Boise Cascade(US:BCC)2026-02-23 21:18Financial Performance - Fourth quarter 2025 net income was $8.7 million, or $0.24 per share, on sales of $1.5 billion, while full year net income was $132.8 million, or $3.53 per share, on sales of $6.4 billion[1]. - Fourth quarter sales decreased by 7% year-over-year, and full year sales decreased by 5% compared to 2024[3]. - Adjusted EBITDA for the fourth quarter was $57.2 million, down 56% from the previous year, and for the full year, it was $342.2 million, down 46%[3]. - Income from operations for the year ended December 31, 2025, was $183,329,000, down from $490,038,000 in the previous year[26]. - Net income for the three months ended December 31, 2025, was $8,734,000, compared to $68,900,000 in the previous quarter[26]. - The company reported a net income of $132.84 million for the year ended December 31, 2025, down from $376.35 million in 2024, a decrease of 64.8%[39]. - Net income for Q4 2025 was $8,734,000, a significant decrease from $68,900,000 in Q4 2024, representing a decline of approximately 87.3%[41]. - EBITDA for the year ended December 31, 2025 was $341,254,000, down from $630,800,000 in 2024, indicating a decrease of about 45.9%[41]. Segment Performance - Building Materials Distribution (BMD) sales decreased by $75.7 million, or 5%, in Q4 2025, driven by a 4% decrease in sales prices and a 1% decrease in sales volumes[5]. - Wood Products sales decreased by $65.7 million, or 16%, in Q4 2025, with a segment loss of $13.8 million compared to a profit of $33.6 million in Q4 2024[7]. - Segment sales for the Wood Products segment decreased to $353.96 million in Q4 2025 from $419.67 million in Q4 2024, representing a decline of 15.6%[29]. - Segment income for the Wood Products segment reported a loss of $13.79 million in Q4 2025 compared to a profit of $33.58 million in Q4 2024[31]. - Total segment income for the company decreased to $27.69 million in Q4 2025 from $104.28 million in Q4 2024, a decline of 73.5%[31]. - Segment EBITDA for Building Materials Distribution in Q4 2025 was $56,449,000, down from $84,459,000 in Q4 2024, a decrease of about 33.1%[42]. - Wood Products segment reported a loss of $13,794,000 in Q4 2025, compared to a profit of $33,583,000 in Q4 2024, marking a significant shift in performance[42]. Cash and Liquidity - The company ended Q4 2025 with $477.2 million in cash and cash equivalents and $395.1 million in undrawn committed bank line availability, totaling $872.3 million in liquidity[10]. - Cash provided by operations decreased to $254.15 million in 2025 from $438.32 million in 2024, a decrease of 42.0%[39]. - The company's cash and cash equivalents decreased to $477.22 million as of December 31, 2025, from $713.26 million in 2024, a decline of 33.1%[34]. Capital Expenditures and Debt - Capital expenditures for 2025 totaled $274.8 million, with expectations for 2026 capital expenditures to be between $150 million and $170 million[11]. - Long-term debt remained relatively stable at $445.41 million as of December 31, 2025, compared to $446.17 million in 2024[36]. - The company incurred total expenditures for property and equipment of $241.43 million in 2025, compared to $229.57 million in 2024, an increase of 5.2%[39]. Dividends and Share Repurchases - The board declared a quarterly dividend of $0.22 per share, payable on March 18, 2026[12]. - The company declared dividends of $0.22 per common share for the three months ended December 31, 2025, compared to $0.21 in the previous quarter[26]. - The company repurchased 2,101,392 shares of common stock for $181.4 million in 2025, with an additional $39 million spent on share repurchases in early 2026[13]. Market Conditions - Total U.S. housing starts decreased by 4% in Q4 2025 and 1% for the full year, with single-family housing starts down 7% in both periods[4]. - The company highlighted the importance of successfully executing organic growth and acquisition strategies as part of its long-term growth strategy[24]. Costs and Expenses - Costs and expenses for the year ended December 31, 2025, totaled $6,221,266,000, slightly down from $6,234,256,000 in the previous year[26]. - Interest expense for the year ended December 31, 2025, was $21,846,000, down from $24,067,000 in the previous year[26]. - Interest expense for the year ended December 31, 2025 was $21,846,000, a decrease from $24,067,000 in 2024, representing a reduction of about 9.1%[41]. - Depreciation and amortization for the year ended December 31, 2025 was $158,221,000, compared to $144,113,000 in 2024, an increase of approximately 9.8%[41]. - The change in fair value of interest rate swaps for the year ended December 31, 2025 was $925,000, down from $2,038,000 in 2024, indicating a decrease of about 54.5%[41]. - Unallocated corporate costs for Q4 2025 were $(11,737,000), slightly higher than $(11,565,000) in Q4 2024, reflecting an increase of about 1.5%[42].