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Mar 31, 2024

Boise Cascade Q1 2024 Earnings Report

Boise Cascade's financial performance remained strong, driven by favorable market conditions and effective execution.

Key Takeaways

Boise Cascade reported a net income of $104.1 million, or $2.61 per share, on sales of $1.6 billion for the first quarter ended March 31, 2024. This compares to a net income of $96.7 million, or $2.43 per share, on sales of $1.5 billion for the same period in 2023.

Net income increased by 8% compared to the first quarter of 2023, reaching $104.1 million.

Sales rose by 7% year-over-year to $1.6 billion.

Wood Products sales increased by 7% driven by higher sales volumes for I-joists and LVL as well as higher plywood sales prices.

Building Materials Distribution sales increased by 9% driven by sales volume increases of 12%.

Total Revenue
$1.65B
Previous year: $1.54B
+6.6%
EPS
$2.61
Previous year: $2.43
+7.4%
I-joists Sales Volume
46%
Previous year: -41%
-212.2%
I-joists Avg. Net Price
-7%
Previous year: 16%
-143.8%
LVL Sales Volume
31%
Previous year: -22%
-240.9%
Gross Profit
$302M
Previous year: $314M
-3.7%
Cash and Equivalents
$890M
Previous year: $1B
-11.0%
Free Cash Flow
-$6.87M
Previous year: $17.9M
-138.3%
Total Assets
$3.61B
Previous year: $3.36B
+7.5%

Boise Cascade

Boise Cascade

Boise Cascade Revenue by Segment

Forward Guidance

Demand for the products we manufacture, as well as the products we purchase and distribute, is correlated with new residential construction, residential repair-and-remodeling activity and light commercial construction.

Positive Outlook

  • New residential construction is expected to remain an important source of supply for homebuyers.
  • Low unemployment.
  • Undersupply of existing housing stock available for sale.
  • Age of U.S. housing stock.
  • Elevated levels of homeowner equity have provided a favorable backdrop for repair-and-remodel spending.

Challenges Ahead

  • Home affordability remains a challenge for many consumers due to the cost of housing combined with elevated mortgage rates.
  • Recent pressures on multi-family starts are expected to continue due to increased capital costs for developers combined with cooling rents and elevated supply.
  • Recent industry forecasts project mid-single-digit declines in 2024.
  • Macroeconomic factors.
  • Level and expectations for mortgage rates.

Revenue & Expenses

Visualization of income flow from segment revenue to net income