Good morning. My name is Rocco, and I will be your conference facilitator today. At this time, I would like to welcome everyone to Boise Cascades' fourth quarter 2025 earnings conference call. All lines have been placed on mute to prevent any background noise. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star than 1 on your telephone keypad, and to withdraw your question, please press star than two. Please note, today's event is being recorded. I would now like to turn the conference over to Chris Forre, Senior Vice President, Finance and Investor Relations. Mr. Forre, you may begin your conference.

Thank you, Rocco, and good morning, everyone. We'd like to welcome you to Boise Cascade's fourth quarter 2025 earnings call and business update. Joining me on today's call are Nate Jorgensen, our retiring CEO, Jeff Strom, our incoming CEO, Kelly Hibbs, our CFO, Joe Barney, leader of our building materials distribution operations, and Troy Little, leader of our wood products operations. Turning to slide two, this call will contain forward-looking statements. Please review the warning statements in our press release, on the presentation slides, and in our filings with the SEC regarding the risks associated with these forward-looking statements. Also, please note that the appendix includes reconciliations from our gap net income EBITDA and adjusted EBITDA, and segment income or loss to segment EBITDA. I will now turn the call

over to Nate. Thanks, Chris. Good morning, everyone. Thank you for joining us for earnings call, slide number three. As I reflect on 2025, I want to begin by recognizing dedication and perseverance of every Boise and Cascade associate. Our people and shared values continue to be the foundation of our sustained success. We delivered strong operating results despite ongoing market headwinds with full-year net income of $132.8 million, or $3.53 cents per share. We continue to expand our distribution business, the most notable examples being the opening of our Greenfield Distribution Center in Honda, Texas, and the fourth-quarter acquisition of Holden Humphrey. Our multi-year investments in support of our EWP production capabilities in the Southeast remain a strategic focus in 2025. We completed the Oakdale Modernization Project and are substantially complete with the addition of the Doorsby High Line. The meaningful investments we have made the last three years positioned us to deliver above-market growth in the years to come. Lastly, we provided meaningful returns to our shareholders again in 2025 to a 5% increase in our quarterly dividend and more than $180 million of share repurchases. Turning to fourth quarter results, total U.S. housing starts, single-family housing starts increased 4% and 7% respectively compared to the prior year quarter. Our consolidated fourth quarter sales of $1.5 billion were down 7% from the fourth quarter of 2024. Our net income was $8.7 million, or $0.24 per share, compared to net income of $68.9 million, or $1.78 per share, in the year-go quarter. Fourth quarter 2025 results were negatively impacted by approximately $6 million, or $0.16 per share after tax, related to accrual for illegal proceedings in our BMD segment that Kelly will address in his comments. As expected, sequential volume declines in both divisions reflected the seasonal softness in demand. In BMD, our team delivered steady gross margins sequentially. In wood products, EWP prices stabilized while plywood markets, like commodities, other commodities, continue to experience weak pricing due to soft demand. Despite market challenges, we delivered solid earnings. As announced in December, I will retire next week after 10 years with Boise Cascade, including Six as CEO. It's been an honor and privilege to serve in this role. Jeff's transition into the CEO role reflects our deliberate and purposeful succession planning. I have great confidence in Jeff and the entirety of our leadership team to guide Boise Cascades' continued success and look forward to continued service on the company's board. Kelly will now walk through our segment financial results, capital allocation priorities, and the first quarter guidance. Jeff will then provide highlights on our business outlook and make closing comments. Kelly? Thank you, Nate, and good morning, everyone.

BMD's sales in the quarter were $1.4 billion, down five. BMD reported segment EBITDA of $56.4 million in the fourth quarter, compared to segment EBITDA of $84. Gross margin dollars decreased $21.3 million compared to fourth quarter. In addition, BMD's fourth quarter EBITDA was negatively impacted by the $6 million charge that I will speak to in more detail momentarily. In wood products, our sales in the fourth quarter, including sales for a distribution million, down 16% compared to fourth quarter 2024. Wood product segment EBITDA was $12.3 million compared to EBITDA $56.6 million reported in the year-ago quarter. The decrease in segment EBITDA was due primarily to lower EWP sales prices and sales volumes, as well as lower plywood sales prices and higher per-unit conversion costs that were influenced by decreased production rates. Moving to slides 5 and 6, BMD's year-over-year fourth quarter sales decline of 5% was driven by a 4% decrease in sales prices as well as a 1% decrease in sales volumes. By-product line commodity sales decreased 9%, general line product sales increased 3%, and sales of EWP decreased 14%. Sequentially, BMD sales were down 12% from third quarter 2025, a result of lower volumes attributable to seasonally weaker demand. Our fourth quarter gross margin was 15.1%, flat, sequentially, and down 70 basis points year over year. The year over year decline was driven by commodity price headwinds and EWP competitive pricing pressures. Margins on general line products were stable despite the subdued demand environment. EMB's EBITDA margin was 4.1% for the quarter, down from both the 5.9% reported in the year-ago quarter and the 4.5%. Sequentially, our EBITDA margin improved modestly when excluding the negative impact of the previously mentioned charge. EMB's fourth quarter EBITDA margin is below our typical earnings power. However, it represents strong performance considering current market demand and pricing conditions. This outcome demonstrates our team's effective execution across all product lines. In particular, we have prioritized growth in our general line products, leveraging our proven track record and extensive distribution network to offer a leading selection in this specific to the legal matter related to the $6 million charge. Of course, this relates to a Lacey Act investigation involving plywood purchases at our distribution facility in Pompano, Florida. It is a legacy matter pertaining to certain hardwood plywood purchases made between 2017 and 2021, sourced from a former U.S.-based supplier and that supplier's importation of plywood. That investigation led to Boise Cascade receiving a subpoena for documents in 2024, and we have fully cooperated with federal authorities, specifically the Department of Justice. I want to be clear that we take this matter very seriously, consistent with our company values. We are committed to maintaining rigorous compliance standards across our businesses. In fact, years prior to being contacted by federal regulators, we had already undertaken steps to comprehensively review, invest in, and enhance. Steps taken included a new compliance management and oversight program, implementation of enhanced policies and procedures related to supplier due diligence and monitoring, and mandated education programs and trainings for our associates. In short, we have a comprehensive compliance program in place. The charge we recorded and the matter the DOJ is reviewing relate to transaction at only one distribution facility several years ago, and we are confident that we have implemented effective process obligations. We will continue to cooperate with the DOJ to resolve this matter as soon as possible and move forward as a stronger company with an even greater vigilance toward trade policies and procedures. Lastly, I want to emphasize that this does remain focused on delivering exceptional value. Turning to slide 7, fourth quarter I-joist and LVL volumes were down 16% and 7% respectively compared to the year-ago quarter. Sequential I-joist and LVL volumes were down 16% and 8% respectively, a seasonal declines in construction activity and a continued muted demand environment drove lower volumes. On a year-to-date basis, our eye-joist and LVL volumes were down 8% and 2% respectively, a reflection of the decrease in single-family starts. As it relates to pricing, fourth-quarter EWP sales prices declined about 10% year-over-year, but were flat sequentially. Turning to slide 8, our fourth-quarter plywood sales volume was 354 million feet compared to 371 million feet in fourth-quarter 2024. four. Sequentially, our plywood sales volumes were down 9% from third quarter of 2025, as anticipated due to the seasonal slowing in demand. The $329 per thousand average plywood net sales price in the fourth quarter was down 6% on a year-over-year basis, but increased modestly compared to third quarter. Tariffs have led to a notable decrease in South American plywood imports to the U.S., with Brazilian shipments falling over 40% year-over-year in the latter or half, this reduction has contributed to recent pricing gains for southern plywood. However, trade policy remains uncertain following last week's Supreme Court decision, so it will be important to watch how these developments affect market dynamics. I'm now on slide nine. We had capital expenditures of $241 million in 2025, with $105 million of spending in BMD and $136 million As Nate previously mentioned, this capital deployment was in alignment with our strategy to solidify and expand our market-leading national distribution presence and support our EWP production capabilities in the southeast. Looking forward to 2026, we expect our capital spending to be between $150 million and $170 million. Roughly a third of BMD's 2026 spending relates to growth projects across our system. with the balance of our spending in both segments attributable to replacement projects, business improvement and efficiency projects, and ongoing environmental. Dealing to shareholder returns, we paid $35 million in regular dividends in 2025. Our board also recently approved a $0.22 per share quarterly dividend on our common stock that will be paid in mid-March. In 2025, we repurchased approximately $181 million of Boise Cascade common stock, including approximately $70 million in the fourth quarter. Thus far in the first quarter of 2026, we repurchased an additional $39 million, leaving approximately $200 million authorized for repurchase under our existing share repurchase program. We remain committed to a balanced approach to capital allocation by investing in our assets, pursuing organic and inorganic growth opportunities, and returning capital to our shareholders. A strong financial position provides flexibility to advance all of these priorities for long-term value creation. where we have presented a range of potential EBITDA outcomes for the first quarter, along with key driver assumptions. Notably, winter storm fern had a considerable effect at the beginning of the quarter, causing widespread disruptions throughout our operations in the eastern U.S. Within BMD, nearly 20 branches were closed for at least one day, resulting in approximately 30 lost sales days. Additionally, our southeast manufacturing facilities experienced closures lasting multiple days. And just this week, severe weather in the northeast is again impacting our distribution. With that as a backdrop, I'll shift to our outlook. For BMD, we currently estimate first quarter EBITDA to be between $45 and $55 million. BMD's current daily sales pace is approximately 6% below the fourth quarter sales pace of $22 million per day. While we expect our first quarter pace to improve as the quarter progresses, it will likely fall short of the fourth quarter pace. Coast margins are expected to be between 14.25% and 15%. For wood products, we estimate first quarter EBITDA to be between $25 million and $35 million. We expect EWP volumes to increase by high single to low double digits sequentially, reflecting seasonal strengthening and channel restocking in advance of spring building season. EWP pricing is expected to range from flat to low single-digit declines sequentially. In plywood, we expect sequential volume increases in the high single digits. On plywood pricing, quarter-to-date realizations were 1% above our fourth-quarter average with a balance of the quarter market dependent. Increases in EWP and plywood volumes will also drive sequential decreases in our per-unit manufacturing costs. Lastly, we expect our first quarter effective tax rate to be between 26% and 27%. I will now turn it over to Jeff to share our business outlook and closing remarks.

Thank you, Kelly. I want to start by welcoming the talented team from Fulton Humphrey to Boise Cascade. We are excited to have completed that acquisition this past December and how it enhances our footprint and product offering in the Northeast region. Let me turn to slide 11. As we move into 2026, maintaining focus and adaptability will be crucial to differentiating Boise Gascade and delivering value for our customers and supplier partners. In 2025, single-family starts fell short of 2024 levels by approximately 7% and are expected to be flat or modestly down in 2026. Home builders moderated starts in 2025 to avoid further buildup of finished home inventory, as affordability remains a persistent challenge for prospective homebuyers. Throughout 2025, builders bridged the supply-demand gap with increased incentives and high single-digit declines in new home prices. Multifamily experienced growth in 2025, but starts are expected to level off in 2026 due to prohibitive capital costs for developers, combined with low rent growth and a decrease in permit activity. Repair and remodeling activity has been limited by low home turnover and homeowners delaying major projects due to high borrowing costs and economic uncertainty. However, as economic policy becomes clear, consumer confidence improves and interest rates decline, the project backlog positions repair and remodeling for a long runway of growth. The strong fundamentals for both new residential construction and repair and remodeling continue to support the industry's favorable outlook. Our recent investments positioned Boise Cascade to capture significant upside as the market turns. D&D once again demonstrated its value to the channel, delivering outstanding service across a broad range of industry-leading building materials. We are prepared for new opportunities and challenges that lie ahead in 2026, but one constant will be B&D's unwavering focus on creating solutions for our customers. In Wood Products, we are pleased that EWP price erosion abated in the fourth quarter, and we aim to improve EWP realizations as the year progresses. The integration of our two business segments has never been closer. Enhanced channel visibility supports the alignment of our production rates and inventory strategies with end market demand. Cross-divisional efficiencies are solid financial foundation or cornerstones of our ability to execute our strategy and build our long-term value creation. Looking ahead, we remain confident in the long-term demand drivers for residential construction, including the persistent under-supply of housing an aging U.S. housing stock, and high levels of homeowner equity. Generational tailwinds support household formation growth, but declines in mortgage rates should encourage buyers who have been waiting on the sidelines to enter the market. Finally, I'd like to thank Nate for his steadfast leadership and dedication to Boise Cascade. Nate's tenure as CEO began shortly before the COVID-19 pandemic, and his steady hand and thoughtful leadership guided us through the wild swings in the market that followed. We are a stronger company today because of his leadership, and I'm pleased that Nate will continue to serve on our board of directors. The example Nate has sent for me and many others at Boise Cascade is one of living our values. Nate's embodiment of these values has become a fundamental building block of our culture that has strengthened our relationships with associates, customers, suppliers, and shareholders. Nate, I wish you and your family the very best in retirement. Thank you for joining us today and for your continued support and interest in Boise Cascade. We welcome any questions at this time. Rocco, would you please open the phone lines?

Yes, sir. Thank you. We will now begin the question and answer session. To ask a question, you may press star than 1 on your telephone keypad. If you are using a speakerphone, we ask that you please pick up your handset before pressing the keys. To adjourn your question, please press star than 2. And today's first question comes from Susan McClary with Goldman Sachs. Please go ahead.

Thank you. good morning everyone and Nate let me add my congrats on a job well done over the during your tenure and Jeff I look forward to working with you thank you so my first question is focused on the uh the general line within BMD can you talk about the share gains that you're continuing to realize there and the ability to continue to grow even with the housing headwinds

that we're seeing? Yeah, so good morning. This is Joe. So what I would tell you is that, you know, we really saw demand held up well across our general line products. You know, in 2025, they were our biggest category. They hit an all-time high as far as our overall mix. So we've done exactly what we set out to do in growing our general line products. We continue to see solid growth with James Hardy, with Trex, with Huber. In fourth quarter, our home center business continues to be strong. And we've got a lot of program business for the home centers, as well as general line special order business that we do. And we do really well with that business. We believe that's going to continue to grow. We see a lot of opportunity, upside opportunity with the home centers. And we continue to improve and grow our door and millwork category, both in terms of improving our operational costs, as well as growing overall revenue, and we really feel confident that we're going to continue to gain market share

in that category. Okay, that's helpful. Thank you. And then maybe turning to EWP, you know, the builders, the public builders really focused on clearing a lot of their spec inventory in the fourth quarter ahead of the spring selling season. I guess as we do look to the upcoming season, Can you talk about how the channel is positioned in there with the builders targeting that very low single-digit volume growth? How are you thinking about what that could mean for the business and any potential upside if we do get more of a lift in activity as we go through the next couple quarters?

Yeah, good morning, Sue. Yeah, I mean, obviously, like you mentioned, that we had the kind of de-stocking effect in Q4. But we, you know, we're aligned with, you know, strong partners on the builder side and the dealer side. And so we did see some, if you want to, probably more restocking starting in at the beginning of Q1. That's kind of flowed through well into February and, you know, feeling pretty good about where we sit year-to-date this month. So I think just those strong partnerships allows us access to the market when it does come back, you know, through that channel and with our partnership with BMD, that inventory itself is ready.

Thank you for that. And then I'm going to squeeze one more in, which is just, you know, Jeff, as you do step into the CEO role, can you talk about any areas that you're especially focused on? And maybe within that, any thoughts on capital allocation and priorities there?

Yeah, I'll just start with this one. I think when I look at things overall, you know, our strategic priorities that we have that are in place right now, you know, I think they've served us very well. And so maybe you might see a slight refinement there of things that we'll work on and more of a deeper intentionality. But the initiatives we put in place will all be just to support that strategy, So you think about what it's been, you know, leveraging an integrated model, you know, to serve us incredibly well. You know, we're going to keep doing that and look for more efficiencies there. Increased earning stability. I love the work that we've done, and I think it's showing up very well right now. But there's opportunities there, and there's opportunities to continue to invest and grow our business. And we're going to do that in both businesses, you know, B&D and wood products. You know, we're going to look for innovation, for efficiencies to drive some costs out, and then accelerate the pace of transformation. Again, that goes to technology. You know, we want to invest in employing technology there to help drive revenue and reduce costs. And then one slight addition that I'd add to that, I think, is, you know, We really want to become the employer of choice for our associates, and what do I mean by that? We want to attract the best talent. We want to get them in here to work for a great business with an amazing culture, and we want to keep them there. We want to develop them. We want to invest in them and provide a great future. So I think those would be the changes. On the capital allocation, truly, I think our balanced approaches work extremely well for us, and I don't see anything different going forward.

Thank you, and good luck to everyone, and good luck on the quarter.

Thank you. And our next question today comes from Mike Roxland with True Securities. Please go ahead.

Yeah, thank you, Nate, Jeff, Kelly, Chris, and everyone else for taking my questions. Nate, congrats on your retirement. It has been great working with you. Appreciate all your insights over the last few years. And, Jeff, congrats on the new role. Look forward to working with you more closely. First question is on EWP prices. They've obviously begun to stabilize quarter by quarter. Your guys are going to better price sequentially in 1Q. I realize there may be some seasonality you're embedding within that guy, but is there anything, any other caller you could share as to what in particular is driving the EWP price stability after so many quarters of erosion, and particularly in light of persistent single-family weakness? Are you starting to see the competitive backdrop become a little bit more rational relative to the way it was? Just anything you could help us with to describe what's happening with EWP pricing.

Yeah, Mike, this is Troy. Yeah, no, I'm pleasantly surprised in terms of the fourth quarter being flat relative to Q3. You know, I think where we're at in the cycle, you know, definitely it's pretty competitive out there. But I think that's playing itself out. And as we move into Q1, we're seeing, you know, quite honestly, we're pretty flat where we sit right now for the second half of last year. And so, you know, that remains encouraging. You know, we obviously are out there looking for new business and defending what we have, but right now we're not anticipating anything substantially on the downside. And like I said, where we sit in Q1, I'd say that's probably going to be fairly flat.

Got it. And Troy, it's just a matter of what, the competitive backdrop being, you know, your peers being more rational in terms of their pricing. You know, I remember you guys highlighted a couple of quarters ago for a number of quarters actually going at this point that in select markets, you were seeing more EWP price erosions and because of peers being more competitive. Has that subsided? And that's why now pricing has stabilized?

Well, I wouldn't say it stopped. You know, I just think it's kind of where we've ended up. I mean, costs throughout the last number of years, as prices have been coming down, our costs have been going up. So I just think maybe that's where we're at.

And, Troy, since I have you, just, you know, the 1Q guidance in what products assume a nice increase in margins sequentially, aside from pricing we just spoke about and volumes, Can you talk about maybe some of the other underlying assumptions in what products would allow you to have such a notable increase in EBITDA margin sequentially?

Yeah, the big project of 2025, market-related downtime. So anytime you've got volume pulling out, you know, your cost. So I think with the projects being complete, that downtime, you know, we've been running fairly full with a little bit of market. But so in terms of sequential guidance, I mean, we've got that baked in. And then plus, just we're very focused.

Got it. And one last question. I'll turn it over. On BMD, it looks like the event-down margin should be around 3.5% to 4% based on your 1Q guidance. What do you guys think would get the business back to 5% margins, which I believe is something you've classified as more normal? You know, what do you need to see from a housing perspective or a mixed vantage point or elsewhere to get you back to that 5% bogey? Thank you.

Yeah, good question, Mike. So, you know, certainly first quarter is going to be a seasonally weaker. The top line is really going to be. If we get into the seasonally stronger periods in the second and third quarter, my expectation would be. But you're right. In the first quarter, it would look softer, and I think it's important to also comment on the gross margin. It's been 14 and a quarter to 15%. A couple things to think about there. The mix is a bit different. You'll see some less general line in EWP in the first quarter. It'll be a little heavier to commodity in terms of our overall mix. And then additionally, within commodity, there's been a little bit of energy in the market of late, but there's been some confidence in the market that our downstream customers have shifted a bit more to direct. And as you know, direct on a mix overall and a bit of a mixed shift within commodity that moves that gross margin percentage down a little bit lower than you might have expected.

Very helpful, Kelly. Congrats, guys, and good luck in the first quarter.

Thanks, Mike. Thank you. And our next question today comes from George Staffos with Bank of America Securities. Please go ahead.

Hi, this is Kyle Benvenuto stepping in for George Staffos. Thank you for taking my question.

At IBS, we saw increased promotion of engineered iJoyce products, including your Solistech offering, positioned as alternatives to open web truices. How meaningful are these products in helping you regain share from open web systems? And can you update us on how the competitive dynamics are evolving? Relatedly, given the early-year move in lumber prices, how does open web pricing compare to iJoyst today? Thank you.

Yeah, you bet. So, a few questions in there. In terms of it sounds like you were at our booth and saw our iJoyst and then we talk around our saw systems and whatnot, that is absolutely not anything new for us. We've been doing a lot of work for a long time around software design as well as saw tech systems at the job site so that it can be quickly installed and help cycle time. So that's nothing new for us. And then I think, and then in terms of lumber and lumber pricing and market, I would tell you typically when you get builders to transition to engineer wood, they don't shift on the open web side, you know, certainly a competitive product there, and lumber is a key input cost for them. So that, you know, that could drive some manufacturers.

Thank you. And then one additional question. I'll turn it over. For BMD margins, could you just walk us through the key factors that would drive results towards the high end versus the low end of your guidance range for this quarter? And what are the major moving pieces that we should be focused on? Thank you, and good luck in the quarter.

Thank you, Ben. And just to clarify, were you talking gross margins or EBITDA margins?

EBITDA margins.

yeah so um so a couple things there i would highlight one sales velocity really matters like i alluded to we're six percent below our pace so far our pace in the fourth quarter we're six percent below so sales pace really matters to general dollars for us and then also mix shift mix shift is going to matter as well in terms of how much general line how much commodity how much And I would expect our mix to maybe rich in a bit as we make our way through a quarter. And then also, like I alluded to earlier, we've been fairly heavy on directs on the commodity side of the business. And so to get maybe towards that top end of the margin that we alluded to there, I would say it's going to be a combination of all those things. Like sales velocity, mix, and then also how much does our product flow out of warehouse first?

I'm going to add one thing to that. I think in BMD we have added a tremendous amount of projects and growth over the last few years. Some of those we continue to operationalize and some of those are not additive. And so as we move forward and as we get better, they continue every day to progress and get better, and that will add to it whether housing starts to move or not.

Thank you, and good luck in the quarter.

Thank you.

thank you and our next question comes from keaton montoro with bmo capital markets

please go ahead uh thank you and let me also extend my uh congratulations uh nate uh best wishes um in retirement and i just look i look forward to working with you thank you um maybe to start with on the distribution side can you talk about and you you mentioned earlier about some restocking there. Can you talk to how your inventories are right now, both on the general line as well as on the commodity side, especially as we start to get ready for the spring season

and recognizing that Q4 was quite weak? Yeah, Keaton, this is Jeff. On the inventories out there in general line, fourth quarter, we're leaning out in the field. People ran those down. They absolutely relied on next-day service and exactly what they needed, didn't buy anything extra at all. At the end of the year, there were some price increases that were announced, so people bought into that ahead of the price increases a little bit, not as much as you would think. But I'd say on general line, inventories in the channel, they're still overall pretty lean for the most part, and people are relying on next-day distribution. As you would expect with us, we watch our inventories closely, and ours, while we're there to serve and people knew we were, Ours came down some in the fourth quarter, like you expect. And with the early buys and the winter buys that are out there, we're starting to see them build back up. So we're prepared and ready for whatever's out there. And we still think first half of the year is going to be very heavy reliance and not aware.

Got it. Okay, now that's helpful. And then can you give us a quick update on how the doors in the Millburg business is doing and how that is holding up?

Yeah, this is Joe. You know, our door shops are actually doing really well, making big strides, all of them across the country. We're currently even expanding our space in Brasco. Our build-out should be ready to go in Florida probably by mid-summer. We're improving our capacity. We just improved some capacity in Boise. So we continue to make strides in our door shops. And I said earlier that we really are focused on the growth of our pre-finished business in door shops. You know, we do fleet times, automating where we can. We're working on high-end custom doors so that our customers who are focused on volume production doors, that we can subsidize and assist them in their business. But we continue to make strides in our door shops. We continue to improve our operational efficiency as well as our revenue gains.

Perfect. That's very helpful. I jump back in the queue.

Thank you. And our next question today comes from Jeff Stevenson at Loop Capital. Please go ahead.

Thanks for taking my questions today. and as others have said, Nate, congrats on your retirement. So I was wondering if you could provide more color on the Holden Humphrey acquisition and the potential impact on your Northeast distribution business. And also, could there be more potential opportunities to expand existing relationships with key suppliers in the region, such as Trex or James Hardy, you know, with this acquisition? Yeah, I'll jump in there. So Holden, which is now our

Chicopee location, it has gone really well. So it's meeting our expectations. I'll tell you that we're just getting started. January was a tough winter month, so we're really kind of just getting rolling there, but we are already seeing efficiency gains with our people and our products in conjunction with our Westfield location that's over there. With the addition of Holden, we gained access to the one-stepper business in the market, which is a customer segment we really have not serviced in the Northeast region. We also gained access to many general line product categories that we're excited about. These are new to us in that market as well. So now we also have the opportunity with those product categories to leverage those relationships and those products across the entire Northeast region.

Great. Now, that's good to hear. And, you know, last year you indicated that there was some slowdown in the M&A pipeline due to macro uncertainties before the Holden Humphrey transaction. I just wondered if there's been any improvement in the M&A pipeline as we, you know, came to close last year for both on strategic acquisitions in key areas you're focused on and, you know, how you plan to balance, you know, M&A and share repurchases this year.

yeah good morning Jeff this is Kelly so yeah I would say the pipeline is um it's still somewhat active and so we will continue to look to be opportunistic in terms of growing inorganically via M&A if we find the right thing to do and then to your point at the same time we'll also have a balanced approach to to look to opportunistically buy by share repurchases if we if the M&A activity is not there, and if we think the opportunity is right.

Great. Thank you.

Thank you. And our next question today comes from Ruben Garner with Benchmark. Please go ahead.

Good morning, everybody. Maybe to start, I know you guys are a little newer to giving the quarterly guidance. Curious what, on your end, kind of went better than expected to close the year, especially on the profitability front, was that just conservatism, you know, a few months ago because we were in such an uncertain environment, or were there things that you were able to kind of do internally that surprised you to the upside, and how should we think about kind of the way you guys are giving guidance going forward, I guess, in that vein? What would lead to a similar sort of outperformance in the start of 26.

Yeah, good morning, Ruben. This is Kelly. So, I guess overarching in terms of guidance, look, we're going to try to put out what we think is reasonable guidance that we think we have a reasonable opportunity of being, you know, the midpoint or a little bit above in terms of that we sandbagged fourth quarter. We did not in terms of our guide. What we did see is we saw a little bit better activity than we thought in the back half of the year. BMD in particular, I think, was a bit above their guide. So, you know, a good amount of activity. And as we seasonally, you know, as we moved into November and December, we saw some really good cost control. So I don't think there's anything I would really specifically point out beyond that. Reuben, Jeff, anything you'd highlight?

No, the only thing I'd say is we foreshadowed that it was going to be warehouse-centric for the quarter, and it was, and it really was. And each month it got more and more, so December was the highest percent of sales on a warehouse than we've had in a long time. So people really leaned on that more so than ever before, and they knew that we had the material on the ground, and we did, and so we were there to serve.

Yeah, so that was going to be my next or part of my next question, Jeff, and also for Joe here as a follow-up to some comments you made earlier. So the warehousing or the elevated reliance on warehousing, I mean, does that tell you kind of a sense of cautiousness that your customers still have even entering this kind of spring season for even some of the general line products? And then, you know, Joe, you mentioned all these, you know, the outperformance you guys have had. It has been very impressive in general. And what exactly are you guys doing that's leading to outsized growth in, you know, some of your channels? You mentioned home centers. Like, what exactly are you guys doing that's driving that outsized growth for you?

You know, as far as driving the growth, I think what I would tell you is, again, you know, I mentioned earlier that we have really focused on our general line mix and what we're doing with our general line product categories to grow there. So, you know, that's been a strategic focus for us. And as our mix shift switches, you know, and we've been able to grow that product category, we've seen our margins improve. We've done really well there. That said, I think it's also important to note that we are not moving away from our volume in commodities. In fact, I think our commodity performance also combats margin compression. We are very good with the expertise of our people. We continue to build out systems and methods that give us early indicators in the market on trends that allow us to move quickly on commodities, often ahead of the market. So we continue to outperform there. Our door shops, again, the revenue growth that we're seeing there is helping us perform and we're going to continue to grow there. To Jeff's point, you know, from an organic growth perspective, we've made investments across the country that we continue to see grow and perform. You know, and as we improve from an operational standpoint, you know, we're able to grow revenue. We bring our lead times in check. We're able to grow our revenue there. So we're seeing market share gains across the country. And then, yeah, with the home centers, we are putting a specific focus there on the home centers. We see a lot of opportunity, you know, great partners to us, and we are going to continue to invest and put resources there so that we can continue to grow that opportunity.

I'm going to add on to some of the things that you asked. Every project that we have done our last few years has been about growing our general line products and adding to the mix and going wider and deeper with them, and that has paid off in a big way. You ask if the customers out there, are they cautious, and I would tell you they are. You know, what we heard at the Builder Show is, right, it's going to be very similar to last year, only in reverse. Slower first half of the year, better second half of the year. So there is some caution out there, without a doubt. We have lots more SKUs on the ground that we've added, new SKUs that come in that we've been the supplier of. So we've absolutely had that. And then lastly, I'll tell you the net working capital focus that is out there goes across every dealer that we touch, and it has been really intense. So, to get that net working capital down, they're relying on us.

And Ruben, if we see volatility in the commodity market, that actually there's opportunity and volatility for us in the commodity market. You know, that volatility can create spreads that improve margin, give us the opportunity to improve margin. And it's actually a better environment than just bouncing along the bottom all year, which is a lot of what we saw in 2025.

Great. Thanks, guys. And congrats, Nate. Good luck in your retirement, and, Jeff, looking forward to continuing to work with you in an even bigger way. Thanks, guys.

Thanks, Ruben.

Thank you. And that concludes our question and answer session. I'd like to turn the conference back over to Jeff Strong for any closing remarks.

Well, thank you very much for your interest in Boise Cascade. Please stay safe.

Thank you, sir. The conference has now concluded, and we thank you all for attending today's presentation. You may now disconnect your lines and have a wonderful day.