Boise Cascade Company

Total consolidated sales increased 5% year over year to $1.8 billion. Net income was $57.3 million and EPS was $1.63 per share; management said both were higher than the prior-year quarter excluding gains on asset sales in the prior year. BMD sales were $1.7 billion, up 5% year over year, and BMD segment EBITDA was $85.6 million versus $91.8 million a year ago. BMD gross margin was 15.2%, down 20 basis points year over year, and BMD EBITDA margin was 5.0% versus 5.7%. Wood Products sales were $459.6 million, up 3% year over year, and segment EBITDA was $52.4 million versus $37.3 million. Looking ahead, management guided third-quarter BMD EBITDA to $53 million to $68 million, with gross margin expected at 14% to 14.75%, and Wood Products EBITDA to $22 million to $57 million. They said EWP pricing should rise about 3% when fully implemented, with the benefit starting to show during Q3 and playing through Q4 into Q1.

Jeff Strom framed the quarter as strong execution in a difficult housing backdrop, pointing to persistent uncertainty, volatile mortgage rates and affordability headwinds. He was notably upbeat about the James Hardie agreement, calling it a major strategic growth opportunity that expands Boise Cascade’s addressable market and plays to its national footprint and service model. He also emphasized the company’s integrated model, saying it improves channel visibility, inventory discipline and customer service, and should help Boise outpace industry growth over time.

Kelly Hibbs focused on segment drivers, margin pressure and capital returns. She said BMD gross margin improved $9.2 million year over year, but selling and distribution expense rose $10.8 million, with about half of that tied to higher fuel and outbound delivery costs; prior-year results also benefited from a $3.8 million property sale gain. In Wood Products, EBITDA improved on higher plywood prices and volumes and lower per-unit OSB costs, partly offset by lower EWP pricing and higher conversion costs. She also highlighted $63 million of capex in the first six months of 2026, a 2026 capital spending range of $150 million to $170 million, $18 million of regular dividends paid year to date, a 5% quarterly dividend increase to $0.23 per share, and about $108 million of share repurchases in the first half with roughly $130 million still available under the program.

Analysts focused heavily on the James Hardie transition, asking about timing, profitability, inventory management and whether the new arrangement could be a bigger business than the one being replaced. Management said the shift will take multiple quarters, with inventory wind-downs and new product loading beginning around September and full-suite selling expected in the fourth quarter; they also said the deal is about growth rather than a one-for-one revenue replacement. Questions on EWP centered on the 3% price increase, channel inventory and the impact of pull-forward demand. Management said the order file is still strong, but recent intake has moderated and some destocking is appearing, which is why they expect mid-single-digit sequential volume declines in Q3.