Boise Cascade Company (BCC) Q3 2024 earnings summary

Executive summary

• Q3 2024 sales were $1.71 billion, down 7% year-over-year, with net income of $91.0 million ($2.33 per share), reflecting a challenging demand environment and higher costs in both Wood Products and BMD segments.

• Income from operations was $117.4 million, down from $185.6 million in Q3 2023.

• Liquidity remained strong at $1.16 billion, with $761.6 million in cash and $395.7 million in undrawn bank lines at quarter-end.

• Strategic investments and capital returns to shareholders continued despite market headwinds.

Financial highlights

• Q3 2024 net sales were $1,713.7 million, down from $1,834.4 million in Q3 2023; adjusted EBITDA was $154.5 million, down 29% year-over-year.

• Wood Products sales were $453.9 million (down 12%), with segment income of $53.9 million (down 46%).

• BMD sales were $1.57 billion (down 6%), with segment income of $74.8 million (down 23%).

• Gross margin for Q3 2024 was 19.7%, down from 21.4% in Q3 2023; operating margin was 6.8%, down from 10.1%.

• Capital expenditures year-to-date were $135.8 million; full-year 2024 capex expected at $220–$240 million.

Outlook and guidance

• U.S. housing starts forecasted at 1.35 million for 2024 and modestly above 1.40 million for 2025; single-family starts up 10% year-to-date, multi-family starts declined sharply.

• Expect seasonally lower EWP and plywood volumes in Q4, with low single-digit sequential declines in volumes and pricing.

• Modest growth in home improvement spending expected in 2025, supported by aging housing stock and homeowner equity.

• Capital spending (excluding acquisitions) expected at $200–$220 million in 2025.

• Cash flows, current cash, and borrowing capacity expected to be adequate for operations, capex, and dividends over the next 12 months.