Boise Cascade Company reported a decrease in total sales for the fiscal year ending December 31, 2024, amounting to $6.72 billion, down from $6.84 billion in 2023. The company's income from operations also fell to $490 million, a decline of approximately 21% from the previous year's $624 million. This downturn was primarily attributed to lower sales prices for engineered wood products (EWP) and plywood, alongside increased costs for wood fiber and labor. The Wood Products segment saw a significant drop in income, decreasing from $337 million in 2023 to $231 million in 2024, while the Building Materials Distribution (BMD) segment's income fell from $336 million to $303 million.
In terms of operational metrics, Boise Cascade's Wood Products segment experienced a 5% decrease in sales, driven by a 7% decline in sales prices for both laminated veneer lumber (LVL) and I-joists. However, sales volumes for LVL and I-joists increased by 11% and 7%, respectively. The BMD segment's sales were relatively stable, with a slight decrease of less than 1%, attributed to a 3% drop in sales prices, offset by a 3% increase in sales volumes. The company also noted that its top ten customers accounted for approximately 48% of total sales, indicating a concentration risk.
Strategically, Boise Cascade has been active in expanding its operations through acquisitions. In 2024, the company acquired assets related to door and millwork operations in Boise, Idaho, and Lakeland, Florida, for $8.1 million. Additionally, in October 2023, Boise Cascade completed the acquisition of Brockway-Smith Company (BROSCO), a wholesale distributor specializing in doors and millwork, for $166.2 million. These acquisitions are part of the company's strategy to enhance its product offerings and market presence.
The company ended 2024 with $713 million in cash and cash equivalents, alongside $450 million in debt. Despite the decline in income, Boise Cascade maintained a strong liquidity position, with $1.1 billion in available liquidity. Looking ahead, the company anticipates a modest growth in home improvement spending, driven by the aging U.S. housing stock and improved existing home sales. However, it also faces challenges from fluctuating commodity prices and rising input costs, which could impact profitability in the near term.
About BOISE CASCADE Co
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