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Jun 30, 2023
Boise Cascade Q2 2023 Earnings Report
Boise Cascade's financial performance remained strong in Q2 2023, driven by the integrated business model.
Key Takeaways
Boise Cascade reported a net income of $146.3 million, or $3.67 per share, on sales of $1.8 billion for the second quarter ended June 30, 2023. While these figures are lower compared to the second quarter of 2022, the company demonstrated resilience amidst economic uncertainties, particularly in the residential construction market.
Both Wood Products and Building Materials Distribution segments delivered solid financial results.
The company is encouraged by the resilience of market demand despite ongoing economic uncertainties.
Working capital performance is a priority, with a focus on managing inventory risk and reward.
The balance sheet remains well-positioned for investments in associates, key strategies, growth initiatives, and shareholder returns.
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 outlook for the back half of 2023 remains uncertain, influenced by home affordability challenges, Federal Reserve actions, and economic uncertainties impacting renovation spending and commodity product pricing.
Positive Outlook
- U.S. housing starts in June 2023 were approximately 1.4 million on a seasonally adjusted annual rate basis.
- Age of U.S. housing stock and elevated levels of homeowner equity have provided a favorable backdrop for repair-and-remodel spending.
- Periods of increasing prices providing the opportunity for higher sales and increased margins.
- Favorable backdrop for repair-and-remodel spending.
- The company is well-positioned to manage inventory risk.
Challenges Ahead
- Home affordability remains a challenge for consumers.
- Federal Reserve's ongoing actions in response to inflationary data will influence the near-term demand environment.
- Industry forecasts project continued moderation of year-over-year growth in renovation spending.
- Economic uncertainty may negatively impact homeowners' further investment in their residences.
- Expect modest EWP price erosion in the third quarter.
Revenue & Expenses
Visualization of income flow from segment revenue to net income