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Sep 30, 2022
Boise Cascade Q3 2022 Earnings Report
Reported strong financial results despite the softening economic landscape, successfully integrating the recently acquired Coastal operations to expand EWP capacity.
Key Takeaways
Boise Cascade reported net income of $219.6 million, or $5.52 per share, on sales of $2.2 billion for the third quarter ended September 30, 2022, compared with net income of $91.7 million, or $2.31 per share, on sales of $1.9 billion for the third quarter ended September 30, 2021.
Both businesses reported strong financial results during the third quarter despite the softening economic landscape.
Good progress was made on successfully integrating the recently acquired Coastal operations as we work to expand our EWP capacity and further leverage our integrated business model
Shareholders were rewarded with an increase in our quarterly dividend and an additional special dividend without sacrificing significant balance sheet flexibility.
The company remains committed to supporting vendor and customer partners and executing key strategic priorities as we navigate market uncertainties and clear signals of weaker near-term demand for new residential construction.
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 is expected to decline for the remainder of 2022 and into 2023. Consensus forecasts for 2023 single- and multi-family housing starts in the U.S. are estimated to be 15% to 20% below 2022 levels.
Positive Outlook
- Consensus forecasts for 2022 single- and multi-family housing starts in the U.S are between 1.5 million and 1.6 million units, or essentially flat compared to 2021.
- The age of U.S. housing stock and elevated levels of homeowner equity provide a favorable backdrop for repair-and-remodel spending.
- The primary drivers of repair-and-remodeling activity to continue to be supportive of homeowners' further investment in their residences.
Challenges Ahead
- Continued actions by the Federal Reserve to increase interest rates to combat high levels of inflation have significantly increased mortgage rates and created a great deal of uncertainty broadly across the U.S. economy.
- Due to home affordability constraints and a weakening economy, the pace of new residential construction has slowed.
- Demand is expected to continue to decline for the remainder of 2022 and into 2023.
- Consensus forecasts for 2023 single- and multi-family housing starts in the U.S. are estimated to be 15% to 20% below 2022 levels.
- Future price erosion is expected on EWP and general line products as economic activity slows and demand weakens for new residential construction.
Revenue & Expenses
Visualization of income flow from segment revenue to net income