Boise Cascade Company (BCC) Q2 2024 earnings summary

Executive summary

• Q2 2024 net income was $112.3 million ($2.84 per share) on sales of $1.8 billion, down 1% year-over-year, reflecting a 23% decrease in net income amid tepid demand, elevated mortgage rates, and economic uncertainty.

• Both business segments delivered solid results despite softer market conditions, supported by resilience in single-family housing starts and ongoing capital deployment for organic growth and shareholder returns.

• Ended Q2 2024 with $922.1 million in cash and $395.7 million in undrawn bank line availability, totaling $1.32 billion in liquidity.

Financial highlights

• Q2 2024 sales were $1.8 billion, down 1% year-over-year; net income fell 23% to $112.3 million; adjusted EBITDA was $181.2 million, down 18%.

• Wood Products sales were $489.8 million (down 8%), with segment income down 30% to $72.8 million, mainly due to lower EWP prices and higher costs.

• BMD sales reached $1.66 billion (up 1%), with segment income down 13% to $85.4 million and EBITDA margin at 5.9%.

• Gross margin for Q2 2024 was 19.9%, down from 21.4% in Q2 2023.

• Operating cash flow for the first six months was $169.2 million, down from $290.2 million in the prior year.

Outlook and guidance

• 2024 U.S. housing starts forecasted slightly below 2023's 1.42 million; single-family starts up 7% year-over-year, multifamily down sharply.

• EWP order intake has slowed; Q3 expected to see mid- to high single-digit sequential volume declines and low single-digit price declines.

• Plywood volumes expected to remain stable, but July price realizations are about 10% below Q2 averages; BMD daily sales pace in July is about 5% below Q2 averages.

• 2024 capital spending guidance remains $250–$270 million, with $70–$80 million projected for Q3 and accelerated spending in the second half.

• Cash flows, current cash, and borrowing capacity are expected to be sufficient for operational and capital needs over the next 12 months.