BCC

A month has gone by since the last earnings report for Boise Cascade (BCC). Shares have lost about 12.3% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Boise Cascade due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Boise Cascade, L.L.C. before we dive into how investors and analysts have reacted as of late. Boise Cascade reported second-quarter 2026 earnings of $1.63 per share, down 0.6% year over year but above the Zacks Consensus Estimate of $1.23 by 32.5%. Sales rose 5.2% year over year to $1.83 billion.Higher plywood prices and volumes lifted Wood Products performance, while Building Materials Distribution (BMD) benefited from higher sales volumes and prices. The gains came despite a mixed housing backdrop, with U.S. single-family housing starts, a key demand driver for Boise Cascade, down 4% from a year earlier. BMD sales increased 5.1% year over year to $1.70 billion. The improvement reflected a 4% increase in net sales volume and a 1% rise in net sales prices. General line sales increased 9%, commodity sales rose 7% and engineered wood products (EWP) sales fell 6%.BMD segment EBITDA declined 6.8% to $85.62 million, while segment income fell 10.1% to $70.12 million. Higher selling and distribution expenses and depreciation and amortization weighed on results. These pressures were partly offset by a $9.2 million gross-margin increase. Wood Products sales, including sales to BMD, advanced 2.8% year over year to $459.6 million. Plywood sales prices increased 15% and volumes rose 3%. In contrast, LVL prices and volumes declined 4% and 2%, respectively, while I-joist prices and volumes fell 7% and 2%.Segment EBITDA jumped 40.4% to $52.37 million, while segment income surged 83.5% to $25.65 million. Higher plywood prices and volumes and lower per-unit oriented strand board costs drove the improvement, partly offset by lower EWP pricing and higher per-unit conversion costs. Net income declined 7.5% year over year to $57.34 million. The year-ago quarter included $5.8 million of after-tax gains, or $0.15 per share, from sales of non-operating properties. Income from operations increased 4.3% to $83.98 million.Adjusted EBITDA rose 6.1% to $126.24 million. Depreciation and amortization increased 14.2% to $42.71 million, while selling and distribution expenses rose 7.4% to $173.79 million, primarily due to higher shipping and handling and employee-related costs. Boise Cascade ended June with $304.82 million in cash and cash equivalents and $395.1 million of undrawn committed bank availability. Total available liquidity was $699.9 million, while outstanding debt stood at $452.5 million.For the first six months of 2026, operating cash flow totaled $26.34 million and capital expenditures were $63.32 million. BCC paid $18.1 million in common dividends and $108.3 million to repurchase 1,404,815 shares. Its board also declared a quarterly dividend of $0.23 per share, with about $130 million remaining under the share repurchase program. For the third quarter of 2026, BCC expects total adjusted EBITDA of $82-$114 million. BMD EBITDA is projected at $53-$68 million, Wood Products EBITDA at $42-$57 million and unallocated corporate costs at $11-$13 million.Management expects BMD's daily sales pace to moderate from the second-quarter average based on end-market signals and supplier-transition activities. Wood Products expects a mid-single-digit sequential decline in EWP volumes and a low-single-digit decrease in plywood volumes. Plywood prices were running 5% above the second-quarter average quarter to date. Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions. Currently, Boise Cascade has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock was allocated a score of A on the value side, putting it in the top quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Boise Cascade has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Boise Cascade, L.L.C. (BCC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Monday, Aug. 3, 2026 at 9:00 a.m. ET Senior Vice President, Finance and Investor Relations - Chris Forrey Chief Executive Officer - Jeff Strom Chief Financial Officer - Kelly Hibbs Leader of Building Materials Distribution Operations - Jo Barney Leader of Wood Products Operations - Troy Little Operator: Good morning. My name is Dave, and I will be your conference facilitator today. At this time, I would like to welcome everyone to the Boise Cascade's Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Chris Forrey, Senior Vice President, Finance and Investor Relations. Mr. Forrey, you may begin your conference. Chris Forrey: Good morning, everyone. I would like to welcome you to Boise Cascade's Second Quarter 2026 Earnings Call and Business Update. Joining me on today's call are Jeff Strom, our CEO; Kelly Hibbs, our CFO; Jo Barney, leader of our Building Materials Distribution operations; and Troy Little, leader of our Wood Products Operations. Turning to Slide 2. This call will contain forward-looking statements. Please review the warning statements in our press release, on the presentation slides and in our filings with the SEC regarding the risks associated with these forward-looking statements. Also, please note that the appendix includes reconciliations from our GAAP net income to EBITDA and adjusted EBITDA and segment income to segment EBITDA. I will now turn the call over to Jeff. Jeff Strom: Thanks, Chris. Good morning, everyone, and thank you for joining us for our earnings call. I'm on Slide 3. In the second quarter, total U.S. housing starts and single-family housing starts decreased 1% and 4%, respectively, compared to prior year quarter. Our consolidated second quarter sales increased 5% year-over-year to $1.8 billion. Our net income and earnings per share were $57.3 million and $1.63 per share, both higher than the prior year quarter when excluding gains on asset sales reflected in prior year results. I'm pleased with the outstanding results we were able to deliver despite continued demand uncertainty resulting from geopolitical events and volatile mortgage rates. The challenges of consumer sentiment and home affordability remain the most significant headwinds for residential construction activity. In this environment, we're continuing to leverage our integrated model, which consistently demonstrates its value and resilience. Moving to Slide 4. Yesterday, we made the exciting announcement that we're expanding our distribution partnership with James Hardie across a complete portfolio of industry-leading products. including Hardie Siding and Trim, AZEK Exteriors and TimberTech Decking and Railing. As part of the agreement, James Hardie will consolidate its distribution network across all regional markets and has designated Boise Cascade as a sole nationwide distribution partner. We will transition away from distributing competing siding and PVC trim products and bring in James Hardie's full suite of products nationwide. As the sole nationwide distributor, Boise Cascade will be uniquely positioned to provide our customers with a simpler purchasing experience, deeper engagement and support and greater access to James Hardie products. This agreement is consistent with our focus on delivering the best products and service for our customers, which is at the core of every strategic decision we make at Boise Cascade. With that said, a partnership of this magnitude will take time to implement. We will work down inventory from legacy suppliers throughout the remainder of the year. During that time, we will onboard inventory, train our product teams and begin climbing the sales ramp. We'll provide progress updates as we move through the remainder of 2026 and into 2027. Kelly will now walk through our segment financial results, capital allocation priorities and third quarter guidance, after which I'll provide insights on our business outlook and make closing comments before we open the call for questions. Kelly Hibbs: Thank you, Jeff. I'm on Slide 5. BMD sales in the quarter were $1.7 billion, up 5% from second quarter 2025. BMD reported segment EBITDA of $85.6 million in the second quarter compared to segment EBITDA of $91.8 million in the prior year quarter. Gross margin increased $9.2 million compared with the prior year quarter, resulting from higher gross margins on commodity and general line products, offset partially by lower gross margins on EWP. Selling and distribution expenses were up $10.8 million from second quarter 2025, approximately 50% of which was due to higher fuel and outbound delivery costs. In addition, prior year results benefited from a $3.8 million gain on the sale of a nonoperating property. In Wood Products, our sales in the second quarter, including sales to our distribution segment, were $459.6 million, up 3% compared to second quarter 2025. Wood Products segment EBITDA was $52.4 million compared to EBITDA of $37.3 million reported in the year ago quarter. The increase in segment EBITDA was primarily due to higher plywood prices and sales volumes as well as lower per unit OSB costs used in the production of I-joists. These increases were offset partially by lower EWP sales prices as well as higher per unit conversion costs. In addition, prior year results included a $3.9 million gain on the sale of our former Roxboro, North Carolina property. Moving to Slide 6 and 7. BMD's year-over-year second quarter sales increase of 5% was driven by net sales volume and price increases of 4% and 1%, respectively. By product line, general line product sales increased 9%, commodity sales increased 7% and sales of EWP decreased 6%. Sequentially, BMD sales were up 22%. Our second quarter gross margin was 15.2%, down 20 basis points year-over-year. Competitive pressures drove lower gross margins on general line products and EWP, offset partially by improved gross margins on commodity products due mainly to higher trending lumber prices. BMD EBITDA margin was 5% for the quarter, down from 5.7% in the year ago quarter. The 70-basis point decline resulted from lower gross margins, higher selling and distribution costs and the asset sale gain that boosted prior year EBITDA margin by 30 basis points. On a sequential basis, EBITDA margin was up sharply from the 3.5% reported in the first quarter. Seasonal demand improvement, higher gross margin dollars and percentages and improved operating expense leverage from increased volumes positively impacted our second quarter results. Turning to Slide 8. On a year-over-year basis, second quarter I-joist and LVL volumes were each down 2%. Sequential I-joist and LVL volumes were up 18% and 17%, respectively, driven by seasonal demand improvements and the pull forward of some volume. Related to volume pull forward, as expected, some customers ordered more product in the second quarter to get ahead of our announced price increase, and we believe possibly out of concern that transportation constraints could result in product shortages. I will speak to our EWP price increase in more detail when addressing our third quarter outlook. As it relates to second quarter pricing, I-joist and LVL realizations declined 7% and 4%, respectively, versus the prior year quarter and were nearly flat sequentially. Turning to Slide 9. Our second quarter plywood sales volume was 368 million feet compared to 356 million feet in second quarter 2025. The year-over-year increase in plywood volumes was driven by lower volumes in the prior year quarter due to downtime at our Kettle Falls, Washington mill to complete a scheduled maintenance project as well as the planned outage for capital projects at our Oakdale, Louisiana mill. Sequentially, our plywood sales volumes were down 1% from first quarter 2026 as we diverted more veneer to EWP production to meet stronger-than-anticipated demand across our EWP product lines. The average plywood net sales price was $393 per thousand in the second quarter, representing a 15% increase year-over-year and sequentially. We attribute the recent improvement in plywood pricing to reduced imports. Notably, Brazilian imports declined by 25% year-over-year through the second quarter of 2026 despite a temporary reduction in tariff rates that accelerated imports in the second quarter. New Section 301 tariffs are now in effect, increasing the effective tariff rate, which may influence market dynamics in the coming months. I'm now on Slide 10. We had capital expenditures of $63 million in the first 6 months of 2026, including $23 million in the second quarter. BMD and Wood Products spent $8 million and $15 million, respectively, on capital projects in the second quarter. Our capital spending range for 2026 remains at $150 million to $170 million. Speaking to shareholder returns, we paid $18 million in regular dividends during the first 6 months of 2026, including $8 million in the second quarter. Our Board of Directors also recently approved a 5% increase in the quarterly dividend on our common stock to $0.23 per share that will be paid in mid-September. Through the first 6 months of 2026, we repurchased approximately $108 million of Boise Cascade common stock, including approximately $43 million in the second quarter. At the end of the second quarter, about $130 million of our outstanding common stock was available for repurchase under our existing share repurchase program. The ongoing strength of our balance sheet and cash generation capability through the cycle leaves us well positioned to continue pursuing our strategic objectives. I'm now on Slide 11, where we have outlined a range of potential EBITDA outcomes for the third quarter, along with the key assumptions underlying these projections. Activities associated with the ramp-up of our expanded partnership with James Hardie, the wind down of our former suppliers' product lines and termination provisions that delay the full implementation of James Hardie's distribution realignment will take time to play out and are expected to affect our near-term results. Accordingly, we expect revenue pressure in decking, siding and trim as we work through these changes. Decking will be the most notable category given it amounted to approximately 9% of BMD's last 12 months' revenue. Beginning October 1 of this year, our agreement provides elements of financial support as we ramp sales across the full suite of James Hardie products, and we are confident in our ability to mitigate the near-term impacts while positioning the company for stronger long-term growth. With that said, inclusive of supplier transition activities, we currently estimate BMD's third quarter EBITDA will be between $53 million and $68 million. Our daily sales pace through July was consistent with the second quarter sales pace of $26.5 million per day and is expected to moderate based on forward-looking end market signals and supplier transition activities. Gross margins are expected to be between 14% and 14.75%. In Wood Products, we announced an EWP price increase in the latter part of the second quarter that we expect to increase our pricing by approximately 3% when fully implemented. Contractual obligations will delay the realization of the full benefits of this action, but we expect to begin seeing the impact of the price increase as we move through the third quarter. Turning to our anticipated results for Wood Products. We estimate third quarter EBITDA will be between $22 million and $57 million. Our EWP order file is strong, but order intake in recent weeks has moderated to the extent that we expect volumes to decline mid-single digits sequentially. EWP pricing is expected to increase slightly on a sequential basis. In Plywood, we expect volumes to decline low single digits sequentially. On Plywood pricing, quarter-to-date realizations were 5% above our second quarter average with the balance of the quarter dependent upon end market demand and ongoing import supply volatility. We expect our per unit manufacturing costs will be comparable to second quarter. With that, I'll turn it over to Jeff to share our business outlook and closing remarks. Jeff Strom: Thank you, Kelly. I'm on Slide 12. Looking forward to the third quarter, the path to recovery in homebuilding remains elusive. Ongoing geopolitical uncertainty, volatile treasury yields and mortgage rates and persistent inflation continue to weigh on the macroeconomic outlook. In response, homebuilders have relied on incentives to stimulate demand while maintaining discipline around starts and spec inventory. Repair and remodeling is consistent but unspectacular growth is reflective of cautious consumer behavior, low home turnover and a reluctance to tap homeowner equity at current interest rates. Our exceptional results in the quarter, despite the backdrop, reflect the strength of our operations and the value Boise Cascade brings to the channel. BMD's high-quality products and world-class service create solutions for customers and vendors in all operating environments. In Wood Products, we are encouraged that the EWP price stability seen in prior quarters has continued and progressed into successful pricing actions. We continue to create value through Boise Cascade's integrated manufacturing and distribution model, which connects real-time customer demand and disciplined production, inventory and logistics decisions. The daily alignment between our Wood Products and Building Materials Distribution segments enhances channel visibility, allowing us to better match production rates and inventory strategies to end market conditions and leads to improved service levels for customers. Cross-divisional coordination, supported by our strong financial position provides the stability and flexibility to allocate capital efficiently, execute our strategy and respond quickly to changing market dynamics. We remain focused on expanding the benefits of this integrated model by bringing our divisions closer together and stimulating innovation across the organization to support long-term value creation. As we plan for the future, long-term residential construction fundamentals remain constructive, supported by generational tailwinds and an undersupplied housing market. High homeowner equity and an aging U.S. housing stock supports sustained repair and remodel spending and reinforce the industry's solid underlying demand drivers. Against this backdrop, we believe Boise Cascade's investment made throughout the business cycle will position us to capitalize on these tailwinds and outpace industry growth over time. Lastly, James Hardie is a trusted long-term partner, and we look forward to working closely with the team in the coming months as we work to unlock the full potential of our expanded distribution agreement. Our team is eager and highly motivated to sell James Hardie's industry-leading portfolio of products. We have a long history of growing supplier product lines through our nationwide footprint and superior service, and I am confident that we will do so again across James Hardie's product portfolio. During this transition, my #1 priority is ensuring that we continue to take great care of our customers by doing things the Boise way. That means providing customers with high-quality service and support across all of our offerings, earning the respect through our transparency and maintaining their trust through integrity. Lastly, it means pursuing excellence with intense effort, focus and clarity of mission. Thank you for joining us today and for your continued support and interest in Boise Cascade. We welcome any questions at this time. Operator: [Operator Instructions] Our first question comes from Susan Maklari with Goldman Sachs. Susan Maklari: I want to start with the strategic shift in general line to James Hardie. Can you talk a bit more about the long-term path for profitability, the efficiencies that you could see perhaps in terms of working with one supplier versus multiple suppliers for decking and siding? And then just overall, are the terms of this deal consistent with prior deals? Or is there anything that we should be aware of? Jeff Strom: Yes, Sue, let me take that a little bit. I'll start with this. This is all about growth. And we really feel strong about that and feel like there's tremendous opportunity for us and how we're going to go about doing that. First, we're picking up the entire portfolio, and we're excited about that. It brings more addressable market to us that we can go after. How are we going to do that? First, I'll talk about some of the things, the exits that Hardie is making. They're significant. There's opportunity there. We have to go out and win that and win our fair share, and I really believe we'll do that, number one. Second thing I talk about is kind of our national account opportunity in the home centers. Having one complete product line that we can go offer across the entire country, we believe is a competitive advantage for us, and we look to take advantage of that. The next thing is I'm just talking about the conversion of our existing customer base. I'm going to say this, we've been a very strong distributor player in the decking market for a long time. And we have a customer base that has come to rely on us, and they've told us that very clearly and consistently. And so we really believe that we have the opportunity to convert some of that. for how we've performed in the past, the service we provide and the reliance they've had on us. Next thing I'll talk about is the James Hardie sales force. It's fantastic. We've worked with them in the past. We know about their pull-through ability and what they can do, the relationships with contractors, with builders. They've got an excellent marketing team that we know is going to help us. And then there's a lot of conversion opportunities out there that we know we can go grab on whether it's the products or different products now that we can offer. So we're really, really excited about that. As far as the terms of the deal. . . Kelly Hibbs: Yes. I'd say, Sue, in terms of the general day-to-day terms, not really inconsistent with what we've had with our former decking supplier. And Jeff hit on it a bit ago just in terms of clarity of mission here in terms of how we move forward. Certainly, we're going to move forward with urgency as we transition away from former product lines. We're also going to move with urgency as we work towards our transition to expand our relationship with Hardie, but it's very important that we're -- we do that in a very thoughtful and a new territory fashion, so we make sure that ramp is well orchestrated. And the focus will be on that successful transition and clearly a mission around working to mitigate the financial impacts, the near-term financial impacts ahead of us, including there are certain elements that we have in our arrangement with James Hardie that will help support that transition as we ramp sales. Joanna Barney: And Sue, I'll jump in here for a second. As far as the synergies of the strength in aligning with one brand, James Hardie now has the industry's really broadest portfolio of exterior products. They are #1 or #2 across each of their product categories, right? They're #1 in siding, #1 in PVC trim, #1 in fiber-cement trim, #2 in composite decking, although we believe that we have the strength to help them get to #1 there. We believe that aligning with one brand will create customer stickiness for us. If you think about our ability to drive down the transaction cost for our customers when there is 1 PO, receiving delivery truck, dealing with one sales rep, potentially one bundled pricing program, one marketing strategy across multiple products. When you think about, to Jeff's point, our combined sales forces, Boise Cascade has over 600 salespeople across the country that will be partnered with James Hardie and TimberTech AZEK sales teams. We think that there is strength there. And then for our business, we think about improving things like our truck fill rates, our large average order sizes, better cross-selling opportunities across our footprint and a greater ability to differentiate ourselves from other distributors in the market. Susan Maklari: Okay. That is all great color. And I want to shift now to EWP. You talked about some pull forward in the volumes that you saw there in the second quarter. Given that, how are you thinking about the channel inventories as we look in the second half of the year and especially given that a lot of the big public builders have downwardly revised their expectations for 2026 closings? And then also, what does that mean in terms of the realization of the 3% price increase that you've announced? Troy Little: Yes, this is Troy. Yes, as you mentioned, the commentary we're hearing on the builder side, the uptick on the interest rates, kind of all headwinds heading into the second half of the year. I guess I would say our order file throughout Q2, it did continue to grow, and that's what helped us support a price increase. in terms of how that plays out, we -- the pull forward was some of our arrangements, volumes, the price protection, undoubtedly, we saw some activity prior to the increase going into effect. But right now, as we move into August, our order file is about 3x what it was this time last year. And so we're still feeling pretty good. The intake side has slowed. But I think combined with the existing order file and what we're kind of seeing right now, I feel pretty good about that runway through August at least. But then like you said, going forward, the commentary from builders, plus we had at least one large dealer talk about kind of peeling back their days on hand. So all of that will have some effect. Jeff Strom: I'm just going to add 2 things a little bit. The pull forward of orders with the price increase is normal. That happens every time. So I just want to stress that. It's nothing different. And then the reluctance that you've heard a little bit about what's going on with builders and what they're going to carry as far as EWP, that plays in the hands of distribution once again. So when things slow down, people are relying more and more on just-in-time inventory, it's a good thing for us. Operator: And the next question comes from Michael Roxland with Truist. Michael Roxland: Congrats on the progress. First question I had, how long do you guys think it will take for the Hardie transition to happen and to replace the prior business? Is that something that occurs fully by year-end? Is it by the end of 1Q '27? And any early estimate on how fast that business could grow relative to the progress that you [ transitioned away ] and any incremental margin benefit as well? Kelly Hibbs: Yes. Good question, Mike. So I would say, in general, it's going to be -- it's too early to provide specifics around some of your questions there. Like I said earlier, we're going to move with urgency, but there are certain things that we're not in control of, in particular, things around Hardie and how the distribution arrangements that they exited from and how long that may take before those distribution arrangements are fully exited. That could be 1 quarter and that could be 2 quarters. And then for us, we're still working down our current inventory and then start to build our new inventory probably September time frame. So it's not going to happen in the fourth or the first quarter in terms of when we get back to normal. I think this will be a journey that will take multiple quarters. And there's a lot of things to play out yet before we can really provide a lot of specifics, but we will absolutely continue to provide updates as we move through the balance of the year and into 2027. Joanna Barney: Yes. I'll jump in there, too. So to Kelly's point, we're going to -- we'll start loading in many of our locations in September, right? We're going to be working through our inventories over the next couple of months, our current set of inventory. And we'll probably likely move some inventory around our system if we need to. It's still good inventory that we have on the ground that we can sell, and we're going to work to do that. We'll probably utilize our larger branches to help us move some decking -- have an [ access hub ], allow us to move some decking around our footprint so that we can wind down our smaller locations sooner. As the James Hardie exited distributors wind down their inventory levels, we want to make sure that we are ready to serve in every market that needs James Hardie product. So we'll start loading in, in September. The James Hardie exits have roughly 90 days. So we'll be working closely with James Hardie to monitor the inventory in the channel. But we plan to start selling the full suite of James Hardie products in the fourth quarter, both driving conversions, product conversions as well as capitalizing on the distribution consolidation that will be taking place in the market. Michael Roxland: Got it. That's extremely helpful color. Just on that point, do you think based on what you've seen with Hardie and your interactions with Hardie over time, having them as a customer, do you think that the growth potential from Hardie is greater than the business they left? And if so, by how much roughly order of magnitude or range bound, 3%, 5% -- just give us an idea of how much further growth we could expect once Hardie is fully deployed within BMD. Jeff Strom: Mike, our opportunity is significant. It truly is. If you think about some of the PVC products and the Class A fire rated products that we have not nationally participated in, I think our growth opportunity there is very, very meaningful. I think the opportunity we have to continue to grow our Siding business is very, very meaningful. And I think we bring along with us a customer base that we have a chance to convert. So the opportunity, when we get there, we really believe is meaningful, and it has us completely excited to go after and go do this. Joanna Barney: Yes. I would tell you, we don't see it as a one-for-one offset on revenue. We see it as a strategic shift to owning the full exterior combined portfolio, where we align with one brand in order to gain a larger share of the full exterior envelope of the home. In fact, we are realigning our branded products team. They will become our exterior products team to be fully aligned and engaged with the James Hardie strategy. Michael Roxland: Got it. One final question, I'll turn it over. Just in terms of Brazilian imports, obviously, concerns that they would increase in the second half. But it seems like with those new 301 tariffs, maybe there's the potential for that to defer or to discourage increasing imports from Brazil. So thoughts around maybe plywood market holding up rather well given the 301 rollout. Troy Little: Yes, it's Troy. Yes, as you mentioned, the second quarter did tick up volume-wise year-to-date versus the prior year. It's still down. I think there was a couple of announced competitor capacity coming offline. And then, of course, for us, we ship veneer from our plywood production over to the EWP side. So I think net-net of all that, there's probably less plywood, especially in the Southeast. So that's probably helped with the prices. I mean, specific to Brazil, what we're seeing, we have a heavy 58 mix in the Southeast to support our EWP business. And it seems a little weird, but I think it's actually, the Brazilian stuff seems to be a little bit complementary to what they supply with the specialty products, maybe some different thicknesses that actually allow our relationship with BMD for them to fill in where we can't supply because of our product mix. So right now, it seems to be, I would say, a nonevent. But the current prices probably allow that even with the Section 301 in effect, some of that volume is still coming, so it will probably be dependent on prices moving forward. Operator: And the next question comes from George Staphos with Bank of America. George Staphos: I wanted to -- recognizing there are lots of moving parts here, is there a way to quantify what the transitional impact was in terms of third quarter guidance for BMD? And with your -- if you will, your existing product line that you're going to be winding down inventories on, if I understood it correctly, you're going to be moving that to some of your larger locations. What else do you do to ultimately make sure that product is more or less out of your files as the James Hardie product is coming in? Kelly Hibbs: Yes. So let me take the first part of that question, and maybe I'll have Joe help amplify a bit on kind of how we're moving through our existing inventory with our former Boise decking supplier. So in terms of the guide, you're right, George, the supplier transition activities are influenced -- are reflected in that guide. And so how so, certainly from a top line standpoint, I mean, end markets are slowing a bit, so that's reflected. And then also the fact that we're moving through our inventory. And as you might expect, the fast turning the A-grade stuff, that's going to turn out pretty quick. And then the other products will continue to turn, but maybe in a bit of a slower rate. And so overall -- and we won't be adding new inventory for that brand, obviously. So that's going to be a component of the daily sales decrease we expect to see as we get into August and September. And then on the margin profile, you notice that is a little bit lower also. And that's going to be a function of kind of what Joe hit on a bit ago, which is we have certain geographies where we move a lot of composite decking, some markets a little bit less. And so we're going to, as best we can, kind of do a hub and spoke to move products around to where it can move and where it can turn quickly. And there'll be some costs that we have to bear to make that happen. Joe, anything else you'd add in terms of how we kind of thread the needle between exiting one and adding another? Joanna Barney: Yes. So I would first say that we are still selling through a significant amount of this inventory per day. We have not seen that slow down. So we're still moving through our inventory. We feel pretty good about that and the levels that we'll be able to get it down to. We have a lot of support from our customer base. A lot of our long-term customers who were willing to purchase that inventory who we've been selling to for a very long time. So we've got a lot of avenues where we can push this inventory. The home centers are an avenue for us. We've got a lot of support there. They move through a lot of this material. So we've got some optionality there. And then if we get down to it, some of it can be recycled. So we've got a lot of options that we can push this inventory out to as we wind it down. Jeff Strom: George, I'm just going to add 2 little things. There's still a lot of decking season left. We have a solid 2 months left for us that we can move some. And then I just want to stress the customer help that we've been hearing from our customers that will help us out that are, "Okay, what do I need to move for you?" It's been significant. So we feel good about what we can do there. George Staphos: Jeff, is there maybe a little bit of margin degradation, too because, forgive the elemental question, but or point do you have to market down at all to make sure it's gone so that you have space when the new Hardie product comes in? Or no, not really because you still have 2 months in decking season, et cetera, et cetera? Jeff Strom: I'd say not -- on one hand, I'd say not really because we have 2 months and we have people that are willing to help us on that. But I would say when we get towards the end and we have to start moving product around, we'll be incurring some freight charges on things and things that might not be the fastest moving. There could be some of that at the very end. George Staphos: Okay. Now at the national big box retailers, I can imagine they'd be very happy to get the one full suite of products from you as you're aligned with Hardie. With smaller lumber yards, and places like that, what are you going to do to help them now become more accustomed to your new product line where before they were accustomed to your old decking product line, especially with the contractors that are in that market. Is that a big deal? Or is that not that big of a deal in terms of the sort of the margin that you got to work through the costs that you have to work through? Jeff Strom: George, James Hardie's reputation in the industry for the products they produce is fantastic. And if you look at what their growth rate has been over the last several years in the decking category, particularly, it's always hard to move people. There's no doubt about it. But we have a sales force that's very capable. We're working with James Hardie force, which is very capable. We have a reputation for servicing the dealers that they've come to rely on. And some of the work that used to be done at the dealer level that we do for people, they understand the value that we bring. And so converting them [ mildly ]. Nothing is easy, and we're not naive to that, but we believe we can do it. George Staphos: No, of course. I guess last question for me, and I'll turn it over and recognizing it might be a bit of a sensitive topic. Do you intend to -- and can you carry SKUs from other manufacturers in some of the key categories that Hardie supplies? Or are you more or less going to focus entirely on selling the full suite of Hardie products from decking to siding, et cetera? Jeff Strom: So I would tell you that we will be very focused on James Hardie's whole portfolio, obviously. But there are some carve-outs of some products that we hope to maintain, but it's too early to tell how that will go. Operator: And the next question comes from Ketan Mamtora with BMO Capital Markets. Ketan Mamtora: Maybe just coming back to the third quarter distribution EBITDA guidance, and I appreciate that there are quite a few moving pieces here in the short term. But I'm just curious, if quarter-to-date sales pace is sort of consistent with Q2, can you give us some big buckets that is driving the sequential drop in EBITDA from Q2 to Q3? I see that there is some of the transition element there. But is it possible for you all to just quantify for us what is sort of underlying demand versus kind of the transition impact in the short term? Kelly Hibbs: Yes. So if I understand your question, I'll try here, assuming I understand your question, Ketan, which is -- so the majority of what we're seeing in the step down, I would say, is attributable to the supplier transition activities in terms of the daily sales pace and the margin degradation that I spoke to. I think at the same time, you heard us in some of our prepared remarks talk about generally a bit of a slowing environment. We benefited from some tailwinds in commodity, in particular, lumber and plywood in the first half of the year in BMD. And so I don't -- given demand softening, it's hard to envision that we'll continue to see some tailwinds there. So it's a combination of supplier transition, which is the heavier part of it and then also influenced by just generally softer end market in terms of our near-term view, Ketan. Ketan Mamtora: Understood. Kelly, would it be fair to say about 2/3 of this then is the supplier transition or more or less any just rough order of magnitude? Kelly Hibbs: Yes. I think that's probably fair, Ketan. Joanna Barney: This is Jo. I don't want to get lost to in the fact that, yes, there's going to be some short-term noise here as far as the transition of inventory and moving in and moving one out and loading the other one in. So there will be some short-term noise, whether that's 1 quarter or 2. But I don't want to lose track of how big we can be with this product category. We were the largest distributor for our previous supplier decking line, and we plan to be the same for the James Hardie and the TimberTech decking line, but it won't end with decking. That's the great thing about this full suite of products and the fact that we will be carrying all of them because as we cross-sell, we'll have the opportunity to become the largest in every category. And I think we're going to gain wallet share as James Hardie makes their exits and consolidates their distribution network. We'll be able to leverage our national scale and serve every market. Our national footprint will allow us to better align with the home centers and the national dealers, even the multifamily players. It's going to give us a competitive advantage as far as that goes. And we really believe that our service, our value, our reliability with our customers really from East Coast to West Coast now will help us win both wallet and market share in these product categories. Ketan Mamtora: Got it. No, that's helpful context, Jo. And then on EWP, you mentioned there was some pull forward and recognize this is something that happens every time there's a price increase. So I appreciate that. Again, is it possible to sort of quantify how much of an impact that could have had on Q2? Jeff Strom: In terms of Q2 volumes, yes, I'm not sure that -- I mean, that was the order file. So in terms of our shipments, generally speaking, we -- the mills ran well. We -- our operating rates were in the 85% to 90% on the EWP side. So I mean it's more of our ability to produce it and get it shipped out. And I think that was fairly consistent. So I don't know that there was really an amount that I would add. Kelly Hibbs: Yes. And I would say, Ketan, it's hard for us to specifically quantify how much volume might have been pulled forward a bit, whether it was a transportation issue or the -- getting ahead of the price increase. But I feel like we've reflected that. If you see the third quarter guide, I think that's largely influencing why we're saying mid-single-digit sequential decline in terms of volumes. That has a bit of pull forward as well as a little bit destocking we're hearing through the channel. Ketan Mamtora: Understood. And then just last question. On the freight and transportation side, any sense of sort of how much of incremental cost that is hitting you in Q3 or H2? I recognize that these things is changing day-to-day, week-to-week. But if it were to stay at this level, how much of a drag for transportation and freight is either Q2 or H2? Kelly Hibbs: Yes. So in our prepared remarks, we did call out in terms of the impact of our increase in our selling and distribution expenses and about 50% of that year-over-year increase in our selling and distribution expenses was a function of higher fuel in our own trucks as well as higher outbound delivery costs we're paying. So it's been pretty meaningful. And I think generally speaking, we're -- I think we're doing a pretty good job of passing that through, not 100% of it. But I think generally speaking, we're doing a pretty good job, and it's something we're going to continue to tightly manage and monitor to make sure we're trying to do our best to kind of break even on all fronts. Operator: And the next question comes from Jeff Stevenson with Loop Capital. Jeffrey Stevenson: I was wondering if you could provide more color on the EWP competitive environment during the quarter with order files 3x stronger at this time than last year and pricing largely stabilizing. And then what went into the decision to implement third quarter price increases after the 1 to 2 years of deflation headwinds you've seen in the category? Troy Little: Yes, this is Troy. As we've talked about in the past, I mean, we were seeing prices stabilize for the last few quarters despite the competitive pressures that we were still seeing. And then the cost escalation has been there for a while. We just didn't have the order file necessarily to back a price increase at that time. And then as we did move through the quarter, even prior to what we would call pull forward, we were still seeing pretty decent demand in our order file growing. And so implementing that price increase was a little bit of the desire to address cost inflation, but also the order file and the demand that was there. And then we have seen that pull forward 3x what it was, like we talked about. But I think that's what helped us implement that. It was the price increase itself. I mean we got what the market would bear in each market. I mean we ran the gamut. We had price increases. We were in markets where we were flat, and we actually had markets where we actually had to go down to match competitive pressures. And so as reported, we had about -- we believe it's going to be about 3% once all said and done. That should play out slight increase maybe in Q3, incremental increase in Q4 and probably playing out fully in Q1. Jeffrey Stevenson: Got it. That's very helpful, Troy. And then I was wondering if you could update on the M&A pipeline and whether you've seen any improvement in seller expectations for bolt-on strategic acquisition opportunities in key areas such as mill work given ongoing macro uncertainties. Jeff Strom: Yes. Good question, Jeff. I would say there is still a reasonable amount of activity that comes our way, things for us to evaluate. Our balance sheet is capable to execute M&A and our interest level remains on that front. So we'll continue our very similar approach to capital allocation and how we want to invest to sustain the company and invest to grow the company if we can find the right opportunity and then obviously not lose track of shareholders. And you can see that our LTM capital allocation is pretty well balanced in terms of how much into the company and how much back to shareholders. Operator: And the next question comes from George Staphos with Bank of America. George Staphos: Not to be sort of pedantic here, I know at the end of the day, you want to try to guide in a way that is achievable. But I want to make sure your order files, did you say, Jeff, are 3x what they were in August, yet you're seeing some decelerating. So if those are both true statements, help me ultimately understand how that sort of manifests itself in your expectation for a little bit slower outlook and the guide for wood for the third quarter. Troy Little: Yes, George, this is Troy. It's that carryover from the order -- the growth in the order file prior to the price increase. So we've got that working for us right now. And like I mentioned, believe that it probably has some runway through August. But again, with all the activity or the commentary from the builder side, the interest rate increases, the destocking potential, I think as the quarter plays out, we're just seeing the volume side probably, I think we guided down mid-single digits. So it's probably just playing on that. I mean we might have a little bit more runway with the order file, but that commentary is a big headwind for us. George Staphos: Okay. So -- and I appreciate you going through that. So if you were in our seat trying to sort of map out the rest of the year and let's say, we're a month from now, what would you, if you were in our seat, be particularly looking at to determine whether, in fact, things did decelerate as you're expecting and would or whether there's a length in season or recovery pickup in activity? What are you most focusing on? What would you -- if you were in our seats, focus on given where we sit on our side of the screen? Kelly Hibbs: Yes. A lot of variables for sure that you and us will be trying to get our head around. I think what will be -- one thing that will be interesting to see, George, is the back half of last year and particularly the fourth quarter, the activity at the builder level was almost near a hard stop. It was very, very abrupt end to the kind of the last half of last year. While we're moderating down a bit here now, it feels like maybe it will be a bit more -- a bit stronger here as we exit 2026 as compared to that hard stop in 2025. So that will be something to be interesting to monitor. In the Wood Products business, always end market demand and supply volatility will influence plywood pricing. That's always a big variable for us that's really hard to predict. And then on the BMD side, it's going to be all about successful supplier transition. And I'm not going to put any finer point on that than what you've already heard today other than that will be a clear focus, and we will have a -- we'll be looking to execute in a successful substance fashion as move forward there. Jeff Strom: George, one more thing I would just say in terms of our integrated model and the veneer flow. So the EWP side, yes, we may see some slowing volume-wise, but then we have that flexibility to shift that veneer over to the plywood side. So I just would say whatever your predictions are on future plywood prices, we're able to kind of maintain our capacity at the mill level or production at the mill level by shifting that over there before we got into any real issues around pulling back on production. George Staphos: That's helpful. And appreciate it. And ultimately, I guess, even if things are slowing, you've got easier comps versus last year. So hopefully, we should be looking at better growth year-on-year, but we'll see how that plays out. Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Jeff Strom for any closing remarks. Jeff Strom: Thank you very much. I just want to thank everyone for your continued interest in Boise Cascade. We look forward to talking to you next quarter. Please be well, and please be safe. Thank you, everyone. Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool recommends Boise Cascade. The Motley Fool has a disclosure policy. Boise Cascade (BCC) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Boise Cascade delivered a second quarter that was met positively by the market, with revenue and non-GAAP profit both surpassing Wall Street expectations. Management highlighted the resilience of its integrated manufacturing and distribution model, especially amid persistent demand uncertainty tied to volatile mortgage rates and consumer sentiment. CEO Jeff Strom emphasized that the company’s ability to “leverage our integrated model” was a core reason for maintaining performance as U.S. housing starts softened. Additionally, higher commodity product prices and improved plywood sales volumes helped offset challenges in engineered wood products (EWP), while the company began executing a significant transition in its distribution partnerships. Is now the time to buy BCC? Find out in our full research report (it’s free). Revenue: $1.83 billion vs analyst estimates of $1.77 billion (5.2% year-on-year growth, 3.4% beat) Adjusted EPS: $1.63 vs analyst estimates of $1.21 (34.9% beat) Adjusted EBITDA: $126.2 million vs analyst estimates of $103.6 million (6.9% margin, 21.9% beat) EBITDA guidance for Q3 CY2026 is $98 million at the midpoint, below analyst estimates of $104.7 million Operating Margin: 4.6%, in line with the same quarter last year Market Capitalization: $3.02 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Susan Maklari (Goldman Sachs) asked about the long-term profitability potential and transition timeline for the James Hardie partnership. CEO Jeff Strom and CFO Kelly Hibbs described the growth opportunity as significant but noted the transition will take multiple quarters, with some near-term financial impacts expected. Susan Maklari (Goldman Sachs) inquired about EWP order pull-forward and future price realization. Wood Products leader Troy Little explained the order file was much higher than last year, but intake slowed recently, and price increases would be gradually realized. Michael Roxland (Truist) questioned how fast the Hardie transition could fully replace prior business and the incremental growth opportunity. Management was unable to provide a precise timeline and stressed the shift would enable a broader product offering and greater market share over time. George Staphos (Bank of America) sought quantification of the supplier transition’s impact on Q3 guidance. Hibbs estimated about two-thirds of the EBITDA decline was attributable to the transition, with the remainder linked to weaker underlying demand. Ketan Mamtora (BMO Capital Markets) asked about the impact of higher freight and distribution costs. Hibbs stated that about half of the year-over-year increase in selling and distribution expenses was due to fuel and delivery, with the company attempting to pass on costs but not always at 100%. Looking forward, the StockStory team will monitor (1) the pace and effectiveness of the James Hardie product transition and how quickly Boise Cascade can replace legacy supplier sales, (2) the impact of macroeconomic conditions—particularly mortgage rates and homebuilder activity—on end-market demand, and (3) the company’s ability to manage operational costs and maintain margin discipline amid ongoing supplier and freight cost pressures. The continued ramp-up of engineered wood product pricing and volume will also serve as an important marker of execution. Boise Cascade currently trades at $86.60, up from $83.03 just before the earnings. Is there an opportunity in the stock? Find out in our full research report (it’s free for active Edge members). ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

This article first appeared on GuruFocus. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Q1 FY2027 results exceeded expectations with pro forma net sales growth of 12% and adjusted EBITDA above the high end of guidance. Fiber cement organic growth of 20% was driven by strong execution of strategic initiatives like Color Plus, Statement Essentials, and Trim Over, with sell-through accelerating each month. Expanded distribution partnerships with Boise Cascade and six regional distributors are expected to drive significant revenue synergies and market reach. Cost synergies from the AZEK acquisition are ahead of schedule, with the Hardie Operating System improving productivity and cost visibility across the combined plant footprint. Strong free cash flow of $254 million in Q1 supported debt reduction, with net leverage down to 2.7x and on track to reach ~2.4x by fiscal year-end. The housing macro backdrop remains uncertain with elevated mortgage rates and cautious builder confidence, and the company is not assuming industry improvements. Cost pressures of $80-100 million for FY2027 persist, driven by raw materials, heat, energy, and elevated freight spot rates that are running above planning assumptions. Deck, Rail & Accessories net sales declined 5% year-over-year due to planned channel inventory normalization, though sell-through improved sequentially. The transition to new distribution partners is expected to create quarter-to-quarter noise and incur transition-related costs, which may pressure margins in the near term. Adjusted EBITDA margins are expected to decline in the second half of the year due to seasonality, distribution investments, and freight cost pressures. Warning! GuruFocus has detected 10 Warning Signs with JHIUF. Is JHIUF fairly valued? Test your thesis with our free DCF calculator. Q: North America fiber cement organic growth of 20% was impressive. Can you talk about why you beat your guide, what's working, and why we are seeing the inflection now? A: Aaron Erder, CEO, attributed the beat to three main factors: strong execution of strategic initiatives like Color Plus, Statement Essentials, and Trim Over, which are driving material conversion; strength in the higher-end market segments (repair/remodel and multi-family) where James Hardie is particularly strong; and lapping the inventory destock from a year ago. He noted that fiber cement sell-through accelerated each month, with June being the strongest at 19%. Q: With the new agreement with Boise Cascade, can you talk big picture, longer-term, what this does and which side of the business will have a bigger impact on, TimberTech or Hardie? A: Aaron Erder, CEO, stated that the expanded partnership with Boise Cascade, a national two-step distributor, is a validation of their strategy. It concentrates the brand behind a single national partner fully aligned with the James Hardie, AZEK, and TimberTech portfolios. This pairs Boise's national logistics with James Hardie's downstream demand generation, creating a formidable sales force. While they expect gains in both fiber cement and the relatively new TimberTech/AZEK business, the partnership is a key piece of their plan to accelerate revenue synergies and better serve customers. Q: The implied second half EBITDA growth looks to be down a couple of percent when normalized for last year's stock comp. Are there specific dynamics driving that decline year over year, or is it just planning for the worst? A: Ryan Latta, CFO, explained that the second half being a sequential step down from H1 is normal seasonality. He also cited the uncertainty in the macro backdrop and the costs associated with the new distribution changes as reasons for being prudent in their back-half planning. Additionally, the Deck, Rail, and Accessories segment is seasonally lowest in the October-December quarter, which puts pressure on margins. Q: Can you parse out the assumptions for sell-through and channel load in the strong Q2 guidance for both segments? A: Ryan Latta, CFO, noted that for Deck, Rail, and Accessories, the strong year-over-year growth is driven by the channel inventory normalization in Q1, strong sell-through that has continued into July, and about a third related to loading new distribution partners. For Siding, they saw stronger Q1 sell-through and are in a good inventory position with channel partners, giving them confidence that execution will continue in Q2. Q: On the cost inflation side, the 80 to 100 million is the same as last quarter. How much of that did you feel in the first quarter and how much is baked into the second? A: Ryan Latta, CFO, stated they felt about 20 to 25 million in Q1, mainly on the freight side, which is immediate. While they have seen some relief on commodities and raw materials, freight spot rates are running higher than normal. They are actively working to contract a higher percentage of freight lanes to reduce this pressure, but have kept the 80 to 100 million cost pressure assumption for fiscal 2027. Q: Siding and trim had excellent price/mix growth by single-digits. Is that something that you think will maintain at that level for the rest of the fiscal year? A: Aaron Erder, CEO, clarified that for fiber cement, they are seeing about 5.5% from price and roughly half a point from mix, driven by growth in Color Plus. He expects this to normalize to a more sustainable range of 3.5% to 4% for the rest of the year. Q: On the commercial synergies, you initially didn't account for wins on a two-step distribution with a guy like Boise. Is there any way to size the potential upside to the commercial synergy top-line perspective over the next 12 to 18 months? A: Aaron Erder, CEO, and John Skelly, President and GM of North America, stated that while they are not ready to call an increase, the customer reception has exceeded expectations. The combination of the Moen line and enhanced relationships with new regional distributors could allow them to achieve the $125 million exit run rate target faster than scheduled, but they remain comfortable with the total opportunity laid out. Q: When you have historically done distribution changes, what is the typical training period for those sales forces to be fully effective? A: John Skelly, President and GM of North America, explained that in the Boise situation, they are already experienced in the composite decking category, so the training curve is expected to ramp up quickly. He cited the past conversion of TimberTech with Capital out west as a relevant data point, where leveraging existing category knowledge enabled them to move quickly and drive strong growth. Q: Just on the volumes, it's very strong with double-digit growth in exterior products. Can you quantify the destocking impact in that double-digit growth? A: Aaron Erder, CEO, quantified the destocking impact at roughly 40 to 50 million dollars. He reiterated that the components of the 20% growth in fiber cement were roughly a third from strategic initiatives, a third from the easier comp/destocking, and a third from price. Q: The segment margins going forward are coming down on a percent basis for the full year for both siding and decking. Can you talk about what the headwinds are there? A: Ryan Latta, CFO, identified the major pieces as the freight issue with elevated spot rates and the investments in new distribution partners, which include sales and marketing activity. He also noted that the seasonally low Q3 (October-December) for the Deck, Rail, and Accessories segment puts pressure on margins, and these investments will hit over the next couple of quarters. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Boise Cascade, L.L.C.? Here are five stocks we like better. Boise Cascade’s second-quarter sales rose 5% to $1.8 billion, while net income reached $57.3 million, or $1.63 per share. Wood Products earnings improved substantially as plywood prices and volumes increased. The company will become James Hardie’s sole nationwide distribution partner for siding, trim, decking and railing products. The expansion is expected to support long-term growth, but inventory wind-downs and supplier changes will create transition costs across multiple quarters. Building Materials Distribution sales grew 5%, but EBITDA margins declined amid competitive pricing pressure and higher delivery costs; third-quarter EBITDA is expected to weaken further. Boise Cascade also repurchased about $108 million of stock in the first half and raised its quarterly dividend 5% to $0.23 per share. Faith In The Construction Boom? Follow Buffet's New Buys Here Boise Cascade (NYSE:BCC) reported higher second-quarter sales and Wood Products earnings as plywood prices and volumes improved, while the company outlined a broad distribution expansion with James Hardie that it expects will create near-term transition costs but support longer-term growth. Consolidated sales rose 5% from a year earlier to $1.8 billion in the second quarter. Net income was $57.3 million, or $1.63 per share. Chief Executive Officer Jeff Strom said both net income and earnings per share exceeded the prior-year quarter when excluding gains on asset sales reflected in last year's results. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control These 3 Wood Stocks are about to go on Discount Strom said U.S. housing starts declined 1% year over year during the quarter, while single-family starts fell 4%. He cited consumer sentiment and housing affordability as the principal headwinds for residential construction, alongside geopolitical uncertainty and volatile mortgage rates. Boise Cascade said it will become James Hardie's sole nationwide distribution partner across Hardie Siding and Trim, AZEK Exteriors, and TimberTech Decking and Railing products. Under the arrangement, James Hardie will consolidate its distribution network across regional markets, while Boise Cascade will transition away from competing siding and PVC trim product lines. → Financials Hit Record Highs as the AI Trade Unravels—Can They Keep Leading? Strom called the agreement a growth opportunity and said Boise Cascade expects to compete for business previously supplied through James Hardie's other distribution relationships. He also highlighted the ability to offer a complete product line nationally, particularly to home centers, and said the company sees an opportunity to convert customers from its existing decking business. Jo Barney, executive vice president of Building Materials Distribution, said the combined exterior-products portfolio could help reduce transaction costs for customers by allowing them to use one purchase order, receive one delivery truck and work with one sales representative. She said Boise Cascade has more than 600 salespeople across the country who will work alongside the James Hardie and TimberTech/AZEK sales teams. → Why Rare Earth Processing Could Be the Real 2027 Opportunity The transition will take multiple quarters, management said. Boise Cascade plans to work down inventory from legacy suppliers through the remainder of 2026, begin loading James Hardie products into many locations in September, and begin selling the full suite of James Hardie products in the fourth quarter. The company said it will provide further updates through 2026 and into 2027. Chief Financial Officer Kelly Hibbs said near-term results will be affected by the supplier transition, including inventory wind-down activities and the timing of James Hardie's exits from prior distribution arrangements. Financial support under the agreement begins Oct. 1 as Boise Cascade ramps sales of the expanded product lineup. Building Materials Distribution, or BMD, posted second-quarter sales of $1.7 billion, up 5% from the prior-year period. Sales volume increased 4%, while pricing contributed 1%. General line product sales rose 9% and commodity product sales increased 7%, while engineered wood products, or EWP, sales declined 6%. BMD segment EBITDA was $85.6 million, down from $91.8 million a year earlier. The comparison included a $3.8 million gain on the sale of a non-operating property in the prior-year quarter. BMD's EBITDA margin declined to 5.0% from 5.7%, reflecting lower gross margins, higher selling and distribution costs, and the prior-year asset-sale gain. Gross margin was 15.2%, down 20 basis points year over year. Competitive pressure reduced margins on general line products and EWP, although higher lumber prices improved commodity-product margins. Selling and distribution expenses increased $10.8 million from a year earlier, with roughly half of that increase tied to higher fuel and outbound delivery costs. For the third quarter, Boise Cascade expects BMD EBITDA of $53 million to $68 million and gross margins of 14% to 14.75%. Hibbs said the majority of the expected sequential EBITDA decline is attributable to supplier transition activities, with softer end-market demand also contributing. Wood Products sales, including sales to the distribution segment, increased 3% year over year to $459.6 million. Segment EBITDA rose to $52.4 million from $37.3 million in the prior-year quarter, which had included a $3.9 million gain from the sale of the company's former Roxboro, North Carolina, property. The EBITDA increase primarily reflected higher plywood prices and sales volumes, along with lower per-unit OSB costs used in I-joist manufacturing. Those gains were partly offset by lower EWP sales prices and higher per-unit conversion costs. Plywood sales volume totaled 368 million feet, compared with 356 million feet a year earlier. Average plywood net sales prices increased 15% both year over year and sequentially to $393 per thousand. Hibbs attributed the improvement in pricing to lower imports, noting Brazilian imports declined 25% year over year through the second quarter. New Section 301 tariffs are now in effect and may influence market conditions in coming months, he said. I-joist and LVL volumes each declined 2% from the year-earlier period but rose 18% and 17%, respectively, from the first quarter. Management said some customers accelerated second-quarter purchases ahead of a planned EWP price increase and amid concerns over transportation constraints. Boise Cascade expects Wood Products EBITDA of $22 million to $57 million in the third quarter. The company expects EWP volumes to decline by a mid-single-digit percentage sequentially, while plywood volumes are expected to decline by a low-single-digit percentage. It expects EWP pricing to rise slightly sequentially as a roughly 3% price increase is implemented over time, though contractual obligations will delay full realization. Boise Cascade spent $63 million on capital expenditures in the first six months of 2026 and maintained its full-year capital spending range of $150 million to $170 million. The company repurchased approximately $108 million of common stock during the first half, including about $43 million during the second quarter. About $130 million remained available under its repurchase program at quarter-end. The board also approved a 5% increase in the quarterly dividend to $0.23 per share, payable in mid-September. Strom said the company believes its integrated manufacturing and distribution model, financial position and investments through the business cycle will help it capitalize on long-term housing and repair-and-remodel demand drivers. Boise Cascade Company operates as a leading manufacturer and distributor of wood products and building materials in North America. The company's operations are organized into two primary segments: wood products manufacturing and building materials distribution. In its manufacturing segment, Boise Cascade produces a wide array of engineered wood products, including plywood, oriented strand board (OSB), lumber, particleboard and laminated veneer lumber (LVL), serving residential, commercial and industrial customers. In its distribution segment, Boise Cascade sources and delivers building materials through an extensive network of distribution centers, servicing professional builders, remodelers, contractors and industrial customers. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Boise Cascade Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management is leveraging an integrated manufacturing and distribution model to maintain resilience against headwinds from volatile mortgage rates and cautious consumer sentiment. The company announced a major strategic shift, becoming the sole nationwide distribution partner for James Hardie's full product portfolio, including siding, trim, and decking. This partnership is designed to simplify the customer purchasing experience while providing Boise Cascade with a deeper addressable market and a competitive advantage in national accounts. Performance in the Wood Products segment was bolstered by higher plywood prices and volumes, driven by reduced Brazilian imports and internal shifts in veneer production. BMD sales growth of 5% was supported by seasonal demand improvements and a 9% increase in general line products, despite competitive pricing pressures in EWP. The company is intentionally transitioning away from legacy siding and PVC trim suppliers to align exclusively with the James Hardie brand across all regional markets. The James Hardie transition is expected to create near-term revenue pressure in decking, siding, and trim as legacy inventory is wound down through the remainder of 2026. Management expects a 3% price increase in EWP to be fully realized by Q1 2027, though contractual obligations will delay the immediate financial benefits. Third quarter guidance for BMD assumes a moderation in sales pace due to slowing end-market signals and the complexities of the supplier transition. The company anticipates a mid-single-digit sequential decline in EWP volumes for Q3 as order intake slows following a period of customer pull-forward activity. Financial support elements within the James Hardie agreement are scheduled to begin October 1, 2026, to help mitigate the financial impacts of the product ramp-up. Selling and distribution expenses increased by $10.8 million, with approximately 50% of the rise attributed to higher fuel and outbound delivery costs. The Board approved a 5% increase in the quarterly dividend to $0.23 per share, reflecting confidence in the company's cash generation capabilities. Management noted that Brazilian plywood imports declined by 25% year-over-year, though new Section 301 tariffs may further alter market dynamics in coming months. Boise Cascade repurchased $43 million of common stock in Q2, leaving $130 million remaining under the current authorization for future opportunistic buybacks. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management expects the deal to drive growth by capturing market share from exited distributors and leveraging James Hardie's #1 or #2 positions across categories. Operational efficiencies will be gained through 'customer stickiness' by offering a single point of contact for a full exterior product suite, improving truck fill rates and cross-selling. The transition is viewed as a multi-quarter journey; Boise Cascade will begin loading new James Hardie inventory in September while utilizing larger branches as hubs to move legacy stock. Management does not see the revenue shift as a one-for-one offset but as a strategic move to own the full exterior envelope of the home. The current EWP order file is 3x higher than the same period last year, which supported the recent price increase despite broader macroeconomic headwinds. Management acknowledged some volume pull-forward by customers seeking to beat the price increase or avoid potential transportation constraints.

This article first appeared on GuruFocus. Consolidated Sales: $1.8 billion, up 5% year over year. Net Income: $57.3 million. Earnings Per Share (EPS): $1.63 per share. BMD Sales: $1.7 billion, up 5% from second-quarter 2025. BMD Segment EBITDA: $85.6 million, compared to $91.8 million in the prior-year quarter. BMD Gross Margin: 15.2%, down 20 basis points year over year. BMD EBITDA Margin: 5%, down from 5.7% in the year-ago quarter. Wood Products Sales: $459.6 million, up 3% compared to second-quarter 2025. Wood Products Segment EBITDA: $52.4 million, compared to $37.3 million in the year-ago quarter. General Line Product Sales: Increased 9%. Commodity Sales: Increased 7%. EWP Sales: Decreased 6%. I-Joist Volumes: Down 2% year over year. LVL Volumes: Down 2% year over year. I-Joist Realization: Declined 7% versus the prior-year quarter. LVL Realization: Declined 4% versus the prior-year quarter. Plywood Sales Volume: 368 million feet, compared to 356 million feet in second-quarter 2025. Plywood Net Sales Price: $393 per thousand, a 15% increase year over year. Capital Expenditures: $63 million in the first six months of 2026, including $23 million in the second quarter. Dividends Paid: $18 million in the first six months of 2026, including $8 million in the second quarter. Share Repurchases: Approximately $108 million in the first six months of 2026, including approximately $43 million in the second quarter. Warning! GuruFocus has detected 9 Warning Signs with BCC. Is BCC fairly valued? Test your thesis with our free DCF calculator. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Consolidated Q2 sales increased 5% year-over-year to $1.8 billion, with net income and EPS of $57.3 million and $1.63 per share, both higher than the prior-year quarter when excluding gains on asset sales. Expanded distribution partnership with James Hardie to become the sole nationwide distributor for its full product portfolio, positioning Boise Cascade for significant long-term growth and market share gains. Wood Products segment EBITDA increased to $52.4 million from $37.3 million in the prior-year quarter, driven by higher plywood prices and volumes and lower per-unit OSB costs. Plywood net sales price rose 15% year-over-year to $393 per thousand, supported by reduced imports and new Section 301 tariffs that may further benefit pricing. Strong capital allocation with $108 million in share repurchases in the first half of 2026 and a 5% dividend increase, reflecting confidence in the balance sheet and cash generation. EWP order file is approximately 3x higher than the same time last year, supporting a successful 3% price increase implementation. Integrated manufacturing-distribution model provides flexibility to shift veneer between plywood and EWP production, optimizing capacity and responding to market conditions. Third-quarter BMD EBITDA guidance is significantly lower at $53-$68 million, impacted by supplier transition activities and softer end-market demand. BMD EBITDA margin declined 70 basis points year-over-year to 5%, due to lower gross margins, higher selling and distribution costs, and a prior-year asset sale gain. EWP volumes declined 2% year-over-year in Q2, with pricing down 7% for I-joists and 4% for LVL, reflecting competitive pressures. The James Hardie transition will take multiple quarters to fully implement, with near-term revenue pressure in decking, siding, and trim as inventory is wound down. Homebuilding demand remains challenged by geopolitical uncertainty, volatile mortgage rates, and affordability issues, leading to cautious builder behavior and a slowing market. Higher fuel and outbound delivery costs increased selling and distribution expenses by $10.8 million year-over-year, with only partial pass-through to customers. Third-quarter Wood Products EBITDA guidance is wide at $22-$57 million, with expected mid-single-digit sequential volume declines due to pull-forward effects and channel de-stocking. Q: Can you talk more about the long-term path for profitability and efficiencies from the expanded James Hardie distribution partnership, and are the terms consistent with prior deals?A: Jeff Strom (CEO) emphasized this is a growth opportunity, citing Hardie's exits from other distributors, national talent opportunities at home centers, conversion of Boise's existing customer base, and James Hardie's strong sales force. Kelly Hibbs (CFO) noted the day-to-day terms are not inconsistent with prior agreements, and the focus is on a thoughtful, well-orchestrated transition with financial support elements from Hardie to mitigate near-term impacts. Joanna Barney (EVP, BMD) added that aligning with one brandwhich holds #1 or #2 positions in siding, trim, and composite deckingcreates customer stickiness, reduces transaction costs, and improves truck fill rates and cross-selling opportunities. Q: How are you thinking about channel inventories for EWP in the second half, given the pull-forward in Q2 and downward revisions from public builders, and what does that mean for the 3% price increase realization?A: Troy Little (EVP, Wood Products) stated the order file is about 3x what it was this time last year, providing a runway through August, though intake has slowed due to builder commentary and dealer de-stocking. Jeff Strom (CEO) noted the pull-forward is normal with price increases and that dealer reluctance to carry inventory plays into the hands of distribution, as just-in-time delivery becomes more important. Q: How long will the Hardie transition take, and can you estimate how fast the new business could grow relative to the prior business, plus any incremental margin benefit?A: Kelly Hibbs (CFO) said it's too early for specifics, as the timeline depends on Hardie's exit from existing distribution arrangements (potentially one to two quarters) and Boise's inventory wind-down, with new inventory loading starting in September. Joanna Barney (EVP, BMD) added that Boise will start selling the full Hardie suite in Q4, and the transition will be a multi-quarter journey. Jeff Strom (CEO) emphasized the growth opportunity is "significant," particularly in PVC and Class A fire-rated products where Boise hasn't nationally participated. Q: Can you quantify the transitional impact on BMD's third-quarter guidance, and what are you doing to ensure the legacy inventory is cleared as Hardie product comes in?A: Kelly Hibbs (CFO) said the supplier transition is the heavier part of the sequential EBITDA step-down, combined with softer end markets. Joanna Barney (EVP, BMD) noted Boise is still selling through significant inventory daily, with support from long-term customers and home centers, and has options including moving product to hub locations or recycling. Jeff Strom (CEO) added there are still two months of decking season left, and customers have been proactive in helping clear inventory. Q: What is driving the sequential drop in BMD EBITDA from Q2 to Q3, and can you separate underlying demand from transition impacts?A: Kelly Hibbs (CFO) attributed the majority of the step-down to supplier transition activities, including daily sales pace and margin degradation, with roughly two-thirds of the impact from the transition. He also noted the first half benefited from commodity tailwinds in lumber and plywood that are unlikely to continue given softening demand. Joanna Barney (EVP, BMD) stressed the short-term noise shouldn't obscure the long-term opportunity to become the largest distributor in every exterior product category. Q: Can you provide more color on the EWP competitive environment and what went into the decision to implement price increases after years of deflation?A: Troy Little (EVP, Wood Products) explained that prices had stabilized over recent quarters despite competitive pressures, and cost escalation had been building. The growing order file and demand supported the price increase, which was implemented with market-by-market adjustments. The result is expected to be about a 3% increase, with slight gains in Q3, incremental increases in Q4, and full realization by Q1. Q: How are Brazilian imports affecting plywood pricing, and what's the outlook given the new Section 301 tariffs?A: Troy Little (EVP, Wood Products) noted Brazilian imports declined 25% year-over-year through Q2, despite a temporary tariff reduction. The new Section 301 tariffs may influence dynamics, but currently, Brazilian imports are complementary to Boise's product mix, particularly in the Southeast. He characterized the impact as a "non-event" at current prices, though it will depend on future price movements. Q: Can you update on the M&A pipeline and whether seller expectations have improved for bolt-on acquisitions?A: Kelly Hibbs (CFO) said there is still a reasonable amount of activity to evaluate, and the balance sheet is capable of executing M&A. The company's approach to capital allocation remains balanced between investing in the business and returning capital to shareholders, with interest in finding the right opportunities. Q: Your order file is 3x last year, yet you're seeing decelerationhow do these reconcile with the Q3 Wood Products guidance?A: Troy Little (EVP, Wood Products) explained the order file reflects carryover from pre-price-increase growth, providing runway through August. However, builder commentary, interest rate increases, and potential de-stocking are headwinds, leading to the mid-single-digit sequential volume decline guidance. Kelly Hibbs (CFO) added that while the back half of 2025 saw an abrupt stop, 2026 may see a softer landing, and the integrated model allows flexibility to shift veneer between EWP and plywood production. Q: Do you intend to carry SKUs from other manufacturers in categories Hardie supplies, or focus entirely on Hardie's portfolio?A: Jeff Strom (CEO) said Boise will be very focused on James Hardie's full portfolio, but there are some carve-outs of products they hope to maintain, though it's too early to determine how that will play out. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Serve Robotics Inc. SERV is slated to report second-quarter 2026 results on Aug. 06, after market close. The company’s earnings performance has been mixed over the last four quarters, meeting the Zacks Consensus Estimate once, missing it twice and beating once. The company delivered an average negative surprise of 24.1%. The Zacks Consensus Estimate for Serve Robotics’ second-quarter 2026 loss per share is pegged at 69 cents. In the prior-year quarter, the company reported an adjusted loss per share of 36 cents. The consensus mark has been unchanged over the past 30 days. Serve Robotics Inc. price-eps-surprise | Serve Robotics Inc. Quote The Zacks Consensus Estimate for revenues is pegged at $3.54 million, indicating a 452.7% gain from the year-ago quarter's reported figure. Serve Robotics' top line in the second quarter of 2026 is likely to have been supported by higher utilization of its existing robot fleet and efforts to increase revenues generated from each robot. Rather than adding more sidewalk robots during the first half of the year, the company focused on improving operational efficiency by activating more merchants, integrating additional delivery platforms and expanding into new cities and neighborhoods. These initiatives are likely to have increased delivery activity and supported revenue growth in the to-be-reported quarter.In addition to operational improvements, Serve Robotics is likely to have benefited from a broader mix of recurring revenue streams. Software services, branding, data and healthcare automation have become larger contributors alongside food delivery, while the integration of Diligent Robotics has expanded the company's footprint and added another source of recurring revenues. Together with ongoing efforts to improve revenue per robot and operating hour, these developments are likely to have contributed meaningfully to top-line growth in the to-be-reported quarter.On the bottom line, however, Serve Robotics' ongoing investments are likely to have continued weighing on profitability. Spending on autonomy development, AI model improvements, fleet software, data infrastructure and platform integration remained elevated. At the same time, costs associated with supporting a larger fleet and integrating the healthcare robotics business are likely to have kept margin pressure high despite improving software margins. Our proven model does not conclusively predict an earnings beat for Serve Robotics this time around. A combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Unfortunately, this is not the case here.SERV’s Earnings ESP: Serve Robotics has an Earnings ESP of 0.00%. You can uncover the best stocks before they are reported with our Earnings ESP Filter.Serve Robotics’ Zacks Rank: The stock currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here. Here are some companies, which, according to our model, have the right combination of elements to post an earnings beat this season.Boise Cascade Company BCC has an Earnings ESP of +6.50% and a Zacks Rank of 2 at present. The company’s earnings beat estimates in two of the last four quarters, missed on one occasion, and met on the remaining occasion, the average surprise being 40.8%. Boise Cascade’s earnings for the second quarter of 2026 are expected to decline 25% year over year.Amentum Holdings, Inc. AMTM currently has an Earnings ESP of +3.18% and a Zacks Rank of 3.The company’s earnings beat estimates in the last four quarters, the average surprise being 4%. Amentum’s earnings for the second quarter of 2026 are expected to increase 12.5% year over year.Limbach Holdings, Inc. LMB has an Earnings ESP of +0.26% and a Zacks Rank of 3 at present.The company’s earnings beat estimates in three of the last four quarters and missed on the remaining one occasion, the average surprise being 37.3%. Limbach’s earnings for the second quarter of 2026 are expected to rise 5.4% year over year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Serve Robotics Inc. (SERV) : Free Stock Analysis Report Boise Cascade, L.L.C. (BCC) : Free Stock Analysis Report Limbach Holdings, Inc. (LMB) : Free Stock Analysis Report Amentum Holdings, Inc. (AMTM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

BOISE, Idaho, August 03, 2026--(BUSINESS WIRE)--Boise Cascade Company ("Boise Cascade," the "Company," "we," or "our") (NYSE: BCC) today reported net income of $57.3 million, or $1.63 per share, on sales of $1.8 billion for the second quarter ended June 30, 2026, compared with net income of $62.0 million, or $1.64 per share, on sales of $1.7 billion for the second quarter ended June 30, 2025. Second quarter 2025 results included $5.8 million of after-tax gains, or $0.15 per share, on the sale of non-operating properties. "I am excited to announce an outstanding second quarter, in what continues to be a mixed demand backdrop. These results reflect the power of our people and the service capabilities that our integrated model delivers to the marketplace," said Jeff Strom, CEO. "By combining nationwide scale with strong local support, we delivered the reliable service and consistent value our customers have come to expect from us across a broad mix of industry-leading building materials. The recent announcement of our expanded partnership with James Hardie to become the sole nationwide distributor of their full portfolio of industry-leading exterior and outdoor building products further strengthens our ability to distinguish ourselves in the marketplace. Looking ahead, we will continue to advance strategic priorities that position us to grow share, drive efficiencies, and return capital to shareholders while supporting our customers’ and suppliers’ success." Second Quarter 2026 Highlights In second quarter 2026, total U.S. housing starts and single-family housing starts decreased 1% and 4%, respectively, compared to the same period in 2025. On a year-to-date basis through June 2026, total U.S. housing starts were flat, while single-family housing starts decreased 5% compared to the same period in 2025. Single-family housing starts are the key demand driver for our sales. Building Materials Distribution (BMD) BMD's sales increased $82.6 million, or 5%, to $1,697.5 million for the three months ended June 30, 2026, from $1,614.9 million for the three months ended June 30, 2025. The overall increase in sales was driven by net sales volume and net sales price increases of 4% and 1%, respectively. By product line, general line product sales increased 9%, commodity sales increased 7%, and EWP sales (substantially all of which are sourced through our Wood Products segment) decreased 6%. BMD segment income decreased $7.9 million to $70.1 million for the three months ended June 30, 2026, from $78.0 million for the three months ended June 30, 2025. The decrease in segment income was driven by increased selling and distribution expenses and depreciation and amortization expense of $10.8 million and $1.7 million, respectively. Additionally, segment income in second quarter 2025 benefited from a $3.8 million gain on the sale of a non-operating property. These decreases in segment income were offset partially by a gross margin increase of $9.2 million, resulting from higher gross margins on commodity and general line products, which were offset partially by lower gross margins on EWP. Wood Products Wood Products' sales, including sales to BMD, increased $12.4 million, or 3%, to $459.6 million for the three months ended June 30, 2026, from $447.2 million for the three months ended June 30, 2025. The increase in sales was primarily driven by higher plywood sales prices and sales volumes. These increases were offset partially by lower sales prices and sales volumes for I-joists and LVL (collectively referred to as EWP). Wood Products' segment income increased $11.7 million to $25.7 million for the three months ended June 30, 2026, from $14.0 million for the three months ended June 30, 2025. The increase in segment income was primarily due to higher plywood sales prices and sales volumes, as well as lower per-unit OSB costs. These increases in segment income were offset partially by lower EWP sales prices and higher per-unit conversion costs. Additionally, segment income in second quarter 2025 benefited from a $3.9 million gain on the sale of a non-operating property. Comparative average net selling prices and sales volume changes for EWP and plywood are as follows: Balance Sheet and Liquidity Boise Cascade ended second quarter 2026 with $304.8 million of cash and cash equivalents and $395.1 million of undrawn committed bank line availability, for total available liquidity of $699.9 million. The Company had $452.5 million of outstanding debt at June 30, 2026. Capital Allocation We expect capital expenditures in 2026, excluding potential acquisition spending, to total approximately $150 million to $170 million. This level of capital expenditures could increase or decrease as a result of several factors, including efforts to further accelerate organic growth, exercise of lease purchase options, our financial results, future economic conditions, availability of engineering and construction resources, and timing and availability of equipment purchases. For the six months ended June 30, 2026, the Company paid $18.1 million in common stock dividends. On July 30, 2026, our board of directors declared a quarterly dividend of $0.23 per share on our common stock, payable on September 16, 2026, to stockholders of record on September 1, 2026. For the six months ended June 30, 2026, the Company paid $108.3 million for the repurchase of 1,404,815 shares of our outstanding common stock. As of June 30, 2026, approximately $130 million of our outstanding common stock was available for repurchase under our existing share repurchase program. Expanded Nationwide Distribution Partnership with James Hardie On August 3, 2026, the Company and James Hardie announced an expanded agreement that positions Boise Cascade as the sole nationwide distributor for James Hardie’s industry-leading portfolio of exterior and outdoor building products through our extensive network of strategically located distribution facilities across the United States, effective July 31, 2026. Under the expanded agreement, Boise Cascade will distribute James Hardie’s comprehensive portfolio of products, including Hardie® siding and trim, AZEK® Exteriors, and TimberTech® decking and railing. As the two companies fully align their focus and resources, Boise Cascade will transition away from competing siding, trim, and exterior moulding products. James Hardie will consolidate its distribution network across all regional markets and has designated Boise Cascade its sole nationwide distribution partner. Together, Boise Cascade and James Hardie will leverage their complementary strengths to better serve customers, provide broader access to dealers, contractors, and retailers, expand their market reach, and drive long-term growth and value creation for their respective stakeholders. Outlook Demand for the products we purchase and distribute, as well as the products we manufacture, depends primarily on new single-family residential construction, with additional demand driven by new multi-family residential construction, residential repair-and-remodeling, and light commercial activity. During the second quarter, the operating environment remained uneven and competitive. Ongoing geopolitical uncertainty, volatile Treasury yields and mortgage rates, and persistent inflation continue to weigh on the macroeconomic outlook. Against this backdrop, residential construction remains subdued, as affordability constraints and low consumer sentiment pressure market conditions. In response, homebuilders have relied on incentives to stimulate demand while maintaining discipline around starts and spec inventory. Beyond near-term volatility, long-term residential construction fundamentals remain constructive, supported by generational tailwinds and an undersupplied housing market. High homeowner equity and an aging U.S. housing stock support sustained repair-and-remodel spending and reinforce the industry’s solid underlying demand drivers. Our distribution business, which purchases and resells a diverse range of products, may benefit from rising prices through increased sales and margins, while periods of declining prices may present challenges. Future product pricing, particularly for commodity products we distribute and manufacture, is expected to remain dynamic, influenced by economic and geopolitical conditions, input costs, industry operating rates, supply disruptions, duties, tariffs, cost and availability of transportation, inventory levels, and seasonal demand patterns. We will continue to monitor end market demand signals and align production rates and inventory stocking positions accordingly. We are providing financial guidance for third quarter 2026 as set forth in the table below. Guidance is based on current plans and expectations and is subject to a number of known and unknown uncertainties and risks, including the transition to our new third-party supplier for composite decking, and those set forth below under "Forward-Looking Statements." About Boise Cascade Boise Cascade is one of the largest U.S. wholesale distributors of building materials and a leading manufacturer of engineered wood products and plywood in North America. Our integrated model and national distribution footprint position us to deliver outstanding service to our customers across a broad range of industry-leading products, including key structural products that we produce. Headquartered in Boise, Idaho, we operate more than 60 distribution and manufacturing facilities strategically located across the U.S. and Canada. Our work is powered by a dedicated team of over 7,500 people. Learn more at www.bc.com. Webcast and Conference Call Boise Cascade will host a webcast and conference call to discuss second quarter earnings on Tuesday, August 4, 2026, at 11 a.m. Eastern. To join the webcast, go to the Investors section of our website at www.bc.com/investors and select the Event Calendar link. Analysts and investors who wish to ask questions during the Q&A session can register for the call here. The archived webcast will be available in the Investors section of Boise Cascade's website. Use of Non-GAAP Financial Measures We refer to the terms EBITDA, Adjusted EBITDA and Segment EBITDA in this earnings release and the accompanying Quarterly Statistical Information as supplemental measures of our performance and liquidity that are not required by or presented in accordance with generally accepted accounting principles in the United States (GAAP). We define EBITDA as income before interest (interest expense and interest income), income taxes, and depreciation and amortization. Additionally, we disclose Adjusted EBITDA, which further adjusts EBITDA to exclude the change in fair value of interest rate swaps. We also disclose Segment EBITDA, which is segment income (loss) before depreciation and amortization. We believe EBITDA, Adjusted EBITDA and Segment EBITDA are meaningful measures because they present a transparent view of our recurring operating performance and allow management to readily view operating trends, perform analytical comparisons, and identify strategies to improve operating performance. We also believe EBITDA, Adjusted EBITDA and Segment EBITDA are useful to investors because they provide a means to evaluate the operating performance of our segments and our Company on an ongoing basis using criteria that are used by our management and because they are frequently used by investors and other interested parties when comparing companies in our industry that have different financing and capital structures and/or tax rates. EBITDA, Adjusted EBITDA and Segment EBITDA, however, are not measures of our liquidity or financial performance under GAAP and should not be considered as alternatives to net income, income from operations, or any other performance measure derived in accordance with GAAP or as alternatives to cash flow from operating activities as a measure of our liquidity. The use of EBITDA, Adjusted EBITDA and Segment EBITDA instead of net income or segment income (loss) have limitations as analytical tools, including: the inability to determine profitability; the exclusion of interest expense, interest income, and associated significant cash requirements; and the exclusion of depreciation and amortization, which represent unavoidable operating costs. Management compensates for these limitations by relying on our GAAP results. Our measures of EBITDA, Adjusted EBITDA and Segment EBITDA are not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the methods of calculation. For a reconciliation of net income to EBITDA and Adjusted EBITDA and segment income to Segment EBITDA, please see the section titled, "Summary Notes to Consolidated Financial Statements and Segment Information" below. Forward-Looking Statements This press release and the related webcast call contain statements concerning future events and expectations, including, without limitation, statements relating to our outlook and the transition to our new-third party supplier for composite decking. These statements constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions, or future events or performance, often, but not always, through the use of words or phrases such as "anticipates," "believes," "could," "estimates," "expects," "intends," "outlook," "potential," "plans," "predicts," "preliminary," "projects," "targets," "may," "may result," or similar expressions, are not statements of historical facts and may be forward-looking. Forward-looking statements are not guarantees of future performance, involve estimates, assumptions, risks, and uncertainties, and may differ materially from actual results, performance, or outcomes. Factors that could cause actual results or outcomes to differ materially from those contained in forward-looking statements include those factors set forth in Boise Cascade’s most recent Annual Report on Form 10-K, subsequent reports filed by Boise Cascade with the Securities and Exchange Commission (SEC), including our forthcoming Quarterly Report on Form 10-Q for the second quarter of 2026, and the following important factors: the commodity nature of a portion of our products and their price movements, which are driven largely by general economic conditions, industry capacity and operating rates, industry cycles that affect supply and demand, and net import and export activity; the highly competitive nature of our industry; declines in demand for our products due to competing technologies or materials, as well as changes in building code provisions; disruptions to information systems used to process and store customer, employee, and vendor information, as well as the technology that manages our operations and other business processes; material disruptions and/or major equipment failure at our manufacturing facilities; declining demand for residual byproducts, particularly wood chips generated in our manufacturing operations; labor disruptions, shortages of skilled and technical labor, or increased labor costs; product shortages, loss of key suppliers, and our dependence on third-party suppliers and manufacturers; the termination of the distribution relationship with our former composite decking supplier and our ability to execute a successful transition to our new third-party supplier for composite decking; the cost and availability of third-party transportation services used to deliver the goods we distribute and manufacture, as well as our raw materials; cost and availability of raw materials, particularly wood fiber; the need to successfully formulate and implement succession plans for key members of our management team; our ability to execute our organic growth and acquisition strategies efficiently and effectively; failures or delays with new or existing technology systems and software platforms; our ability to successfully pursue our long-term growth strategy related to innovation and digital technology; concentration of our sales among a relatively small group of customers, as well as the financial condition and creditworthiness of our customers; impairment of our long-lived assets, goodwill, and/or intangible assets; substantial ongoing capital investment costs, including those associated with organic growth and acquisitions, and the difficulty in offsetting fixed costs related to those investments; our indebtedness, including the possibility that we may not generate sufficient cash flows from operations or that future borrowings may not be available in amounts sufficient to fulfill our debt obligations and fund other liquidity needs; restrictive covenants contained in our debt agreements; changes in or failure to comply with laws and regulations; changes in foreign trade policy, including the imposition of tariffs; compliance with data privacy and security laws and regulations; the impacts of climate change and related legislative and regulatory responses intended to reduce climate change; cost of compliance with government regulations, in particular, environmental regulations; exposure to product liability, product warranty, casualty, construction defect, and other claims; and fluctuations in the market for our equity. It is not possible to predict or identify all risks and uncertainties that might affect the accuracy of our forward-looking statements and, consequently, our descriptions of such risks and uncertainties should not be considered exhaustive. There is no guarantee that any of the events anticipated by these forward-looking statements will occur, and if any of the events do occur, there is no guarantee what effect they will have on the company's business, results of operations, cash flows, financial condition and future prospects. Forward-looking statements speak only as of the date they are made, and, except as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise. Summary Notes to Consolidated Financial Statements and Segment Information The Consolidated Statements of Operations, Segment Statements of Operations, Consolidated Balance Sheets, Consolidated Statements of Cash Flows, and Segment Information presented herein do not include the notes accompanying the Company's Consolidated Financial Statements and should be read in conjunction with the Company’s 2025 Form 10-K and the Company's other filings with the Securities and Exchange Commission. Net income for all periods presented involved estimates and accruals. EBITDA represents income before interest (interest expense and interest income), income taxes, and depreciation and amortization. Additionally, we disclose Adjusted EBITDA, which further adjusts EBITDA to exclude the change in fair value of interest rate swaps. The following table reconciles net income to EBITDA and Adjusted EBITDA for the (i) three months ended June 30, 2026 and 2025, (ii) three months ended March 31, 2026, and (iii) six months ended June 30, 2026 and 2025: The following table reconciles segment income and unallocated corporate costs to Segment EBITDA, EBITDA and Adjusted EBITDA for the (i) three months ended June 30, 2026 and 2025, (ii) three months ended March 31, 2026, and (iii) six months ended June 30, 2026 and 2025: View source version on businesswire.com: https://www.businesswire.com/news/home/20260803523803/en/ Contacts Investor Contact Chris [email protected] Media Contact Amy [email protected]