Boise Cascade: Solid Performance Despite Challenges in the Second Quarter of 2024

Boise Cascade, a leading provider of wood products and building materials, presented its business results for the second quarter of 2024. The company's total revenue was $1.8 billion, representing a 1% decline compared to the previous year. Net income also fell to $112.3 million, or $2.84 per share, compared to $146.3 million, or $3.67 per share, in the prior-year quarter. Both business segments of the company achieved solid financial results, despite demand being dampened by high mortgage rates and economic uncertainties. Boise Cascade continued to invest in organic growth projects and emphasized the importance of return on capital for its shareholders. The Wood Products segment generated revenue of $489.8 million in the second quarter, compared to $530.3 million the previous year. Segment EBITDA decreased to $95.1 million, primarily due to lower prices for EWP sales and increased wood fiber and conversion costs. The Building Materials Distribution (BMD) business reported a slight 1% revenue increase in the second quarter to $1.7 billion. Despite the challenging market environment, the segment achieved an EBITDA of $97.1 million. The BROSCO acquisition and new distribution projects significantly contributed to the revenue increase. Boise Cascade remained optimistic about long-term housing trends and emphasized the importance of new construction in light of a shortage of available existing homes. The company views demographic trends and the undersupply of housing as positive indicators for the future. In closing, Boise Cascade expressed gratitude to its employees and partners for their continued support in a volatile market environment. The company remains focused on strategic growth and sustainable capital allocation.