Boise Cascade Faces Challenges with Strategic Progress

Boise Cascade Company ((BCC)) has held its Q1 earnings call. Read on for the main highlights of the call.

Boise Cascade’s recent earnings call painted a picture of a challenging yet strategically progressive environment. The company faces significant hurdles, including reduced sales and profitability, impacts from planned outages, and a difficult housing market. However, there were positive notes regarding capital allocation and operational progress at key facilities, indicating some strategic advancements amidst the challenges.

Capital Allocation and Shareholder Returns

Boise Cascade demonstrated a strong commitment to shareholder returns by paying $10 million in regular dividends during the quarter and repurchasing $71 million of common stock through the first four months of 2025. This capital allocation strategy underscores the company’s focus on delivering value to its shareholders despite the challenging market conditions.

Operational Progress

The Oakdale plywood and veneer facility modernization is on track, with expectations to be fully operational by the end of the second quarter. This progress is anticipated to bolster the Engineered Wood Products (EWP) franchise, reflecting the company’s dedication to enhancing operational efficiency and capacity.

Improved Sales Velocity in March

March saw a significant uptick in sales, with daily sales exceeding $24 million. April’s daily sales pace was approximately 13% higher than the first quarter of 2025, indicating a positive trend in sales activity and potential recovery in demand.

Decrease in Consolidated Sales and Net Income

Boise Cascade reported consolidated first-quarter sales of $1.5 billion, a 7% decline from the first quarter of 2024. Net income also fell sharply to $40.3 million from $104.1 million in the previous year, highlighting the financial challenges faced by the company.

Wood Products Segment Decline

The Wood Products segment experienced an 11% decline in sales compared to the first quarter of 2024, with segment EBITDA dropping from $95.6 million to $40.2 million. This decline was primarily due to lower EWP and plywood sales prices and volumes.

Planned Outages Impact

The planned outage at the Oakdale facility negatively impacted first-quarter results, with a sequential EBITDA impact of $7 million. An additional $5 million impact is expected in the second quarter, underscoring the operational challenges faced by the company.

BMD Segment Performance

The Building Materials Distribution (BMD) segment saw a 7% sales decline, with a 5% decrease in volume and a 2% decrease in price. This resulted in a decrease in gross margin dollars and an EBITDA margin decline from 5.6% to 4.5%.

Housing Market Challenges

The U.S. housing market posed additional challenges, with total housing starts decreasing by 2% and single-family housing starts decreasing by 6%. This decline contributed to the constrained demand environment, impacting Boise Cascade’s performance.

Forward-Looking Guidance

Looking ahead, Boise Cascade expects EWP volumes to increase by mid- to high single digits sequentially, despite low single-digit sequential declines in EWP pricing due to competitive pressures. The company anticipates a partial restart at Oakdale and plans to continue focusing on strategic investments and capital returns to shareholders, supported by a strong balance sheet.

In summary, Boise Cascade’s earnings call reflects a challenging environment with significant financial and operational hurdles. However, the company’s strategic initiatives in capital allocation, operational progress, and sales improvements provide a glimmer of optimism for the future. Investors and stakeholders will be keenly watching how these strategies unfold in the coming quarters.