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Sep 30, 2024

Boise Cascade Q3 2024 Earnings Report

Reported good financial results amidst a moderate demand environment, driven by associates' efforts and a strong combination of engineered wood products and distribution network.

Key Takeaways

Boise Cascade reported a net income of $91.0 million, or $2.33 per share, on sales of $1.7 billion for the third quarter ended September 30, 2024. This compares to a net income of $143.1 million, or $3.58 per share, on sales of $1.8 billion for the third quarter ended September 30, 2023.

Delivered good financial results in a moderate demand environment.

Continued progress on key strategic investment initiatives.

Thoughtfully deployed capital to shareholders.

Expect normal seasonality through the winter months.

Total Revenue
$1.71B
Previous year: $1.83B
-6.6%
EPS
$2.33
Previous year: $3.58
-34.9%
I-joists Sales Volume
-8%
0
I-joists Avg. Net Price
-6%
Previous year: -16%
-62.5%
LVL Avg. Net Price
-5%
Previous year: -14%
-64.3%
Gross Profit
$338M
Previous year: $392M
-13.8%
Cash and Equivalents
$762M
Previous year: $1.27B
-40.2%
Free Cash Flow
$113M
Previous year: $200M
-43.5%
Total Assets
$3.44B
Previous year: $3.64B
-5.5%

Boise Cascade

Boise Cascade

Boise Cascade Revenue by Segment

Forward Guidance

Demand is correlated with residential construction and repair activity. Housing starts are expected to be approximately 1.35 million in 2024 and modestly above 1.40 million in 2025.

Positive Outlook

  • New residential construction will continue to be an important source of supply for the demand created by undersupplied housing.
  • Favorable demographic trends.
  • Low unemployment.
  • Modest growth in home improvement spending is expected in 2025.
  • Age of U.S. housing stock and elevated levels of homeowner equity will continue to provide a favorable backdrop for repair-and-remodel spending.

Challenges Ahead

  • Home affordability remains a challenge for many consumers due to home prices and the cost of financing.
  • Level of mortgage rates is limiting the supply of existing housing stock available for sale.
  • Macroeconomic factors will influence the near-term demand environment.
  • Sales and profitability exposure to declines in commodity product prices and rising input costs.
  • Future product pricing, particularly commodity products pricing and input costs, may be volatile.

Revenue & Expenses

Visualization of income flow from segment revenue to net income