 million of spending in Wood Products and $62 million of spending in BMD. We remain committed to the capital plan presented earlier in the year with our capital spending range for 2025 unchanged at $220 million to $240 million. In Wood Products, that range includes the multiyear investments in support of our EWP production capabilities in the Southeast. As Nate mentioned earlier, the Oakdale modernization is substantially complete and start-up and optimization activities are going well. Thor's BI line is expected to be operational in the first half of 2026.

我現在看到第 9 張投影片。截至 2025 年 6 月的六個月內，我們的資本支出為 1.32 億美元，其中木製品支出為 7,000 萬美元，BMD 支出為 6,200 萬美元。我們仍然致力於今年稍早提出的資本計劃，2025 年的資本支出範圍保持不變，為 2.2 億美元至 2.4 億美元。在木製品方面，該範圍包括多年投資，以支持我們在東南部的 EWP 生產能力。正如 Nate 之前提到的，Oakdale 的現代化改造已基本完成，啟動和優化活動進展順利。Thor 的 BI 生產線預計將於 2026 年上半年投入營運。

In BMD, part of our capital deployment strategy is to solidify and expand our market-leading national distribution presence. In the second quarter, we completed two lease buyouts of our highly successful distribution centers in Chicago and Minneapolis. In addition, construction on our greenfield distribution center in Hondo, Texas is nearly complete, and we expect to begin servicing the San Antonio market from there by the end of the third quarter.

在 BMD，我們的資本部署策略的一部分是鞏固和擴大我們市場領先的全國分銷業務。第二季度，我們完成了對位於芝加哥和明尼阿波利斯的兩家非常成功的配送中心的租賃收購。此外，我們位於德克薩斯州洪多的綠地配送中心的建設已接近完工，我們預計將於第三季末從那裡開始為聖安東尼奧市場提供服務。

Speaking to shareholder returns, we paid $18 million in regular dividends in the first half of 2025. Our Board of Directors also recently approved a $0.22 per share quarterly dividend on our common stock, which represents a $0.01 per share or approximately 5% increase that will be paid in mid-September. Through the first seven months of 2025, we repurchased approximately $96 million of Boise Cascade common stock, which includes approximately $32 million in the second quarter and another $10 million in July. Today, we have about 850,000 shares available for repurchase under our current share repurchase program.

談到股東回報，我們在 2025 年上半年支付了 1,800 萬美元的定期股息。我們的董事會最近也批准了每股 0.22 美元的普通股季度股息，相當於每股 0.01 美元或約 5% 的成長，將於 9 月中旬支付。2025 年前七個月，我們回購了約 9,600 萬美元的 Boise Cascade 普通股，其中包括第二季的約 3,200 萬美元和 7 月的 1,000 萬美元。今天，根據我們目前的股票回購計劃，我們有大約 850,000 股可供回購。

In summary, our balance sheet remains strong, and we continue to be dedicated to a balanced deployment of capital by investing in our existing asset base, pursuing value-enhancing organic and M&A growth opportunities that position the company for sustainable long-term growth and returning capital to our shareholders. We're fortunate that our solid financial foundation and resilient free cash flow allow us to simultaneously advance each of these objectives.

總而言之，我們的資產負債表依然強勁，我們將繼續致力於透過投資現有資產基礎來平衡資本配置，尋求增值的有機成長和併購成長機會，使公司實現可持續的長期成長並向股東返還資本。我們很幸運，堅實的財務基礎和有彈性的自由現金流使我們能夠同時推進這些目標。

I'm now on slide 10. Looking forward to the third quarter, we expect headwinds for residential construction activity will persist. With that in mind and recognizing that even near-term forecasts are difficult to make given the current market dynamics, we have presented a range of potential EBITDA outcomes and related key drivers. For Wood Products, we currently estimate third-quarter EBITDA to be between $20 million and $30 million. We expect our EWP volumes to decline high single digits sequentially as homebuilders moderate their starts pace to align with new home sales and our channel partners reduced inventory levels.

我現在在第 10 張投影片。展望第三季度，我們預期住宅建築活動的阻力將持續存在。考慮到這一點，並認識到鑑於當前的市場動態，即使是短期預測也很困難，我們提出了一系列潛在的 EBITDA 結果和相關關鍵驅動因素。對於木製品，我們目前估計第三季的 EBITDA 在 2000 萬美元至 3000 萬美元之間。我們預計，由於房屋建築商放慢開工速度以配合新房銷售，且我們的通路合作夥伴降低庫存水平，我們的 EWP 銷售量將連續出現高個位數下降。

On EWP pricing, low to mid-single-digit sequential declines are expected as competition per share persists. In Plywood, we expect mid-single-digit sequential volume increases resulting from the resumption of operations at our Oakdale mill and the avoidance of planned maintenance downtime that we experienced in the second quarter at our Kettle Falls operation.

就 EWP 定價而言，由於每股競爭持續存在，預計會出現低至中等個位數的連續下降。在膠合板方面，我們預計，由於 Oakdale 工廠恢復運營，以及避免了 Kettle Falls 工廠第二季度經歷的計劃內維護停機，銷量將實現中等個位數的環比增長。

On plywood pricing, July realizations were approximately 5% below our second-quarter average. Partially offsetting changes in Wood Products top line are somewhat lower expected manufacturing and web stock costs due to improved operating rates at Oakdale and Kettle Falls and weakness in OSB pricing. For BMD, we currently estimate third-quarter EBITDA to be between $70 million and $80 million, BMD's daily sales pace in July was approximately 3% below the second-quarter sales pace of $25.2 million per day.

就合板定價而言，七月的實現價格比第二季的平均價格低約 5%。由於 Oakdale 和 Kettle Falls 的營運率提高以及 OSB 價格疲軟，預期製造和網狀庫存成本有所下降，部分抵消了木製品營業額的變化。對於 BMD，我們目前估計第三季 EBITDA 在 7,000 萬美元至 8,000 萬美元之間，BMD 7 月份的每日銷售速度比第二季 2,520 萬美元的每日銷售速度低約 3%。

Our daily sales pace for the balance of the third quarter will be dependent upon end market demand, product pricing, and our customer partners reliance upon us for next-day, out-of-warehouse service. Lastly, in addition to limited near-term clarity for end market demand are uncertainties from trade and tariff policy changes that create the potential for meaningful forward pricing volatility for plywood, lumber, and other commodity products.

第三季剩餘時間的每日銷售速度將取決於終端市場需求、產品定價以及我們的客戶合作夥伴對我們次日出庫服務的依賴。最後，除了終端市場需求短期內不明朗之外，貿易和關稅政策變化也存在不確定性，這可能會導致膠合板、木材和其他大宗商品的遠期價格大幅波動。

I'll now turn it back over to Nate to share our business outlook and closing remarks.

現在我將把時間交還給 Nate，讓他分享我們的業務展望和結束語。

Thanks, Kelly. I'm on slide number 11. No matter the operating conditions, our experienced team remains committed to creating value for our shareholders as well as our customers and suppliers by staying resilient, adaptable, and focused on delivering exceptional products and services. Due to our integrated model, we're able to take advantage of increased channel inventory visibility, allowing us to better navigate market uncertainty by aligning production rates and inventory strategies with end market demand. Cross-divisional efficiencies combined with our robust balance sheet provide us the ability to stay focused on the execution of our strategy and creation of long-term value for our stakeholders.

謝謝，凱利。我在第 11 張投影片。無論經營條件如何，我們經驗豐富的團隊始終致力於保持韌性、適應性並專注於提供卓越的產品和服務，為我們的股東以及客戶和供應商創造價值。由於我們的整合模型，我們能夠利用增強的通路庫存可見性，透過調整生產力和庫存策略與終端市場需求，使我們能夠更好地應對市場不確定性。跨部門效率與我們強勁的資產負債表相結合，使我們能夠專注於執行我們的策略並為我們的利害關係人創造長期價值。

We remain confident that long-term demand drivers for residential construction such as the undersupply of housing units, the age of US housing stock, and the high levels of homeowner equity remain robust. Additionally, generational tailwinds driven by millennials and Gen Z reaching the peak age for household formation and more seniors opting to age in place continue to support household formation growth. These structural and generational factors underpin the industry's strong core fundamentals. Repair and remodeling activity has been held back by diminished levels of existing home turnover and from homeowners delaying large repair remodel projects due to the high cost of accessing their equity combined with economic uncertainty.

我們仍然相信，住房供應不足、美國住房存量年限以及房主權益水平高等住宅建設的長期需求驅動因素仍然強勁。此外，千禧世代和 Z 世代達到家庭組成的巔峰年齡，以及更多老年人選擇在原地養老，這些因素推動了家庭組成的成長。這些結構性和世代因素支撐了該行業強勁的核心基本面。由於現有房屋週轉率下降，以及房主因獲取房屋淨值成本高昂和經濟不確定性而推遲大型維修改造項目，維修和改造活動受到了抑制。

We expect consumer confidence to improve with lower interest rates and greater clarity on US economic policy. These factors collectively create a long runway for growth in repair and remodel projects.

我們預計，隨著利率下降和美國經濟政策更加明朗，消費者信心將會增強。這些因素共同為修復和改造專案的成長創造了長期空間。

In addition, consistent investment in our Wood Products assets across all phases of the business cycle is critical to driving overall growth as it enhances efficiency during market downturns and enables greater operating rate flexibility and product availability for our customer base when demand regains momentum.

此外，在商業週期的各個階段持續投資於我們的木製品資產對於推動整體成長至關重要，因為它可以在市場低迷時期提高效率，並在需求恢復勢頭時為我們的客戶群提供更大的營運率靈活性和產品可用性。

Lastly, markets with limited clarity make for distribution-friendly environments, and we look forward to, again, demonstrating the value proposition of two-step distribution across a broad mix of products in periods where there is near-term demand or price uncertainty like we're experiencing today. As always, we stand ready to serve our customers and expect they will place additional reliance on our auto warehouse capabilities given the environment.

最後，透明度有限的市場有利於分銷，我們期待再次展示在短期需求或價格不確定的時期（就像我們今天所經歷的）對廣泛產品進行兩步驟分銷的價值主張。像往常一樣，我們隨時準備為客戶提供服務，並期望他們能夠在當前環境中更加依賴我們的自動倉庫功能。

Thank you for joining us today and for your continued support and interest in Boise Cascade. We would welcome any questions at this time. Corey, would you please open the phone lines?

感謝您今天加入我們，並感謝您對博伊西卡斯卡德的持續支持和關注。我們歡迎您提出任何問題。科里，你能打開電話線嗎？

(Operator Instructions) Kurt Yinger, D.A. Davidson.

（操作員指示）Kurt Yinger，D.A. Davidson。

Just wanted to start off on EWP, your day LVL volumes up to even I-joist down 4 is nicely outperforming kind of what we're seeing in terms of seeing the family starts. Can you talk a little bit about what's driven that performance gap? And similarly, what we should maybe take from the difference between kind of LVL and I-joists volume trends?

只是想從 EWP 開始，您當天的 LVL 產量甚至高達 4 個 I 型托樑，在家庭開工方面表現優於我們所看到的情況。您能否稍微談談造成這種績效差距的原因是什麼？同樣，我們應該從 LVL 和 I 型托樑體積趨勢之間的差異中得出什麼結論？

Hey, Kurt, it's Nate. Let me start that. I think when it comes to the LVL market, I think it has probably a little bit better resiliency in terms of just the the different application opportunities that exist in the marketplace today. So when you think about obviously beams and headers, wall framing, those are all growth -- continue to be growth opportunities for, I think, our LVL category.

嘿，庫爾特，我是內特。讓我開始吧。我認為，就 LVL 市場而言，就當今市場上存在的不同應用機會而言，它可能具有更好的彈性。因此，當您想到樑和橫樑、牆體框架時，這些都是成長——我認為，對於我們的 LVL 類別來說，這仍然是成長機會。

I-joists is pretty much centered on floor systems, and so that can have maybe a more limited opportunity or upside just given kind of some of the dynamics there, including some of the competitive factors on play with floor trusses and dimensional lumber as well as a slab-on-grade construction. So I think overall, we feel really good about our footprint and representation at both LVL and I-joists, and I-joists will have a little bit different cadence in terms of takeaway, in some cases depending upon where those housing starts are as well as some of the competitive challenges that might be out there.

I 型托樑主要以樓板系統為中心，因此，考慮到其中的一些動態因素，包括樓板桁架和規格木材以及地面樓板結構方面的一些競爭因素，I 型托樑的機會或優勢可能會比較有限。因此我認為總體而言，我們對 LVL 和 I 型托樑的足跡和代表性感到非常滿意，而 I 型托樑在外賣方面的節奏會略有不同，在某些情況下，這取決於住房開工的位置以及可能存在的一些競爭挑戰。

Okay. So is it fair then, Nate, to say in terms of EBIT I-joists kind of outperforming on the single-family side, maybe that's a mix of where starts are occurring, maybe a little bit of share shift kind of back from plated floor trust? Or I guess, as you think about our dealer partnerships and things like that, do you feel like you're kind of gaining wallet share?

好的。那麼，內特，公平地說，就息稅前利潤 (EBIT) 而言，I 型托樑在單戶住宅方面表現優異，這可能是由於開工情況的混合，也許是由於從鍍層地板信託中稍微轉移了一點份額？或者我想，當您考慮我們的經銷商合作夥伴關係和諸如此類的事情時，您是否覺得自己正在獲得錢包份額？

One moment for a technical difficulty. We'll be right back.

由於技術故障，請稍候。我們馬上回來。

Kurt, will you please ask your question one more time?

庫爾特，你能再問一次你的問題嗎？

Yes, sure. Maybe just switching gears on in terms of the EWP destock kind of referenced in Q3, s there, I guess, a good way to think about the sizing of that and whether that might spill into Q4 as well?

是的，當然。也許只是在第三季度提到的 EWP 去庫存方面進行轉換，我想，這是一個很好的方法來思考它的規模以及它是否也會蔓延到第四季度？

In terms of maybe the way I would think about that is not just on EWP, but other products as well is the purchase profile that's going to be likely changing. So maybe there's going to be less mill direct but there's going to be more activity in terms of units and job packs and pieces out of distribution. So that theme has been really clear from our customers in terms of how they're going to manage their working capital as they go through the course of 2025 and probably early to '26 on a range of products. And so even though the inventory may change a little bit or the order patterns may change a little bit out of our mills. Again, we think the consumption will be heavy out of distribution out of our warehouse, which again, we're really well set up to go perform and execute to that standard.

就我而言，也許我的想法不僅僅是 EWP，其他產品的購買情況也可能會改變。因此，工廠直銷可能會減少，但單位、作業包和分銷件方面的活動將會增加。因此，我們的客戶非常清楚地了解了這個主題，即他們將如何在 2025 年甚至 2026 年初管理一系列產品的營運資金。因此，即使庫存可能會發生一點變化，或者我們的工廠的訂單模式可能會發生一點變化。再次，我們認為從我們的倉庫配送出去的消耗將會很大，再次，我們已經做好了充分的準備去執行並達到這個標準。

George Staphos, Bank of America.

美國銀行的喬治‧斯塔福斯 (George Staphos)。

This is Brad Barton on for George. Just starting off quickly, if you guys could just talk to the operating rates across the business. And relatedly, I guess, how do you see EWP pricing going forward given the trend downward over the last several quarters, at what point do we see a bottom, and what's the catalyst to inflect there?

這是布拉德巴頓代替喬治上場。剛開始，請問你們能否談談整個業務的營運率。與此相關的是，考慮到過去幾季的下降趨勢，您如何看待 EWP 定價的未來趨勢？什麼時候會觸底？而引發價格波動的催化劑是什麼？

Yeah. This is Troy. In terms of operating rates in the second quarter, we entered the quarter with the idea that we would run full out to be prepared for the building season. Obviously, late in the quarter, that started to play out. But during the quarter, our operating rates were in the low 80s on the EWP side.

是的。這就是特洛伊。就第二季的開工率而言，我們進入本季時就抱著全力開工的想法，為建築季節做好準備。顯然，到本季末，這種情況開始顯現。但在本季度，我們的 EWP 營運率處於 80% 出頭。

With the Oakdale out, we just wanted to maintain the inventory. It's not get caught off guard. Now that we've got Oakdale back up, the plywood side, we finished the quarter in the probably 70-ish percentile. Without Oakdale, we're probably closer to 80%.

由於 Oakdale 庫存已售罄，我們只想維持庫存。這並不是猝不及防。現在我們已經恢復了 Oakdale 的膠合板業務，我們在本季的成績大約在 70% 左右。如果沒有 Oakdale，我們的成功率可能接近 80%。

(technical difficulty) order, to Nate's point, that he just made our operating rates probably are going to be down 70-ish -- 65%, 70% type range, depending on demand and that destocking and the effect of that.

（技術難度）訂單，正如 Nate 剛才所說，我們的營運率可能會下降 70% 左右——65%、70% 左右，這取決於需求、去庫存及其影響。

Okay. Great. And then one follow-up for me to the extent that you guys can comment. We saw the news about the strike at the Billings facility. Just if you can give any update there? And any color on that facility in terms of the size or potential impact there? That would be very helpful.

好的。偉大的。然後我會跟進一下，以便你們可以發表評論。我們看到了有關比林斯工廠罷工的新聞。您能否提供任何更新資訊？您對該設施的規模和潛在影響有何了解？那將會非常有幫助。

Hi, this is Joe. I can comment on that. So on July 29, we have 19 union representative employees at our BMD facility in Billings, Montana that initiated the strike. That strike is still ongoing as of today. It's limited to just 1 of our 38 BMD locations. We have implemented business continuity protocols and our Billings team is doing a very good job of avoiding any disruptions to our customers. And at this time, the situation is really limited in scope, and we don't anticipate that there will be a material impact.

嗨，我是喬。我可以對此發表評論。因此，7 月 29 日，我們位於蒙大拿州比林斯的 BMD 工廠的 19 名工會代表員工發起了罷工。截至今天，罷工仍在繼續。它僅限於我們 38 個 BMD 地點中的 1 個。我們已經實施了業務連續性協議，我們的比林斯團隊在避免對客戶造成任何干擾方面做得非常出色。目前，情況的範圍確實有限，我們預計不會產生實質影響。

Susan Maklari, Goldman Sachs.

高盛的蘇珊馬克拉里 (Susan Maklari)。

My first question is on the general line part of the business. You saw some really nice results there despite all the pressures that are coming through. Can you talk a bit about how you're thinking about the next couple of quarters there given some of your suppliers focused on getting price and also maintaining inventories on the ground given the conditions?

我的第一個問題是關於業務的整體部分。儘管面臨諸多壓力，您仍然看到了一些非常好的結果。鑑於您的一些供應商目前專注於獲得價格並維持當地庫存，您能否談談您對未來幾季的看法？

(technical difficulty)

（技術難度）

One more time, can you ask your question, please, ma'am.

女士，請再問一次您的問題。

Sure. Can you guys hear me okay?

當然。你們聽得到我說話嗎？

Yes.

是的。

The question is on the -- okay, okay. The question is on the general line part of the business. Given the conditions that you're seeing out there, can you talk about how that is performing? And also as you see some suppliers that are looking to get pricing and control inventory, how that is going to impact results over the next couple of quarters?

問題在於──好的，好的。問題在於業務的整體路線部分。考慮到您所看到的實際情況，您能談談其表現如何嗎？而且您還看到一些供應商正在尋求定價和控制庫存，這將如何影響未來幾季的業績？

Hi, Sue. This is Joe. Yeah. So in Q2, our general line category has actually held up really well. We feel like we're well positioned there from an inventory perspective as our customers have leaned out their inventory. Going into Q2, there's disruption and uncertainty in the market. Our customers have leaned heavier on to our inventories and distribution, so we saw ourselves out of warehouse pick up in Q2 pretty significantly.

你好，蘇。我是喬。是的。因此，在第二季度，我們的一般產品類別實際上表現良好。我們覺得從庫存角度來看我們處於有利地位，因為我們的客戶已經精簡了他們的庫存。進入第二季度，市場出現混亂和不確定性。我們的客戶更加依賴我們的庫存和分銷，因此我們在第二季度看到倉庫庫存大幅增加。

And yeah, our general line categories remain strong. We think that they will remain strong going into the balance of the year. I don't see really (inaudible) changes happening there.

是的，我們的整體產品線類別依然強勁。我們認為，他們在今年餘下時間仍將保持強勁勢頭。我並沒有看到那裡發生真正的（聽不清楚）變化。

Okay. That's helpful. And then in your prepared remarks, you talked about aligning production to demand. As you think about the operating backdrop across the business, can you talk about some of those efforts? How we should think about the cost structure of the business and the potential benefits to the margins as those efforts come through to results?

好的。這很有幫助。然後，在您準備好的演講中，您談到了使生產與需求一致。當您考慮整個業務的營運背景時，您能談談其中的一些努力嗎？當這些努力取得成果時，我們應該如何看待業務的成本結構以及利潤率的潛在利益？

Yeah. Sue, this is Troy. In terms of just the operating posture, like I mentioned, we went into the quarter planning on running full. So right now coming out of Q2, our inventories at the mill level are at the higher end on the EWP side. So we're now -- we're positioned to -- if the demand is there, which looks like it's -- it may not be what we expected, we would end up just moving veneer over to the plywood side first.

是的。蘇，這是特洛伊。就營運態勢而言，正如我所提到的，我們在進入本季時計劃全力運作。因此，從目前第二季的情況來看，我們工廠等級的庫存在 EWP 方面處於較高水準。所以我們現在 - 我們的定位是 - 如果有需求，看起來 - 它可能不是我們預期的那樣，我們最終會先將單板轉移到膠合板方面。

If we can do that to continue to move that veneer. We would essentially continue to run our veneer operations somewhat full. And then we did take some time in early July, and we would anticipate some down market-related downtime, and we would anticipate if we needed to do that, we would line up around major holidays as necessary.

如果我們能做到這一點，就能繼續推動這項進程。我們基本上會繼續全力經營我們的單板業務。然後我們確實在 7 月初花了一些時間，我們預計市場會有一些下滑相關的停工期，我們預計如果需要這樣做，我們會根據需要在主要假期前後排隊。

And then maybe one other comment, Sue, to add on would be we won't -- we don't expect to obviously have the drag on Oakdale being down like it was in the first half of the year. And included in that, the value of self-sufficient veneer versus having to buy some on the open market, we will get the benefit of that. And then if OSB prices stay where they are, we would expect some tailwinds also for web stock cost for (inaudible)

然後，蘇，也許還有一條評論需要補充，那就是我們不會——我們預計奧克代爾的銷售不會像今年上半年那樣受到拖累。其中包括，自給自足飾面的價值與在公開市場上購買的價值相比，我們將從中受益。如果 OSB 價格維持現狀，我們預期網材成本也會回升（聽不清楚）

Okay. That's helpful color, Kelly. And can I squeeze one more on EWP. As you think of -- as the builders talk to going into 2026 with less inventory on the ground. Can you talk about the competitive backdrop and what that could imply for the dynamics within that business as we think about the upcoming quarters?

好的。凱利，這是很有幫助的顏色。我可以在 EWP 上再擠一點嗎？正如您所想的那樣——建築商談到到 2026 年地面庫存將會減少。您能否談談競爭背景以及這對未來幾季的業務動態有何影響？

Hey, Sue, it's Nate. Sorry. Yeah, so I think just in terms of kind of the competitive dynamics on whether EWP or other products, I think it's going to be the -- will remain probably a challenge as we go through the course of this year and early next year, just given kind of what we expect in terms of the demand environment. But with that said, I think when you think about EWP and what the builders are still looking to do on the job site, cycle times remain important. And so we know that I-joist and EWP create a better deliverable in terms of reduced cycle times at the job site.

嘿，蘇，我是內特。對不起。是的，所以我認為，就 EWP 或其他產品的競爭動態而言，考慮到我們對需求環境的預期，我認為這將在今年和明年年初繼續成為一個挑戰。但話雖如此，我認為當你考慮 EWP 以及建築商在工作現場仍想做什麼時，週期時間仍然很重要。因此我們知道，工字樑和 EWP 在縮短工地週期方面能夠提供更好的交付成果。

So I think that, in combination with the design flexibility, again, we still feel really good about how we're set up in terms of EWP going through the balance of the year and early next year.

因此，我認為，結合設計彈性，我們仍然對 EWP 在今年餘下時間和明年年初的安排感到非常滿意。

The other thing I would just comment on is when you think about engineered wood products, really the importance of great two-step distribution in support of that product. And we are really well set up as an organization with our Boise Cascade EWP franchise. We've got great distribution in the marketplace.

我想評論的另一件事是，當您考慮工程木製品時，支援該產品的兩步驟分銷確實非常重要。作為一個擁有 Boise Cascade EWP 特許經營權的組織，我們已經建立了完善的組織。我們在市場上擁有廣泛的分銷管道。

So having not only product on the ground, but the ability for drawings and services. We feel really good about how we're positioned to serve the marketplace even on a higher level as we close out this year. So it's going to be, I think, in terms of the competitive landscape, nothing will change, but that's -- I think we're well positioned to compete and win in that kind of environment as well.

因此，我們不僅擁有實地產品，也具備繪圖和服務的能力。在即將結束的今年，我們對自己能夠以更高的水平服務市場感到非常滿意。因此，我認為，就競爭格局而言，什麼都不會改變，但那是——我認為我們在那種環境中也處於有利地位，可以參與競爭並獲勝。

Thank you very much. At this time, I am showing no further calls. I would like to turn it back to Nate Jorgensen for closing remarks.

非常感謝。目前，我沒有顯示其他來電。我想請 Nate Jorgensen 做最後發言。

Okay. We appreciate everyone joining us today, and our apologies for the technical challenges. So thank you for your patience as well and your continued interest and support of Boise Cascade. With that, we'll close the call. Please be safe and be well. Thank you.

好的。我們感謝今天加入我們的每個人，並對技術挑戰表示歉意。因此，也感謝您的耐心以及對博伊西卡斯卡德的持續關注和支持。就這樣，我們就結束通話了。祝您平安健康。謝謝。

Thank you very much for your participation. This does conclude the conference.

非常感謝您的參與。會議到此結束。