Boise Cascade Company (BCC) Q3 2024 earnings summary

Executive summary

• Q3 2024 sales were $1.71 billion, down 7% year-over-year, with net income of $91.0 million ($2.33 per share), reflecting a challenging demand environment and higher costs.

• Income from operations was $117.4 million, down from $185.6 million in Q3 2023.

• Both business segments delivered solid results despite market headwinds, supported by ongoing capital deployment and shareholder returns.

• Ended Q3 2024 with $761.6 million in cash and $395.7 million in undrawn bank lines, totaling $1.16 billion in liquidity.

Financial highlights

• Q3 2024 net sales were $1,713.7 million, a 7% decrease from $1,834.4 million in Q3 2023; net income was $91.0 million ($2.33 per share), down from $143.1 million ($3.58) in Q3 2023.

• Adjusted EBITDA for Q3 2024 was $154.5 million, down 29% from $216.5 million in Q3 2023.

• Gross margin for Q3 2024 was 19.7%, down from 21.4% in Q3 2023; operating margin was 6.8%, down from 10.1%.

• Capital expenditures year-to-date were $135.8 million; full-year 2024 capex expected at $220–$240 million.

• Cash from operations for the first nine months was $343.8 million, down from $521.1 million in 2023.

Outlook and guidance

• U.S. housing starts forecasted at 1.35 million for 2024 and modestly above 1.40 million for 2025; single-family starts up 10% year-to-date, multi-family starts declined sharply.

• Expect seasonally lower EWP and plywood volumes in Q4, with low single-digit sequential declines in key product volumes and pricing.

• Modest growth in home improvement spending anticipated in 2025, supported by aging housing stock and homeowner equity.

• 2025 capital spending projected at $200–$220 million.

• Cash flows, current cash, and borrowing capacity expected to be adequate for operations, capex, and dividends over the next 12 months.