Business Description

line items such as siding, composite decking, doors and millwork, metal products, roofing, and insulation; and EWP. 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. Substantially all of BMD's EWP is sourced from our Wood Products segment, with the remaining products we distribute sourced from a broad vendor base of third-party suppliers ranging from large manufacturers to small regional producers. 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. 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. 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 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 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. In addition, Wood Products and BMD have made significant progress in recent years to leverage the integrated model to increase the proportion of plywood sold through our distribution network. From 2021 to 2025, Wood Products' sales volumes of plywood to BMD increased from 28% to 51%. 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. In BMD, our growth strategy includes adding products and services, expanding our market penetration via acquisition or the opening or expansion of locations in underserved markets, and identifying and executing upon adjacent distribution platforms that can be scaled. Doors and millwork provide a recent example of product line expansion in BMD. 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. 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. We also relocated our Lathrop, California distribution center to Modesto, California to allow for future growth opportunities. In 3 Table of Contents addition, in December 2025, we acquired Holden Humphrey, a two-step distributor of building materials located in Chicopee, Massachusetts, which will enable us to offer new and expanded product lines to many existing customers in the northeast region. In recent years, we completed capacity expansion projects in West Palm Beach, Florida; Marion, Ohio; Medford, Oregon; Minneapolis, Minnesota; and Cincinnati, Ohio.…