Download PDF

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.

Show Full description

1.b. Last Insights on BCC

Boise Cascade faces near-term challenges, including declining housing activity, lower sales volumes, and price pressures. The company's Q4 2025 earnings were negatively impacted by an accrual for legal proceedings, approximately $6 million or $0.16 per share after-tax. Additionally, several analysts have assigned a sell or hold rating to the company, with a consensus rating of "Moderate Buy" from eight analysts. BCC has also been added to the Zacks Rank #5 (Strong Sell) List multiple times.

1.c. Company Highlights

2. Boise Cascade's Q4 2025 Earnings: A Closer Look

Boise Cascade reported consolidated fourth-quarter sales of $1.5 billion, down 7% from the fourth quarter of 2024. The company's net income was $8.7 million or $0.24 per share, compared to $68.9 million or $1.78 per share in the year-ago quarter. Notably, the actual EPS came out at $0.24, beating estimates of $0.16. The Building Materials Distribution (BMD) segment sales were $1.4 billion, down 5% from the fourth quarter of 2024, with segment EBITDA of $56.4 million, compared to $84.5 million in the prior year quarter.

Publication Date: Feb -25

📋 Highlights
  • Full-Year Net Income Resilience:: Delivered $132.8M net income ($3.53 EPS) in 2025 despite market challenges, driven by distribution expansion and strategic acquisitions like Holden Humphrey.
  • Q4 Sales and Earnings Decline:: Fourth-quarter sales fell 7% to $1.5B, with net income dropping to $8.7M ($0.24 EPS) due to $6M ($0.16 EPS) legal accruals in the BMD segment.
  • Shareholder Returns:: Returned $180M via share repurchases and raised dividends by 5% in 2025, reflecting commitment to investor value.
  • 2026 Strategic Priorities:: New CEO Jeff Strom emphasized refining strategic focus on integrated operations, innovation, and talent retention to sustain earnings stability and market adaptability.
  • EBITDA Guidance and Market Outlook:: Q1 BMD EBITDA projected at $45–55M; expects EWP volumes to rise 10–20% sequentially amid seasonal demand and channel restocking.

Segment Performance

The BMD segment's gross margin dollars decreased by $21.3 million compared to the fourth quarter of 2024. The company's gross margin contraction was a significant factor in the decline in net income. As Jeff Strom mentioned, the company saw a bit better activity than expected in the back half of the year, particularly from BMD, and achieved good cost control during November and December.

Outlook and Guidance

For the first quarter, the company guided EBITDA to be between $45 million to $55 million for BMD and $25 million to $35 million for Wood Products. The company expects EWP volumes to increase by high single to low double digits sequentially, reflecting seasonal strengthening and channel restocking in advance of the spring building season. Analysts estimate next year's revenue growth at 4.7%, indicating a positive outlook for the company.

Valuation Metrics

To understand what's priced into Boise Cascade's stock, we can look at its valuation metrics. The company has a P/E Ratio of 22.16, P/B Ratio of 1.54, and P/S Ratio of 0.5. Additionally, the EV/EBITDA ratio is 9.36, indicating a reasonable valuation. The Dividend Yield is 1.0%, and the Free Cash Flow Yield is 2.88%. The ROE is 6.78%, while the ROIC is -29.75%, indicating room for improvement in capital allocation.

Strategic Priorities

As Jeff Strom takes over as CEO, he emphasized leveraging the integrated model, increasing earnings stability, and investing in innovation and technology. The company is also focused on becoming the employer of choice by attracting and retaining top talent. With a strong pipeline of M&A opportunities, Boise Cascade is poised to continue its growth trajectory, balancing M&A and share repurchases.

3. NewsRoom

Card image cap

Top Chemicals Stocks to Watch: ECL, EMN, and BCC

Mar -17

Source: 247wallst.com

Card image cap

Cinctive Capital Management LP Makes New $4.21 Million Investment in Boise Cascade, L.L.C. $BCC

Mar -16

Source: defenseworld.net

Card image cap

New Strong Sell Stocks for March 13th

Mar -13

Source: zacks.com

Card image cap

Dimensional Fund Advisors LP Buys 58,131 Shares of Boise Cascade, L.L.C. $BCC

Mar -10

Source: defenseworld.net

Card image cap

New Strong Sell Stocks for March 5th

Mar -05

Source: zacks.com

Card image cap

New Strong Sell Stocks for March 3rd

Mar -03

Source: zacks.com

Card image cap

Boise Cascade Company (BCC) Q4 2025 Earnings Call Transcript

Feb -24

Source: seekingalpha.com

Card image cap

Boise Cascade Company Reports Fourth Quarter and Full Year 2025 Results

Feb -23

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: 6.9/10

Value: 4.5

Growth: 7.2

Quality: 7.2

Yield: 4.0

Momentum: 9.5

Volatility: 8.7

1-Year Total Return ->

View Full Report
Stock-Card
Steel Dynamics

A-Score: 5.2/10

Value: 3.5

Growth: 7.1

Quality: 5.1

Yield: 2.0

Momentum: 7.0

Volatility: 6.3

1-Year Total Return ->

View Full Report
Stock-Card
Boise Cascade

A-Score: 5.1/10

Value: 6.9

Growth: 5.8

Quality: 5.4

Yield: 6.0

Momentum: 0.5

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
Eagle Materials

A-Score: 4.5/10

Value: 3.5

Growth: 7.6

Quality: 6.3

Yield: 0.0

Momentum: 2.5

Volatility: 7.0

1-Year Total Return ->

View Full Report
Stock-Card
Summit Materials

A-Score: 4.4/10

Value: 2.1

Growth: 5.4

Quality: 4.4

Yield: 1.0

Momentum: 7.0

Volatility: 6.3

1-Year Total Return ->

View Full Report
Stock-Card
Knife River

A-Score: 3.3/10

Value: 5.7

Growth: 5.1

Quality: 4.2

Yield: 0.0

Momentum: 1.5

Volatility: 3.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

75.85$

Current Price

75.85$

Potential

-0.00%

Expected Cash-Flows