Boise Cascade's Q4 2024 Earnings: Navigating Uncertainties and Opportunities

Boise Cascade Company (NYSE: BCC) reported its fourth quarter and full year 2024 earnings on February 22, 2025, providing investors with valuable insights into the company's performance and outlook. As the largest producer of engineered wood products and plywood in North America and a leading U.S. wholesale distributor of building products, Boise Cascade is well-positioned to capitalize on market trends and opportunities.

Q4 2024 Results and Outlook

In the fourth quarter of 2024, Boise Cascade reported net income of $68.9 million, or $1.78 per share, on sales of $1.6 billion. For the full year 2024, the company reported net income of $376.4 million, or $9.57 per share, on sales of $6.7 billion. While the company faced challenges in the fourth quarter, including a decrease in housing starts and lower sales prices for key products, it remains optimistic about its future prospects.

Key Takeaways from the Earnings Call

1. Housing starts and single-family housing starts decreased in the fourth quarter of 2024, negatively impacting Boise Cascade's sales and earnings. However, the company's balance sheet remains strong, and it is well-positioned to execute its reinvestment and growth strategies.
2. The Wood Products segment experienced a decline in segment income due to lower sales prices for Engineered Wood Products (EWP) and plywood, as well as lower I-joist sales volumes. To address these challenges, Boise Cascade can focus on improving pricing strategies, increasing sales volumes, controlling costs, and diversifying its product offerings.
3. The acquisition of BROSCO contributed to the company's growth in its distribution business and strengthened its balance sheet. However, the transaction also resulted in additional expenses, including accelerated depreciation related to the closure of the Chapman, Alabama facility and increased administrative expenses.

Looking Ahead to 2025

As Boise Cascade looks ahead to 2025, it faces uncertainties surrounding the economy and residential construction activity. However, the company's strong balance sheet and well-positioned strategy enable it to continue executing its reinvestment and growth strategies while serving and supporting its customer and vendor partners.

Investors should monitor Boise Cascade's performance closely, as the company's ability to navigate market fluctuations and capitalize on opportunities will be crucial to its success in the coming year. By staying informed about the company's strategic initiatives and market trends, investors can make well-informed decisions about their investments in Boise Cascade and the broader building materials industry.

Action Alerts PLUS, which Cramer manages as a charitable trust, is long BCC.