Total Revenue

+1.6%

Total Revenue increased from $530.58M to $538.90M in Q1 2025. This modest improvement reflects overall steady business momentum, with gains in core segments (notably in North America and Asia/Pacific) helping to offset slight declines in other areas relative to Q1 2024. " " "

Wood Construction Products

+2.2%

Wood Construction Products grew from $449.51M to $459.44M. The increase is attributed to higher sales volumes and incremental effects from recent acquisitions, continuing a trend observed in previous periods where volume growth was a key driver despite potential pricing adjustments. " " "

Concrete Construction Products

-1.3%

Concrete Construction Products declined from $78.73M to $77.68M. This slight decrease suggests challenges such as shrinking sales volumes or an adverse product mix, indicating that the gains in other regions or segments were not sufficient to overcome minor downturns compared to Q1 2024. " " "

Other Products revenue

-24%

Other Products revenue dropped significantly from $2.34M to $1.77M. Such a sharp decline points to either a strategic shift away from non-core products or possible discontinuations, marking a stark contrast with the previous period’s modest contributions from this segment. " " "

North American Revenue

+3.4%

North American revenue increased from $406.75M to $420.70M. The rise is driven by higher sales volumes and favorable product mix adjustments, along with incremental revenue from acquisitions, building on improvements seen in the prior period. " "

European Revenue

-5.1%

European revenue declined from $119.94M to $113.86M. The contraction is linked to economic headwinds, adverse foreign currency effects, and higher operational costs compared to Q1 2024, highlighting regional challenges that contrast with growth trends in other areas. " " " "

Asia/Pacific Revenue

+11.6%

Asia/Pacific revenue surged from $3.89M to $4.34M. This strong performance can be credited to rapid regional demand recovery and favorable market conditions, a robust turnaround relative to the more modest gains in other regions from the previous period. " "

Income from Operations

+6.5%

Income from Operations increased from $96,098K to $102,319K. The improvement is driven by enhanced gross margins and operational efficiencies, likely due to effective cost management and lower material costs as core segment revenues grew compared to Q1 2024. " "

Net Income

+3.2%

Net Income rose from $75,430K to $77,884K. The modest gain indicates improved profitability from core operations, albeit tempered by challenges such as the significant drop in Other Products revenue and slight declines in some segments, compared to Q1 2024. " "

Operating Margin

FY 2025

18.5% to 20.5% "

18.5% to 25% "

raised

Capital Expenditures

FY 2025

$150 million to $170 million " "

$150 million to $170 million "

no change

Interest Expense

FY 2025

$6.3 million "

$0.4 million "

lowered

Effective Tax Rate

FY 2025

25.5% to 26.5% "

25.5% to 26.5% "

no change

Property Sale Benefit

FY 2025

$10 million to $12 million "

$10 million to $12 million "

no change

Gross Margin

FY 2025

no prior guidance

anticipated to be slightly lower "

no prior guidance

U.S. Housing Starts

FY 2025

low single digits growth "

no prior guidance

no prior guidance

Margin Management and Operating Profitability

In Q2 2024, margins declined due to cost pressures and product‐mix shifts. " " In Q3 2024, the focus was on maintaining a 20% operating margin despite rising expenses and lower gross margins. " " Q4 2024 emphasized the goal of an operating margin at or above 20% with targeted adjustments. " " "

In Q1 2025, gross margins improved moderately (e.g. consolidated gross margin at 46.8%) and operating margins expanded to 19%, with continued emphasis on cost discipline and strategic pricing. " " "

Consistent focus with slight improvement. The company continues to prioritize margin management through pricing actions and cost discipline despite persistent cost pressures.

Housing Market Outlook and Volume Performance

Q2 2024 discussed modest growth and a flattish market with some seasonal declines. " " Q3 2024 presented a cautious outlook with low single-digit growth and noted seasonal uncertainty. " " " Q4 2024 mentioned expectations of low single-digit growth in U.S. housing starts and mixed volume outcomes. " "

In Q1 2025, the housing market outlook remains cautious—expecting flat to low single-digit growth—with solid volume performance driven by strong segments such as outdoor living and OEM, despite weather and macro uncertainties. " " "

Recurring but cautious sentiment. The outlook remains modest and subject to seasonal factors while volume performance shows resilience, indicating a measured but steady market environment.

Strategic Growth Investments and Capital Allocation

Q2 2024 highlighted significant investments in digital capabilities, facility expansions (e.g. Columbus and Gallatin projects), and acquisitions like CSD, with balanced capital allocation including repurchases and dividends. " " Q3 2024 reinforced this focus with substantial capital expenditures and acquisitions. " " " Q4 2024 continued with facility upgrades and M&A initiatives. " " "

In Q1 2025, the company reiterated its proactive strategy with on-time facility projects in Columbus and Gallatin, ongoing acquisitions integration, and disciplined use of capital with share repurchases and dividends. " "

Steady and proactive approach. The strategy remains consistent as the company focuses on growth investments and capital allocation to support long‐term expansion, reinforcing its commitment as a key future driver.

Rising Input Costs, Tariff Exposure, and Cost Pressures

Q2 2024 attributed declining gross margins to rising factory overhead, labor, and freight costs without a focus on tariffs. " " Q3 2024 noted similar input cost pressures impacting margins, though no explicit mention of tariffs. " " Q4 2024 provided detailed discussion on sustained higher input costs and the impact of tariffs on steel and China imports. " " "

Q1 2025 continued to highlight significant cost increases and rising input costs, with a strategic partial pass-through via an 8% price increase, and a renewed focus on mitigating tariff exposure through facility investments and sourcing adjustments. " " "

Persistent pressures with evolving tactics. While rising costs and tariffs remain challenges, the company is increasingly emphasizing price increases and operational adjustments to cushion their impact, reflecting a defensive yet proactive sentiment.

Digital Transformation and Software Integration

Q2 2024 focused on the acquisition of CSD and progress on a digital solutions roadmap, integrating design and manufacturing software. " " " Q3 2024 discussed further digital investments through acquisitions (Monet DeSauw, CSD) and increased spending on professional digital services. " " " Q4 2024 continued investments in digital tools and CRM enhancements for customer engagement. " " "

In Q1 2025, the company reported progress in scaling its digital solutions, aligning operations with a broadened software and equipment offering that successfully converted smaller manufacturing customers and deepened builder partnerships in the residential market. "

Continuous strategic emphasis. Digital transformation remains a core focus with ongoing integration efforts and scaling initiatives, reflecting positive momentum and long-term competitive positioning.

European Market Performance Trends

Q2 2024 noted modest net sales growth (up 1.6%) but emphasized margin compression due to higher cost inputs. " " In Q3 2024, net sales modestly increased (up 1.8%) but margins squeezed further due to defensive cost measures. " " Q4 2024 reported a decline in net sales and significant operating income erosion, with margins under pressure. " "

Q1 2025 saw a further 5.1% decline in European net sales, though volume performance still outpaced local market growth. The outlook remains challenged by cost pressures and competitive conditions. " "

Declining emphasis with cautious outlook. While volumes remain relatively robust, persistent margin pressures and sales declines continue to challenge European performance, marking it as a vital yet underperforming area needing midterm corrective measures.

Weather and Natural Disruption Impacts

Q2 2024 mentioned weather contributing to single-digit declines in the national retail segment. " In Q3 2024, hurricanes in the Southeast significantly affected regional activity and forecast adjustments were noted. " " Q4 2024 highlighted wildfires in California with minimal operational impact, serving more as an isolated event than a systemic issue. "

In Q1 2025, weather-related impacts were minimal, with soft January and February due to snow and one less shipping day, but overall volumes remained solid, underscoring that such disruptions are now less disruptive than before. "

Diminishing as a recurring theme. Although weather and natural disruptions still occur, their impact has become isolated and less significant, with the company demonstrating adaptability and minimal long-term effect on operations.

Non-Recurring Items and One-Time Gains Impact on Margins

Q2 2024 did not provide information on non-recurring items. Q3 2024 did not mention one-time gains, with the discussion focused on operational cost challenges. " " Q4 2024 discussed a gain on sale (Gallatin property) of $10–12 million that positively impacted margins. "

In Q1 2025, the company projected a similar one-time gain from the sale of the Gallatin property to benefit margins in Q3 2025, though such items remain sporadic and isolated. " "

Occasional and isolated. One-time gains like the Gallatin sale are infrequent and serve as temporary margin boosters rather than a recurring strategic element, indicating limited broader impact on long-term performance.