• Consolidated Sales: $1.5 billion, down 7% from Q1 2024.

• Net Income: $40.3 million or $1.06 per share, compared to $104.1 million or $2.61 per share in Q1 2024.

• Wood Products Sales: $415.8 million, down 11% from Q1 2024.

• Wood Products Segment EBITDA: $40.2 million, compared to $95.6 million in Q1 2024.

• BMD Sales: $1.4 billion, down 7% from Q1 2024.

• BMD Segment EBITDA: $62.8 million, compared to $83.6 million in Q1 2024.

• BMD Gross Margin: 14.7%, down 40 basis points year-over-year.

• Plywood Sales Volume: 363 million feet, compared to 372 million feet in Q1 2024.

• Average Plywood Net Sales Price: $341 per 1,000, down 10% year-over-year.

• Capital Expenditures: $53 million in Q1, with $31 million in Wood Products and $22 million in BMD.

• Dividends Paid: $10 million in regular dividends during the quarter.

• Share Repurchases: $71 million of common stock repurchased through the first four months of 2025.

• Warning! GuruFocus has detected 3 Warning Signs with BCC.

Release Date: May 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Boise Cascade Co (NYSE:BCC) maintained a strong balance sheet, which supports strategic investments and capital returns to shareholders.

• The company experienced improved sales velocity in March, leading to EBITDA margins similar to recent quarters.

• Boise Cascade Co (NYSE:BCC) is making significant progress on modernization projects, such as the Oakdale facility, which is expected to enhance EWP production capabilities.

• The company has a robust capital allocation strategy, including share repurchases and dividends, demonstrating a commitment to shareholder returns.

• Boise Cascade Co (NYSE:BCC) benefits from a strong distribution network, allowing it to shift volumes to areas of strength and maintain high service levels across the country.

Negative Points

• First-quarter sales and net income declined compared to the previous year, with sales down 7% and net income significantly lower.

• The company faced challenges from constrained demand, uncertain trade policies, and difficult weather conditions, impacting financial performance.

• A planned outage at the Oakdale facility negatively impacted first-quarter results, with an $8 million impact on EBITDA.

• Economic uncertainty and elevated mortgage rates have dampened consumer and homebuilder confidence, affecting demand.

• Boise Cascade Co (NYSE:BCC) experienced pricing pressure in the EWP segment due to constrained demand and competition for market share.

Q & A Highlights

Q: Can you provide insights on the general line side of the business and how customers are leveraging the two-step distribution model? A: Nate Jorgensen, CEO, explained that customers are heavily reliant on two-step distribution for out-of-warehouse support, especially for job packs and smaller units. This model is crucial as customers manage their working capital and inventory levels. The introduction of new products and SKUs also increases dependency on two-step distribution, as customers are cautious about stocking new items.