Boise Cascade’s second quarter results prompted a positive market reaction despite falling short of Wall Street’s revenue and profit expectations. Management attributed the performance to resilient distribution operations and successful margin management in its general line products, even as overall demand remained subdued due to affordability challenges and elevated existing home inventory. CEO Nathan Jorgensen highlighted the substantial completion of the Oakdale mill modernization as a key operational milestone, which is expected to enhance efficiency and reliability. The company also benefited from gains on asset sales and steady execution in its building materials distribution segment.
Is now the time to buy BCC? Find out in our full research report (it’s free).
Boise Cascade (BCC) Q2 CY2025 Highlights:
- Revenue: $1.74 billion vs analyst estimates of $1.75 billion (3.2% year-on-year decline, 0.7% miss)
- Adjusted EPS: $1.64 vs analyst expectations of $1.74 (5.8% miss)
- Adjusted EBITDA: $119 million vs analyst estimates of $126.9 million (6.8% margin, 6.2% miss)
- Operating Margin: 4.6%, down from 8.2% in the same quarter last year
- Market Capitalization: $3.15 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Boise Cascade’s Q2 Earnings Call
- Kurt Willem Yinger (D.A. Davidson) asked about the resilience in LVL volumes versus I-joists and whether market share gains or geographic mix drove performance. CEO Nathan Jorgensen explained that LVL benefits from broader application opportunities, while I-joists’ performance varies with housing start locations and competitive factors.
- Kurt Willem Yinger (D.A. Davidson) followed up on EWP inventory destocking and whether the trend could extend into next year. Jorgensen responded that customer purchasing patterns are shifting to smaller, more flexible orders from distribution, which may continue into early 2026.
- Brad Barton (Bank of America) questioned operating rates and the outlook for EWP pricing. Head of Wood Products Troy Little indicated operating rates will likely fall due to softer demand and inventory adjustments, and that EWP pricing faces ongoing downward pressure until demand improves.
- Brad Barton (Bank of America) asked for an update on the Billings facility strike. Head of Distribution Joe Barney reported the strike was limited in scope, with no material impact on operations thanks to business continuity protocols.
- Susan Marie Maklari (Goldman Sachs) inquired about the strength of general line products and inventory dynamics. Barney explained that customers’ reliance on Boise Cascade’s distribution and inventory has strengthened the company’s general line product performance and is expected to continue supporting results.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be watching (1) how Boise Cascade’s operational improvements, particularly at the Oakdale mill, translate to cost savings and efficiency gains; (2) the company’s ability to maintain or expand distribution margins in a lower-demand environment; and (3) any signs of stabilization or recovery in residential construction activity. Shifts in customer inventory strategies and ongoing product mix management will also be critical to monitor.
Boise Cascade currently trades at $84.26, up from $82.56 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).
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