Boise Cascade (BCC) Down 1.1% Since Last Earnings Report: Can It Rebound?

A month has gone by since the last earnings report for Boise Cascade (BCC). Shares have lost about 1.1% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Boise Cascade due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.

Boise Cascade Q2 Earnings Miss, Margins Down on Lower Product Prices

Boise Cascade reported lower-than-expected second quarter 2025 results, wherein the adjusted earnings and net sales missed the Zacks Consensus Estimate and declined year over year.

The decline was driven by continued pricing pressures and softer demand across commodity products and engineered wood products (EWP), despite sequential volume gains amid seasonal construction activity.

Detailed Discussion of Q2 Results

The company reported adjusted earnings per share (EPS) of $1.64, which missed the Zacks Consensus Estimate of $1.69 by 3%. In the year-ago quarter, the company reported an adjusted EPS of $2.84.

Net sales of $1.74 billion marginally missed the consensus mark of $1.743 billion by 0.2% and dropped 3% year over year.

Adjusted EBITDA fell 34% year-over-year to $119 million, while operating income dropped 45% to $80.5 million. Adjusted EBITDA margin also fell to 6.8% from 10.1% in the year-ago quarter.

Segment Review

Wood Products sales dropped 9% to $447.2 million, with segment income plummeting 81% to $14.0 million. LVL prices fell 10% year-over-year, and plywood prices declined 6%, while volume trends were mixed.

Building Materials Distribution (BMD) sales dipped 2% to $1.61 billion, but held better on volumes. Segment income slipped 9% to $78.0 million due to higher expenses, despite a gross margin boost from general line products.

Strong Liquidity and Capital Deployment

Boise Cascade ended the second quarter with $481.0 million in cash and $395.2 million in undrawn credit, totaling $876.2 million in liquidity. Long-term debt stood at $444.9 million.

During the first six months of 2025, the company repurchased 837,352 shares of its common stock for a total value of $86 million. Additionally, in July 2025, the company repurchased 117,000 shares for approximately $10 million. Following this, about 850,000 shares were still available under the existing repurchase program.

Cautious Q3 Guidance

Management expects third quarter 2025 adjusted EBITDA between $80-$100 million, well below Q3 2024 levels.

Wood segment results will be impacted by further declines in EWP prices and volumes. BMD margins are forecasted between 14.5-15.5%, assuming stable demand trends.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates revision.

The consensus estimate has shifted -43.01% due to these changes.

VGM Scores

Currently, Boise Cascade has a subpar Growth Score of D, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock has a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. It's no surprise Boise Cascade has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.

Performance of an Industry Player

Boise Cascade belongs to the Zacks Building Products - Wood industry. Another stock from the same industry, UFP Industries (UFPI), has gained 0.6% over the past month. More than a month has passed since the company reported results for the quarter ended June 2025.

UFP Industries reported revenues of $1.84 billion in the last reported quarter, representing a year-over-year change of -3.5%. EPS of $1.70 for the same period compares with $2.05 a year ago.

UFP Industries is expected to post earnings of $1.39 per share for the current quarter, representing a year-over-year change of -15.2%. Over the last 30 days, the Zacks Consensus Estimate has changed -5%.

UFP Industries has a Zacks Rank #5 (Strong Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.

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This article originally published on Zacks Investment Research (zacks.com).

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