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Mar 31, 2023
Boise Cascade Q1 2023 Earnings Report
Reported solid financial results despite headwinds from lower new single-family starts and commodity product prices.
Key Takeaways
Boise Cascade reported a net income of $96.7 million, or $2.43 per share, on sales of $1.5 billion for the first quarter ended March 31, 2023. This is compared to a 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.
The expected weaker environment from lower new single-family starts and commodity product prices was evident during the first quarter.
The company delivered solid financial results despite these headwinds.
Economic uncertainties persist as we look to the second quarter, but we remain focused on providing high service levels.
The strength of our balance sheet allows us to remain committed to our strategies and the continued execution of our growth initiatives.
Boise Cascade
Boise Cascade
Boise Cascade Revenue by Segment
Revenue by Segment
Wood Products Revenue
CapyFin.comBuilding Materials Distribution Revenue
CapyFin.com Forward Guidance
The full year outlook for 2023 is uncertain and is reflected in various industry forecasts for 2023 U.S housing starts that generally range from 1.2 million to 1.4 million units, compared with actual housing starts of 1.55 million in 2022.
Positive Outlook
- Mortgage rates have declined from peak levels in late 2022.
- Measures of builder sentiment have improved from fourth quarter 2022 levels.
- The age of U.S. housing stock and elevated levels of homeowner equity have provided a favorable backdrop for repair-and-remodel spending.
Challenges Ahead
- Home affordability remains a challenge for consumers.
- The Federal Reserve's ongoing actions in response to inflationary data and what impacts these actions have on future mortgage rates and the broader economy will influence the near-term demand environment.
- Industry forecasts project continued moderation of year-over-year growth in renovation spending.
- Economic uncertainty may also negatively impact homeowners' further investment in their residences.
- We expect further EWP price erosion in the second quarter.
Revenue & Expenses
Visualization of income flow from segment revenue to net income