Boise Cascade Company
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +3.07%.
Did BCC Beat Earnings? Q2 2025 Results
Boise Cascade delivered a disappointing second quarter, missing on both the top and bottom lines as a bruising pricing environment in its Wood Products segment weighed heavily on results. The company posted earnings of $1.64 per diluted share, falling 5.84% short of the $1.74 consensus estimate, while revenue of $1.74 billion came in 0.40% below expectations and slid 3.2% from the year-ago period. The sharpest pain came from Wood Products, where segment income collapsed 81% year-over-year as average selling prices for LVL, I-joists, and plywood fell between 6% and 10%, and per-unit conversion costs climbed due to planned downtime tied to the Oakdale, Louisiana plywood mill modernization, a project now complete. Building Materials Distribution held up comparatively better, with segment income declining a more contained 9%. Looking ahead, management flagged near-term headwinds from large public homebuilders moderating construction pace amid affordability pressures and cautious consumer sentiment, even as ongoing housing undersupply provides a longer-term demand floor. A worker strike at one facility added a further note of operational uncertainty to an already challenging backdrop.
- Lower EWP and plywood average net selling prices year-over-year (LVL -10%, I-joists -8%, plywood -6%)
- Higher per-unit conversion costs due to planned Oakdale mill modernization downtime
- Muted underlying demand for new residential construction
- Sequential volume growth driven by seasonally stronger activity
- LVL sales volumes increased 8% YoY while I-joist volumes declined 5% and plywood volumes declined 7%
- BMD general line product sales increased 4% while commodity sales decreased 5% and EWP sales decreased 12%
- Gains on sale of non-operating properties ($3.9M in Wood Products, $3.8M in BMD)
- Total U.S. housing starts decreased 1% and single-family housing starts decreased 8% YoY in Q2
“During the second quarter of 2025, we experienced sequential volume growth driven by seasonally stronger activity, although underlying demand for new residential construction remained muted.”
Boise Cascade CEO, on the earnings call
Forward Guidance & Outlook
Near-term demand has eased as large public homebuilders moderated their building pace due to affordability considerations, cautious consumer sentiment, and broader economic conditions. Evolving market conditions have led to reduced home turnover and delayed repair-and-remodeling projects. End market demand will continue to be influenced by mortgage rates, home affordability, home equity levels, unemployment rates, and consumer confidence. However, long-term demand drivers including an undersupply of housing units, aging U.S. housing stock, and elevated homeowner equity remain strong. Product pricing, particularly for commodity products, is expected to remain dynamic, influenced by economic conditions, industry operating rates, supply disruptions, duties, tariffs, transportation constraints, and seasonal demand patterns. Capital expenditures for 2025 are expected to total approximately $220 million to $240 million excluding acquisitions.
BCC YoY Financials
BCC Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.