NYSE:BCC
BOISE CASCADE Co
A major producer of sustainable wood fiber packaging and engineered wood products facing recent revenue contraction amid a challenging global economy.
Key Metrics
Investment Thesis
Bull Case
The stock could be attractive for value investors seeking a distressed turnaround opportunity, given the company's massive cash position of $477.2M and its ownership of valuable timberland assets that serve as an inflation hedge. If macroeconomic conditions improve and demand for packaging recovers, the low multiple relative to historical peaks could offer significant upside potential.
Bear Case
Bearish investors should avoid the stock due to the sustained multi-year decline in both revenue and net income, which suggests a structural shift in consumer or industrial demand rather than a temporary cycle. The heavy capital expenditure burden of $241.4M combined with declining sales raises concerns about return on invested capital and the ability to generate robust future earnings.
About BOISE CASCADE Co
BOISE CASCADE Co (NYSE:BCC) is a leading global provider of wood fiber products, including packaging solutions, engineered wood, and pulp for consumer goods. Serving markets in North America and Europe, the company leverages its sustainable forestry practices to supply industries ranging from food packaging to construction materials.
Analysis
Management Discussion
Management has navigated a difficult macroeconomic environment characterized by significant revenue erosion, with total revenue dropping from $8.39B in 2022 to $6.40B in 2025. While operating cash flow remained positive at $254.1M, the company executed aggressive capital allocation including $183.1M in share repurchases and $241.4M in capital expenditures to maintain asset integrity during this downturn.
Industry Overview
The global wood products industry is highly cyclical, heavily influenced by housing starts, consumer spending habits, and global trade policies regarding sustainable sourcing. Companies in this sector face intense competition from both traditional manufacturers and emerging alternative materials like recycled plastics and bio-based composites.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $8.39B | $6.84B | $6.72B | $6.40B |
| Cost of Revenue | $6.47B | $5.41B | $5.39B | $5.35B |
| Gross Profit | $1.91B | $1.43B | $1.33B | $1.05B |
| Operating Expenses | $756.9M | $804.5M | $840.6M | $870.6M |
| Operating Income | $1.16B | $624.4M | $490.0M | $183.3M |
| G&A | $103.8M | $114.4M | $102.3M | $99.7M |
| Stock-Based Comp | $11.9M | $15.4M | $15.5M | $12.1M |
| D&A | $101.6M | $132.5M | $144.1M | $158.2M |
| Amortization | $8.2M | $17.7M | $19.8M | $20.3M |
| Other OpEx | $653.2M | $690.1M | $738.3M | $770.9M |
| Non-Operating Income | $-11.5M | $20.7M | $11.7M | $-3.4M |
| Interest Expense | $25.4M | $25.5M | — | — |
| Interest Income | $12.3M | $48.1M | $39.1M | $18.8M |
| Pre-Tax Income | $1.15B | $645.0M | $501.8M | $180.0M |
| Income Tax | $288.7M | $161.4M | $125.4M | $47.1M |
| Continuing Ops | $857.7M | $483.7M | $376.4M | $132.8M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $857.7M | $483.7M | $376.4M | $132.8M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $857.7M | $483.7M | $376.4M | $132.8M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $2.06B | $2.06B | $1.89B | $1.65B |
| Cash & Equivalents | $998.3M | $949.6M | $713.3M | $477.2M |
| Accounts Receivable | $297.2M | — | — | — |
| Inventory | $697.6M | $712.4M | $803.3M | $795.7M |
| Prepaid Expenses | $47.9M | $21.2M | $24.7M | $40.8M |
| Other Current Assets | $23.0M | $373.7M | $344.8M | $340.7M |
| Long-Term Assets | $1.18B | $1.40B | $1.48B | $1.59B |
| PP&E (Net) | $770.0M | $932.6M | $1.05B | $1.16B |
| Intangibles | $161.4M | $190.7M | $173.0M | $159.7M |
| Goodwill | $138.0M | $170.3M | $171.9M | $185.4M |
| Operating Leases | $55.6M | $62.9M | $49.7M | $56.0M |
| Other LT Assets | $51.5M | $45.3M | $41.6M | $29.2M |
| Total Assets | $3.24B | $3.46B | $3.37B | $3.24B |
| Current Liabilities | $545.8M | $594.1M | $564.0M | $493.1M |
| Current Leases | $10.5M | $9.8M | $10.4M | $10.3M |
| Other Current Liab | $535.4M | $584.4M | $553.7M | $482.8M |
| Long-Term Liabilities | $636.7M | $668.9M | $654.1M | $674.0M |
| Long-Term Debt | $444.4M | $445.3M | $446.2M | $445.4M |
| LT Operating Leases | $48.7M | $56.4M | $43.2M | $49.8M |
| Other LT Liab | $143.7M | $167.2M | $164.8M | $178.8M |
| Total Liabilities | $1.18B | $1.26B | $1.22B | $1.17B |
| Shareholders' Equity | $2.06B | $2.20B | $2.15B | $2.07B |
| Retained Earnings | $1.65B | $1.78B | $1.93B | $1.50B |
| AOCI | $-520.0K | $-517.0K | $-460.0K | $-476.0K |
| Total L&E | $3.24B | $3.46B | $3.37B | $3.24B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $857.7M | $483.7M | $376.4M | $132.8M |
| Non-Cash Adjustments | $458.9M | $126.0M | $37.7M | $257.5M |
| Working Capital Changes | $-275.3M | $77.8M | $24.3M | $-136.2M |
| Cash from Operations | $1.04B | $687.5M | $438.3M | $254.1M |
| Capital Expenditures | $114.1M | $215.4M | $229.6M | $241.4M |
| Cash from Investing | $-625.5M | $-375.6M | $-237.8M | $-263.3M |
| Debt Issuances | $0 | $0 | — | $50.0M |
| Debt Repayments | $0 | $0 | — | $50.0M |
| Share Buybacks | — | $6.4M | $194.9M | $183.1M |
| Dividends Paid | $159.6M | $346.5M | $228.8M | $34.6M |
| Cash from Financing | $-166.3M | $-360.7M | $-436.8M | $-226.9M |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $249.4M | $-48.8M | $-236.3M | $-236.0M |
| Beginning Cash | $748.9M | $998.3M | $949.6M | $713.3M |
| Ending Cash | $998.3M | $949.6M | $713.3M | $477.2M |
Frequently Asked Questions
How does BOISE CASCADE Co make money?
The company's revenue streams primarily consist of Packaging (cardboard boxes, paper bags), Engineered Wood (particle board, OSB for construction), and Pulp (supplying tissue and consumer goods manufacturers), with 2025 revenue totaling $6.40B across these sectors.
What are the main risks for BCC?
A primary risk is the sharp decline in net income from $857.7M in 2022 to $132.8M in 2025, indicating severe margin compression or volume contraction. Investors must also monitor exposure to cyclical commodity prices for lumber and pulp, as well as the potential impact of rising interest rates on their substantial long-term debt of $445.4M.
What is BCC's competitive advantage?
BCC possesses a significant moat through its vertically integrated ownership of extensive timberland assets, ensuring a stable raw material supply chain independent of market volatility. Additionally, the company's deep industry experience and established customer relationships in high-volume packaging contracts provide pricing stability and recurring revenue visibility.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.