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What changed in BOISE CASCADE Co's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of BOISE CASCADE Co's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+372 added−363 removedSource: 10-K (2026-02-24) vs 10-K (2025-02-20)

Top changes in BOISE CASCADE Co's 2025 10-K

372 paragraphs added · 363 removed · 301 edited across 9 sections

Item 1. Business

Business — how the company describes what it does

76 edited+21 added−11 removed36 unchanged
Biggest changeName Age Position Executive Officers: Nate Jorgensen 60 Chief Executive Officer Jeff Strom 57 Chief Operating Officer Kelly Hibbs 58 Senior Vice President, Chief Financial Officer, and Treasurer Joanna Barney 51 Executive Vice President, Building Materials Distribution Troy Little 57 Executive Vice President, Wood Products Jill Twedt 45 Senior Vice President, General Counsel and Corporate Secretary Key Management: Robert Johnson 60 Senior Vice President, Engineered Wood Products Sales and Marketing, Wood Products Chris Seymour 53 Senior Vice President, Manufacturing Operations, Wood Products Jim Wickham 59 Senior Vice President, Eastern Operations, Building Materials Distribution Angella Broesch 48 Vice President, Human Resources Chris Forrey 49 Vice President, Finance and Investor Relations Nathan Sikes 44 Vice President, Sales and Marketing, Building Materials Distribution Nate Jorgensen, Chief Executive Officer Mr.
Biggest changeName Age Position Executive Officers: Nate Jorgensen 61 Chief Executive Officer (retiring effective March 2, 2026) Jeff Strom 58 Chief Operating Officer (Chief Executive Officer, effective March 3, 2026) Kelly Hibbs 59 Senior Vice President, Chief Financial Officer, and Treasurer Jo Barney 52 Executive Vice President, Building Materials Distribution Troy Little 58 Executive Vice President, Wood Products Jill Twedt 46 Senior Vice President, General Counsel and Corporate Secretary Key Management: Angella Broesch 49 Senior Vice President, Human Resources Chris Forrey 50 Senior Vice President, Finance and Investor Relations Robert Johnson 61 Senior Vice President, Manufacturing Operations, Wood Products Nathan Sikes 45 Senior Vice President, Western Operations, Building Materials Distribution Jim Wickham 60 Senior Vice President, Eastern Operations, Building Materials Distribution Jeff Dracup 43 Vice President, Engineered Wood Products Sales and Marketing, Wood Products Dennis Fringuelli 56 Vice President, Sales and Marketing, Building Materials Distribution Nate Jorgensen, Chief Executive Officer (retiring effective March 2, 2026) Mr.
As a leading manufacturer and distributor of building materials, we bring people, products, and services together to build strong homes, businesses, and communities that stand the test of time. Segment Overview Our two reportable segments, Wood Products and Building Materials Distribution, operate with a high degree of integration.
As a leading distributor and manufacturer of building materials, we bring people, products, and services together to build strong homes, businesses, and communities that stand the test of time. Segment Overview Our two reportable segments, Building Materials Distribution and Wood Products, operate with a high degree of integration.
In 2024, we acquired assets of door and millwork facilities in Boise, Idaho and Lakeland, Florida. Furthermore, in 2023, we acquired Brockway-Smith Company (BROSCO), a wholesale distributor specializing in doors and millwork. In the last several years, we have also expanded our door and millwork business with new locations in Dallas and Houston, Texas; Kansas City, Missouri; and Denver, Colorado.
In 2024, we acquired assets of door and millwork facilities in Boise, Idaho and Lakeland, Florida. Furthermore, in 2023, we acquired Brockway-Smith Company (BROSCO), a wholesale distributor specializing in doors and millwork. In the last several years, we have also expanded our door and millwork business with new locations in Houston, Texas; Kansas City, Missouri; and Denver, Colorado.
The building materials distribution markets in which we operate are fragmented, and we compete in each of our geographic and product markets with national, regional, and local distributors. Our wholesale distribution competitors include BlueLinx Holdings Inc., Specialty Building Products Inc., Weyerhaeuser Company, Dixie Plywood and Lumber, OrePac, Woodgrain Inc., and Capital Lumber, among others.
The building materials distribution markets in which we operate are fragmented, and we compete in each of our geographic and product markets with national, regional, and local distributors. Our wholesale distribution competitors include BlueLinx Holdings Inc., Specialty Building Products Inc., Weyerhaeuser Company, Dixie Plywood and Lumber, Woodgrain Inc., and Capital Lumber, among others.
Having a sound financial position is important to our suppliers and allows for favorable terms on which to procure products. In addition, our financial condition is also important to customers who rely on us for timely delivery across a broad range of products that are consistently in stock.
Having a sound financial position is important to our suppliers and allows for favorable terms on which to procure products. In addition, our financial condition is also important to customers who rely on us for timely delivery across a broad range of products that are consistently in stock. Wood Products.
His previous positions with the company include: • Vice President and Controller, February 2011 - May 2021 • Director of Strategic Planning and Internal Audit, February 2008 - February 2011 Mr. Hibbs received a bachelor's degree in Accounting from Boise State University, Boise, ID. He is a certified public accountant. Joanna Barney, Executive Vice President, Building Materials Distribution Ms.
His previous positions with the Company include: • Vice President and Controller, February 2011 - May 2021 • Director of Strategic Planning and Internal Audit, February 2008 - February 2011 Mr. Hibbs received a bachelor's degree in Accounting from Boise State University, Boise, ID. He is a certified public accountant. Jo Barney, Executive Vice President, Building Materials Distribution Ms.
Strom received a bachelor’s degree in Management from the Georgia Institute of Technology, Atlanta, GA. 14 Table of Contents Kelly Hibbs, Senior Vice President, Chief Financial Officer, and Treasurer Mr. Hibbs was appointed the company's senior vice president, chief financial officer, and treasurer in May 2021.
Strom received a bachelor’s degree in Management from the Georgia Institute of Technology, Atlanta, GA. 13 Table of Contents Kelly Hibbs, Senior Vice President, Chief Financial Officer, and Treasurer Mr. Hibbs was appointed the Company's senior vice president, chief financial officer, and treasurer in May 2021.
We believe that our national presence and long-standing relationships with many of our key suppliers allow us to obtain favorable price, terms, and supply arrangements on leading brands in the building materials industry. We also believe our broad product line provides our customers with an efficient, one-stop resource for their building materials needs.
We believe that our national presence and long-standing relationships with many of our key suppliers allow us to obtain favorable price, terms, and supply arrangements on leading brands in the building materials industry. We also believe 7 Table of Contents our broad product line provides our customers with an efficient, one-stop resource for their building materials needs.
Except for EWP, we purchase most of these building materials from a broad base of third-party suppliers ranging from large manufacturers, such as Canfor, Commercial Metals Company, Hampton Lumber, Hoover Treated Wood Products, Huber Engineered Woods, James Hardie Building Products, JELD-WEN, Louisiana-Pacific, Steves & Sons, Therma-Tru Doors, Trex Company and West Fraser, to small regional producers.
Except for EWP, we purchase most of these building materials from a broad base of third-party suppliers ranging from large manufacturers, such as Canfor, Commercial Metals Company, Hampton Lumber, Hoover Treated Wood Products, Huber Engineered Woods, James Hardie Building Products, Louisiana-Pacific, ODL, Inc., Steves & Sons, Therma-Tru Doors, Trex Company and West Fraser, to small regional producers.
Most of our competitors are located in the U.S. and Canada, although we also compete with manufacturers in other countries, particularly when the U.S. dollar and economy are stronger relative to other countries, encouraging foreign producers to sell more of their products into the U.S. Building Materials Distribution.
Most of our competitors are located in the U.S. and Canada, although we also compete with manufacturers in other countries, particularly when the U.S. dollar and economy are stronger relative to other countries, encouraging foreign producers to sell more of their products into the U.S.
Management's Discussion and Analysis of Financial Condition and Results of Operations" of this Form 10-K for a description of our reasons for using EBITDA and for a discussion of the limitations of such a non-GAAP measure. Facilities Our Wood Products segment operates five EWP facilities.
Management's Discussion and Analysis of Financial Condition and Results of Operations" of this Form 10-K for a description of our reasons for using EBITDA and for a discussion of the limitations of such a non-GAAP measure. 9 Table of Contents Facilities Our Wood Products segment operates five EWP facilities.
Approximately 89% of our log supply in 2024 was supplied through purchases from private landowners or through dealers. We also bid in auctions conducted by federal, state, and local authorities for the purchase of logs, generally at fixed prices, under contracts with terms of generally one to three years.
Approximately 88% of our log supply in 2025 was supplied through purchases from private landowners or through dealers. We also bid in auctions conducted by federal, state, and local authorities for the purchase of logs, generally at fixed prices, under contracts with terms of generally one to three years.
Our manufacturing facilities are located in close proximity to active wood fiber markets. Logs comprised approximately 78% of our wood fiber costs during 2024, and we satisfy our log requirements through a combination of purchases under supply agreements, open-market purchases, and purchases pursuant to contracts awarded under public auctions.
Our manufacturing facilities are located in close proximity to active wood fiber markets. Logs comprised approximately 80% of our wood fiber costs during 2025, and we satisfy our log requirements through a combination of purchases under supply agreements, open-market purchases, and purchases pursuant to contracts awarded under public auctions.
Drivers of new residential construction, residential repair-and-remodeling activity, and light commercial construction include new household formation, the age of the housing stock, availability of credit and other macroeconomic factors, such as GDP growth, population growth and migration, interest rates, employment, and consumer sentiment. 2 Table of Contents The map below presents our network of manufacturing and distribution facilities.
Drivers of new residential construction, residential repair-and-remodeling activity, and light commercial construction include new household formation, the age of the housing stock, availability of credit and other macroeconomic factors, such as GDP growth, population growth and migration, interest rates, employment, and consumers' financial health. 2 Table of Contents The map below presents our network of manufacturing and distribution facilities.
Our Building Materials Distribution segment (BMD) is the largest customer of our Wood Products segment and operates a nationwide network of distribution facilities that sell a broad line of building materials, including oriented strand board (OSB), plywood, and lumber (collectively referred to as commodities); general line items such as siding, composite decking, doors and millwork, metal products, roofing, and insulation; and EWP.
Our Building Materials Distribution segment (BMD) operates a nationwide network of distribution facilities that sell a broad line of building materials, including oriented strand board (OSB), plywood, and lumber (collectively referred to as commodities); general line items such as siding, composite decking, doors and millwork, metal products, roofing, and insulation; and EWP.
Capital Investment Information concerning our capital expenditures is presented in "Investment Activities" under "Liquidity and Capital Resources" in "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" of this Form 10-K. Seasonal Influences We are exposed to fluctuations in quarterly sales volumes and expenses due to seasonal factors.
Capital Investment Information concerning our capital expenditures is presented in "Investment Activities" under "Liquidity and Capital Resources" in "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" of this Form 10-K. Seasonal Influences We are exposed to fluctuations in quarterly sales volumes and expenses due to seasonal factors impacting the level of construction activity.
ITEM 1. BUSINESS Boise Cascade is one of the largest producers of engineered wood products (EWP) and plywood in North America and a leading U.S. wholesale distributor of building products. As used in this Form 10-K, the terms "Boise Cascade," "we," and "our" refer to Boise Cascade Company and its consolidated subsidiaries.
ITEM 1. BUSINESS Boise Cascade is one of the largest U.S. wholesale distributors of building materials and a leading manufacturer of engineered wood products (EWP) and plywood in North America. As used in this Form 10-K, the terms "Boise Cascade," "we," and "our" refer to Boise Cascade Company and its consolidated subsidiaries.
Wood fiber is the primary raw material used in our Wood Products operations, and our primary source of wood fiber is logs. For the year ended December 31, 2024, wood fiber accounted for approximately 39% of materials, labor, and other operating expenses (excluding depreciation) in our Wood Products segment.
Wood fiber is the primary raw material used in our Wood Products operations, and our primary source of wood fiber is logs. For the year ended December 31, 2025, wood fiber accounted for approximately 37% of materials, labor, and other operating expenses (excluding depreciation) in our Wood Products segment.
BMD continues to increase the proportion of its sales attributable to general line and EWP as those products carry a higher and more stable margin profile than commodities. The chart below reflects BMD's sales mix by product for the year ended December 31, 2024.
BMD continues to focus on the proportion of its sales attributable to general line and EWP as those products carry a higher and more stable margin profile than commodities. The chart below reflects BMD's sales mix by product for the year ended December 31, 2025.
BMD's sales and sales per U.S. housing start, as well as our focus on increasing sales attributable to general line and EWP, are reflected in the charts below.
BMD's sales and sales per U.S. housing start, as well as our focus on general line and EWP sales, are reflected in the charts below.
Her previous positions include: • Vice President, General Counsel, and Corporate Secretary, January 2019 - October 2020 • Vice President, Legal and Corporate Secretary, August 2017 - January 2019 • Associate General Counsel, July 2007 - August 2017 Ms.
Her previous positions with the Company include: • Vice President, General Counsel, and Corporate Secretary, January 2019 - October 2020 • Vice President, Legal and Corporate Secretary, August 2017 - January 2019 • Associate General Counsel, July 2007 - August 2017 Ms.
The following table lists our product line sales mix for the periods indicated: Year Ended December 31 2024 2023 2022 2021 2020 (percentage of Building Materials Distribution sales) Commodity 35.8 % 37.8 % 44.9 % 51.6 % 46.6 % General line 42.4 % 39.5 % 33.3 % 30.2 % 35.6 % Engineered wood products 21.8 % 22.7 % 21.8 % 18.2 % 17.8 % The following table sets forth segment sales, income, depreciation and amortization, and EBITDA (a non-GAAP measure) for the periods indicated: Year Ended December 31 2024 2023 2022 2021 2020 (millions) Segment sales $ 6,166.5 $ 6,178.7 $ 7,643.6 $ 7,174.3 $ 4,952.0 Segment income $ 303.4 $ 335.8 $ 627.1 $ 481.1 $ 247.5 Segment depreciation and amortization 49.5 32.4 27.0 24.0 22.5 Segment EBITDA (a) $ 352.9 $ 368.2 $ 654.1 $ 505.1 $ 270.0 _______________________________________ (a) Segment EBITDA is calculated as segment income before depreciation and amortization.
The following table lists our product line sales mix for the periods indicated: Year Ended December 31 2025 2024 2023 2022 2021 (percentage of Building Materials Distribution sales) Commodity 35.0 % 35.8 % 37.8 % 44.9 % 51.6 % General line 45.2 % 42.4 % 39.5 % 33.3 % 30.2 % Engineered wood products 19.8 % 21.8 % 22.7 % 21.8 % 18.2 % The following table sets forth segment sales, income, depreciation and amortization, and EBITDA (a non-GAAP measure) for the periods indicated: Year Ended December 31 2025 2024 2023 2022 2021 (millions) Segment sales $ 5,941.3 $ 6,166.5 $ 6,178.7 $ 7,643.6 $ 7,174.3 Segment income $ 222.2 $ 303.4 $ 335.8 $ 627.1 $ 481.1 Segment depreciation and amortization 58.7 49.5 32.4 27.0 24.0 Segment EBITDA (a) $ 280.9 $ 352.9 $ 368.2 $ 654.1 $ 505.1 _______________________________________ (a) Segment EBITDA is calculated as segment income before depreciation and amortization.
The following table sets forth segment sales, segment income, depreciation and amortization, and EBITDA (a non-GAAP measure) for the periods indicated: Year Ended December 31 2024 2023 2022 2021 2020 (millions) Segment sales (a) $ 1,832.3 $ 1,932.6 $ 2,115.9 $ 1,970.8 $ 1,323.9 Segment income (b) $ 231.5 $ 337.1 $ 575.2 $ 531.2 $ 127.7 Segment depreciation and amortization (b) 93.2 98.7 73.3 55.2 71.1 Segment EBITDA (c) $ 324.7 $ 435.8 $ 648.5 $ 586.5 $ 198.9 _______________________________________ (a) Segment sales are calculated before elimination of sales to our BMD segment.
The following table sets forth segment sales, segment income, depreciation and amortization, and EBITDA (a non-GAAP measure) for the periods indicated: Year Ended December 31 2025 2024 2023 2022 2021 (millions) Segment sales (a) $ 1,613.4 $ 1,832.3 $ 1,932.6 $ 2,115.9 $ 1,970.8 Segment income $ 5.8 $ 231.5 $ 337.1 $ 575.2 $ 531.2 Segment depreciation and amortization 98.5 93.2 98.7 73.3 55.2 Segment EBITDA (b) $ 104.3 $ 324.7 $ 435.8 $ 648.5 $ 586.5 _______________________________________ (a) Segment sales are calculated before elimination of sales to our BMD segment.
Wood fiber also includes, to a lesser extent than OSB, lumber purchased from third parties for I-joist production at our Canadian EWP facility and for production at our laminated beam plant in Idaho. Lumber input costs are subject to similar commodity-based volatility characteristics noted above for OSB. Other raw materials and energy costs.
Wood fiber also includes, to a lesser extent than OSB, veneer purchased from third parties for engineered wood products production and lumber purchased from third parties for I-joist production at our Canadian EWP facility and for production at our laminated beam plant in Idaho. Veneer and lumber input costs are subject to similar commodity-based volatility characteristics noted above for OSB.
His previous positions with the company include: • Vice President of Engineered Wood Products Sales and Marketing, Wood Products, January 2020 - February 2022 • Director of Engineered Wood Products, March 2019 - January 2020 • Business Optimization Manager, Wood Products, May 2017 - March 2019 • Region Manager, Wood Products, February 2016 - May 2017 • Business Optimization Manager, Wood Products, March 2015 - February 2016 15 Table of Contents • Business Optimization Engineer, Wood Products, October 2014 - March 2015 Mr.
His previous positions with the Company include: • Senior Vice President, Engineered Wood Products Sales and Marketing, Wood Products, February 2022 - June 2025 • Vice President of Engineered Wood Products Sales and Marketing, Wood Products, January 2020 - February 2022 • Director of Engineered Wood Products, March 2019 - January 2020 • Business Optimization Manager, Wood Products, May 2017 - March 2019 • Region Manager, Wood Products, February 2016 - May 2017 • Business Optimization Manager, Wood Products, March 2015 - February 2016 • Business Optimization Engineer, Wood Products, October 2014 - March 2015 Mr.
We use a significant quantity of various resins and glues in our manufacturing processes. Resin and glue product costs are influenced by changes in the prices of raw material input costs, primarily fossil fuel products. We purchase resins and glues, other raw materials, and energy used to manufacture our products in both the open market and through supply contracts.
Resin and glue product costs are influenced by changes in the prices of raw material input costs, primarily fossil fuel products. We purchase resins and glues, other raw materials, and energy used to manufacture our products in both the open market and through supply contracts.
In our Wood Products segment, we manufacture laminated veneer lumber (LVL), I-joists, and laminated beams, which are collectively referred to as EWP. In addition, we manufacture structural, appearance, and industrial grade plywood panels, and ponderosa pine lumber.
In our Wood Products segment, we manufacture laminated veneer lumber (LVL), I-joists, and laminated beams, which are collectively referred to as EWP. In addition, we manufacture structural, appearance, and industrial grade plywood panels, and ponderosa pine lumber. BMD is the largest customer of our Wood Products segment.
We have leading market positions in the manufacture of EWP and plywood. In the wood products manufacturing markets, we compete primarily on the basis of price, quality, availability, and particularly with respect to EWP, customer service, product support, and performance features offered.
In the wood products manufacturing markets, we compete primarily on the basis of price, quality, availability, and particularly with respect to EWP, customer service, product support, and performance features offered.
His previous positions with the company include: • Director of Sales and Marketing, Building Materials Distribution, December 2022 - October 2023 • Region Manager, Building Materials Distribution, January 2022 - December 2022 • Branch Manager, Building Materials Distribution, February 2019 - January 2022 16 Table of Contents • Sales Manager, Building Materials Distribution, January 2014 - February 2019 Mr.
His previous positions with the Company include: • Vice President, Sales and Marketing, Building Materials Distribution, October 2023 - February 2025 • Director of Sales and Marketing, Building Materials Distribution, December 2022 - October 2023 • Region Manager, Building Materials Distribution, January 2022 - December 2022 • Branch Manager, Building Materials Distribution, February 2019 - January 2022 • Sales Manager, Building Materials Distribution, January 2014 - February 2019 Mr.
In plywood, we compete with Georgia-Pacific, the largest manufacturer in North America, other large producers such as Roseburg Forest Products, foreign imports produced principally in South America, and several smaller domestic producers. Our plywood products also face competition from OSB producers, because OSB can be substituted for plywood in many building and industrial applications.
Our EWP products also face competition because EWP may be substituted by dimension lumber and truss products in many building applications. In plywood, we compete with Georgia-Pacific, the largest manufacturer in North America, other large producers such as Roseburg Forest Products, foreign imports produced principally in South America, and several smaller domestic producers.
The code establishes the expectations for ensuring we have an inclusive and harassment-free work environment. We have an open-door policy that encourages employees to speak up about any work-related issues, suggestions, or ideas. We also provide a confidential CARE Line, which offers an additional way to report behavior or activity that may be unsafe, unethical, or illegal.
We have an open-door policy that encourages employees to speak up about any work-related issues, suggestions, or ideas. We also provide a confidential CARE Line, which offers an additional way to report behavior or activity that may be unsafe, unethical, or illegal.
Jorgensen received a bachelor's degree in Civil and Environmental Engineering from the University of Wisconsin and also attended the Tuck School of Business Executive Education Program, Dartmouth College, Hanover, NH. Jeff Strom, Chief Operating Officer Mr. Strom was appointed the company's chief operating officer in January 2025.
Jorgensen received a bachelor's degree in Civil and Environmental Engineering from the University of Wisconsin and also attended the Tuck School of Business Executive Education Program, Dartmouth College, Hanover, NH. Jeff Strom, Chief Operating Officer (CEO effective March 3, 2026) Mr. Strom will become the Company's chief executive officer, effective March 3, 2026.
We work towards business continuity and personal leadership growth by developing our employees as individuals through targeted leadership programs, coaching, and focused experiences. 12 Table of Contents Our Code of Ethics guides the actions and behaviors of anyone working for, representing, or partnering with Boise Cascade.
We work towards business continuity and personal leadership growth by developing our employees as individuals through targeted leadership programs, coaching, and focused experiences. Our Code of Ethics guides the actions and behaviors of anyone working for, representing, or partnering with Boise Cascade. The code establishes the expectations for ensuring we have an inclusive and harassment-free work environment.
We expect to grow our EWP sales and thereby divert more of our internally produced veneer away from plywood, which is a product line exposed to oriented strand board substitution and significant price volatility. Value-added EWP provides higher margins and pricing is not subject to the auction-based volatility of commodity markets.
Our strategy is to grow our EWP sales, allowing us to divert more of our internally produced veneer away from plywood, which is a product line exposed to substitution by oriented strand board and significant price volatility. EWP, as a value-added set of products, delivers higher margins, and its pricing is not subject to the auction-based volatility of commodity markets.
Chris Forrey, Vice President, Finance and Investor Relations Mr. Forrey was appointed the company's vice president of finance and investor relations in May 2024. His previous positions with the company include: • Senior Director of Finance, March 2022 - May 2024 • Director of Tax, March 2015 - March 2022 Mr.
His previous positions with the Company include: • Vice President of Finance and Investor Relations, May 2024 - February 2026 • Senior Director of Finance, March 2022 - May 2024 • Director of Tax, March 2015 - March 2022 Mr.
Innovation efforts within our Wood Products segment are also focused on identifying process and cost efficiency improvement opportunities, some of which include automated packaging, asset monitoring applications for predictive maintenance, and the use of artificial intelligence to classify and identify opportunities in safety. We use process improvement and machine reliability methodologies to continuously refine and improve our operations and processes.
Innovation efforts within our Wood Products segment are also focused on identifying process and cost efficiency improvement opportunities, some of which include automated veneer handling and grading, finished goods packaging, asset monitoring applications for predictive maintenance, and the use of artificial intelligence to classify and identify opportunities in safety.
The following table sets forth the annual capacity, production volumes, and sales volumes of our principal products for the periods indicated: Year Ended December 31 2024 2023 2022 2021 2020 (millions) Capacity (a) LVL (cubic feet) (b) 36.3 34.6 34.6 34.0 34.0 Plywood and Parallel Laminated Veneer (PLV) (sq. ft.) (3/8" basis) (c)(d) 2,725 2,735 2,735 2,230 2,230 Production Volumes LVL (cubic feet) (b) 29.1 25.2 26.7 29.3 26.0 I‑joists (equivalent lineal feet) (b) 234 215 233 295 237 Plywood and PLV (sq. ft.) (3/8" basis) (c) 1,988 1,945 1,753 1,727 1,637 Sales Volumes LVL (cubic feet) (e) 19.4 17.4 17.6 18.2 17.3 I-joists (equivalent lineal feet) 234 220 229 290 241 Plywood (sq. ft.) (3/8" basis) (f) 1,517 1,599 1,319 1,259 1,253 _______________________________________ (a) Estimated annual capacity at the end of each year based on machinery capabilities.
We also produce ponderosa pine shop lumber, which is sold primarily to industrial converters, and ponderosa pine appearance grade boards that are sold to home centers and dealers. 8 Table of Contents The following table sets forth the annual capacity, production volumes, and sales volumes of our principal products for the periods indicated: Year Ended December 31 2025 2024 2023 2022 2021 (millions) Capacity (a) LVL (cubic feet) (b) 36.3 36.3 34.6 34.6 34.0 Plywood and Parallel Laminated Veneer (PLV) (sq. ft.) (3/8" basis) (c)(d) 2,725 2,725 2,735 2,735 2,230 Production Volumes LVL (cubic feet) (b) 27.2 29.1 25.2 26.7 29.3 I‑joists (equivalent lineal feet) (b) 215 234 215 233 295 Plywood and PLV (sq. ft.) (3/8" basis) (c) 1,842 1,988 1,945 1,753 1,727 Sales Volumes LVL (cubic feet) (e) 18.9 19.4 17.4 17.6 18.2 I-joists (equivalent lineal feet) 215 234 220 229 290 Plywood (sq. ft.) (3/8" basis) (f) 1,460 1,517 1,599 1,319 1,259 _______________________________________ (a) Estimated annual capacity at the end of each year based on machinery capabilities.
Customers Our customer relationships range from locally owned single-location facilities to large national dealers and home improvement centers across the U.S. and Canada, with Builders FirstSource and Home Depot being our largest customers. Substantially all sales to Builders FirstSource were recorded in our BMD segment, and sales to Home Depot were recorded in our BMD and Wood Products segments.
In 2025, approximately 75% and 51% of our Wood Products segment's EWP and plywood sales volumes, respectively, were to our BMD segment. Customers Our customer relationships range from locally owned single-location facilities to large national dealers and home improvement centers across the U.S. and Canada, with Builders FirstSource and Home Depot being our largest customers.
We believe our long-standing customer and vendor relationships allow us to respond to customer feedback and introduce new products more rapidly. Broadening our product offering also helps us drive additional products through our distribution system, thereby increasing our scale and efficiency.
The introduction of new products is primarily driven by customer demand or product extensions originating from our vendors. We believe our long-standing customer and vendor relationships allow us to respond to customer feedback and introduce new products more rapidly. Broadening our product offering also helps us drive additional products through our distribution system, thereby increasing our scale and efficiency.
We believe that our focus on leading indicators helps to prevent future incidents and injuries. Living our values means driving the expectation that each of our employees has ownership of safety and the authority to stop work if there is a safety concern.
Living our values means driving the expectation that each of our employees has ownership of safety and the authority to stop work if there is a safety concern.
Seymour received a bachelor’s degree in Business Administration and a master’s degree in Wood Science from West Virginia University, Morgantown, WV. Jim Wickham, Senior Vice President, Eastern Operations, Building Materials Distribution Mr. Wickham was appointed the company's senior vice president of eastern operations, Building Materials Distribution, in October 2023.
Sikes received a bachelor’s degree in Business Administration from the University of Texas at Arlington, Arlington, TX. Jim Wickham, Senior Vice President, Eastern Operations, Building Materials Distribution Mr. Wickham was appointed the Company's senior vice president of eastern operations, Building Materials Distribution, in October 2023.
Our sales force spends a significant amount of time working with end customers who purchase our EWP. Our sales force provides a variety of technical support services, including integrated design, engineering, product specification software, distributor inventory management software, and job-pack preparation systems. Sales of plywood are handled in multiple locations, with management located centrally at headquarters.
Our sales force provides a variety of technical support services, including integrated design, engineering, product specification software, distributor inventory management software, and job-pack preparation systems. Sales of plywood are handled in multiple locations, with management located centrally at headquarters. 10 Table of Contents In 2025, EWP and plywood accounted for 60% and 31%, respectively, of our Wood Products sales.
Johnson received a bachelor’s degree in Finance from the University of Oregon, Eugene, OR. Chris Seymour, Senior Vice President, Manufacturing Operations, Wood Products Mr. Seymour was appointed the company's senior vice president of manufacturing operations, Wood Products, in February 2022.
Johnson received a bachelor’s degree in Finance from the University of Oregon, Eugene, OR. Nathan Sikes, Senior Vice President, Western Operations, Building Materials Distribution Mr. Sikes was appointed the Company's senior vice president of western operations, Building Materials Distribution, in February 2025.
Twedt received a bachelor's degree in Political Science from the College of Idaho, Caldwell, ID and a law degree from the University of Idaho, Moscow, ID. Robert Johnson, Senior Vice President, Engineered Wood Products Sales & Marketing, Wood Products Mr. Johnson was appointed the company's senior vice president of engineered wood products sales and marketing, Wood Products, in February 2022.
Twedt received a bachelor's degree in Political Science from the College of Idaho, Caldwell, ID and a law degree from the University of Idaho, Moscow, ID. Angella Broesch, Senior Vice President, Human Resources Ms. Broesch was appointed the Company's senior vice president of human resources in February 2026.
We are also increasing the robustness of our data analytics methods used for forecasting, evaluating opportunities, and solving problems. Our success with innovating digital technology and analytical methods is opening the door to more use cases for improving the way we do business. Key learnings and best practices are then leveraged across our distribution locations.
Our success with innovating digital technology and analytical methods is opening the door to more use cases for improving the way we do business. Key learnings and best practices are then leveraged across our distribution locations. In addition, we are investing in robotics equipment and other distribution-related technologies.
These organic growth projects allow us to further expand our product and service offerings in those markets. 4 Table of Contents BMD carries a broad line of building materials used in residential construction, repair and remodel, and industrial applications.
In recent years, we completed capacity expansion projects in West Palm Beach, Florida; Marion, Ohio; Medford, Oregon; Minneapolis, Minnesota; and Cincinnati, Ohio. These organic growth projects allow us to further expand our product and service offerings in those markets. BMD carries a broad line of building materials used in residential construction, repair and remodel, and industrial applications.
In 2024, EWP and plywood accounted for 62% and 30%, respectively, of our Wood Products sales. The majority of our wood products are sold to leading wholesalers (including our BMD segment), home improvement centers, dealers, and industrial converters in North America.
The majority of our wood products are sold to leading wholesalers (including our BMD segment), home improvement centers, dealers, and industrial converters in North America. Our BMD segment is our Wood Products segment's largest customer, representing approximately 71% of our Wood Products segment's overall sales in 2025.
Her previous positions with the company include: • Senior Human Resources Director, July 2023 - February 2024 • Director of Total Rewards, November 2020 - July 2023 • Director of Internal Audit, October 2013 - November 2020 Ms. Broesch received a bachelor's degree in Accounting from the University of Idaho, Moscow, ID.
Her previous positions with the Company include: • Vice President of Human Resources, February 2024 - February 2026 • Senior Human Resources Director, July 2023 - February 2024 • Director of Total Rewards, November 2020 - July 2023 • Director of Internal Audit, October 2013 - November 2020 14 Table of Contents Ms.
Our sales force has access to centralized information technology systems, an extensive vendor base, and corporate-level working capital support, which we believe complements our localized sales model. Our national presence allows us to act as a vehicle for our suppliers' new innovative products and the ability to introduce new building products to our customers.
In addition, we have the flexibility and presence to provide scalable and consistent sales programs to our customers with a national footprint. Our sales force has access to centralized information technology systems, an extensive vendor base, and corporate-level working capital support, which we believe complements our localized sales model.
The contracts are generally with regional suppliers who agree to supply all of our needs for a certain raw material or energy within the applicable region.
The contracts are generally with regional suppliers who agree to supply all of our needs for a certain raw material or energy within the applicable region. These contracts have terms of various lengths and typically contain price adjustment mechanisms that take into account changes in market prices.
We have implemented technology tools to collect material Scope 1 and Scope 2 greenhouse gas (GHG) emissions data, which further enhances our ability to track and report on climate-related issues. This is an important step in understanding the emissions impact of our operations and allows for future enhancement of reporting metrics in the TCFD framework.
Environmental Boise Cascade uses the Task Force on Climate-Related Financial Disclosures (TCFD) framework for communicating our position and performance on climate-related matters. We have implemented technology tools to collect material Scope 1 and Scope 2 greenhouse gas (GHG) emissions data, which further enhances our ability to track and report on climate-related issues.
Our products are used in the construction of new residential housing, including single-family, multi-family, and manufactured homes, the repair-and-remodeling of existing housing, the construction of light industrial and commercial buildings, and industrial applications. We have a broad base of national and local customers, which includes a diverse mix of dealers, home improvement centers, leading wholesalers, specialty distributors, and industrial converters.
Our products are used in the construction of new residential housing, including single-family, multi-family, and manufactured homes, the repair-and-remodeling of existing housing, the construction of light industrial and commercial buildings, and other industrial applications.
Forrey received a bachelor's degree in Accounting and a master's degree in Taxation from Boise State University, Boise, ID. He is a certified public accountant. Nathan Sikes, Vice President, Sales and Marketing, Building Materials Distribution Mr. Sikes was appointed the company's vice president of sales and marketing, Building Materials Distribution, in October 2023.
Forrey received a bachelor's degree in Business Administration and a master's degree in Accountancy and Taxation, both from Boise State University, Boise, ID. He is a certified public accountant. Robert Johnson, Senior Vice President, Manufacturing Operations, Wood Products Mr. Johnson was appointed the Company's senior vice president of manufacturing operations, Wood Products, in June 2025.
At Boise Cascade, the health and safety of our 7,560 employees is core to how we do business. We collect and report common lagging indicators of safety performance, and our safety programs include tools, training, and resources that allow us to collect, analyze, and share leading indicators of safety-related hazards broadly across our organization.
We collect and report common lagging indicators of safety performance, and our safety programs include tools, training, and resources that allow us to collect, analyze, and share leading 11 Table of Contents indicators of safety-related hazards broadly across our organization. We believe that our focus on leading indicators helps to prevent future incidents and injuries.
LVL is also used in the manufacture of I-joists, which are assembled by combining a vertical web of OSB with top and bottom LVL or solid wood flanges. I-joists, which are used primarily in residential and commercial flooring and roofing systems and other structural applications, are stronger, lighter, and straighter than conventional lumber products.
Wood Products Products LVL and laminated beams are structural products used in applications where extra strength and consistent quality are required, such as headers and wide spans. LVL is also used in the manufacture of I-joists, which are assembled by combining a vertical web of OSB with top and bottom LVL or solid wood flanges.
Our Business Strategies Increase Both Our Earnings and Earnings Stability We intend to increase both our earnings and earnings stability by growing our EWP sales and expanding our distribution capabilities. In Wood Products, we are principally focused on the production of veneer-based products.
Increase Both Our Earnings and Earnings Stability We intend to increase both our earnings and earnings stability by expanding our distribution capabilities and growing our EWP sales.
To assess the effectiveness and efficiency of our operations, we regularly capture and report on a wide variety of investment, operational, and customer service metrics. Our focus is to increase the quality of decision-making at all levels using data-driven digital technologies. This includes leveraging business intelligence software to build dashboards and reports for many areas of our business.
Our focus is to increase the quality of decision-making at all levels using data-driven digital technologies. This includes leveraging business intelligence software to build dashboards and reports for many areas of our business. We are also increasing the robustness of our data analytics methods used for forecasting, evaluating opportunities, and solving problems.
The reference to our website address does not constitute incorporation by reference of the information contained on the website, and the information contained on the website is not part of this document. 13 Table of Contents Information About Our Executive Officers and Key Management Below is a list of names, ages, and a brief description of the business experience of our executive officers and key members of management, each as of February 17, 2025.
Information About Our Executive Officers and Key Management Below is a list of names, ages, and a brief description of the business experience of our executive officers and key members of management, each as of February 18, 2026.
Broadening our product offering helps us serve as a one-stop resource for building materials, which we believe improves our customers' purchasing and operating efficiencies. The introduction of new products is primarily driven by customer demand or product extensions originating from our vendors.
Our national presence allows us to act as a vehicle for our suppliers' new innovative products and the ability to introduce new building products to our customers. Broadening our product offering helps us serve as a one-stop resource for building materials, which we believe improves our customers' purchasing and operating efficiencies.
Wood Products enjoys superior access to the market through a committed distributor, BMD benefits from a committed manufacturing partnership, and we capture margin at both levels of the supply chain. In addition, Wood Products and BMD are collectively motivated to make the investments necessary to support our growth in the marketplace.
Our Business Strategies Leverage the Integrated Model We believe our integrated business model provides us with advantages over less integrated competitors and provides unique and significant value to our customers. BMD benefits from a committed manufacturing partnership, Wood Products enjoys superior access to the market through a committed distributor, and we capture margin at both levels of the supply chain.
In EWP, we compete against several major North American EWP producers, such as Weyerhaeuser Company, Pacific Woodtech Corporation, and Roseburg Forest Products, as well as several other smaller firms. Our EWP products also face competition because EWP may be substituted by dimension lumber and truss products in many building applications.
The wood products manufacturing markets in which we operate are large and highly competitive. In EWP, we compete against several major North American EWP producers, such as Weyerhaeuser Company, Pacific Woodtech Corporation, and Roseburg Forest Products, as well as several other smaller firms.
We believe EWP has favorable characteristics when compared to competing products, as it reduces labor and 7 Table of Contents installed costs, provides cycle time advantages, and results in less material usage and waste. Plywood is used in a wide range of structural, interior, and exterior applications within the residential, industrial, and repair and remodel sectors.
I-joists, which are used primarily in residential and commercial flooring and roofing systems and other structural applications, are stronger, lighter, and straighter than conventional lumber products. We believe EWP has favorable characteristics when compared to competing products, as it reduces labor and installed costs, provides cycle time advantages and results in less material usage and waste.
For additional information related to customers of our Wood Products and BMD segments, see the "Sales, Marketing, and Distribution" sections above. 11 Table of Contents Competition Wood Products. The wood products manufacturing markets in which we operate are large and highly competitive.
Substantially all sales to Builders FirstSource were recorded in our BMD segment, and sales to Home Depot were recorded in our BMD and Wood Products segments. For additional information related to customers of our BMD and Wood Products segments, see the "Sales, Marketing, and Distribution" sections above. Competition Building Materials Distribution.
Wickham received a bachelor’s degree in Business from Missouri State University, Springfield, MO. Angella Broesch, Vice President, Human Resources Ms. Broesch was appointed the company's vice president of human resources in February 2024.
Wickham received a bachelor’s degree in Business from Missouri State University, Springfield, MO. 15 Table of Contents Jeff Dracup, Vice President, Engineered Wood Products Sales and Marketing, Wood Products Mr. Dracup was appointed the Company's vice president of engineered wood products sales and marketing, Wood Products, in January 2026.
The chart below reflects the progress we have made in distributing internally produced products through our distribution network. 6 Table of Contents Leverage Technology Like many companies, we continue to innovate with technology to search out revenue-generating, cost-reducing, and risk-mitigating opportunities. We are also actively engaged in product development opportunities.
Wood Products' sales mix by product line is illustrated below and demonstrates our principal focus on the production of veneer-based products. Leverage Technology Like many companies, we continue to innovate with technology to pursue revenue-generating, cost-reducing, and risk-mitigating opportunities. We are also actively engaged in product development opportunities.
Management's Discussion and Analysis of Financial Condition and Results of Operations" of this Form 10-K for a description of our reasons for using EBITDA and for a discussion of the limitations of such a non-GAAP measure. 10 Table of Contents Facilities Our BMD segment operates a nationwide network of 38 building materials distribution facilities throughout the U.S., including door and millwork facilities in 14 markets, as well as one component manufacturing plant.
See "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" of this Form 10-K for a description of our reasons for using EBITDA and for a discussion of the limitations of such a non-GAAP measure.
Jorgensen was appointed the company's chief executive officer in March 2020.
Jorgensen, the Company's chief executive officer, has elected to retire from the Company effective March 2, 2026. He was appointed to the position of CEO in March 2020.
OSB accounted for approximately 6% of the aggregate amount of materials, labor, and other operating expenses (excluding depreciation) for our Wood Products segment in 2024. OSB is a commodity, and prices have historically been volatile in response to industry capacity and operating rates, inventory levels in various distribution channels, and seasonal demand patterns.
OSB accounted for approximately 5% of the aggregate amount of materials, labor, and other operating expenses (excluding depreciation) for our Wood Products segment in 2025.
Building Materials Distribution Products We sell a broad line of building materials, including OSB, plywood, and lumber (collectively commodities); general line items such as siding, composite decking, doors and millwork, metal products, roofing, and insulation; and EWP.
We believe there are opportunities to further apply these process improvement programs in our manufacturing operations and apply similar techniques and methods to different functional areas to realize efficiencies in those areas. 6 Table of Contents Segment Detail Building Materials Distribution Products We sell a broad line of building materials, including commodities; general line items such as siding, composite decking, doors and millwork, metal products, roofing, and insulation; and EWP.
Sikes received a bachelor’s degree in Business Administration from the University of Texas at Arlington, Arlington, TX.
Fringuelli received a bachelor's degree in Marketing from the University of Louisiana Lafayette, Lafayette, LA.
We believe there are opportunities to further apply these process improvement programs in our manufacturing operations and apply similar techniques and methods to different functional areas to realize efficiencies in those areas. In BMD, we believe our highly efficient logistics system allows us to deliver superior customer service and assist our customers in optimizing their working capital.
In BMD, we believe our highly efficient logistics system allows us to deliver superior customer service and assist our customers in optimizing their working capital. To assess the effectiveness and efficiency of our operations, we regularly capture and analyze a wide variety of investment, operational, and customer service metrics.
In addition, BMD's sales in 2021 and 2022 were impacted by historically high composite panel and lumber prices. 5 Table of Contents Leverage the Integrated Model We believe our integrated business model provides us with advantages over less integrated competitors and provides unique and significant value to our customers.
BMD's sales in 2021 and 2022 were impacted by historically high composite panel and lumber prices. 4 Table of Contents 5 Table of Contents In Wood Products, we are principally focused on the production of veneer-based products.
In addition to our investment in our door and millwork business, we continue to expand the capacity of our distribution centers. In 2024, we made progress on greenfield distribution centers in Hondo, Texas, and Walterboro, South Carolina, which we expect to be complete in 2025 and 2026, respectively.
In addition to our investment in our door and millwork business, we continue to expand our market penetration, as well as the capacity of our existing distribution centers. In 2025, we opened our greenfield distribution center in Hondo, Texas which will allow us to better serve customers across Austin, San Antonio, Corpus Christi, and the Rio Grande Valley.
These contracts have terms of various lengths and typically contain price adjustment mechanisms that take into account changes in market prices. 9 Table of Contents Sales, Marketing, and Distribution Our EWP sales force is managed centrally through a main office that oversees regional sales teams.
Sales, Marketing, and Distribution Our EWP sales force is managed centrally through a main office that oversees regional sales teams. Our sales force spends a significant amount of time working with end customers who purchase our EWP.
To provide access to additional veneer for EWP production, we acquired Coastal Plywood and its plywood manufacturing locations in Havana, Florida, and Chapman, Alabama, in 2022. 3 Table of Contents Wood Products' sales mix by product line is illustrated below and demonstrates our principal focus on the production of veneer-based products.
In addition, we substantially completed a project to add I-joist production capabilities at our Thorsby, Alabama EWP mill, which will be operational in the first half of 2026. In 2022, we acquired Coastal Plywood and its plywood manufacturing locations in Havana, Florida, and Chapman, Alabama which has provided access to additional veneer for EWP production.
Our broad geographic presence reduces our exposure to market factors in any single region. In 2024, we acquired assets of door and millwork facilities in Boise, Idaho and Lakeland, Florida.
Facilities Our BMD segment operates a nationwide network of 40 building materials distribution facilities throughout the U.S., including door and millwork facilities in 15 markets, as well as one component manufacturing plant. Our broad geographic presence reduces our exposure to market factors in any single region.
Removed
In addition to the acquisition of Coastal Plywood in 2022, we have made, and intend to continue to make, investments in our mills in the Southeast U.S., allowing us to grow our EWP sales.
Added
We have a broad base of national and local customers, which includes a diverse mix of dealers, home improvement centers, leading wholesalers, specialty distributors, and industrial converters.
Removed
In 2023, we announced or completed capacity expansion projects in West Palm Beach, Florida; Marion, Ohio; and Medford, Oregon and we announced the relocation of our Lathrop, California distribution center to Modesto, California. In 2022, we completed capacity expansion projects in Minneapolis, Minnesota and Cincinnati, Ohio.
Added
In addition, BMD and Wood Products are collectively motivated to make the investments necessary to support our growth in the marketplace. Substantially all of BMD's EWP is sourced from our Wood Products segment, with BMD consuming approximately 75% of the volumes that Wood Products produces.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeOne agreement covering approximately 20 employees at our Billings BMD facility is set to expire on March 31, 2025, and two agreements covering approximately 730 employees at our Oakdale and Florien plywood plants are set to expire on July 15, 2025, but the terms and conditions of these agreements will remain in effect after expiration, pending negotiation of new agreements.
Biggest changeTwo agreements covering approximately 700 employees at our Oakdale and Florien plywood plants expired on July 15, 2025. The terms and conditions of these agreements remain in effect pending negotiation of new agreements. One agreement covering approximately 80 employees at our Canadian EWP facility is set to expire on December 31, 2026.
Risks Relating to Our Business Competitive Risks A portion of the products we manufacture or purchase and resell are commodities whose price is determined by the market's supply and demand for such products, and the markets in which we operate are cyclical and competitive.
Risks Relating to Our Business Competitive Risks A portion of the products we purchase and resell or manufacture are commodities whose price is determined by the market's supply and demand for such products, and the markets in which we operate are cyclical and competitive.
At times, the price for any one or more of the products we produce or distribute may fall below our cash production or purchase costs, requiring us to either incur short-term losses on product sales or curtail production at one or more of our manufacturing facilities.
At times, the price for any one or more of the products we distribute or produce may fall below our purchase or cash production costs, requiring us to either incur short-term losses on product sales or curtail production at one or more of our manufacturing facilities.
Therefore, our profitability with respect to these commodity products depends, in significant part, on effective facilities maintenance and procurement programs, and on managing our cost structure, particularly raw materials and labor, which represent the largest components of our operating costs.
Therefore, our profitability with respect to these commodity products depends, in significant part, on effective procurement and facilities maintenance programs, and on managing our cost structure, particularly raw materials and labor, which represent the largest components of our operating costs.
Demand for the products we manufacture, as well as the products we purchase and distribute, is correlated with new residential construction, residential repair-and-remodeling activity and light commercial construction in the U.S.
Demand for the products we purchase and distribute, as well as the products we manufacture, is correlated with new residential construction, residential repair-and-remodeling activity and light commercial construction in the U.S.
Industry supply for the products we produce and distribute is influenced primarily by price-induced changes in the operating rates of existing facilities, but is also influenced over time by the introduction of new product technologies, capacity additions and closures, the restart of idled capacity, and log availability.
Industry supply for the products we distribute and produce is influenced primarily by price-induced changes in the operating rates of existing facilities, but is also influenced over time by the introduction of new product technologies, capacity additions and closures, the restart of idled capacity, and log availability.
In addition, our ability to attract and retain talent is challenging due to a shortage of both hourly and technically skilled workers for our manufacturing and distribution facilities, as well as changing workforce expectations, including flexible or remote work arrangements that we may be unable to provide.
In addition, our ability to attract and retain talent is challenging due to a shortage of both hourly and technically skilled workers for our distribution and manufacturing facilities, as well as changing workforce expectations, including flexible or remote work arrangements that we may be unable to provide.
Our key managers are important to our success and may be difficult to replace because they have a significant amount of experience in wood products manufacturing and building materials distribution. While our senior management team has considerable experience, certain members of our management team are nearing or have reached retirement age.
Our key managers are important to our success and may be difficult to replace because they have a significant amount of experience in building materials distribution and wood products manufacturing. While our senior management team has considerable experience, certain members of our management team are nearing or have reached retirement age.
In addition, if any of our third-party transportation providers fail to deliver the goods we manufacture or distribute in a timely manner, we may be unable to sell those products at full value.
In addition, if any of our third-party transportation providers fail to deliver the goods we distribute or manufacture in a timely manner, we may be unable to sell those products at full value.
We may be involved in product liability, product warranty, casualty, manufacturing and construction defects, and other claims relating to the products we manufacture and distribute, and services we provide. We also rely on manufacturers and other suppliers to provide us with many of the products we sell and distribute.
We may be involved in product liability, product warranty, casualty, manufacturing and construction defects, and other claims relating to the products we distribute and manufacture, and services we provide. We also rely on manufacturers and other suppliers to provide us with many of the products we sell and distribute.
The market price for our common stock could fluctuate significantly for various reasons, including: • our operating and financial performance and prospects; • our quarterly or annual earnings or those of other companies in our industry; • the public's reaction to our press releases, our other public announcements, and our filings with the SEC; • changes in key personnel; • strategic actions by us, our customers, or our competitors, such as acquisitions, consolidations, or restructurings; • changes in, or failure to meet, earnings estimates or recommendations by research analysts who track our common stock or the stock of other companies in our industry; • the failure of research analysts to cover our common stock; • general economic, industry, and market conditions; • new laws or regulations or new interpretations of existing laws or regulations applicable to our business; • investors' perception of our commitment to sustainability and corporate responsibility; • material litigation or government investigations; • changes in general conditions in the U.S. and global economies or financial markets, including those resulting from war, incidents of terrorism, pandemics, or responses to such events; • sales of common stock by our management team or board of directors; • the granting of equity or equity-based incentives; • volume of trading in our common stock (which may be impacted by future sales or repurchases of our common stock); • changes in accounting standards, policies, guidance, interpretations, or principles; and • the impact of the factors described elsewhere in "Item 1A.
The market price for our common stock could fluctuate significantly for various reasons, including: • our operating and financial performance and prospects; • our quarterly or annual earnings or those of other companies in our industry; • the public's reaction to our press releases, our other public announcements, and our filings with the SEC; 25 Table of Contents • changes in key personnel; • strategic actions by us, our customers, or our competitors, such as acquisitions, consolidations, or restructurings; • changes in, or failure to meet, earnings estimates or recommendations by research analysts who track our common stock or the stock of other companies in our industry; • the failure of research analysts to cover our common stock; • general economic, industry, and market conditions; • new laws or regulations or new interpretations of existing laws or regulations applicable to our business; • investors' perception of our commitment to sustainability and corporate responsibility; • material litigation or government investigations; • changes in general conditions in the U.S. and global economies or financial markets, including those resulting from war, incidents of terrorism, pandemics, or responses to such events; • sales of common stock by our management team or board of directors; • the granting of equity or equity-based incentives; • volume of trading in our common stock (which may be impacted by future sales or repurchases of our common stock); • changes in accounting standards, policies, guidance, interpretations, or principles; and • the impact of the factors described elsewhere in "Item 1A.
The provisions in our certificate of incorporation and bylaws include, among other things, the following: • the ability of our board of directors to issue shares of preferred stock and to determine the price and other terms, including preferences and voting rights, of those shares without stockholder approval; • stockholder action can only be taken at a special or regular meeting and not by written consent; • advance notice procedures for nominating candidates to our board of directors or presenting matters at stockholder meetings; • removal of directors only for cause; • allowing only our board of directors the ability to create additional director seats and fill vacancies on our board of directors; and • super-majority voting requirements to amend our bylaws and certain provisions of our certificate of incorporation.
The provisions in our certificate of incorporation and bylaws include, among other things, the following: • the ability of our board of directors to issue shares of preferred stock and to determine the price and other terms, including preferences and voting rights, of those shares without stockholder approval; • stockholder action can only be taken at a special or regular meeting and not by written consent; • advance notice procedures for nominating candidates to our board of directors or presenting matters at stockholder meetings; • allowing only our board of directors the ability to create additional director seats and fill vacancies on our board of directors; and • super-majority voting requirements to amend our bylaws and certain provisions of our certificate of incorporation.
Given the nature of our business operations, actions taken by the U.S. government regarding trade policy, such as renegotiating or terminating existing trade agreements or leveraging tariffs, could adversely impact our product pricing and input costs, the supply of products available to us, as well as the demand for the products we manufacture and distribute.
Given the nature of our business operations, actions taken by the U.S. government regarding trade policy, such as renegotiating or terminating existing trade agreements or levying tariffs, could adversely impact our product pricing and input costs, the supply of products available to us, as well as the demand for the products we distribute and manufacture.
If we are unable to negotiate purchases for our log requirements in a particular region to satisfy our log needs at satisfactory prices or at all, which could include private purchases, open-market purchases, and purchases from governmental sources, it could have an adverse effect on our results of operations.
If we are unable to negotiate purchases for our log requirements in a particular region to satisfy our log needs at satisfactory prices or at all, which could include private purchases, open-market purchases, and purchases from governmental sources, it could have a material adverse effect on our results of operations.
Any of our manufacturing facilities, or any of our machines within an otherwise operational facility, could cease operations unexpectedly due to a number of events, including but not limited to: • labor difficulties, including the inability to staff our facilities due to a global health pandemic; • equipment failure, particularly a press at one of our major EWP production facilities; • fires, floods, earthquakes, hurricanes, extreme weather, or other catastrophes, which may increase in frequency, severity and duration due to the physical impacts of climate change; • unscheduled maintenance outages, including the inability to obtain equipment, parts, and supplies necessary to complete repairs; • utility, information technology, telephonic, and transportation infrastructure disruptions; • other operational problems; or • internal or external security threats.
Any of our manufacturing facilities, or any of our machines within an otherwise operational facility, could cease operations unexpectedly due to a number of events, including but not limited to: • labor difficulties; • equipment failure, particularly a press at one of our major EWP production facilities; • fires, floods, earthquakes, hurricanes, extreme weather, or other catastrophes, which may increase in frequency, severity and duration due to the physical impacts of climate change; • unscheduled maintenance outages, including the inability to obtain equipment, parts, and supplies necessary to complete repairs; • utility, information technology, telephonic, and transportation infrastructure disruptions; • other operational problems; or • internal or external security threats.
Subsequent to making the investment, the performance of the acquired assets is subject to economic uncertainties, as described 21 Table of Contents in our other risk factors, uncertainties related to the achievement of expected synergies, as well as difficulties integrating acquired personnel into our business, the potential loss of key employees, customers, or suppliers, difficulties in integrating different computer and accounting systems, exposure to unknown or unforeseen liabilities of acquired companies, and the diversion of management attention and resources from existing operations.
Subsequent to making the investment, the performance of the acquired assets is subject to economic uncertainties, as described in our other risk factors, uncertainties related to the achievement of expected synergies, as well as difficulties integrating acquired personnel into our business, the potential loss of key employees, customers, or suppliers, difficulties in integrating different computer and accounting systems, exposure to unknown or unforeseen liabilities of acquired companies, and the diversion of management attention and resources from existing operations.
Furthermore, changing demographics could impact product consumption and demand, including urbanization compounding issues around affordability, increasing importance of multi-family housing, declining size of single-family entry-level housing, increasing proportion of homes using slab-on-grade construction, reduced birthing statistics, and changing baby boomer needs freeing up housing capacity.
Furthermore, changing demographics could impact product consumption and demand, including urbanization compounding issues around affordability, increasing importance of multi-family housing, declining size of single-family entry-level housing, increasing proportion of 16 Table of Contents homes using slab-on-grade construction, reduced birthing statistics, and changing baby boomer needs freeing up housing capacity.
Wood fiber also includes, to a lesser extent than OSB, lumber purchased from third parties for I-joist production at our Canadian EWP facility and for production at our laminated beam plant in Idaho. Lumber input costs are subject to similar commodity-based volatility characteristics noted above for OSB.
Wood fiber also includes, to a lesser extent than OSB, veneer purchased from third parties for engineered wood products production and lumber purchased from third parties for I-joist production at our Canadian EWP facility and for production at our laminated beam plant in Idaho. Veneer and lumber input costs are subject to similar commodity-based volatility characteristics noted above for OSB.
Declaration of future dividends will depend upon legal capital requirements and surplus, our future operations and earnings, general financial condition, material cash requirements, restrictions imposed by our asset-based credit facility and the indenture governing our senior notes, applicable laws, and other factors that our board of directors may deem relevant.
Declaration of future dividends will depend upon legal capital requirements and surplus, our future operations and earnings, general financial condition, material cash requirements, restrictions imposed by our revolving credit facility and the indenture governing our senior notes, applicable laws, and other factors that our board of directors may deem relevant.
Our Wood Products and BMD segments could be negatively impacted by changes in tariffs, duties, taxes, or customs resulting from changes in U.S. and foreign trade policy. We export finished wood products and other building materials to foreign markets, primarily to Canada.
Our BMD and Wood Products segments could be negatively impacted by changes in tariffs, duties, taxes, or customs resulting from changes in U.S. and foreign trade policy. We export finished wood products and other building materials to foreign markets, primarily to Canada, the Caribbean, and Mexico.
Certain provisions of our certificate of incorporation and bylaws may have the effect of delaying or preventing changes in control if our board of directors, in exercising its duty of care, determines that such changes in control are not in the best interests of the company and our stockholders.
Certain provisions of our certificate of incorporation and bylaws may have the effect of delaying or preventing changes in control if our board of directors, in exercising its duty of care, determines that such changes in control are not in the best 26 Table of Contents interests of the Company and our stockholders.
In addition, sophisticated hardware and operating system software and applications that we procure from third parties may contain defects in design or manufacture, 18 Table of Contents including "bugs" and other problems that could unexpectedly interfere with the operation of the systems.
In addition, sophisticated hardware and operating system software and applications that we procure from third parties may contain defects in design or manufacture, including "bugs" and other problems that could unexpectedly interfere with the operation of the systems.
Our long-term strategy depends, in part, on our ability to identify and adapt to evolving technological trends in order to leverage potential benefits for us and our vendor and customer partners. Slow-moving initiatives may cause us to fall behind competitors in identifying value in new markets, creating relevant business insights, and identifying cost-cutting capabilities.
Our long-term strategy depends, in part, on our ability to identify and adapt to evolving technological trends in order 21 Table of Contents to leverage potential benefits for us and our vendor and customer partners. Slow-moving initiatives may cause us to fall behind competitors in identifying value in new markets, creating relevant business insights, and identifying cost-cutting capabilities.
These organic growth investments, along with recent acquisitions, have increased our base level of capital expenditures needed for the replacement and maintenance of our asset base. In addition, the recent inflationary environment has increased the cost of machinery and equipment needed for our operations.
These organic growth investments, along with recent 22 Table of Contents acquisitions, have increased our base level of capital expenditures needed for the replacement and maintenance of our asset base. In addition, the recent inflationary environment has increased the cost of machinery and equipment needed for our operations.
Wood fiber is our principal raw material, which accounted for approximately 39% of the aggregate amount of materials, labor, and other operating expenses (excluding depreciation) for our Wood Products segment in 2024. Our primary source of wood fiber is logs. Log prices have been historically cyclical in response to changes in domestic and foreign demand and supply.
Wood fiber is our principal raw material, which accounted for approximately 37% of the aggregate amount of materials, labor, and other operating expenses (excluding depreciation) for our Wood Products segment in 2025. Our primary source of wood fiber is logs. Log prices have been historically cyclical in response to changes in domestic and foreign demand and supply.
Having a sound financial position is important to our suppliers and allows for favorable terms on which to procure products. In addition, our financial condition is also important to customers who rely on us for timely delivery across a broad range of products that are consistently in stock.
Also, financial stability is important to suppliers and customers when choosing distributors. Having a sound financial position is important to our suppliers and allows for favorable terms on which to procure products. In addition, our financial condition is also important to customers who rely on us for timely delivery across a broad range of products that are consistently in stock.
Commodity wood product prices have historically been volatile in response to economic uncertainties, industry operating rates, supply-related disruptions, transportation constraints or disruptions, net import and export activity, trade policies, inventory levels in various distribution channels, and seasonal demand patterns.
Commodity wood product prices have historically been volatile in response to economic uncertainties, industry operating rates, supply-related disruptions, duties, tariffs, transportation constraints or disruptions, net import and export activity, inventory levels in various distribution channels, and seasonal demand patterns.
We also purchase OSB, which is used as the vertical web to assemble I-joists. OSB accounted for approximately 6% of the aggregate amount of materials, labor, and other operating expenses (excluding depreciation) for our Wood Products segment in 2024.
We also purchase OSB, which is used as the vertical web to assemble I-joists. OSB accounted for approximately 5% of the aggregate amount of materials, labor, and other operating expenses (excluding depreciation) for our Wood Products segment in 2025.
Supply chains, including key products purchased from our suppliers, may be disrupted due to labor shortages during elevated housing demand or a global health pandemic. In addition, although we have agreements with many of our suppliers, such agreements are generally terminable by either party on relatively short notice.
Supply chains, including key products purchased from our suppliers, may be disrupted due to labor shortages during elevated housing demand. In addition, although we have agreements with many of our suppliers, such agreements are generally terminable by either party on relatively short notice.
The loss of, or a substantial decrease in the availability of, products from our suppliers or the loss of key supplier arrangements could adversely impact our financial condition, operating results, and cash flows. We depend on third parties for transportation services and limited availability or increases in costs of transportation could adversely affect our business and operations.
As such, the loss of, or a substantial decrease in the availability of, products from our suppliers or the loss of key supplier arrangements could adversely impact our financial condition, operating results, and cash flows. 19 Table of Contents We depend on third parties for transportation services and limited availability or increases in costs of transportation could adversely affect our business and operations.
A portion of the building products we produce or distribute, including OSB, plywood, and lumber, are commodities that are widely available from other manufacturers or distributors with prices and volumes determined frequently in an auction market based on participants' perceptions of short-term supply and demand factors.
A portion of the building products we distribute or produce, including OSB, plywood, and lumber, are commodities that are widely available from multiple sources with prices and volumes determined frequently in an auction market based on participants' perceptions of short-term supply and demand factors.
A material disruption at one of our manufacturing facilities could prevent us from meeting customer demand, including the demand from our Building Materials Distribution business, reduce our sales, and/or negatively affect our financial results.
Cybersecurity" of this Form 10-K. A material disruption at one of our manufacturing facilities could prevent us from meeting customer demand, including the demand from our Building Materials Distribution business, reduce our sales, and/or negatively affect our financial results.
We will continue to monitor and assess the impact of regulatory legislation, which may impose substantial 24 Table of Contents penalties for violations, increased costs for investigations, monitoring and compliance, potential litigation, and possible damage to our reputation, all of which could have a material adverse effect on our operations, financial condition, or cash flows.
We will continue to monitor and assess the impact of changing laws and regulations, which may impose substantial penalties for violations, increased costs for investigations, monitoring and compliance, potential litigation, and possible damage to our reputation, all of which could have a material adverse effect on our operations, financial condition, or cash flows.
We evaluate potential acquisitions from time to time and have, in the past, grown through acquisitions. In the future, we may be unable to successfully identify attractive potential acquisitions or effectively integrate potential acquisitions due to multiple factors, including those noted below, and potential issues related to regulatory review of the proposed transactions.
We evaluate potential acquisitions from time to time and have, in the most recently completed fiscal year and prior years, grown through acquisitions. In the future, we may be unable to successfully identify attractive potential acquisitions or effectively integrate potential acquisitions due to multiple factors, including those noted below, and potential issues related to regulatory review of the proposed transactions.
Our debt agreements limit our ability and the ability of our restricted subsidiaries, among other things, to: • incur additional debt; • declare or pay dividends, redeem stock, or make other distributions to stockholders; • make investments; • create liens or use assets in security in other transactions; • merge or consolidate, or sell, transfer, lease, or dispose of substantially all of our assets; • enter into transactions with affiliates; • sell or transfer certain assets; and • in the case of our revolving credit facility, make prepayments on our senior notes and subordinated indebtedness.
Our debt agreements limit our ability and the ability of our restricted subsidiaries, among other things, to: • incur additional debt; • declare or pay dividends, redeem stock, or make other distributions to stockholders; • make investments; • create liens or use assets in security in other transactions; • merge or consolidate, or sell, transfer, lease, or dispose of substantially all of our assets; • enter into transactions with affiliates; and • sell or transfer certain assets.
However, the future declaration and payment of dividends will continue to be at the discretion of our board of directors and the dividend policy may be suspended or canceled at its discretion at any time.
However, the future declaration, including amount per share, record date and payment date, of dividends will continue to be at the discretion of our board of directors and the dividend policy may be suspended or canceled at its discretion at any time.
In November 2017, our board of directors approved a dividend policy pursuant to which we have paid quarterly cash dividends to holders of our common stock. In addition to these quarterly dividends, we also paid special dividends in each of the last five years.
In November 2017, our board of directors approved a dividend policy pursuant to which we have paid quarterly cash dividends to holders of our common stock. In addition to these quarterly dividends, we also paid special dividends in certain periods.
For the year ended December 31, 2024, our top ten customers represented approximately 48% of our sales, with two customers accounting for approximately 12% and 10% of total sales. At December 31, 2024, receivables from two customers accounted for approximately 19% and 11% of total receivables.
For the year ended December 31, 2025, our top ten customers represented approximately 49% of our sales, with two customers accounting for approximately 12% and 11% of total sales. At December 31, 2025, receivables from two customers accounted for approximately 16% and 12% of total receivables.
The changes frequently appear to occur without regard to the operating performance of the affected companies. Hence, the price of our common stock could fluctuate based on factors that have little or nothing to do with us, and these fluctuations could materially reduce our share price. We may not pay cash dividends in the future.
Hence, the price of our common stock could fluctuate based on factors that have little or nothing to do with us, and these fluctuations could materially reduce our share price. We may not pay cash dividends in the future.
Our failure to effectively expand our product and service offerings in our previously announced greenfield distribution centers in Texas and South Carolina or future projects, realize expected benefits, or manage other consequences of our organic growth could adversely affect our financial condition, operating results, and cash flows.
Our failure to effectively expand our product and service offerings at our recently opened greenfield distribution center in Hondo, Texas or future projects, realize expected benefits, or manage other consequences of our organic growth could adversely affect our financial condition, operating results, and cash flows.
Furthermore, changes in immigration laws and/or their enforcement, could result in tighter overall labor conditions and a shortage of skilled tradespeople. Labor disruptions or shortages could prevent us from meeting customer demands or result in increased costs, thereby reducing our sales and profitability. We may be unable to attract and retain key management and other key employees.
Furthermore, changes in immigration laws and/or their enforcement, could result in tighter overall labor conditions and a shortage of skilled tradespeople. Labor disruptions or shortages could prevent us from meeting customer demands or result in increased costs, thereby reducing our sales and profitability.
For example, plastic, concrete, steel, wood/plastic or composite materials may be used by builders as alternatives to the products produced by our Wood Products segment, such as EWP and plywood.
Our products may compete with alternative products in certain market segments. For example, concrete, steel, or composite materials may be used by builders as alternatives to the products produced by our Wood Products segment, such as EWP and plywood.
These provisions may frustrate or prevent any attempts by our stockholders to replace or remove our current management by making it more difficult for stockholders to replace members of our board of directors, which is responsible for appointing the members of our management. 27 Table of Contents ITEM 1B.
These provisions may frustrate or prevent any attempts by our stockholders to replace or remove our current management by making it more difficult for stockholders to replace members of our board of directors, which is responsible for appointing the members of our management. ITEM 1B. UNRESOLVED STAFF COMMENTS We have no unresolved comments from the SEC staff.
Risk Factors" of this Form 10-K. 26 Table of Contents In addition, the stock market has regularly experienced significant price and volume fluctuations. This volatility has had a significant impact on the market price of securities issued by many companies, including companies in our industry.
Risk Factors" of this Form 10-K. In addition, the stock market has regularly experienced significant price and volume fluctuations. This volatility has had a significant impact on the market price of securities issued by many companies, including companies in our industry. The changes frequently appear to occur without regard to the operating performance of the affected companies.
In BMD, we rely primarily on third parties for inbound receipt of the products we resell and manage the outbound movement of products to our customers with a combination of internal and external resources. In addition, we are subject to seasonal capacity constraints and weather-related delays for rail and truck transportation.
Our business depends on the transportation of a large number of products via rail or truck. In BMD, we rely primarily on third parties for inbound receipt of the products we resell and manage the outbound movement of products to our customers with a combination of internal and external resources.
If we are unable to compete effectively, our net sales and net income will be reduced. Some of our products are vulnerable to declines in demand due to competing technologies or materials, as well as changes in building code provisions. Our products may compete with alternative products in certain market segments.
Finally, we may not be able to maintain our costs at a level sufficiently low for us to compete effectively. If we are unable to compete effectively, our net sales and net income will be reduced. Some of our products are vulnerable to declines in demand due to competing technologies or materials, as well as changes in building code provisions.
Delayed sales, slowed production, or other repercussions resulting from these disruptions could result in lost sales, business delays, and negative publicity and could have a material adverse effect on our operations, financial condition, or cash flows. For additional information on our cybersecurity risk management, strategy, and governance, see "Item 1C. Cybersecurity" of this Form 10-K.
Delayed sales, slowed production, or other repercussions resulting from these disruptions could result in lost sales, business delays, and negative publicity and could have a material adverse effect on our operations, financial condition, or cash flows.
Our failure to comply with any of these covenants could result in an event of default, which, if not cured or waived, could result in the acceleration of all of our indebtedness. Risks Relating to Laws and Regulations Changes in foreign trade policy, including the imposition of tariffs, could impact our product pricing and input costs.
Our failure to comply with any of these covenants could result in an event of default, which, if not cured or waived, could result in the acceleration of all of our indebtedness. Risks Relating to Laws and Regulations Changes in or failure to comply with laws and regulations could adversely impact our business, financial condition and results of operations.
For additional information on how climate change regulation and compliance affects our business, see "Environmental" in "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" of this Form 10-K. We are subject to environmental regulation and environmental compliance expenditures, as well as other potential environmental liabilities.
Management's Discussion and Analysis of Financial Condition and Results of Operations" of this Form 10-K. We are subject to environmental regulation and environmental compliance expenditures, as well as other potential environmental liabilities.
In addition, if any of these third parties were to cease operations or cease doing business with us, we may be unable to replace them at a reasonable cost. 20 Table of Contents Any failure of a third-party transportation provider to deliver raw materials or finished products in a timely manner could harm our reputation, negatively affect our customer relationships, and have a material adverse effect on our operating results, cash flows, and financial condition.
Any failure of a third-party transportation provider to deliver raw materials or finished products in a timely manner could harm our reputation, negatively affect our customer relationships, and have a material adverse effect on our operating results, cash flows, and financial condition.
Building code provisions have also been implemented in certain jurisdictions to address concerns for firefighter safety related to the collapse of floors during residential fires. The I-joists that we manufacture are subject to this code change.
The expansion of truss manufacturing, along with the increased use of slab-on-grade construction, could negatively impact our I-joist market share and net sales prices. Building code provisions have also been implemented in certain jurisdictions to address concerns for firefighter safety related to the collapse of floors during residential fires. The I-joists that we manufacture are subject to this code change.
OSB is a commodity, and prices have historically been volatile in response to industry capacity restarts and operating rates, inventory levels in various distribution channels, and seasonal demand patterns.
OSB is a commodity, and prices have historically been volatile in response to economic uncertainties, industry operating rates, supply-related disruptions, duties, tariffs, transportation constraints or disruptions, net import and export activity, inventory levels in various distribution channels, and seasonal demand patterns.
If our customers' financial positions become impaired, our ability to fully collect receivables from such customers could be impaired and negatively affect our operating results, cash flow, and liquidity. 22 Table of Contents Our long-lived assets, goodwill, and/or intangible assets may become impaired, which may require us to record non-cash impairment charges that could have a material impact on our results of operations.
Our long-lived assets, goodwill, and/or intangible assets may become impaired, which may require us to record non-cash impairment charges that could have a material impact on our results of operations.
We may not be able to renew these agreements or may renew them on terms that are less favorable to us than the current agreements.
The terms and conditions of this agreement will remain in effect after expiration, pending negotiation of a new agreement. We may not be able to renew these agreements or may renew them on terms that are less favorable to us than the current agreements.
Additional manufacturers of products distributed by us may elect to sell and distribute directly to our dealer or retail customers in the future or enter into exclusive supply arrangements with other distributors. Finally, we may not be able to maintain our costs at a level sufficiently low for us to compete effectively.
In addition, certain suppliers to our distribution business also sell and distribute their products directly to our customers. Additional manufacturers of products distributed by us may elect to sell and distribute directly to our dealer or retail customers in the future or enter into exclusive supply arrangements with other distributors.
In addition, we are exposed to potential claims arising from the conduct of our employees, and homebuilders and their subcontractors, for which we may be contractually liable.
Because we do not have direct control over the quality of such products manufactured or supplied by such third-party suppliers, we are exposed to risks relating to the quality of such products. In addition, we are exposed to potential claims arising from the conduct of our employees, and homebuilders and their subcontractors, for which we may be contractually liable.
Our competitors range from very large, fully integrated forest and building products firms to smaller firms that may manufacture only one or a few types of products. We also compete less directly with firms that manufacture substitutes for wood building products.
If our financial condition deteriorates in the future, our relationships with suppliers and customers may be negatively affected. The markets for the products we manufacture in our Wood Products segment are highly competitive. Our competitors range from very large, fully integrated forest and building products firms to smaller firms that may manufacture only one or a few types of products.
Competitive factors in our industry include pricing and availability of product, service and delivery capabilities, ability to assist customers with problem-solving, extension of credit terms, customer relationships, geographic coverage, and breadth of product offerings. Also, financial stability is important to suppliers and customers when choosing distributors.
The building products distribution industry in which our BMD segment competes is fragmented and competitive, and the barriers to entry for local competitors are relatively low. Competitive factors in our industry include pricing and availability of product, service and delivery capabilities, ability to assist customers with problem-solving, extension of credit terms, customer relationships, geographic coverage, and breadth of product offerings.
Any downtime or facility damage could prevent us from meeting customer demand for our products and/or require us to make unplanned capital expenditures. If our machines or facilities were to incur significant downtime, our ability to satisfy customer requirements would be impaired, resulting in lower sales and net income.
Any downtime or facility damage could prevent us from meeting customer demand for our products and/or require us to make unplanned capital expenditures.
In addition, we have seen an increase in floor truss capacity by some of our dealer customers, partially due to the limited supply of I-joists over the last few years. The expansion of truss manufacturing, along with the increased use of slab-on-grade construction, could negatively impact our I-joist market share and net sales prices.
In addition, we have seen an increase in floor truss capacity by some of our dealer customers, partially due to the limited supply of I-joists over the last few 17 Table of Contents years and lower lumber pricing.
Our business depends on the transportation of a large number of products via rail or truck. In Wood Products, we rely on third parties for inbound receipt of raw materials and outbound movement of finished goods.
In Wood Products, we rely on third parties for inbound receipt of raw materials and outbound movement of finished goods. In addition, we are subject to seasonal capacity constraints and weather-related delays for rail and truck transportation.
If we are unable to service our debt obligations or fund our other liquidity needs, we could be forced to curtail our operations, reorganize our capital structure, or liquidate some or all of our assets. 23 Table of Contents The terms of our debt agreements restrict, and covenants contained in agreements governing indebtedness in the future may impose significant operating and financial restrictions on our company and our subsidiaries, which may prevent us from capitalizing on business opportunities.
The terms of our debt agreements restrict, and covenants contained in agreements governing indebtedness in the future may impose significant operating and financial restrictions on our company and our subsidiaries, which may prevent us from capitalizing on business opportunities.
An oversupply of chips has a negative impact on our chip price realizations and profitability, which impacts the financial results of our mills.
An oversupply of chips has a negative impact on our chip price realizations and profitability, which impacts the financial results of our mills. In addition, if declines in demand for our chips continue and we cannot find alternative consumers for our chips, we may be forced to curtail any impacted mills.
Certain mills operated by our competitors may be lower-cost manufacturers than the mills operated by us. 17 Table of Contents Our Wood Products segment provides financial incentives, including temporary price protection, to various parties along the supply chain (including wholesale distributors, dealers, and homebuilders) to increase sales of and loyalty to our EWP products.
Our Wood Products segment provides financial incentives, including temporary price protection, to various parties along the supply chain (including wholesale distributors, dealers, and homebuilders) to increase sales of and loyalty to our EWP products. As a result of these commercial arrangements, the full effects of announced price increases may be delayed or reduced, impacting our financial results.
Our industry is highly competitive. If we are unable to compete effectively, our sales, operating results, and growth strategies could be negatively affected. The markets for the products we manufacture in our Wood Products segment are highly competitive.
We have very limited control of the preceding, and as a result, our profitability and cash flow may fluctuate materially in response to changes in the supply and demand balance for our primary products. Our industry is highly competitive. If we are unable to compete effectively, our sales, operating results, and growth strategies could be negatively affected.
These resources may afford those competitors greater purchasing power, increased financial flexibility, and more capital resources for expansion and improvement, which may enable those competitors to compete more effectively than we can. In addition, certain suppliers to our distribution business also sell and distribute their products directly to our customers.
Some of the businesses with which we compete are part of larger companies and therefore have access to greater financial and other resources than we do. These resources may afford those competitors greater purchasing power, increased financial flexibility, and more capital resources for expansion and improvement, which may enable those competitors to compete more effectively than we can.
Because approximately 70% of our Wood Products sales in 2024 were to our BMD business, a material disruption at our Wood Products facilities would also negatively affect our BMD business.
If our machines or facilities were to incur significant downtime, our ability to satisfy customer requirements would be impaired, resulting in lower sales and net income. 18 Table of Contents Because approximately 71% of our Wood Products sales in 2025 were to our BMD business, a material disruption at our Wood Products facilities would also negatively affect our BMD business.
Inconsistency of legislation and regulations among jurisdictions may also affect the costs of compliance with such laws and regulations. Any assessment of the potential impact or timing of future climate change legislation, regulations, or industry standards is uncertain, given the evolving nature of the heightened focus on climate change.
Inconsistency of legislation and regulations among jurisdictions may also affect the costs of compliance with such laws and regulations.
Approximately 17% of these employees work pursuant to collective bargaining agreements. As of February 2, 2025, we had ten collective bargaining agreements.
Labor disruptions, shortages of skilled and technical labor, or increased labor costs could adversely affect our business. As of February 15, 2026, we had approximately 7,660 employees. Approximately 17% of these employees work pursuant to collective bargaining agreements. As of February 15, 2026, we had ten collective bargaining agreements.
As a result of these commercial arrangements, the full effects of announced price increases may be delayed or reduced, impacting our financial results. Furthermore, customer consolidation has been ongoing. This consolidation could increase buying power which would create demand pressure on our financial incentives and compress our margins.
Furthermore, customer consolidation has been ongoing. This consolidation could increase buying power which would create demand pressure on our financial incentives and compress our margins. In addition, if financial incentives provided are not sufficient, there is a risk we could lose business at the regional or national level.
The balance of supply and demand in the U.S. is also heavily influenced by imported products, principally from Canada and South America. We have very limited control of the preceding, and as a result, our profitability and cash flow may fluctuate materially in response to changes in the supply and demand balance for our primary products.
The balance of supply and demand in the U.S. is also heavily influenced by imported products, principally from Canada and South America. The level of imported products is influenced by fluctuations in foreign currency exchange rates, duties, and tariffs.
In addition, as customers merge and consolidate, credit risk may become concentrated among fewer customers.
In addition, as customers merge and consolidate, credit risk may become concentrated among fewer customers. If our customers' financial positions become impaired, our ability to fully collect receivables from such customers could be impaired and negatively affect our operating results, cash flow, and liquidity.
Removed
In addition, if financial incentives provided are not sufficient, there is a risk we could lose business at the regional or national level. The building products distribution industry in which our BMD segment competes is fragmented and competitive, and the barriers to entry for local competitors are relatively low.
Added
We also compete less directly with firms that manufacture substitutes for wood building products. Certain mills operated by our competitors may be lower-cost manufacturers than the mills operated by us.
Removed
If our financial condition deteriorates in the future, our relationships with suppliers and customers may be negatively affected. Some of the businesses with which we compete are part of larger companies and therefore have access to greater financial and other resources than we do.
Added
Additionally, while insurance coverage designed to address certain aspects of cyber risks is in place, such insurance could include coverage exclusions or otherwise be insufficient to cover all losses or all types of claims that may arise in connection with such incidents. For additional information on our cybersecurity risk management, strategy, and governance, see "Item 1C.
Removed
In addition, if declines in demand for our chips continue and we cannot find alternative consumers for our chips, we may be forced to curtail any impacted mills. 19 Table of Contents Labor disruptions, shortages of skilled and technical labor, or increased labor costs could adversely affect our business. As of February 2, 2025, we had approximately 7,560 employees.
Added
Furthermore, one or more of our suppliers might not adhere to our quality control, legal, regulatory, labor, human rights, or environmental standards. These deficiencies may delay or preclude delivery of merchandise to us and might not be identified before we sell such merchandise to our customers.
Removed
One agreement covering approximately 50 employees at our Woodinville BMD facility expired on May 31, 2024 and one agreement covering approximately 40 employees at our Vancouver BMD facility expired on December 31, 2024, but the terms and conditions of these agreements remain in effect pending negotiation of new agreements.
Added
This failure could lead to recalls and litigation and otherwise damage our reputation, increase costs, and adversely impact our business.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeIn addition, our IT-related internal controls over financial reporting are audited by both our internal auditors and independent external auditors. These practices allow us to leverage specialized knowledge and insights, identify risks, and continuously improve our information technology internal controls and processes to respond to the evolving cybersecurity threats. We also acknowledge the risks associated with third-party service providers.
Biggest changeThese practices allow us to leverage specialized knowledge and insights, identify risks, and continuously improve our information technology internal controls and processes to respond to the evolving cybersecurity threats. We also acknowledge the risks associated with third-party service providers. We employ a risk-based due diligence process of engaging and managing third-party relationships.
Our information services department, led by our IT Director, manages and continually enhances our information systems with the ultimate goal of preventing cybersecurity incidents to the extent feasible, while simultaneously increasing our system resilience in an effort to minimize the business impact should an incident occur. We work to install new and upgrade existing information technology systems.
Our information technology department, led by our IT Director, manages and continually enhances our information systems with the ultimate goal of preventing cybersecurity incidents to the extent feasible, while simultaneously increasing our system resilience in an effort to minimize the business impact should an incident occur. We work to install new and upgrade existing information technology systems.
Risk assessment for cybersecurity threats is embedded into these quarterly updates, with each topic discussed being assigned a risk level. In 2024, we did not identify any cybersecurity threats that have materially affected or are reasonably likely to materially affect our business strategy, results of operations, or financial condition.
Risk assessment for cybersecurity threats is embedded into these quarterly updates, with each topic discussed being assigned a risk level. In 2025, we did not identify any cybersecurity threats that have materially affected or are reasonably likely to materially affect our business strategy, results of operations, or financial condition.
We use extended detection and response ( XDR) technology to integrate network, endpoint, and cloud data to stop sophisticated attacks by detecting malware and exploit threats, including using artificial intelligence (AI) behavioral analytics. We also partner with a security operation center (SOC) to provide 24-7 outside monitoring services for additional support to the internal IT team.
We use extended detection and response ( XDR) technology to integrate network, endpoint, and cloud data to stop sophisticated attacks by detecting malware and exploit threats, including using artificial intelligence (AI) behavioral analytics. We also maintain cybersecurity insurance and partner with a security operation center (SOC) to provide 24-7 outside monitoring services for additional support to the internal IT team.
In addition, our Information Technology (IT) Director provides quarterly updates to our board of directors on cybersecurity incidents, cybersecurity awareness activities, including results of mock-phishing exercises, regulatory and compliance matters specific to cybersecurity, and activities related to business continuity, including data validation and restore testing and tabletop exercises.
In addition, our Information Technology (IT) Director provides quarterly updates to our board of directors on 27 Table of Contents cybersecurity incidents, cybersecurity awareness activities, including results of mock-phishing exercises, regulatory and compliance matters specific to cybersecurity, and activities related to business continuity, including data validation and restore testing and tabletop exercises.
For these and other reasons, we have made it a priority to ensure the risk of cybersecurity threats is integrated into our risk assessment and risk management processes. 29 Table of Contents
For these and other reasons, we have made it a priority to ensure the risk of cybersecurity threats is integrated into our risk assessment and risk management processes.
Cybersecurity Risk Management Primary responsibility for assessing, monitoring and managing our cybersecurity risks rests with our IT Director. Our current IT Director has been in his position since 2014 and has over 30 years of information technology, finance, and operational experience in our organization.
Cybersecurity Risk Management Primary responsibility for assessing, monitoring and managing our cybersecurity risks rests with our IT Director. Our current IT Director has been in his position since 2024 and has over 30 years of information technology and operational experience in our organization. Our IT Director is certified in governance of enterprise IT (CGEIT).
We perform risk assessments of new and existing service providers, develop and maintain a proactive approach to address non-compliance, and establish monitoring plans based on risk scores. This process continues throughout the lifecycle of the third-party relationship.
The third-party management program is integrated into our enterprise risk management process to measure risks and evaluate current and evolving resource needs. We perform risk assessments of new and existing service providers, develop and maintain a proactive approach to address non-compliance, and establish monitoring plans based on risk scores. This process continues throughout the lifecycle of the third-party relationship.
Monitoring and Responding to Cybersecurity Incidents and Data Breaches Management reduces the risk of cyber incidents by monitoring network traffic through security controls, including firewalls, intrusion detection/prevention systems, anti-virus/anti-malware systems, cyber threat intelligence, and vulnerability monitoring tools.
These practices are designed to mitigate risks related to data breaches and other security incidents originating from third-party service providers. 28 Table of Contents Monitoring and Responding to Cybersecurity Incidents and Data Breaches Management reduces the risk of cyber incidents by monitoring network traffic through security controls, including firewalls, intrusion detection/prevention systems, anti-virus/anti-malware systems, cyber threat intelligence, and vulnerability monitoring tools.
Our IT Director and other IT leaders systematically use the Control Objectives for Information and Related Technology (COBIT) framework as an IT governance framework and remain educated on other best practices in compliance, projects, and processes.
Many also hold graduate-level certifications and/or degrees in Threat Intelligence, Cyber Operations and Resilience, and Information Systems Management. Our IT Director and other IT leaders systematically use the Control Objectives for Information and Related Technology (COBIT) framework as an IT governance framework and remain educated on other best practices in compliance, projects, and processes.
When the ongoing risk monitoring identifies a change in risk profiles, monitoring plans are adjusted as appropriate to ensure proper controls are in place and due diligence is applied to mitigate higher-risk relationships. These practices are designed to mitigate risks related to data breaches and other security incidents originating from third-party service providers.
When the ongoing risk monitoring identifies a change in risk profiles, monitoring plans are adjusted as appropriate to ensure proper controls are in place and due diligence is applied to mitigate higher-risk relationships.
In addition, we provide mandatory cybersecurity training to our employees around phishing, malware, and other cybersecurity risks to ensure that we are protected, to the greatest extent possible, against cybersecurity risks and security breaches. 28 Table of Contents Recognizing the complexity and evolving nature of cybersecurity threats, we engage independent third parties to penetration test our systems, consult on security enhancements, and perform industrial control system audits.
In addition, we provide mandatory cybersecurity training to our employees around phishing, malware, and other cybersecurity risks to ensure that we are protected, to the greatest extent possible, against cybersecurity risks and security breaches.
Removed
Our IT Director is certified in governance of enterprise IT (CGEIT), is a Certified Data Privacy Solutions Engineer (CDPSE) and a Certified Information Systems Auditor (CISA).
Added
Our IT security, data privacy and internal audit teams, each of which is involved in managing our cybersecurity risks, include professionals who hold certifications such as Certified Data Privacy Solutions Engineer (CDPSE), Certified Information Privacy Manager (CIPM), Certified Information Security Manager (CISM), Certified SCADA Security Architect (CSSA), Systems Security Certified Practitioner (SSCP), Certified Information Systems Auditor (CISA), Certified Internal Auditor (CIA), Certified Fraud Examiner (CFE), Certified Ethical Hacker (CEH), Certified Compliance and Ethics Professional (CCEP), CompTIA Network +, Security+ (Sec+), and Cybersecurity Analyst + (CySa+).
Removed
We employ a risk-based due diligence process of engaging and managing third-party relationships. The third-party management program is integrated into our enterprise risk management process to measure risks and evaluate current and evolving resource needs.
Added
Recognizing the complexity and evolving nature of cybersecurity threats, we engage independent third parties to penetration test our systems, consult on security enhancements, and perform industrial control system audits. In addition, our IT-related internal controls over financial reporting are audited by both our internal auditors and independent external auditors.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeThe total approximate square footage of our warehouse space is 6.3 million, of which 3.4 million square feet are owned. Substantially all of our leases are noncancelable and the majority are accounted for as operating leases. These leases are not subject to early termination except for standard nonperformance clauses. In addition, BMD operates a single component manufacturing plant.
Biggest changeSubstantially all of our leases are noncancelable and the majority are accounted for as operating leases. These leases are not subject to early termination except for standard nonperformance clauses. In addition, BMD operates a single component manufacturing plant. 29 Table of Contents Wood Products We own all of our Wood Products manufacturing facilities.
ITEM 2. PROPERTIES Our properties are well-maintained and are suitable for the operations for which they are used. Information concerning production capacity and the utilization of our manufacturing facilities is presented in "Item 1. Business" of this Form 10-K. The following is a list of our facilities by segment as of February 14, 2025.
ITEM 2. PROPERTIES Our properties are well-maintained and are suitable for the operations for which they are used. Information concerning production capacity and the utilization of our manufacturing facilities is presented in "Item 1. Business" of this Form 10-K. The following is a list of our facilities by segment as of February 18, 2026.
The following table summarizes our Wood Products facilities as of February 14, 2025: Facility Type Number of Facilities Locations Plywood and veneer plants 11 Alabama, Florida, Louisiana (2), Oregon (5), South Carolina, and Washington LVL/I-joist/laminated beam plants 5 Alabama, Louisiana, Oregon, Idaho, and Canada Sawmills 2 Washington Building Materials Distribution Our BMD business operates a nationwide network of 38 owned and leased distribution facilities across the U.S., including door and millwork facilities in 14 markets.
The following table summarizes our Wood Products facilities as of February 18, 2026: Facility Type Number of Facilities Locations Plywood and veneer plants 11 Alabama, Florida, Louisiana (2), Oregon (5), South Carolina, and Washington LVL/I-joist/laminated beam plants 5 Alabama, Louisiana, Oregon, Idaho, and Canada Sawmills 2 Washington
Removed
We lease office space for our corporate headquarters in Boise, Idaho. Wood Products We own all of our Wood Products manufacturing facilities.
Added
We lease office space for our corporate headquarters in Boise, Idaho. Building Materials Distribution Our BMD business operates a nationwide network of 40 owned and leased distribution facilities across the U.S., including door and millwork facilities in 15 markets. The total approximate square footage of our warehouse space is 6.7 million, of which 4.1 million square feet are owned.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeITEM 3. LEGAL PROCEEDINGS We are a party to legal proceedings that arise in the ordinary course of our business, including commercial liability claims, premises claims, environmental claims, and employment-related claims, among others.
Biggest changeITEM 3. LEGAL PROCEEDINGS We are a party to legal proceedings that arise in the ordinary course of our business, including commercial liability claims, premises claims, environmental claims, employment-related claims, and governmental investigations and audits, among others.
Added
See Note 16, Commitments, Legal Proceedings and Contingencies, and Guarantees, of the Notes to Consolidated Financial Statements in "Item 8. Financial Statements and Supplementary Data" of this Form 10-K for a discussion of material legal proceedings in which we are involved.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeOn February 14, 2025, there were 37,932,989 shares of our common stock outstanding, held by six stockholders of record, one of which was Cede & Co., which is the nominee of The Depository Trust Company. 30 Table of Contents Dividends Information regarding the payment of dividends is discussed in more detail under "Financing Activities—Dividends on Common Stock" in "Item 7.
Biggest changeOn February 18, 2026, there were 35,722,067 shares of our common stock outstanding, held by five stockholders of record, one of which was Cede & Co., which is the nominee of The Depository Trust Company.
The stock performance shown below is not necessarily indicative of future performance. ___________________________________ (a) $100 invested in stock or index on December 31, 2019, including reinvestment of dividends in additional shares of the same class of equity securities.
The stock performance shown below is not necessarily indicative of future performance. ___________________________________ (a) $100 invested in stock or index on December 31, 2020, including reinvestment of dividends in additional shares of the same class of equity securities.
Performance Graph The following graph compares the return on a $100 investment in our common stock on December 31, 2019, with a $100 investment also made on December 31, 2019, in the S&P SmallCap 600 Index and in our peer group, which is comprised of companies within the S&P 600 Building Products Index.
Financial Statements and Supplementary Data" of this Form 10-K. 30 Table of Contents Performance Graph The following graph compares the return on a $100 investment in our common stock on December 31, 2020, with a $100 investment also made on December 31, 2020, in the S&P SmallCap 600 Index and in our peer group, which is comprised of companies within the S&P 600 Building Products Index.
Unregistered Sales of Equity Securities We did not sell any unregistered securities from January 1, 2024, through December 31, 2024. 31 Table of Contents Purchases of Equity Securities by the Issuer and Affiliated Purchasers On October 30, 2024, our board of directors authorized the repurchase of an additional 1.4 million shares of our common stock.
Unregistered Sales of Equity Securities We did not sell any unregistered securities from January 1, 2025, through December 31, 2025. 31 Table of Contents Purchases of Equity Securities by the Issuer and Affiliated Purchasers On October 30, 2025, our board of directors approved a new share repurchase authorization of $300.0 million of our outstanding common stock, excluding applicable fees and taxes.
This is the most recent authorization under our common stock repurchase program that was authorized on February 25, 2015 (the Program). Share repurchases may be made on an opportunistic basis, through open market transactions, privately negotiated transactions, or by other means in accordance with applicable federal securities laws.
In connection with this authorization, our board of directors terminated the October 30, 2024 authorization to repurchase an additional 1.4 million shares of our outstanding common stock. Share repurchases may be made on an opportunistic basis, through open market transactions, privately negotiated transactions, or by other means in accordance with applicable federal securities laws.
Removed
Management’s Discussion and Analysis of Financial Condition and Results of Operations" of this Form 10-K.
Added
Dividends Information regarding the payment of dividends is discussed in more detail in Note 12, Stockholders' Equity, of the Notes to Consolidated Financial Statements in "Item 8.
Removed
During fourth quarter 2024, we repurchased 280,750 shares under the Program at a cost of $36.4 million, or an average of $129.64 per share. Set forth below is information regarding the Company's share repurchases under the Program during the fourth quarter ended December 31, 2024.
Added
We are not obligated to purchase any shares and there is no set date that the share repurchase program will expire. Our board of directors, at its discretion, may increase or decrease the amount authorized or terminate the share repurchase program at any time.
Removed
Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Number of Shares That May Yet Be Purchased Under the Plans or Programs October 1, 2024 - October 31, 2024 50,000 $ 137.54 50,000 2,038,966 November 1, 2024 - November 30, 2024 2,600 139.48 2,600 2,036,366 December 1, 2024 - December 31, 2024 228,150 127.79 228,150 1,808,216 Total 280,750 $ 129.64 280,750 1,808,216 ITEM 6. [RESERVED]
Added
Set forth below is information with respect to the purchases of our common stock during the fourth quarter ended December 31, 2025.
Added
Total Number of Shares Purchased Average Price Paid per Share (exclusive of applicable fees and taxes) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares That May Yet be Purchased Under the Plans or Programs October 1, 2025 - October 31, 2025 (a) 120,000 $ 75.27 120,000 $ 300,000,000 November 1, 2025 - November 30, 2025 485,743 69.64 485,743 266,173,708 December 1, 2025 - December 31, 2025 366,897 75.03 366,897 238,644,960 Total 972,640 $ 72.37 972,640 $ 238,644,960 ___________________________________ (a) Purchases of our common stock in October 2025 were made under the October 30, 2024 board of directors' authorization to repurchase an additional 1.4 million shares of our outstanding common stock.
Added
This repurchase program was terminated on October 30, 2025. ITEM 6. [RESERVED]

Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

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Biggest changeManagement's Discussion and Analysis of Financial Condition and Results of Operations 32 Understanding Our Financial Information 32 Overview 32 Factors That Affect Our Operating Results and Trends 33 Our Operating Results 36 Income Tax Provision 39 Liquidity and Capital Resources 39 Guarantees 43 Seasonal Influences 43 Disclosures of Financial Market Risks 43 Financial Instruments 44 Environmental 45 Critical Accounting Estimates 47 Non-GAAP Financial Measures 48 New and Recently Adopted Accounting Standards 50 Item 7A.
Biggest changeManagement's Discussion and Analysis of Financial Condition and Results of Operations 32 Understanding Our Financial Information 32 Overview 32 Factors That Affect Our Operating Results and Trends 34 Our Operating Results 36 Income Tax Provision 39 Industry Mergers and Acquisitions 39 Liquidity and Capital Resources 40 Guarantees 42 Seasonal Influences 42 Disclosures of Financial Market Risks 43 Financial Instruments 44 Environmental 44 Critical Accounting Estimates 46 Non-GAAP Financial Measures 47 New and Recently Adopted Accounting Standards 49 Item 7A.
Commitments, Legal Proceedings and Contingencies, and Guarantees 84 Reports of Independent Registered Public Accounting Firm 86
Commitments, Legal Proceedings and Contingencies, and Guarantees 82 Reports of Independent Registered Public Accounting Firm 84
Goodwill and Intangible Assets 70 8. Debt 71 ii Table of Contents 9. Leases 73 10. Retirement and Benefit Plans 75 11. Long-Term Incentive Compensation Plans 76 12. Stockholders' Equity 78 13. Transactions with Related Party 80 14. Financial Instrument Risk 80 15. Segment Information 81 16.
Goodwill and Intangible Assets 67 8. Debt 68 ii Table of Contents 9. Leases 70 10. Retirement and Benefit Plans 71 11. Long-Term Incentive Compensation Plans 72 12. Stockholders' Equity 75 13. Transactions with Related Party 77 14. Financial Instrument Risk 77 15. Segment Information 78 16.
Quantitative and Qualitative Disclosures About Market Risk 50 Item 8. Financial Statements and Supplementary Data 51 Notes to Consolidated Financial Statements 57 1. Nature of Operations and Basis of Presentation 57 2. Summary of Significant Accounting Policies 57 3. Revenues 63 4. Income Taxes 65 5. Net Income Per Common Share 67 6. Acquisitions 68 7.
Quantitative and Qualitative Disclosures About Market Risk 49 Item 8. Financial Statements and Supplementary Data 50 Notes to Consolidated Financial Statements 56 1. Nature of Operations and Basis of Presentation 56 2. Summary of Significant Accounting Policies 56 3. Revenues 62 4. Income Taxes 63 5. Net Income Per Common Share 66 6. Acquisitions 66 7.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeThe following table reconciles net income to EBITDA and Adjusted EBITDA for the years ended December 31, 2024, 2023 and 2022: Year Ended December 31 2024 2023 2022 Net income $ 376,354 $ 483,656 $ 857,658 Interest expense 24,067 25,496 25,412 Interest income (39,139) (48,106) (12,263) Income tax provision 125,405 161,393 288,723 Depreciation and amortization 144,113 132,467 101,593 EBITDA 630,800 754,906 1,261,123 Change in fair value of interest rate swaps 2,038 1,791 (3,559) Adjusted EBITDA $ 632,838 $ 756,697 $ 1,257,564 49 Table of Contents The following table reconciles segment income and unallocated corporate costs to Segment EBITDA, EBITDA and Adjusted EBITDA for the years ended December 31, 2024, 2023, and 2022: Year Ended December 31 2024 2023 2022 Wood Products Segment income $ 231,454 $ 337,132 $ 575,167 Depreciation and amortization 93,203 98,710 73,308 Segment EBITDA $ 324,657 $ 435,842 $ 648,475 Building Materials Distribution Segment income $ 303,385 $ 335,808 $ 627,091 Depreciation and amortization 49,534 32,353 27,005 Segment EBITDA $ 352,919 $ 368,161 $ 654,096 Corporate Unallocated corporate costs $ (44,801) $ (48,554) $ (44,409) Foreign currency exchange gain (loss) (1,164) 7 (1,584) Pension expense (excluding service costs) (149) (163) (294) Change in fair value of interest rate swaps (2,038) (1,791) 3,559 Depreciation and amortization 1,376 1,404 1,280 EBITDA (46,776) (49,097) (41,448) Change in fair value of interest rate swaps 2,038 1,791 (3,559) Corporate Adjusted EBITDA $ (44,738) $ (47,306) $ (45,007) Total Company Adjusted EBITDA $ 632,838 $ 756,697 $ 1,257,564 New and Recently Adopted Accounting Standards For information related to new and recently adopted accounting standards, see "New and Recently Adopted Accounting Standards" in Note 2, Summary of Significant Accounting Policies, of the Notes to Consolidated Financial Statements in "Item 8.
Biggest changeOur measures of EBITDA, Adjusted EBITDA and Segment EBITDA are not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the methods of calculation. 47 Table of Contents The following table reconciles net income to EBITDA and Adjusted EBITDA for the years ended December 31, 2025, 2024 and 2023: Year Ended December 31 2025 2024 2023 (thousands) Net income $ 132,836 $ 376,354 $ 483,656 Interest expense 21,846 24,067 25,496 Interest income (18,766) (39,139) (48,106) Income tax provision 47,117 125,405 161,393 Depreciation and amortization 158,221 144,113 132,467 EBITDA 341,254 630,800 754,906 Change in fair value of interest rate swaps 925 2,038 1,791 Adjusted EBITDA $ 342,179 $ 632,838 $ 756,697 The following table reconciles segment income and unallocated corporate costs to Segment EBITDA, EBITDA and Adjusted EBITDA for the years ended December 31, 2025, 2024, and 2023: Year Ended December 31 2025 2024 2023 (thousands) Building Materials Distribution Segment income $ 222,218 $ 303,385 $ 335,808 Depreciation and amortization 58,689 49,534 32,353 Segment EBITDA $ 280,907 $ 352,919 $ 368,161 Wood Products Segment income $ 5,836 $ 231,454 $ 337,132 Depreciation and amortization 98,456 93,203 98,710 Segment EBITDA $ 104,292 $ 324,657 $ 435,842 Corporate Unallocated corporate costs $ (44,725) $ (44,801) $ (48,554) Foreign currency exchange gain (loss) 760 (1,164) 7 Pension expense (excluding service costs) (131) (149) (163) Change in fair value of interest rate swaps (925) (2,038) (1,791) Depreciation and amortization 1,076 1,376 1,404 EBITDA (43,945) (46,776) (49,097) Change in fair value of interest rate swaps 925 2,038 1,791 Corporate Adjusted EBITDA $ (43,020) $ (44,738) $ (47,306) Total Company Adjusted EBITDA $ 342,179 $ 632,838 $ 756,697 48 Table of Contents New and Recently Adopted Accounting Standards For information related to new and recently adopted accounting standards, see "New and Recently Adopted Accounting Standards" in Note 2, Summary of Significant Accounting Policies, of the Notes to Consolidated Financial Statements in "Item 8.
We have two reportable segments: (i) Wood Products, which primarily manufactures engineered wood products (EWP) and plywood; and (ii) Building Materials Distribution (BMD), which is a wholesale distributor of building materials. For more information, see Note 3, Revenues, and Note 15, Segment Information, of the Notes to Consolidated Financial Statements in "Item 8.
We have two reportable segments: (i) Building Materials Distribution (BMD), which is a wholesale distributor of building materials; and (ii) Wood Products, which primarily manufactures engineered wood products (EWP) and plywood. For more information, see Note 3, Revenues, and Note 15, Segment Information, of the Notes to Consolidated Financial Statements in "Item 8.
Therefore, our profitability with respect to these commodity products depends, in significant part, on effective facilities maintenance and procurement programs, and on managing our cost structure, particularly raw materials and labor, which represent the largest components of our operating costs. Composite structural panel and lumber prices have been volatile historically.
Therefore, our profitability with respect to these commodity products depends, in significant part, on effective procurement and facilities maintenance programs, and on managing our cost structure, particularly raw materials and labor, which represent the largest components of our operating costs. Composite structural panel and lumber prices have been volatile historically.
Industry supply for the products we produce and distribute is influenced primarily by price-induced changes in the operating rates of existing facilities, but is also influenced over time by the introduction of new product technologies, capacity additions and closures, the restart of idled capacity, and log availability.
Industry supply for the products we distribute and produce is influenced primarily by price-induced changes in the operating rates of existing facilities, but is also influenced over time by the introduction of new product technologies, capacity additions and closures, the restart of idled capacity, and log availability.
Sources and Uses of Cash We generate cash primarily from sales of our products, as well as short-term and long-term borrowings. Our primary uses of cash are for expenses related to the manufacture and distribution of building products, including inventory purchased for resale, wood fiber, labor, energy, and glues and resins.
Sources and Uses of Cash We generate cash primarily from sales of our products, as well as short-term and long-term borrowings. Our primary uses of cash are for expenses related to the distribution and manufacture of building products, including inventory purchased for resale, wood fiber, labor, energy, and glues and resins.
Commodity Price Risk A portion of the products we manufacture or purchase and resell and some of our key production inputs are commodities whose price is determined by the market's supply and demand for such products. Price fluctuations in our selling prices and key costs have a significant effect on our financial performance.
Commodity Price Risk A portion of the products we purchase and resell or manufacture and some of our key production inputs are commodities whose price is determined by the market's supply and demand for such products. Price fluctuations in our selling prices and key costs have a significant effect on our financial performance.
Financial Statements and Supplementary Data" and "Item 1. Business" of this Form 10-K. Our products are used in the construction of new residential housing, including single-family, multi-family, and manufactured homes, the repair-and-remodeling of existing housing, the construction of light industrial and commercial buildings, and industrial applications.
Financial Statements and Supplementary Data" and "Item 1. Business" of this Form 10-K. Our products are used in the construction of new residential housing, including single-family, multi-family, and manufactured homes, the repair-and-remodeling of existing housing, the construction of light industrial and commercial buildings, and other industrial applications.
The $69 million is estimated using current contractual index pricing, but actual prices depend on future market prices. We are required to purchase approximately $42 million of logs within 12 months. Under certain log agreements, we have the right to cancel or reduce our commitments in the event of a mill curtailment or shutdown.
The $49 million is estimated using current contractual index pricing, but actual prices depend on future market prices. We are required to purchase approximately $42 million of logs within 12 months. Under certain log agreements, we have the right to cancel or reduce our commitments in the event of a mill curtailment or shutdown.
We also use various resins and glues in our manufacturing processes, which accounted for approximately 6% of the aggregate amount of materials, labor, and other operating expenses (excluding depreciation) for our Wood Products segment in 2024. The costs of resins and glues are influenced by changes in the prices of raw material input costs, primarily fossil fuel products.
We also use various resins and glues in our manufacturing processes, which accounted for approximately 6% of the aggregate amount of materials, labor, and other operating expenses (excluding depreciation) for our Wood Products segment in 2025. The costs of resins and glues are influenced by changes in the prices of raw material input costs, primarily fossil fuel products.
In addition, there are ongoing efforts by some states and various organizations to encourage and/or require companies to calculate, report, and reduce their carbon footprint. Furthermore, our customers may impose carbon footprint standards on their vendors, which may require us to incur additional costs associated with the evaluation and reduction of GHGs.
There are ongoing efforts by some states and various organizations to encourage and/or require companies to calculate, report, and reduce their carbon footprint. Furthermore, our customers may impose carbon footprint standards on their vendors, which may require us to incur additional costs associated with the evaluation and reduction of GHGs.
At December 31, 2024, our cash was invested in high-quality, short-term investments, which we record in "Cash and cash equivalents." The majority of our cash and cash equivalents is comprised of money market funds that are broadly diversified and invested in high-quality, short-duration securities, including U.S. government agency securities and similar instruments.
At December 31, 2025, our cash was invested in high-quality, short-term investments, which we record in "Cash and cash equivalents." The majority of our cash and cash equivalents is comprised of money market funds that are broadly diversified and invested in high-quality, short-duration securities, including U.S. government agency securities and similar instruments.
Disclosures of Financial Market Risks In the normal course of business, we are exposed to financial risks such as changes in commodity prices, interest rates, and foreign currency exchange rates. In 2024 and 2023, we did not use derivative instruments to manage these risks, except for interest rate swaps as discussed below.
Disclosures of Financial Market Risks In the normal course of business, we are exposed to financial risks such as changes in commodity prices, interest rates, and foreign currency exchange rates. In 2025 and 2024, we did not use derivative instruments to manage these risks, except for interest rate swaps as discussed below.
In addition to paying for ongoing operating costs, we use cash to invest in our business, service our debt and lease obligations, and return cash to our shareholders through dividends or common stock repurchases. Below is a discussion of our sources and uses of cash for operating activities, investing activities, and financing activities.
In addition to paying for ongoing operating costs, we use cash to invest in our business, service our debt and lease obligations, and return cash to our stockholders through dividends or common stock repurchases. Below is a discussion of our sources and uses of cash for operating activities, investing activities, and financing activities.
The table presents principal cash flows and related weighted average interest rates by expected maturity dates. For obligations with variable interest rate sensitivity, the table sets forth payout amounts based on December 31, 2024 rates and does not attempt to project future rates.
The table presents principal cash flows and related weighted average interest rates by expected maturity dates. For obligations with variable interest rate sensitivity, the table sets forth payout amounts based on December 31, 2025 rates and does not attempt to project future rates.
However, we cannot guarantee that we will be in compliance with environmental requirements at all times, and we cannot guarantee that we will not incur fines and penalties in the future. In 2024, we paid an insignificant amount in environmental fines and penalties. We incur capital and operating expenditures to comply with federal, state, and local environmental laws and regulations.
However, we cannot guarantee that we will be in compliance with environmental requirements at all times, and we cannot guarantee that we will not incur fines and penalties in the future. In 2025, we paid an insignificant amount in environmental fines and penalties. We incur capital and operating expenditures to comply with federal, state, and local environmental laws and regulations.
We expect to fund our seasonal and intra-month working capital requirements in 2025 from cash on hand and, if necessary, borrowings under our revolving credit facility. Consistent with our historical patterns, we expect working capital increases to use cash in the first quarter of 2025.
We expect to fund our seasonal and intra-month working capital requirements in 2026 from cash on hand and, if necessary, borrowings under our revolving credit facility. Consistent with our historical patterns, we expect working capital increases to use cash in the first quarter of 2026.
The interest rate swap agreement was not designated as a cash flow hedge, and as a result, all changes in the fair value are recognized in "Change in fair value of interest rate swaps" in our Consolidated Statements of Operations rather than through other comprehensive income.
The interest rate swap agreement was not designated as a cash flow hedge, and as a result, all changes in the fair value were recognized in "Change in fair value of interest rate swaps" in our Consolidated Statements of Operations rather than through other comprehensive income.
For a discussion of the year ended December 31, 2023 compared to the year ended December 31, 2022, please refer to Part II, Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2023.
For a discussion of the year ended December 31, 2024 compared to the year ended December 31, 2023, please refer to Part II, Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2024.
"Risk Factors." References to "fiscal year" or "fiscal" refer to our fiscal year ending on December 31 in each calendar year. The following sections discuss our financial condition and results of operations for the year ended December 31, 2024 compared to the year ended December 31, 2023.
Risk Factors." References to "fiscal year" or "fiscal" refer to our fiscal year ending on December 31 in each calendar year. The following sections discuss our financial condition and results of operations for the year ended December 31, 2025 compared to the year ended December 31, 2024.
Overview Company Background Boise Cascade is a large, integrated wood products manufacturer and building materials distributor with widespread operations throughout the United States (U.S.) and one manufacturing facility in Canada. We completed an initial public offering of our common stock on February 11, 2013.
Overview Company Background Boise Cascade is a large, integrated building materials distributor and wood products manufacturer with widespread operations throughout the United States (U.S.) and one manufacturing facility in Canada. We completed an initial public 32 Table of Contents offering of our common stock on February 11, 2013.
EWP rebates are based on the volume of purchases (measured in dollars or units), among other factors such as customer loyalty, conversion, and commitment incentives, as well as temporary protection from price increases. EWP rebate estimates are based on the expected amount to be paid and are recorded as a decrease in "Sales" as revenue is recognized.
EWP rebates are based on the volume of purchases (measured in dollars or units), among other factors such as customer loyalty, conversion, and commitment incentives, as well as temporary protection from price increases. EWP rebate estimates are based on the most likely amount to be paid and are recorded as a decrease in "Sales" as revenue is recognized.
Wood fiber also includes, to a lesser extent than OSB, lumber purchased from third parties for I-joist production at our Canadian EWP facility and for production at our laminated beam plant in Idaho. Lumber input costs are subject to similar commodity-based volatility characteristics noted above for OSB.
Wood fiber also includes, to a lesser extent than OSB, veneer purchased from third parties for engineered wood products production and lumber purchased from third parties for I-joist production at our Canadian EWP facility and for production at our laminated beam plant in Idaho. Veneer and lumber input costs are subject to similar commodity-based volatility characteristics noted above for OSB.
During 2024 and 2023, we spent approximately $5 million and $3 million, respectively, on capital expenditures to comply with environmental requirements. We expect to spend approximately $4 million in 2025 for this purpose.
During 2025 and 2024, we spent approximately $3 million and $5 million, respectively, on capital expenditures to comply with environmental requirements. We expect to spend approximately $4 million in 2026 for this purpose.
We also disclose Segment EBITDA, which is segment income before depreciation and amortization. 48 Table of Contents We believe EBITDA, Adjusted EBITDA and Segment EBITDA are meaningful measures because they present a transparent view of our recurring operating performance and allow management to readily view operating trends, perform analytical comparisons, and identify strategies to improve operating performance.
We also disclose Segment EBITDA, which is segment income before depreciation and amortization. We believe EBITDA, Adjusted EBITDA and Segment EBITDA are meaningful measures because they present a transparent view of our recurring operating performance and allow management to readily view operating trends, perform analytical comparisons, and identify strategies to improve operating performance.
At times, the price for any one 33 Table of Contents or more of the products we produce or distribute may fall below our cash production or purchase costs, requiring us to either incur short-term losses on product sales or curtail production at one or more of our manufacturing facilities.
At times, the price for any one or more of the products we distribute or produce may fall below our purchase or cash production costs, requiring us to either incur short-term losses on product sales or curtail production at one or more of our manufacturing facilities.
The markets for most of these commodities are cyclical and are primarily affected by economic uncertainties, industry operating rates, supply-related disruptions, transportation constraints or disruptions, net import and export activity, trade policies, inventory levels in various distribution channels, and seasonal demand patterns. For further discussion of commodity price risk, refer to "Item 1A.
The markets for most of these commodities are cyclical and are primarily affected by economic uncertainties, industry operating rates, supply-related disruptions, duties, tariffs, transportation constraints or disruptions, net import and export activity, inventory levels in various distribution channels, and seasonal demand patterns. For further discussion of commodity price risk, refer to "Item 1A.
Our current critical accounting estimates are as follows: 47 Table of Contents EWP Rebates and Allowances We provide EWP rebates at various stages of the supply chain (including distributors, dealers, and homebuilders) as a means to increase sales.
Our current critical accounting estimates are as follows: EWP Rebates and Allowances We provide EWP rebates at various stages of the supply chain (including distributors, dealers, and homebuilders) as a means to increase sales.
As a result, we are exposed to movements in foreign currency exchange rates, primarily in Canada, but we do not believe our exposure to currency fluctuations is significant. Financial Instruments The table below provides information as of December 31, 2024, about our financial instruments that are sensitive to changes in interest rates.
As a result, we are exposed to movements in foreign currency exchange rates, primarily in Canada, but we do not believe our exposure to currency fluctuations is significant. 43 Table of Contents Financial Instruments The table below provides information as of December 31, 2025, about our financial instruments that are sensitive to changes in interest rates.
This level of capital expenditures could increase or decrease as a result of several factors, including acquisitions, efforts to further accelerate organic growth, exercise of lease purchase options, our financial results, future economic conditions, availability of engineering and construction resources, and timing and availability of equipment purchases. 2023 During the year ended December 31, 2023, we used approximately $215.4 million of cash for purchases of property and equipment, which included business improvement and quality/efficiency projects, replacement and expansion projects, and ongoing environmental compliance.
This level of capital expenditures could increase or decrease as a result of several factors, including efforts to further accelerate organic growth, exercise of lease purchase options, our financial results, future economic conditions, availability of engineering and construction resources, and timing and availability of equipment purchases. 2024 During the year ended December 31, 2024, we used approximately $229.6 million of cash for purchases of property and equipment, which included business improvement and quality/efficiency projects, replacement and expansion projects, and ongoing environmental compliance.
OSB is a commodity, and prices have historically been volatile in response to economic uncertainties, industry operating rates, supply-related disruptions, transportation constraints or disruptions, net import and export activity, trade policies, inventory levels in various distribution channels, and seasonal demand patterns.
OSB is a commodity, and prices have historically been volatile in response to economic uncertainties, industry operating rates, supply-related disruptions, duties, tariffs, transportation constraints or disruptions, net import and export activity, inventory levels in various distribution channels, and seasonal demand patterns.
Cost and Availability of Raw Materials Our principal raw material is wood fiber, which accounted for approximately 39% of the aggregate amount of materials, labor, and other operating expenses (excluding depreciation), for our Wood Products segment in 2024.
Cost and Availability of Raw Materials Our principal raw material is wood fiber, which accounted for approximately 37% of the aggregate amount of materials, labor, and other operating expenses (excluding depreciation), for our Wood Products segment in 2025.
Commodity Nature of a Portion of Our Products A portion of the building products we manufacture or distribute, including OSB, plywood, and lumber, are commodities that are widely available from other manufacturers or distributors, with prices and volumes determined frequently in an auction market based on participants' perceptions of short-term supply and demand factors.
Commodity Nature of a Portion of Our Products A portion of the building products we distribute and manufacture, including OSB, plywood, and lumber, are commodities that are widely available from multiple sources, with prices and volumes determined frequently in an auction market based on participants' perceptions of short-term supply and demand factors.
In addition, during the year ended December 31, 2024, we used $10.2 million of cash for acquisitions of businesses and facilities, which consisted of $3.4 million for post-transaction closing adjustments related to the BROSCO acquisition, as well as $6.8 million for acquired assets of door and millwork operations in Boise, Idaho and Lakeland, Florida.
In addition, we used $10.2 million of cash for acquisitions of businesses and facilities, which consisted of $3.4 million for post-transaction closing adjustments related to the BROSCO acquisition, as well as $6.8 million for acquired assets of door and millwork operations in Boise, Idaho and Lakeland, Florida.
During the years ended December 31, 2024 and 2023, the primary reason for the difference between the federal statutory income tax rate of 21% and the effectiv e tax rate was the effect of state taxes. For more information related to our income taxes, see Note 4, Income Taxes, of the Notes to Consolidated Financial Statements in "Item 8.
During the year ended December 31, 2024, the primary reason for the difference between the federal statutory income tax rate of 21% and the effective tax rate was the effect of state taxes. For more information related to our income taxes, see Note 4, Income Taxes, of the Notes to Consolidated Financial Statements in "Item 8.
We used $236.3 million of cash during the year ended December 31, 2024, as cash provided by operations was offset by capital spending, dividends paid on our common stock, and treasury stock purchases. A further description of our cash sources and uses for the comparative periods are discussed in "Liquidity and Capital Resources" below.
We used $236.0 million of cash during the year ended December 31, 2025, as cash provided by operations was offset by capital spending, treasury stock purchases, dividends paid on our common stock, and funding of an acquisition. A further description of our cash sources and uses for the comparative periods are discussed in "Liquidity and Capital Resources" below.
As described below, the decrease in sales was driven by the changes in sales prices and volumes for the products we manufacture and distribute with single-family residential construction activity being the key demand driver for our sales. During 2024, total U.S. housing starts decreased 4%, while single-family housing starts increased 7%, compared with 2023.
As described below, the decrease in sales was driven by the changes in sales prices and volumes for the products we distribute and manufacture with single-family residential construction activity being the key demand driver for our sales. During 2025, total U.S. housing starts and single-family housing starts decreased 1% and 7%, respectively, compared with 2024.
Therefore, although our long-term contracts provide us with supplies of raw materials and energy that are more stable than open-market purchases, in many cases, they may not alleviate fluctuations in market prices. 35 Table of Contents Our Operating Results The following tables set forth our operating results in dollars and as a percentage of sales for the years ended December 31, 2024 and 2023: Year Ended December 31 2024 2023 (millions) Sales $ 6,724.3 $ 6,838.2 Costs and expenses Materials, labor, and other operating expenses (excluding depreciation) 5,393.6 5,409.3 Depreciation and amortization 144.1 132.5 Selling and distribution expenses 594.9 559.5 General and administrative expenses 102.3 114.4 Other (income) expense, net (0.7) (1.9) 6,234.3 6,213.9 Income from operations $ 490.0 $ 624.4 (percentage of sales) Sales 100.0 % 100.0 % Costs and expenses Materials, labor, and other operating expenses (excluding depreciation) 80.2 % 79.1 % Depreciation and amortization 2.1 1.9 Selling and distribution expenses 8.8 8.2 General and administrative expenses 1.5 1.7 Other (income) expense, net — — 92.7 % 90.9 % Income from operations 7.3 % 9.1 % 36 Table of Contents Sales Volumes and Prices Set forth below are historical U.S. housing starts data, segment sales volumes and average net selling prices for the principal products sold by our Wood Products segment, and sales mix and gross margin information for our BMD segment for the years ended December 31, 2024 and 2023.
Therefore, although our long-term contracts provide us with supplies of raw materials and energy that are more stable than open-market purchases, in many cases, they may not alleviate fluctuations in market prices. 35 Table of Contents Our Operating Results The following tables set forth our operating results in dollars and as a percentage of sales for the years ended December 31, 2025 and 2024: Year Ended December 31 2025 2024 (millions) Sales $ 6,404.6 $ 6,724.3 Costs and expenses Materials, labor, and other operating expenses (excluding depreciation) 5,350.7 5,393.6 Depreciation and amortization 158.2 144.1 Selling and distribution expenses 616.3 594.9 General and administrative expenses 99.7 102.3 Other (income) expense, net (3.6) (0.7) 6,221.3 6,234.3 Income from operations $ 183.3 $ 490.0 (percentage of sales) Sales 100.0 % 100.0 % Costs and expenses Materials, labor, and other operating expenses (excluding depreciation) 83.5 % 80.2 % Depreciation and amortization 2.5 2.1 Selling and distribution expenses 9.6 8.8 General and administrative expenses 1.6 1.5 Other (income) expense, net (0.1) — 97.1 % 92.7 % Income from operations 2.9 % 7.3 % 36 Table of Contents Sales Volumes and Prices Set forth below are historical U.S. housing starts data, sales mix and gross margin information for our BMD segment, and segment sales volumes and average net selling prices for the principal products sold by our Wood Products segment for the years ended December 31, 2025 and 2024.
OSB accounted for approximately 6% of the aggregate amount of materials, labor, and other operating expenses (excluding depreciation) for our Wood Products segment in 2024.
OSB accounted for approximately 5% of the aggregate amount of materials, labor, and other operating expenses (excluding depreciation) for our Wood Products segment in 2025.
December 31, 2024 2025 2026 2027 2028 2029 There- after Total Fair Value (b) (millions, other than percentages) Long-term debt Fixed-rate debt payments (a) Senior Notes $ — $ — $ — $ — $ — $ 400.0 $ 400.0 $ 377.0 Average interest rates — — — — — 4.875 % 4.875 % — Variable-rate debt payments (a) Term Loan $ — $ — $ 50.0 $ — $ — $ — $ 50.0 $ 50.0 Average interest rates — — 5.2 % — — — 5.2 % — _______________________________________ (a) These obligations are further explained in Note 8, Debt, of the Notes to Consolidated Financial Statements in "Item 8.
December 31, 2025 2026 2027 2028 2029 2030 There- after Total Fair Value (b) (millions, other than percentages) Long-term debt Fixed-rate debt payments (a) Senior Notes $ — $ — $ — $ — $ 400.0 $ — $ 400.0 $ 395.0 Average interest rates — — — — 4.875 % — 4.875 % — Variable-rate debt payments (a) Revolving Credit Facility $ — $ — $ — $ — $ 50.0 $ — $ 50.0 $ 50.0 Average interest rates — — — — 5.1 % — 5.1 % — _______________________________________ (a) These obligations are further explained in Note 8, Debt, of the Notes to Consolidated Financial Statements in "Item 8.
We are then required to be fully compliant with those new emission limits by August 2026. Critical Accounting Estimates The preparation of financial statements in accordance with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions about future events.
Once the new emission limits are approved by ODEQ, we will be required to be fully compliant with those new emission limits by March 31, 2026. Critical Accounting Estimates The preparation of financial statements in accordance with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions about future events.
Year Ended December 31 2024 2023 (thousands) U.S.
Year Ended December 31 2025 2024 (thousands) U.S.
Our Elgin plywood mill is required to conduct a study to determine what levels of emission reduction can be achieved by installation of improved boiler controls. We began installation of boiler combustion improvements in May 2023, are monitoring emissions, and are required to propose new emission limits by December 2025.
Our Elgin plywood mill was required to conduct a study to determine what levels of emission reduction could be achieved by installation of improved boiler controls. We began installation of boiler combustion improvements in May 2023, monitored emissions, and proposed new emission limits in December 2025.
Our cash and cash equivalents decreased by $236.3 million during the year ended December 31, 2024, as cash provided by operations was offset by capital spending, dividends paid on our common stock, and treasury stock purchases, as further discussed below.
Our cash and cash equivalents decreased by $236.0 million during the year ended December 31, 2025, as cash provided by operations was offset by capital spending, treasury stock purchases, dividends paid on our common stock, and funding of an acquisition, as further discussed below.
Under the interest rate swap, we receive one-month SOFR plus a spread adjustment of 0.10% variable interest rate payments and make fixed interest rate payments, thereby fixing the interest rate on $50.0 million of variable rate debt exposure.
Under the interest rate swap, we received one-month SOFR plus a spread adjustment of 0.10% variable interest rate payments and made fixed interest rate payments, thereby fixing the interest rate on $50.0 million of variable rate debt exposure from our term loan.
Payments on this interest rate swap, with a notional principal amount of $50.0 million, are due on a monthly basis at an annual fixed rate of 0.41%, and this swap expires in June 2025.
Payments on this interest rate swap, with a notional principal amount of $50.0 million, were due on a monthly basis at an annual fixed rate of 0.41%.
Gross margin percentage is gross margin as a percentage of segment sales. 37 Table of Contents 2024 Compared With 2023 Sales For the year ended December 31, 2024, total sales decreased $114.0 million, or 2%, to $6,724.3 million from $6,838.2 million during the year ended December 31, 2023.
Gross margin percentage is gross margin as a percentage of segment sales. 37 Table of Contents 2025 Compared With 2024 Sales For the year ended December 31, 2025, total sales decreased $319.7 million, or 5%, to $6,404.6 million from $6,724.3 million during the year ended December 31, 2024.
As we were recently selected into the program, we are unable to estimate the specific impact to our business at this time. The EPA's Regional Haze Rule sets standards for visual air clarity in "Federal Class I" areas such as national parks and wilderness areas.
As we are still working through the CAO process for our Medford plywood mill, we are unable to estimate the specific impact to our business at this time. The EPA's Regional Haze Rule sets standards for visual air clarity in "Federal Class I" areas such as national parks and wilderness areas.
Compliance with these laws and regulations is a significant factor in the operation of our businesses. We believe that we have created a corporate culture of strong compliance by taking a conservative approach to environmental issues in order to ensure that we are operating within the bounds of regulatory requirements.
We believe that we have created a corporate culture of strong compliance by taking a conservative approach to environmental issues in order to ensure that we are operating within the bounds of regulatory requirements.
Factors That Affect Our Operating Results and Trends Our results of operations and financial performance are influenced by a variety of factors, including: (i) the commodity nature of a portion of the products we manufacture and distribute; (ii) general economic and industry conditions affecting demand; and (iii) cost and availability of raw materials, including wood fiber and glues and resins.
We will continue to monitor end market demand signals and align production rates and inventory stocking positions accordingly. 33 Table of Contents Factors That Affect Our Operating Results and Trends Our results of operations and financial performance are influenced by a variety of factors, including: (i) the commodity nature of a portion of the products we distribute and manufacture; (ii) general economic and industry conditions affecting demand; and (iii) cost and availability of raw materials, including wood fiber and glues and resins.
However, changes in biomass fuel regulations may increase our costs for fuel and electricity. We are not aware of any plans to regulate GHG emissions by other states in which we have manufacturing operations.
Our manufacturing operations derive a significant amount of their energy from biomass fuel, a carbon neutral emission, which may not be directly regulated. However, changes in biomass fuel regulations may increase our costs for fuel and electricity. We are not aware of any plans to regulate GHG emissions by other states in which we have manufacturing operations.
Though we have not experienced any losses on our cash and cash equivalents to date, and we do not anticipate incurring any losses, we cannot be assured that we will not experience losses on our short-term investments. 39 Table of Contents We believe that our cash flows from operations, combined with our current cash levels and available borrowing capacity, will be adequate to fund debt service requirements and provide cash, as required, to support our ongoing operations, capital expenditures, lease obligations, working capital, income tax payments, and to pay cash dividends to holders of our common stock over the next 12 months.
We believe that our cash flows from operations, combined with our current cash levels and available borrowing capacity, will be adequate to fund debt service requirements and provide cash, as required, to support our ongoing operations, capital expenditures, lease obligations, working capital, income tax payments, and to pay cash dividends to holders of our common stock over the next 12 months.
By product line, commodity sales decreased 5%, or $128.0 million, general line product sales increased 7%, or $172.3 million, and sales of EWP (substantially all of which is sourced through our Wood Products segment) decreased 4%, or $56.5 million.
By product line, commodity sales decreased 6%, or $127.6 million, general line product sales increased 3%, or $71.7 million, and sales of EWP (substantially all of which is sourced through our Wood Products segment) decreased 13%, or $169.3 million. Wood Products.
Logs comprised approximately 78% of our wood fiber costs during 2024, and we satisfy our log requirements through a combination of purchases under supply agreements, open-market purchases, and purchases pursuant to contracts awarded under public auctions. 34 Table of Contents The following table provides the change in our average per-unit log costs for the period noted below: Year Ended December 31 2024 versus 2023 Increase (decrease) in per-unit log costs (1)% Our log requirements and our access to supply, as well as the cost of obtaining logs, are subject to change based on, among other things, the availability of logs in each of our operating areas, our operating schedules, competition from other manufacturers, the effect of governmental laws and regulations, impacts of weather or fire on log availability, and the status of environmental appeals.
The following table provides the change in our average per-unit log costs for the period noted below: Year Ended December 31 2025 versus 2024 Increase (decrease) in per-unit log costs 4% Our log requirements and our access to supply, as well as the cost of obtaining logs, are subject to change based on, among other things, the availability of logs in each of our operating areas, our operating schedules, competition from other manufacturers, the effect of governmental laws and regulations, impacts of weather or fire on log availability, and the status of environmental appeals.
The balance of supply and demand in the U.S. is also heavily influenced by imported products, principally from Canada and South America. We believe that our product line diversification provides us some protection from declines in new residential construction. Our products are used not only in new residential construction but also in residential repair-and-remodeling projects.
The balance of supply and demand in the U.S. is also heavily influenced by imported products, principally from Canada and South America. The level of imported products is influenced by fluctuations in foreign currency exchange rates, duties, and tariffs. We believe that our product line diversification provides us some protection from declines in new residential construction.
Our objective is to limit the variability of interest payments on our debt. To meet this objective, we enter into receive-variable, pay-fixed interest rate swaps to mitigate the variable-rate cash flow exposure with fixed-rate cash flows.
To limit the variability of interest payments on our debt, we entered into receive-variable, pay-fixed interest rate swaps to mitigate the variable-rate cash flow exposure with fixed-rate cash flows. Our interest rate swap expired in June 2025.
However, these third parties may not have sufficient funds to fully satisfy their indemnification obligations when required, and in some cases, we may not be contractually entitled to indemnification by them. Climate Change We source logs from responsibly managed working forests. Our log procurement practices are internally and third-party audited to meet the requirements of forest certification standards.
However, these third parties may not have sufficient funds to fully satisfy their indemnification obligations when required, and in some cases, we may not be contractually entitled to indemnification by them. 44 Table of Contents Climate Change We source logs from responsibly managed working forests.
Housing Starts (a) Single-family 1,012.1 947.7 Multi-family 353.9 472.3 1,366.0 1,420.0 (millions) Segment Sales Wood Products $ 1,832.3 $ 1,932.6 Building Materials Distribution 6,166.5 6,178.7 Intersegment eliminations (1,274.5) (1,273.0) $ 6,724.3 $ 6,838.2 (millions) Wood Products Sales Volumes Laminated veneer lumber (LVL) (cubic feet) 19.4 17.4 I-joists (equivalent lineal feet) 234 220 Plywood (sq. ft.) (3/8" basis) 1,517 1,599 Lumber (board feet) 78 125 (dollars per unit) Wood Products Average Net Selling Prices LVL (cubic foot) $ 27.87 $ 30.01 I-joists (1,000 equivalent lineal feet) 1,949 2,088 Plywood (1,000 sq. ft.) (3/8" basis) 355 372 Lumber (1,000 board feet) 682 667 (percentage of BMD sales) Building Materials Distribution Product Line Sales Commodity 35.8 % 37.8 % General line 42.4 % 39.5 % Engineered wood products 21.8 % 22.7 % Gross margin percentage (b) 15.3 % 15.0 % _______________________________________ (a) Actual U.S. housing starts as reported by the U.S.
Housing Starts (a) Single-family 943.0 1,012.9 Multi-family 415.7 354.2 1,358.7 1,367.1 (millions) Segment Sales Building Materials Distribution $ 5,941.3 $ 6,166.5 Wood Products 1,613.4 1,832.3 Intersegment eliminations (1,150.1) (1,274.5) $ 6,404.6 $ 6,724.3 (percentage of BMD sales) Building Materials Distribution Product Line Sales Commodity 35.0 % 35.8 % General line 45.2 % 42.4 % Engineered wood products 19.8 % 21.8 % Gross margin percentage (b) 15.1 % 15.3 % (millions) Wood Products Sales Volumes Laminated veneer lumber (LVL) (cubic feet) 18.9 19.4 I-joists (equivalent lineal feet) 215 234 Plywood (sq. ft.) (3/8" basis) 1,460 1,517 Lumber (board feet) 73 78 (dollars per unit) Wood Products Average Net Selling Prices LVL (cubic foot) $ 24.90 $ 27.87 I-joists (1,000 equivalent lineal feet) 1,755 1,949 Plywood (1,000 sq. ft.) (3/8" basis) 334 355 Lumber (1,000 board feet) 629 682 _______________________________________ (a) Actual U.S. housing starts as reported by the U.S.
To the extent the carrying value of the asset or asset group exceeds future undiscounted cash flows, we would be required to estimate the fair value of the asset or asset group, and long-lived asset impairment would become a critical accounting estimate.
An impairment of a long-lived asset exists when the carrying value is not recoverable through future undiscounted cash flows from operations and when the carrying value of an asset or asset group exceeds its fair value. 46 Table of Contents To the extent the carrying value of the asset or asset group exceeds future undiscounted cash flows, we would be required to estimate the fair value of the asset or asset group, and long-lived asset impairment would become a critical accounting estimate.
Financing Activities During 2024, our financing activities used $436.8 million of cash, including $228.8 million in common stock dividend payments, $194.9 million for the repurchase of 1,513,095 shares of our common stock, and $11.1 million of tax withholding payments on stock-based awards.
At December 31, 2025, we had $50.0 million of borrowings outstanding under the revolving credit facility. 41 Table of Contents During 2024, our financing activities used $436.8 million of cash, including $228.8 million in common stock dividend payments, $194.9 million for the repurchase of 1,513,095 shares of our common stock, and $11.1 million of tax withholding payments on stock-based awards.
Year Ended December 31 2024 2023 (thousands) Net cash provided by operations $ 438,320 $ 687,458 Net cash used for investment (237,820) (375,552) Net cash used for financing (436,814) (360,676) Operating Activities 2024 Compared With 2023 In 2024, our operating activities generated $438.3 million of cash, compared with $687.5 million in 2023.
Year Ended December 31 2025 2024 (thousands) Net cash provided by operations $ 254,148 $ 438,320 Net cash used for investment (263,262) (237,820) Net cash used for financing (226,931) (436,814) Operating Activities 2025 Compared With 2024 In 2025, our operating activities generated $254.1 million of cash, compared with $438.3 million in 2024.
The decrease was due primarily to lower incentive compensation, offset partially by an increase in other employee-related expenses. Other Interest Income. Interest income decreased $9.0 million to $39.1 million for the year ended December 31, 2024, from $48.1 million for the year ended December 31, 2023. The decrease was due primarily to lower average balances of cash equivalents.
The decrease was due primarily to lower incentive compensation expense and a $1.9 million settlement gain, offset partially by an increase in professional fees and employee-related expenses. Other Interest Income. Interest income decreased $20.4 million to $18.8 million for the year ended December 31, 2025, from $39.1 million for the year ended December 31, 2024.
When logs arrive at our facilities, they are processed into products that store carbon such as plywood, lumber and EWP. Bark and manufacturing residuals are used as biomass fuel, which allows us to generate the majority of the energy needed to manufacture our products. All manufacturing energy not derived from biomass is sourced from natural gas or electricity.
Bark and manufacturing residuals are used as biomass fuel, which allows us to generate the majority of the energy needed to manufacture our products. All manufacturing energy not derived from biomass is sourced from natural gas or electricity. None of our manufacturing facilities use coal or fuel oil as primary energy sources to manufacture products.
The decrease in cash paid for income taxes is primarily due to timing of income tax payments. 40 Table of Contents Investment Activities Net cash used for investing activities was $237.8 million and $375.6 million during 2024 and 2023, respectively. 2024 During the year ended December 31, 2024, we used approximately $229.6 million of cash for purchases of property and equipment, which included business improvement and quality/efficiency projects, replacement and expansion projects, and ongoing environmental compliance.
Investment Activities Net cash used for investing activities was $263.3 million and $237.8 million during 2025 and 2024, respectively. 2025 During the year ended December 31, 2025, we used approximately $241.4 million of cash for purchases of property and equipment, which included business improvement and quality/efficiency projects, replacement and expansion projects, and ongoing environmental compliance.
Our BMD segment purchases and resells a broad mix of commodity products with periods of increasing prices providing the opportunity for higher sales and increased margins, while declining price environments may result in declines in sales and profitability.
Year Ended December 31 2025 versus 2024 Increase (decrease) in composite panel prices (17)% Increase (decrease) in Western Fir plywood prices (5)% Increase (decrease) in Southern Pine plywood prices (5)% Increase (decrease) in OSB prices (31)% Increase (decrease) in composite lumber prices 6% Our BMD segment purchases and resells a broad mix of commodity products with periods of increasing prices providing the opportunity for higher sales and increased margins, while declining price environments may result in declines in sales and profitability.
The $249.1 million decrease in cash provided by operations in 2024 relates primarily to the following: • A $105.7 million decrease in income in our Wood Products segment and a $32.4 million decrease in income in our BMD segment.
The $184.2 million decrease in cash provided by operations in 2025 relates primarily to the following: • A $81.2 million decrease in income in our BMD segment and a $225.6 million decrease in income in our Wood Products segment.
Interest Rate Risk We are exposed to interest rate risk arising from fluctuations in variable-rate Secured Overnight Financing Rate (SOFR) on our term loan and when we have loan amounts outstanding on our Revolving Credit Facility. At December 31, 2024, we had $50.0 million of variable-rate debt outstanding based on one-month term SOFR.
At December 31, 2025, we had $50.0 million of variable-rate debt outstanding on our revolving credit facility based on Daily Simple SOFR. In addition, we were exposed to interest rate risk arising from fluctuations in variable-rate SOFR on our term loan prior to its repayment in April 2025.
Our other Oregon mills were identified in the third and fourth tier risk groups and will likely not be selected for several more years. When selected into the program, the facilities will incur expenses to evaluate the risk to the public and may be required to incur additional operating or capital expenditures to mitigate any significant risk.
When selected into the program, the facilities will incur expenses to evaluate the risk to the public and may be required to incur additional operating or capital expenditures to mitigate any significant risk.
Other Material Cash Requirements Long-term Debt and Interest As of December 31, 2024, we had long-term debt with varying maturities totaling an aggregate principal of $450.0 million, with no principal payments required within 12 months. Future interest payments associated with the long-term debt total approximately $124 million, with approximately $22 million payable within 12 months.
Financial Statements and Supplementary Data" of this Form 10-K. Other Material Cash Requirements Long-term Debt and Interest As of December 31, 2025, we had long-term debt totaling an aggregate principal of $450.0 million, with no principal payments required within 12 months.
Seasonal Influences We are exposed to fluctuations in quarterly sales volumes and expenses due to seasonal factors. These seasonal factors are common in the building products industry. Seasonal changes in levels of building activity affect our building products businesses, which are dependent on housing starts, repair-and-remodeling activities, and light commercial construction activities.
Seasonal Influences We are exposed to fluctuations in quarterly sales volumes and expenses due to seasonal factors impacting the level of construction activity. These seasonal factors are common in the building products industry.
Materials, labor, and other operating expenses as a percentage of sales (MLO rate) in our Wood Products segment increased by 480 basis points, due primarily to lower EWP and plywood sales prices.
However, materials, labor, and other operating expenses as a percentage of sales (MLO rate) in our BMD segment increased 20 basis points, primarily due to lower margin percentages on our commodity sales compared with 2024. In our Wood Products segment, materials, labor, and other operating expenses increased due to higher other manufacturing costs compared with 2024.
Financial Statements and Supplementary Data" of this Form 10-K. The table assumes our long-term debt is held to maturity. (b) We estimated the fair value using quoted market prices of our debt in inactive markets. 44 Table of Contents The table below provides information as of December 31, 2024, about our interest rate swap.
Financial Statements and Supplementary Data" of this Form 10-K. The table assumes our long-term debt is held to maturity. (b) We estimated the fair value using quoted market prices of our debt in inactive markets. Environmental We are subject to a wide range of general and industry-specific environmental laws and regulations.
In accordance with our risk management strategy, we actively monitor our interest rate exposure and use derivative instruments from time to time to manage the related risk. We do not speculate using derivative instruments. 43 Table of Contents At December 31, 2024, we had one interest rate swap agreement.
In accordance with our risk management strategy, we actively monitor our interest rate exposure and use derivative instruments from time to time to manage the related risk. We do not speculate using derivative instruments. Foreign Currency Risk We have sales in countries outside the U.S.
In BMD, the decrease in materials, labor, and other operating expenses was driven by lower purchased materials costs as a result of a decrease in product prices, offset partially by an increase in purchased materials costs due to the BROSCO acquisition.
In BMD, the decrease in materials, labor, and other operating expenses was driven by lower purchased materials costs as a result of a decline in sales compared with 2024.
Financial Statements and Supplementary Data" of this Form 10-K. 42 Table of Contents Purchase Obligations for Raw Materials As of December 31, 2024, we have contracts to purchase approximately $124 million of logs, approximately $55 million of which will be purchased pursuant to fixed-price contracts and approximately $69 million of which will be purchased pursuant to variable-price contracts.
Purchase Obligations for Raw Materials As of December 31, 2025, we have contracts to purchase approximately $101 million of logs, approximately $52 million of which will be purchased pursuant to fixed-price contracts and approximately $49 million of which will be purchased pursuant to variable-price contracts.
For further discussion on these acquisitions, see Note 6, Acquisitions, of the Notes to Consolidated Financial Statements in "Item 8. Financial Statements and Supplementary Data" of this Form 10-K. Excluding potential acquisitions, we expect capital expenditures in 2025 to total approximately $220 million to $240 million.
During the year ended December 31, 2025, we used $33.4 million of cash for the acquisition of Holden Humphrey. For further discussion on this acquisition, see Note 6, Acquisitions, of the Notes to Consolidated Financial Statements in "Item 8. Financial Statements and Supplementary Data" of this Form 10-K.
Income Tax Provision For the years ended December 31, 2024 and 2023, we recorded $125.4 million and $161.4 million, respectively, of income tax expense and had an effective rate of 25.0% for both periods.
Management's Discussion and Analysis of Financial Condition and Results of Operations" of this Form 10-K. Income Tax Provision For the years ended December 31, 2025 and 2024, we recorded $47.1 million and $125.4 million, respectively, of income tax expense and had an effective tax rate of 26.2% and 25.0%, respectively.
The Oregon Department of Environmental Quality (ODEQ) Cleaner Air Oregon (CAO) rules regulate toxic air emissions from manufacturing facilities located in Oregon. The rules are risk-based, and the ODEQ released their prioritization list establishing which facilities within the state likely pose the greatest risk to their communities based on emissions inventories that facilities submitted to the ODEQ.
The rules are risk-based, and the ODEQ released their prioritization list establishing which facilities within the state likely pose the greatest risk to their communities based on emissions inventories that facilities submitted to the ODEQ. The ODEQ established four risk groups. None of our mills were identified in the first tier risk group.
During 2024, cash paid for taxes, net of refunds received was $130.6 million, compared to $133.0 million in 2023.
See "Our Operating Results" above for a discussion on our results for 2025. • A $94.0 million decrease in cash paid for income taxes, net of refunds. During 2025, cash paid for income taxes, net of refunds received was $36.6 million, compared to $130.6 million in 2024.
Demand for the products we manufacture, as well as the products we purchase and distribute, is correlated with new residential construction, residential repair-and-remodeling activity, and light commercial construction. Residential construction, particularly new single-family construction, is the key demand driver for the products we manufacture and distribute. As reported by the U.S. Census Bureau, housing starts were 1.37 million in 2024.
Demand for the products we purchase and distribute, as well as the products we manufacture, is closely tied to new residential construction, residential repair-and-remodeling activity, and light commercial construction. Residential construction, particularly new single-family construction, remains a key demand driver for the products we distribute and manufacture.
Long-term debt and interest amounts assume our debt is held to maturity. For more information, see Note 8, Debt, of the Notes to Consolidated Financial Statements in "Item 8. Financial Statements and Supplementary Data" of this Form 10-K. Leases We enter into various operating and finance leases for our distribution centers, as well as other property and equipment.
Future interest payments associated with the long-term debt total approximately $108 million, with approximately $22 million payable within 12 months. Long-term debt and interest amounts assume our debt is held to maturity. For more information, see Note 8, Debt, of the Notes to Consolidated Financial Statements in "Item 8. Financial Statements and Supplementary Data" of this Form 10-K.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Information concerning quantitative and qualitative disclosures about market risk is included under the captions "Disclosures of Financial Market Risks" and "Financial Instruments" in "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" of this Form 10-K. 50 Table of Contents
Biggest changeITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Information concerning quantitative and qualitative disclosures about market risk is included under the captions "Disclosures of Financial Market Risks" and "Financial Instruments" in "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" of this Form 10-K. 49 Table of Contents

Other BCC 10-K year-over-year comparisons