Boise Cascade Company (NYSE: BCC) reported fourth‑quarter 2025 net income of $8.7 million, or $0.24 per share, on sales of $1.46 billion. Full‑year 2025 net income totaled $132.8 million, or $3.53 per share, on sales of $6.40 billion. The company’s GAAP earnings per share of $0.24 beat the consensus estimate of $0.16, a $0.08 or 50% beat, while revenue of $1.46 billion slightly exceeded the $1.43 billion estimate, a $30 million or 2% beat. A $6 million accrual related to legal proceedings in the Building Materials Distribution segment was recorded, reducing net income but not affecting operating performance.
Segment results highlighted a mixed picture. Building Materials Distribution generated $1.36 billion in sales and $41.5 million in income, while Wood Products posted $354.0 million in sales and a $13.8 million loss. Compared with the prior year, Q4 2024 net income was $68.9 million and full‑year 2024 net income was $376.4 million, underscoring a sharp year‑over‑year decline. Operating margin fell to 1.1% from 5.9% in Q4 2024, reflecting lower gross margins on commodity and engineered wood products and higher selling, distribution, and administrative expenses.
"While the fourth quarter reflected the expected seasonal softness in demand, I am proud of our teams for delivering strong operating results despite ongoing market headwinds," said CEO Nate Jorgensen. He added, "Looking ahead, we are well positioned to capture opportunities when housing starts recover, supported by our resilient business model and strategic investments in both our distribution and EWP manufacturing businesses." Jorgensen also announced his retirement and expressed confidence in Jeff Strom, the current COO, who will assume the CEO role on March 3, 2026.
The market reaction was subdued and slightly negative. After the earnings announcement, the stock declined approximately 0.67% in after‑hours trading. Investors focused on the significant year‑over‑year decline in net income and sales, the compression of operating margin, and the outlook for a flat or modestly down housing‑starts market in 2026.
Strategically, Boise Cascade completed the acquisition of Holden Humphrey, expanding its distribution network in the Northeast. The company also announced a dividend of $0.22 per share, payable on March 18, 2026, and continued its share‑repurchase program with $200 million of available capital. These actions demonstrate the company’s commitment to returning value to shareholders while investing in growth opportunities.
The company’s earnings beat, driven by disciplined cost management and strong performance in the Building Materials Distribution segment, is tempered by a sharp decline in revenue and profitability. The EPS beat indicates that the company has maintained profitability despite a challenging environment, but the year‑over‑year decline in sales and the loss in the Wood Products segment signal ongoing demand weakness. Management’s cautious outlook for 2026 reflects the expected flat or modestly down housing‑starts market, suggesting that the company will focus on cost control and operational efficiency while positioning itself for a future recovery.
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