Boise Cascade Reports Q2 2025 Revenue, Earnings Miss Amid Margin Pressure

Boise Cascade Company reported disappointing financial results for Q2 2025, with revenue declining 3.2% year-over-year to $1.74 billion and earnings per share falling to $1.64, missing analyst expectations. The company faced challenges from lower sales prices and volumes, particularly in its Wood Products segment, which saw decreases in plywood and I-joist sales despite an increase in laminated veneer lumber volumes. Operating margins dropped to 4.6% from 8.2% a year earlier, and free cash flow turned negative, reflecting pressure from higher conversion costs and a muted demand environment in new residential construction. Despite these headwinds, Boise Cascade emphasized operational discipline and ongoing investments, including a $140 million modernization project aimed at strengthening its Engineered Wood Products supply chain. Analysts remain cautiously optimistic, with several maintaining buy ratings but lowering price targets due to the sector's cyclical nature and recent revenue declines. The company’s long-term growth trajectory remains challenged by persistent market softness, though its focus on efficiency and modernization may position it to better navigate future industry fluctuations.