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1. Company Snapshot

1.a. Company Description

Boise Cascade Company manufactures wood products and distributes building materials in the United States and Canada.It operates through two segments, Wood Products and Building Materials Distribution.The Wood Products segment manufactures laminated veneer lumber and laminated beams used in headers and beams; I-joists for residential and commercial flooring and roofing systems, and other structural applications; structural, appearance, and industrial plywood panels; and ponderosa pine lumber products.


This segment's products are used in new residential construction, residential repair-and-remodeling markets, light commercial construction, and industrial applications.It sells its products to wholesalers, home improvement centers, retail lumberyards, and industrial converters.The Building Materials Distribution segment distributes a line of building materials, including oriented strand boards, plywood, and lumber; general line items, such as siding, composite decking, doors, metal products, insulation, and roofing; and engineered wood products.


This segment sells its products to dealers, home improvement centers, and specialty distributors.The company was founded in 2004 and is headquartered in Boise, Idaho.

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1.b. Last Insights on BCC

Boise Cascade's recent performance was positively driven by sequential volume growth in its building materials distribution segment, fueled by seasonally stronger activity. The company's integration of AI and robotics in wood processing is expected to drive efficiency and EBITDA margin improvements. A 5% quarterly dividend increase was also announced, demonstrating the company's commitment to shareholder returns. Furthermore, the company's integrated production and distribution model and disciplined risk management support stable cash flow and profitability.

1.c. Company Highlights

2. Boise Cascade's Q3 2025 Earnings: Navigating Market Uncertainty

Boise Cascade reported consolidated third-quarter sales of $1.7 billion, down 3% from the third quarter of 2024, with net income of $21.8 million or $0.58 per share, compared to $91 million or $2.33 per share in the year-ago quarter. The company's actual EPS matched estimates. Wood Products sales were $396.4 million, down 13% from the third quarter of 2024, while Building Materials Distribution (BMD) sales were $1.6 billion, down 1% from the third quarter of 2024. The company's EBITDA margins were impacted, with Wood Products segment EBITDA at $14.5 million and BMD segment EBITDA at $69.8 million.

Publication Date: Nov -16

📋 Highlights
  • Net Income Drop:: Q3 2025 net income fell to $21.8M ($0.58/share) from $91M ($2.33/share) in Q3 2024, a 76% decline.
  • Wood Products EBITDA Decline:: Segment sales dropped 13% to $396.4M, with EBITDA at $14.5M, reflecting market challenges.
  • Capital Expenditures:: $187M spent in 9M 2025 vs. $230M–$250M planned for 2025, focusing on EWP and Oakdale modernization.
  • BMD Segment Performance:: Sales fell 1% to $1.6B, but EBITDA remained strong at $69.8M despite demand pressures.
  • Q4 EBITDA Guidance:: Wood Products expects $0–$15M, BMD anticipates $40M–$55M, with tax rates forecast at 26%–27%.

Segment Performance

The Wood Products segment faced challenges, with sales down 13% year-over-year, primarily due to market weakness. However, as Nate Jorgensen expressed, "the company's integrated model provides increased channel inventory visibility, enabling better navigation of market uncertainty." BMD sales were relatively stable, with a 1% decline, and the company is confident in its ability to maintain 15%+ gross margins in BMD.

Outlook and Guidance

Looking forward to the fourth quarter, the company expects demand weakness, trade policy uncertainties, and seasonal factors to influence financial results. Wood Products EBITDA is estimated to be between breakeven and $15 million, while BMD EBITDA is expected to be between $40 million and $55 million. The company's effective tax rate for the fourth quarter is expected to be between 26% and 27%. Early industry projections for 2026 suggest cautious demand in the first half of the year, with gradual improvement expected later in the year.

Valuation and Growth Prospects

With a P/E Ratio of 9.92 and an EV/EBITDA of 4.96, the company's valuation appears reasonable. Analysts estimate next year's revenue growth at 3.2%. The company's focus on cost reduction, process improvements, and innovation is expected to drive growth and margin expansion. The distribution segment's EBITDA margin is expected to dip into the 3s in the fourth quarter due to seasonal slowing but is expected to return to a normalized cycle with a 5% EBITDA margin.

Capital Allocation and Shareholder Returns

The company's priorities for capital allocation are investing in their existing asset base, organic growth projects, and M&A if the fit and price are right. They expect to continue being active with share repurchases under their new $300 million share repurchase program. The company's ROIC is 10.25%, and ROE is 12.26%, indicating a strong return on equity.

3. NewsRoom

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Boise Cascade Announces CEO Transition

Dec -04

Source: businesswire.com

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Franklin Resources Inc. Trims Stake in Boise Cascade, L.L.C. $BCC

Dec -04

Source: defenseworld.net

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Capital Fund Management S.A. Acquires New Position in Boise Cascade, L.L.C. $BCC

Dec -04

Source: defenseworld.net

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New Strong Sell Stocks for Nov. 26

Nov -26

Source: zacks.com

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Advisors Asset Management Inc. Has $9 Million Position in Boise Cascade, L.L.C. $BCC

Nov -26

Source: defenseworld.net

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New Strong Sell Stocks for Nov. 24

Nov -24

Source: zacks.com

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New Strong Sell Stocks for Nov. 20th

Nov -20

Source: zacks.com

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Boise Cascade Reaches Agreement to Purchase Holden Humphrey

Nov -18

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.00%)

6. Segments

Building Materials Distribution

Expected Growth: 3.0%

Boise Cascade Company's Building Materials Distribution segment growth of 3.0% is driven by increasing demand for new residential construction, repair and remodel activities, and infrastructure projects. Additionally, the company's strategic acquisitions, expanded product offerings, and efficient supply chain management contribute to its growth. Furthermore, a strong housing market and rising lumber prices also support the segment's growth.

Wood Products

Expected Growth: 3.0%

Boise Cascade Company's Wood Products segment growth of 3.0% is driven by increasing demand for single-family housing, repair and remodeling activities, and infrastructure projects. Additionally, the company's strategic acquisitions, operational efficiencies, and focus on value-added products contribute to its growth momentum.

Intersegment Eliminations

Expected Growth: 3.0%

Boise Cascade Company's 3.0% intersegment eliminations growth is driven by increasing demand for engineered wood products, strategic acquisitions, and operational efficiencies. The company's Building Materials Distribution segment benefits from a strong housing market, while the Wood Products segment leverages its diversified product portfolio and cost-saving initiatives.

7. Detailed Products

Engineered Wood Products

Boise Cascade Company's engineered wood products include I-joists, laminated veneer lumber (LVL), and glue-laminated timber (Glulam). These products are used in residential and commercial construction.

Plywood

Boise Cascade Company's plywood products are used in construction, furniture, and other industrial applications.

Lumber

Boise Cascade Company's lumber products include dimensional lumber, studs, and other wood products used in construction.

Roofing

Boise Cascade Company's roofing products include roofing panels and other roofing materials used in residential and commercial construction.

Doors and Windows

Boise Cascade Company's doors and windows products include interior and exterior doors, windows, and other building materials.

Building Materials Distribution

Boise Cascade Company's building materials distribution segment provides a range of building materials and services to builders, contractors, and homeowners.

8. Boise Cascade Company's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Boise Cascade Company is medium due to the availability of alternative products in the market. However, the company's focus on sustainability and eco-friendly products may reduce the threat of substitutes.

Bargaining Power Of Customers

The bargaining power of customers is low due to the company's strong brand reputation and customer loyalty. Additionally, the company's products are often customized to meet specific customer needs, reducing the bargaining power of customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the company's dependence on a few key suppliers for raw materials. However, the company's long-term contracts with suppliers reduce the bargaining power of suppliers.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the industry, including the need for significant capital investment and regulatory compliance.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established players in the industry, leading to intense competition for market share and pricing pressure.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 19.78%
Debt Cost 6.42%
Equity Weight 80.22%
Equity Cost 12.09%
WACC 10.96%
Leverage 24.66%

11. Quality Control: Boise Cascade Company passed 9 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
NewMarket

A-Score: 6.7/10

Value: 4.5

Growth: 7.2

Quality: 7.2

Yield: 3.0

Momentum: 9.5

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Boise Cascade

A-Score: 5.1/10

Value: 6.8

Growth: 5.8

Quality: 5.6

Yield: 6.0

Momentum: 0.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Steel Dynamics

A-Score: 4.9/10

Value: 3.4

Growth: 7.1

Quality: 5.1

Yield: 2.0

Momentum: 6.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Summit Materials

A-Score: 4.5/10

Value: 1.9

Growth: 5.6

Quality: 4.0

Yield: 1.0

Momentum: 8.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Eagle Materials

A-Score: 4.3/10

Value: 3.7

Growth: 7.6

Quality: 6.1

Yield: 0.0

Momentum: 2.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Knife River

A-Score: 3.4/10

Value: 6.1

Growth: 5.2

Quality: 3.9

Yield: 0.0

Momentum: 2.0

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

73.05$

Current Price

73.05$

Potential

-0.00%

Expected Cash-Flows