Boise Cascade outlines $230M–$250M 2025 capital plan while expanding general line product focus

Earnings Call Insights: Boise Cascade (BCC) Q3 2025

MANAGEMENT VIEW

* CEO Nathan Jorgensen reported consolidated third quarter sales of $1.7 billion and net income of $21.8 million or $0.58 per share, noting "as expected, in Wood Products, we experienced sequentially lower sales volumes and competitive pricing pressure in EWP. Plywood markets like other commodities continue to experience weak pricing given the underlying demand environment."
* Jorgensen emphasized the company’s "2-step distribution model in tandem with our market-leading EWP and plywood franchises will continue to deliver exceptional value to both our customers and vendor partners, providing reliable access to products, responsive service and operational flexibility that are vital in dynamic markets."
* CFO Kelly Hibbs stated, "Wood Products sales in the third quarter, including sales for our distribution segment were $396.4 million, down 13% compared to third quarter of 2024....The decrease in segment EBITDA was due primarily to lower EWP and plywood sales prices and sales volumes as well as higher per unit conversion costs that were influenced by decreased production rates in the quarter."
* Hibbs further reported, "In BMD, our sales in the quarter were $1.6 billion, down 1% from third quarter of 2024. BMD reported segment EBITDA of $69.8 million in the third quarter compared to segment EBITDA of $87.7 million in the prior year quarter."
* Hibbs announced capital expenditures of $187 million for the first nine months of 2025 and reaffirmed a full-year range of $230 million to $250 million, with $99 million spent in Wood Products and $88 million in BMD so far. The Oakdale modernization is complete, and the Thorsby line is expected to be operational in the first half of 2026.
* Hibbs also highlighted, "our Board of Directors recently authorized up to $300 million of common stock repurchases under a new share repurchase program."

OUTLOOK

* Hibbs guided fourth quarter Wood Products EBITDA to be between breakeven and $15 million, with expectations of EWP volumes declining in the low double digits to mid-teens sequentially and plywood volumes expected to decrease at or near double digits. BMD fourth quarter EBITDA is estimated to be between $40 million and $55 million.
* Hibbs stated, "BMD's daily sales pace in October was approximately 5% below the third quarter sales pace of $24.3 million per day and is expected to decline further as the quarter progresses."
* The fourth quarter effective tax rate is expected to be between 26% and 27%.
* Jorgensen noted, "Early industry projections for 2026 are consistent with 2025 housing start levels. Demand expectations are characterized by a cautious market in the first half of the year with gradual improvement expected later in the year, driven by interest rate cuts and normalized homebuilder inventory levels."

FINANCIAL RESULTS

* Jorgensen reported consolidated Q3 sales of $1.7 billion and net income of $21.8 million or $0.58 per share. Wood Products sales were $396.4 million, with segment EBITDA at $14.5 million. BMD sales reached $1.6 billion, with segment EBITDA at $69.8 million.
* Third quarter I-joist and LVL volumes were down 10% and 7% year-over-year, respectively. Plywood sales volume was 387 million feet, up 9% sequentially from Q2, but average net sales price was $325 per thousand, a 2% year-over-year decline.
* BMD’s third quarter gross margin was 15.1%, a 60 basis point year-over-year decline, and EBITDA margin was 4.5%, down from 5.6% a year ago.
* Capital expenditures for the first nine months totaled $187 million. Shareholder returns included $27 million in regular dividends and approximately $120 million in share repurchases through October 2025.

Q&A

* Susan Maklari, Goldman Sachs: “Can you talk to the share gains that you are realizing in [general line]?...What that suggests for your ability to continue to see growth next year even if housing and the macro stays more challenging?” Joanna Barney responded that demand held up well in general line, attributing growth to expanded capacity, new product introductions, and focused efforts on multifamily and specialty dealer segments, stating, “We believe that our market share growth in certain general line categories that we think we've captured market share.”
* Maklari: “Can you talk to the competitive dynamics that you're seeing with the EWP? What gives you that confidence on the pricing side?” Troy Little explained stabilization in EWP prices since August, noting, “Starting...about August, the prices started to stabilize, and they continued to stabilize since that time...So that's where we're seeing that maybe we've reached the bottom there.”
* Michael Roxland, Truist Securities: “What do you think are the constraints...in terms of generating even higher margins -- EBITDA margin that is, in terms of maybe high single digits or low double-digit type margins as some of your distributor peers currently are?” Jorgensen stated, “We feel really good about our ability to maintain the 15-plus percent margins that we've been putting up of late,” while Barney emphasized margin opportunity from a richer general line product mix.
* Roxland: “Is there anything that you can do...to further improve mill profitability?” Little described ongoing site improvement plans and process innovation to reduce costs and increase efficiencies.

SENTIMENT ANALYSIS

* Analysts’ tone was neutral to slightly cautious, probing for clarity on margin sustainability, competitive dynamics, and growth in multifamily and general line products.
* Management maintained a resilient and confident tone, highlighting operational improvements, market share gains, and balanced capital allocation. Jorgensen’s assertion, “We have great clarity in our business model and the strength of our financial position,” reflected steady confidence, though Hibbs acknowledged margin and volume pressures.
* Compared to the previous quarter, management’s tone shifted from celebrating project completions and efficiency gains to addressing margin compression and market headwinds, while analysts continued to seek color on near-term demand and profitability.

QUARTER-OVER-QUARTER COMPARISON

* Guidance was narrowed with more explicit EBITDA ranges for Q4 and expectations of sequential declines in both EWP and plywood volumes, compared to prior quarter’s broader commentary on headwinds and scenario planning.
* Strategic focus shifted toward expanding general line products and multifamily, with increased commentary on new partnerships and capacity investments.
* Analysts’ questions in both quarters centered on product line performance and margin outlook, but Q3 saw more direct inquiries on market share dynamics and margin constraints.
* Management’s confidence in resilience and operational flexibility persisted, but Q3 remarks included more detailed mitigation strategies and a pragmatic view of persistent demand uncertainty.

RISKS AND CONCERNS

* Management cited demand weakness, trade policy uncertainties, pricing volatility for plywood, lumber and other commodity products, and the impact of seasonal factors as key risks for the fourth quarter.
* Hibbs noted, "our number of site-specific cost improvement measures in Wood Products that when coupled with our division-wide innovation initiatives will benefit our EWP and plywood franchises into the future."
* Analysts raised concerns around margin compression, inventory levels, and the extent to which market share gains and multifamily exposure can offset single-family housing headwinds.

FINAL TAKEAWAY

Boise Cascade’s management sees operational improvements and recent investments as positioning the company for long-term value creation, despite near-term headwinds in pricing and demand. The company remains focused on balanced capital deployment, expanding general line product offerings, and leveraging cost improvement initiatives in Wood Products. With EBITDA guidance for Q4 reflecting anticipated seasonal and market pressures, the team highlights resilience in distribution and an expectation that industry fundamentals and strategic investments will drive upside as market conditions improve.

Read the full Earnings Call Transcript [https://seekingalpha.com/symbol/bcc/earnings/transcripts]

MORE ON BOISE CASCADE

* Boise Cascade Company (BCC) Q3 2025 Earnings Call Transcript [https://seekingalpha.com/article/4837612-boise-cascade-company-bcc-q3-2025-earnings-call-transcript]
* Boise Cascade Company 2025 Q3 - Results - Earnings Call Presentation [https://seekingalpha.com/article/4837547-boise-cascade-company-2025-q3-results-earnings-call-presentation]
* I Am Bullish About Boise Cascade: Robots In Wood Processing [https://seekingalpha.com/article/4815511-i-am-bullish-about-boise-cascade-robots-in-wood-processing]
* Boise Cascade Q3 2025 Earnings Preview [https://seekingalpha.com/news/4513405-boise-cascade-q3-2025-earnings-preview]
* Third Avenue Small-Cap Value Fund adds Boise Cascade, Rogers in Q3 [https://seekingalpha.com/news/4509339-third-avenue-small-cap-value-fund-adds-boise-cascade-rogers-in-q3]