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Dec 31, 2021
Boise Cascade Q4 2021 Earnings Report
Boise Cascade reported strong Q4 2021 results driven by high demand and effective execution.
Key Takeaways
Boise Cascade reported a net income of $169.1 million, or $4.26 per share, on sales of $1.8 billion for the fourth quarter of 2021. The company benefited from strong demand and supply-side constraints, leading to an unprecedented year. They also returned capital to shareholders and advanced growth strategies.
Net income for Q4 2021 was $169.1 million, or $4.26 per share, compared to $26.0 million, or $0.66 per share, for the same quarter in 2020.
Sales for Q4 2021 increased by 21% to $1.8 billion from $1.5 billion in Q4 2020.
The Wood Products segment saw a 25% increase in sales, driven by higher net sales prices for I-joists and LVL.
The Building Materials Distribution segment experienced a 24% increase in sales, driven by both sales price and sales volume increases.
Forward Guidance
Economic uncertainty due to the ongoing COVID-19 pandemic continues. However, mortgage rate levels, continuation of work-from-home practices by many in the economy, and demographics in the U.S. have created a favorable demand environment for new residential construction, which we expect to continue in 2022.
Positive Outlook
- Mortgage rate levels are favorable for new residential construction.
- Continuation of work-from-home practices supports housing demand.
- U.S. demographics are creating a favorable demand environment.
- Limited new and existing home inventory availability supports residential construction.
- Age of the U.S. housing stock provides a favorable backdrop for repair-and-remodel spending.
Challenges Ahead
- COVID-19 variants continue to spread, causing short-term disruptions.
- Labor shortages may continue to extend build times and limit activity.
- Supply induced constraints on residential construction activity may continue to extend build times and limit activity.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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