Boise Cascade’s first quarter was marked by continued softness in U.S. housing starts, persistent pricing pressure, and operational disruptions from a planned facility outage. Despite topping revenue expectations, the company’s non-GAAP earnings per share fell well below consensus, and the market responded negatively. CEO Nathan Jorgensen cited affordability challenges for homebuyers, economic uncertainty, and adverse weather as key factors dampening demand. The planned modernization outage at the Oakdale plywood facility also weighed on results, with management acknowledging that “constrained demand and uncertain trade policies” shaped the quarter’s outcome.
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Boise Cascade (BCC) Q1 CY2025 Highlights:
- Revenue: $1.54 billion vs analyst estimates of $1.51 billion (6.6% year-on-year decline, 1.6% beat)
- Adjusted EBITDA: $91.61 million vs analyst estimates of $102.1 million (6% margin, 10.3% miss)
- Operating Margin: 3.5%, down from 8.1% in the same quarter last year
- Market Capitalization: $3.29 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Boise Cascade’s Q1 Earnings Call
- Susan Maklari (Goldman Sachs) asked about general line product trends and the value of two-step distribution. CEO Nathan Jorgensen explained that customers increasingly rely on distribution for just-in-time inventory and new product introductions.
- Kurt Yinger (D.A. Davidson) pressed on EWP pricing direction and whether competitive intensity would change. CFO Kelly Hibbs guided to continued low-single-digit sequential declines, citing persistent competition among EWP producers.
- George Staphos (Bank of America Securities) questioned the source of EWP pricing pressure and BMD sales trends. Jorgensen clarified that most competition is from other EWP manufacturers, not substitutes, and Hibbs confirmed April sales momentum had continued without a significant mix shift.
- Zack Pacheco (Loop Capital) inquired about LVL volume growth and BMD margin outlook. Troy Little and Hibbs noted that LVL volumes were outpacing housing starts and that BMD margins should recover to mid-5% as seasonal demand improves.
- Ketan Mamtora (BMO Capital Markets) asked about the drivers of I-joist volume declines and inventory management. Hibbs attributed declines to weaker housing starts, while COO Jeff Strom said the company intentionally increased inventories to meet customer needs in a distribution-friendly market.
Catalysts in Upcoming Quarters
Going forward, the StockStory team will watch (1) the ramp-up and operational performance at the Oakdale facility following its modernization, (2) trends in housing starts and builder sentiment as leading indicators for demand recovery, and (3) the ability of Boise Cascade to defend or enhance gross margins amid ongoing pricing competition and input cost pressures. Progress on the new Hondo, Texas distribution center and capital deployment priorities will also be important markers for the company’s strategic execution.
Boise Cascade currently trades at $86.06, down from $92.10 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free).
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