Boise Cascade Reports Q1 Sales Drop, Exceeds Revenue Expectations

Boise Cascade Company reported first-quarter 2025 revenue that surpassed analyst expectations but still reflected a 6.6% year-over-year decline, with profit falling short of estimates and operating margins dropping significantly. The company’s sales performance has been lackluster in recent years, and its primary markets, especially single-family housing construction, continue to face uncertainty due to high mortgage rates and economic headwinds. Analysts foresee only modest revenue growth ahead, with demand forecasts for 2025 ranging from stable to slightly declining, shaped by factors such as mortgage rates and consumer confidence. Despite these challenges, Boise Cascade maintains a dividend with a high yield, though its sustainability is questionable given recent payout ratios and a mixed track record of dividend reliability. The company’s earnings per share have grown impressively over the past five years, but volatility in commodity prices and end-market demand present ongoing risks. Analyst ratings remain generally positive, with several maintaining ‘buy’ recommendations despite recent price target reductions.