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Jun 30, 2024

Boise Cascade Q2 2024 Earnings Report

Reported solid financial performance amidst tepid demand with strategic capital returns.

Key Takeaways

Boise Cascade reported a net income of $112.3 million on sales of $1.8 billion for Q2 2024, compared to a net income of $146.3 million on sales of $1.8 billion for the same quarter in 2023. The company highlighted solid financial performance despite a tepid demand environment.

Net income was $112.3 million, or $2.84 per share.

Sales reached $1.8 billion.

Spending on organic growth projects progressed as expected.

A special dividend was announced for September.

Total Revenue
$1.8B
Previous year: $1.82B
-1.0%
EPS
$2.84
Previous year: $3.67
-22.6%
I-joists Sales Volume
5%
Previous year: -9%
-155.6%
I-joists Avg. Net Price
-6%
Previous year: 1%
-700.0%
LVL Sales Volume
8%
Previous year: 2%
+300.0%
Gross Profit
$323M
Previous year: $389M
-17.0%
Cash and Equivalents
$922M
Previous year: $1.08B
-14.7%
Free Cash Flow
$102M
Previous year: $204M
-50.0%
Total Assets
$3.67B
Previous year: $3.48B
+5.6%

Boise Cascade

Boise Cascade

Boise Cascade Revenue by Segment

Forward Guidance

Demand is correlated with residential construction, repair-and-remodeling, and light commercial construction. Home affordability and mortgage rates pose challenges, while low unemployment and housing undersupply support new construction. Renovation spending has softened due to consumer uncertainty and other factors. Commodity product prices and input costs may be volatile.

Positive Outlook

  • Low unemployment
  • Undersupply of existing housing stock
  • Favorable demographic trends
  • Age of U.S. housing stock
  • Elevated levels of homeowner equity

Challenges Ahead

  • Cost of housing
  • Elevated mortgage rates
  • Increased capital costs for developers
  • Elevated supply
  • Building material inflation

Revenue & Expenses

Visualization of income flow from segment revenue to net income