Boise Cascade’s shares dipped slightly (-0.1%) following modest first quarter sales declines and margin pressure, with investors likely concerned about ongoing EWP pricing weakness and margin compression despite stable volume trends and steady plywood pricing.
- Consolidated first quarter sales declined 2% year-over-year to $1.5 billion, reflecting a 1% decrease in total U.S. housing starts and a 5% drop in single-family starts.
- Net income dropped sharply to $17.8 million ($0.50/share) from $40.3 million ($1.06/share) a year ago, driven by lower sales and margin compression.
- Building Materials Distribution (BMD) segment sales fell 1% with EBITDA down from $62.8 million to $48.2 million; gross margins declined across product lines, notably engineered wood products (EWP).
- Wood Products sales decreased 4% to $398.2 million, with segment EBITDA declining due to lower EWP selling prices and higher conversion costs despite some cost savings on OSB and improved plywood volumes and prices.
- First quarter gross margin slipped 30 basis points to 14.4%, with BMD EBITDA margin falling to 3.5% from 4.5%, partly due to weather-related branch closures and cost leverage impacts.
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