The following is a summary of the Boise Cascade Company (BCC) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Q2 2024 consolidated sales were reported at $1.8 billion, a slight decrease of 1% from Q2 2023.

• Net income for Q2 2024 stood at $112.3 million, down from $146.3 million in Q2 2023, with earnings per share at $2.84 compared to $3.67 year-over-year.

• BMD segment EBITDA for Q2 2024 was $97.1 million, decreasing from $105.9 million in the prior year, despite flat gross margin dollars in a challenging environment.

• Wood Products segment EBITDA fell to $95.1 million from $127 million year-over-year, primarily due to lower EWP sales prices and higher wood fiber and conversion costs.

Business Progress:

• BCC executed several strategic initiatives including the recent BROSCO acquisition, and groundbreaking on a new distribution facility in Hondo, Texas, expected to be operational by late 2025.

• The company also progressed in its organic growth projects and maintained strong capital returns to shareholders, including a $5 per share special dividend and ongoing share repurchases.

Opportunities:

• The company benefits from a favorable environment for repair and remodel spending, driven by elevated homeowner equity and the aging U.S. housing stock.

• Continued investment in general line products, now representing 42% of BMD's sales mix, the highest in company history, aligning with consumer demand and market trends.

Risks:

• Elevated mortgage rates and economic uncertainties dampen demand, affecting net income comparisons year-over-year.

• Weakening plywood pricing with Q2 average down 1% year-over-year and 4% sequentially, witnessing a steady decline throughout the quarter.

• Expected mid- to high single-digit sequential volume declines in EWP for Q3, with anticipated low single-digit sequential price declines for EWP products.

More details: Boise Cascade IR

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