Boise Cascade Company (BCC) Q1 2025 earnings summary

Executive summary

• Q1 2025 sales were $1.54 billion, down 7% year-over-year, with net income of $40.3 million ($1.06 per share) versus $104.1 million ($2.61 per share) in Q1 2024, reflecting lower demand, adverse weather, and planned downtime at the Oakdale mill.

• Income from operations fell to $54.5 million from $133.0 million, driven by lower sales prices and volumes in both Wood Products and BMD segments.

• Cash and cash equivalents ended at $561.8 million, with $395.7 million in undrawn bank line availability, totaling $957.5 million in liquidity.

• Strategic investments and capital returns to shareholders continued, supported by a strong balance sheet and positive long-term housing demand drivers.

• CEO highlighted resilience amid constrained demand and affirmed commitment to strategic investments.

Financial highlights

• Sales declined 7% year-over-year to $1.54 billion; net income fell 61% and adjusted EBITDA dropped 46% to $91.6 million.

• Wood Products sales were $415.8 million, down 11% year-over-year; segment EBITDA was $40.2 million, down from $95.6 million.

• BMD sales were $1.41 billion, down 7% year-over-year; segment EBITDA was $62.8 million, down from $83.6 million.

• Gross margin for BMD was 14.7%, down 40 basis points year-over-year; EBITDA margin was 4.5%.

• Operating cash flow was negative $28.5 million, compared to positive $27.5 million in the prior year.

Outlook and guidance

• 2025 end market demand is difficult to predict; most housing start forecasts range from flat to mid-single digit declines year-over-year.

• EWP volumes expected to increase by mid to high single digits sequentially in Q2; pricing expected to decline low single digits.

• Plywood volumes to rise mid-single digits sequentially; Oakdale partial restart to negatively impact Q2 results by ~$5 million.

• 2025 capital expenditures expected between $220 million and $240 million, focused on mill modernization and new distribution centers.

• Cash flows, current cash, and borrowing capacity are expected to be sufficient for operational and capital needs over the next 12 months.