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Mar 31, 2022
Boise Cascade Q1 2022 Earnings Report
Reported net income of $302.6 million, or $7.61 per share, on sales of $2.3 billion for the first quarter ended March 31, 2022.
Key Takeaways
Boise Cascade reported a strong first quarter in 2022, with net income of $302.6 million and sales of $2.3 billion. Both the Wood Products and Building Materials Distribution businesses delivered tremendous financial results. The company is focused on deploying capital to create shareholder value, including execution of growth strategies.
Net income was $302.6 million, or $7.61 per share, compared to $149.2 million, or $3.76 per share, in the first quarter of 2021.
Sales increased to $2.3 billion from $1.8 billion in the same period last year.
Wood Products sales increased 29% to $558.9 million, driven by higher net sales prices for EWP and plywood.
Building Materials Distribution sales increased 29% to $2,111.8 million, driven by sales price increases.
Boise Cascade
Boise Cascade
Boise Cascade Revenue by Segment
Revenue by Segment
Wood Products Revenue
CapyFin.comBuilding Materials Distribution Revenue
CapyFin.com Forward Guidance
Demand for the products is correlated with new residential construction, residential repair-and-remodeling activity and light commercial construction. Expect demand to remain strong during 2022.
Positive Outlook
- Current demographics in the U.S. continue to create a favorable demand environment for new residential construction.
- Continuation of work-from-home practices by many in the economy.
- Limited new and existing home inventory availability.
- The age of the U.S. housing stock will continue to provide a favorable backdrop for residential construction and repair-and-remodel spending.
- EWP and general line products have historically experienced limited price volatility, and we expect the firm pricing environment to continue during 2022.
Challenges Ahead
- Labor shortages and supply induced constraints on residential construction activity may continue to extend build times and limit activity.
- The pace of residential construction and repair-and-remodeling activity may be affected by the economic impact of the cost of building materials and construction.
- Housing affordability may affect residential construction and repair-and-remodeling activity.
- Increasing mortgage interest rates may affect residential construction and repair-and-remodeling activity.
- Consumer confidence may affect residential construction and repair-and-remodeling activity.
Revenue & Expenses
Visualization of income flow from segment revenue to net income