Boise Cascade Reports 7% Sales Decline to $1.54 Billion in Q1 2025

Boise Cascade Company reported a decline in financial performance for the first quarter of 2025, with total sales decreasing by 7% to $1.54 billion compared to $1.65 billion in the same period of 2024. The company's income from operations also fell significantly, dropping to $54.5 million from $133.0 million year-over-year. This decline was attributed to lower sales prices and volumes in both its Wood Products and Building Materials Distribution segments, as well as increased operational costs due to modernization projects at its facilities.

In the Wood Products segment, sales decreased by 11% to $415.8 million, primarily due to a 9% drop in sales prices for engineered wood products (EWP) and a 3% decline in sales volumes. The Building Materials Distribution segment experienced a 7% decrease in sales to $1.41 billion, driven by lower sales volumes and prices across various product lines. The overall decrease in sales was further influenced by a 2% decline in U.S. housing starts, particularly in single-family homes, which are a key demand driver for Boise Cascade's products.

Operationally, the company reported a slight increase in materials, labor, and other operating expenses, which totaled $1.28 billion, reflecting higher costs associated with external veneer purchases and increased lumber input costs. Despite a decrease in sales, the company’s depreciation and amortization expenses rose to $37.1 million, up from $35.9 million in the previous year, due to ongoing capital investments. Additionally, selling and distribution expenses remained relatively stable, decreasing marginally to $143.6 million.

Boise Cascade ended the quarter with $561.8 million in cash and cash equivalents, alongside $395.7 million in undrawn bank line availability, providing a total liquidity of $957.5 million. The company utilized $151.5 million in cash during the quarter for working capital increases, capital expenditures, stock repurchases, and dividend payments. Looking ahead, the company anticipates continued challenges in the market due to macroeconomic uncertainties and elevated mortgage rates, which may impact demand for its products. The outlook for 2025 remains cautious, with expectations for housing starts projected to be flat or experience mid-single-digit declines year-over-year.