Boise Cascade Company
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +7.22%.
Did BCC Beat Earnings? Q1 2025 Results
Boise Cascade delivered a mixed first quarter, with earnings falling well short of expectations even as revenue edged past forecasts amid a pronounced slowdown in U.S. home construction. The company posted earnings of $1.06 per diluted share, missing the $1.28 consensus estimate by 17.51%, while revenue of $1.54 billion came in 1.32% above expectations but still fell 6.6% year-over-year. The steepest pressure came from the Wood Products segment, where planned downtime tied to a modernization project at its Oakdale, Louisiana mill compounded the pain of broad-based price declines, with plywood prices down 10% and LVL and I-joist prices each falling 9% versus the prior-year period, driving segment income down 75% to $17.71 million. Consolidated net income tumbled 61% to $40.35 million as adjusted EBITDA declined 46% to $91.61 million. Looking ahead, management expects modest engineered wood product price erosion in the second quarter and anticipates 2025 housing starts to range from flat to mid-single-digit declines, though longer-term demand drivers, including housing undersupply and aging stock, remain intact.
- Lower EWP and plywood sales prices drove revenue and income declines across both segments
- Lower sales volumes for LVL, I-joists, and plywood
- Higher per-unit conversion costs from downtime at Oakdale mill modernization project
- U.S. single-family housing starts decreased 6% year-over-year
- Total U.S. housing starts decreased 2% year-over-year
- Constrained demand and difficult weather conditions
- BMD gross margin decreased $20.4 million from lower volumes and compressed commodity/EWP margins
- BMD depreciation and amortization increased $3.3 million
“We delivered solid results during the quarter when considering an environment influenced by constrained demand, difficult weather, and planned downtime at our Oakdale veneer and plywood mill. I am proud of how our team remained both steady and agile in the face of these challenges while continuing to deliver superior value to our customer and vendor partners.”
Boise Cascade CEO, on the earnings call
Forward Guidance & Outlook
Management noted the operating environment was challenged by seasonally slower activity, dampened consumer and homebuilder sentiment, significant macroeconomic uncertainties, and elevated mortgage rates. Most forecasts for 2025 housing starts range between flat to mid-single digit year-over-year declines. The company expects modest EWP price erosion in the second quarter. Future commodity product pricing may be volatile due to economic uncertainties, tariffs, supply disruptions, and seasonal demand patterns. Long-term demand drivers remain constructive, including an undersupply of housing units, aging U.S. housing stock, and elevated homeowner equity. Capital expenditures in 2025 are expected to total approximately $220 million to $240 million, excluding potential acquisition spending.
BCC YoY Financials
BCC Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.