In This Article:
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Full Year Net Income: $376.4 million or $9.57 per diluted share.
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Fourth Quarter Sales: $1.6 billion, down 5% from Q4 2023.
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Fourth Quarter Net Income: $68.9 million or $1.78 per share, compared to $97.5 million or $2.44 per share in Q4 2023.
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Wood Products Sales: $419.7 million in Q4, down 7% from Q4 2023.
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Wood Products Segment EBITDA: $56.6 million, down from $92.7 million in Q4 2023.
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BMD Sales: $1.4 billion in Q4, down 4% from Q4 2023.
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BMD Segment EBITDA: $84.5 million, up from $80.6 million in Q4 2023.
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BMD Gross Margin Percentage: 15.8%, up 60 basis points year-over-year.
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BMD EBITDA Margin: 5.9%, up from 5.4% in Q4 2023.
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Capital Expenditures 2024: $230 million.
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Dividends Paid 2024: $220 million, including $0.82 per share in regular dividends and a $5 per share special dividend.
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Share Repurchase: Approximately 1.75 million shares repurchased for $225 million.
Release Date: February 21, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Boise Cascade Co (NYSE:BCC) reported a full year net income of $376.4 million, or $9.57 per diluted share, showcasing strong financial performance.
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The company successfully grew its distribution business through both organic and acquisition initiatives, highlighting strategic expansion efforts.
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Boise Cascade Co (NYSE:BCC) made significant capital investments to support its Engineered Wood Products (EWP) growth strategy, indicating a focus on future growth.
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The Building Materials Distribution (BMD) segment reported a 60-basis-point increase in gross margin percentage, demonstrating improved profitability despite a sales decline.
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The company paid $220 million in regular and special dividends in 2024, reflecting a commitment to returning capital to shareholders.
Negative Points
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Total US housing starts and single-family housing starts decreased by 6% and 4%, respectively, impacting Boise Cascade Co (NYSE:BCC)'s market environment.
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Consolidated fourth quarter sales were down 5% from the previous year, indicating a decline in revenue.
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Wood Products segment EBITDA decreased significantly due to lower EWP and plywood sales prices, affecting profitability.
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The Oakdale facility will be down for the entirety of the first quarter, negatively impacting plywood volumes and cost absorption.
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Weather-related disruptions led to unplanned downtime across several manufacturing and distribution locations, affecting operational efficiency.
Q & A Highlights
Q: Could you discuss the potential impact of tariffs on Canadian imports, particularly in relation to Boise Cascade's operations and opportunities? A: Nate Jorgensen, CEO, explained that while there are many unknowns regarding tariffs, Boise Cascade has modeled potential impacts and is prepared to respond. The company imports some commodities and web-stock from Canada, and while tariffs could increase costs, Boise Cascade plans to maintain its margin percentages. The broader concern is potential demand destruction due to affordability challenges if tariffs are implemented.