Boise Cascade — Third Quarter 2026 Earnings Summary

Financial Performance:

• Consolidated sales increased 8% year-over-year to $1.802 billion for the quarter ended September 30, 2026, compared to $1.668 billion in the prior year period.
• Net income rose 67% year-over-year to $36.4 million ($1.04 per diluted share) from $21.8 million ($0.58 per diluted share) in the third quarter of 2025.
• Adjusted EBITDA increased 32% year-over-year to $98.5 million from $74.4 million.
• Building Materials Distribution (BMD) sales grew 7% to $1.669 billion, driven by a 5% increase in net sales price and a 2% increase in net sales volume.
• BMD segment income decreased 6% to $51.3 million, primarily due to a $6.9 million increase in selling and distribution expenses, partially offset by a $3.6 million gross margin increase.
• Wood Products sales increased 16% to $461.2 million, driven by higher plywood sales prices and EWP sales volumes.
• Wood Products segment income turned positive at $16.1 million, compared to a loss of $12.1 million in the prior year period.
• Wood Products EBITDA surged 194% to $42.7 million from $14.5 million.
• Total U.S. housing starts decreased 4% and single-family housing starts decreased 2% in the third quarter of 2026 compared to the same period in 2025.
• Cash and cash equivalents ended the quarter at $385.1 million, with $395.1 million in undrawn committed bank line availability, totaling $780.3 million in liquidity.
• Outstanding debt stood at $452.5 million as of September 30, 2026.

Guidance and Future Outlook:

• Fourth quarter 2026 EBITDA guidance is provided as follows: BMD EBITDA ($35–$45 million), Wood Products EBITDA ($10–$20 million), Unallocated Corporate Costs ($11–$13 million), and Total Company EBITDA ($32–$54 million).
• Early industry projections for 2027 indicate housing starts are expected to decline mid-single digits from 2026 levels.
• Activity levels in the fourth quarter are expected to exhibit typical seasonality and decelerate through the winter.
• Long-term residential construction fundamentals remain positive, supported by generational tailwinds, an undersupplied housing market, high homeowner equity, and an aging U.S. housing stock.
• Future product pricing is expected to remain dynamic, influenced by economic conditions, tariffs, input costs, supply disruptions, and seasonal demand.
• Capital expenditures for 2026 are expected to total approximately $120 million to $140 million, excluding potential acquisition spending.

Business Segments and Product Lines:

• Building Materials Distribution: Sales were driven by increases in general line product sales (4%), commodity sales (15%), and EWP sales (1%). Gross margin increases were driven by higher margins on commodity products, offset by lower margins on general line products.
• Wood Products: Sales growth was primarily driven by higher plywood sales prices and EWP sales volumes, offset by lower plywood sales volumes. Segment income improvement was driven by higher prices and volumes, offset by higher per-unit conversion costs.
• Plywood: Average net selling prices increased 31% year-over-year and 8% sequentially; sales volumes decreased 7% year-over-year and 2% sequentially.
• EWP (LVL and I-joists): Average net selling prices remained flat year-over-year and sequentially; LVL sales volumes increased 18% year-over-year and 2% sequentially, while I-joist volumes increased 10% year-over-year but decreased 4% sequentially.

Market and Competitive Landscape:

• The company operates in a highly competitive industry with a commodity nature for a portion of its products.
• Homebuilders have pivoted toward build-to-order construction to manage finished-home inventory and align starts with sales due to affordability challenges.
• Customer reliance on the distribution business increases during periods of market uncertainty as customers adopt more conservative inventory practices.
• The company is navigating supplier transitions while maintaining service and value for customers.

Risks and Challenges:

• Risks include declines in demand due to competing technologies, changes in building codes, and disruptions to information systems.
• Potential material disruptions or equipment failures at manufacturing facilities and labor shortages or increased labor costs.
• Dependence on third-party suppliers and the risk of product shortages or loss of key suppliers, including the transition from a former composite decking supplier.
• Fluctuations in raw material costs, particularly wood fiber, and transportation costs.
• Indebtedness and restrictive covenants, including the possibility of insufficient cash flows to fulfill debt obligations.
• Impairment of long-lived assets, goodwill, and intangible assets.
• Exposure to product liability, warranty, and casualty claims.

Management Commentary and Tone:

• CEO Jeff Strom stated the company delivered strong financial results despite softer housing starts, demonstrating the resilience of their integrated platform.
• Management expressed confidence in their nationwide reach, local expertise, and disciplined execution to navigate supplier transitions.
• The tone remains focused on integrating new specialty product lines, driving efficiencies, and supporting customers with in-stock availability and next-day delivery in a cautious demand environment.
• Management thanked associates for their commitment to innovation and customer success.

Other Key Points:

• For the nine months ended September 30, 2026, the Company paid $26.1 million in common stock dividends.
• On October 29, 2026, the Board declared a quarterly dividend of $0.23 per share, payable on December 16, 2026, to stockholders of record on December 1, 2026.
• For the nine months ended September 30, 2026, the Company repurchased 1,466,250 shares of common stock for $112.8 million.
• In October 2026, the Company repurchased an additional 65,006 shares for approximately $5 million.
• Approximately $120 million remained available for repurchase under the existing share repurchase program following these transactions.
• The Company operates more than 60 distribution and manufacturing facilities across the U.S. and Canada with over 7,500 employees.