Boise Cascade Reports 3% Sales Decline and Decreased Net Income in Q2 2025

Boise Cascade Company reported a decline in financial performance for the second quarter of 2025, with total sales of $1.74 billion, a decrease of 3% from $1.80 billion in the same period of 2024. For the first half of 2025, sales also fell by 5% to $3.28 billion compared to $3.44 billion in the prior year. The decrease in revenue was attributed to lower sales prices and volumes for engineered wood products (EWP) and plywood, driven by a slowdown in residential construction activity. The company recorded net income of $61.99 million for the second quarter, down from $112.29 million a year earlier, resulting in a diluted earnings per share of $1.64, compared to $2.84 in the previous year.

In terms of operational metrics, Boise Cascade's Wood Products segment saw a significant drop in income, falling to $14.0 million from $72.8 million year-over-year. This decline was primarily due to reduced sales prices for EWP and plywood, as well as increased conversion costs linked to modernization projects at its Oakdale, Louisiana facility. The Building Materials Distribution (BMD) segment also experienced a decrease in income, down to $78.0 million from $85.4 million, influenced by rising selling and distribution expenses. The company noted a gain of $3.9 million from the sale of non-operating properties, which partially offset the declines in segment income.

Boise Cascade's operational changes included a strategic focus on managing costs amid fluctuating market conditions. The company reported an increase in materials, labor, and other operating expenses, which rose slightly to $1.44 billion in the second quarter, reflecting ongoing investments in production capabilities. The company’s employee headcount stood at approximately 7,710 as of July 20, 2025, with about 17% of employees working under collective bargaining agreements. The company is currently negotiating new contracts for several agreements that have recently expired.

The company ended the second quarter with $481.0 million in cash and cash equivalents, alongside $450.0 million in outstanding debt. Boise Cascade's liquidity position, totaling $876.2 million, is supported by undrawn committed bank lines. The company anticipates that its cash flows from operations, combined with current cash levels and available borrowing capacity, will be sufficient to meet its operational needs and obligations over the next 12 months. Looking ahead, Boise Cascade expects continued challenges in the market, particularly in residential construction, but remains optimistic about long-term demand drivers such as an undersupply of housing and aging housing stock.