Boise Cascade Wood Products Swings to Profit

The Tip Desk · November 3, 2026 · 4 min read

Third-quarter net income was $36.4 million, or $1.04 a share, as plywood prices lifted the engineered-wood unit.

Boise Cascade Company (BCC), a U.S. wholesale building-materials distributor and engineered-wood manufacturer, reported net income of $36.4 million, or $1.04 a share, on sales of $1.8 billion for the third quarter ended September 30, 2026, compared with $21.8 million, or $0.58 a share, a year earlier.

The year-over-year sales increase of 8% was faster than the 5% rise recorded in the second quarter. Adjusted EBITDA rose 32% to $98.5 million from $74.4 million a year earlier.

Wood Products, which makes plywood and engineered wood products and sells substantially all of its EWP output through the distribution arm, was the quarter’s defining turn. Segment sales, including sales to Building Materials Distribution, rose 16% to $461.2 million from $396.4 million a year earlier. The company said the increase was primarily driven by higher plywood sales prices and EWP sales volumes, offset partially by lower plywood sales volumes. Segment income was $16.1 million, compared with a $12.1 million loss a year earlier. Wood Products EBITDA rose 194% to $42.7 million from $14.5 million.

Plywood average net selling prices rose 31% year over year and 8% sequentially. Plywood volumes fell 7% year over year and 2% sequentially. LVL volumes rose 18% year over year and 2% sequentially; I-joist volumes rose 10% year over year and fell 4% sequentially. The company said the increase in segment income was primarily due to higher plywood sales prices and EWP sales volumes, offset partially by higher per-unit conversion costs.

Building Materials Distribution, the larger of the two reportable segments, posted sales of $1.67 billion, up 7% from a year earlier. The company said the increase was driven by net sales price and net sales volume increases of 5% and 2%, respectively. Commodity sales rose 15%, general line product sales rose 4%, and EWP sales rose 1%.

BMD segment income fell 6% to $51.3 million from $54.3 million a year earlier. The company said the decrease was driven by increased selling and distribution expenses of $6.9 million, offset partially by a $3.6 million gross-margin increase from higher margins on commodity products, offset partially by lower margins on general line products. BMD EBITDA declined 4% to $66.9 million from $69.8 million a year earlier.

In the third quarter, total U.S. housing starts and single-family housing starts decreased 4% and 2%, respectively, compared with the same period in 2025. On a year-to-date basis through September 2026, total starts decreased 1% and single-family starts decreased 4%. The company said single-family housing starts are the key demand driver for its sales.

Chief executive Jeff Strom said the company delivered strong financial results despite softer housing starts and was beginning to navigate supplier transitions while sustaining service. He said the company remains focused on integrating new specialty product lines, driving efficiencies, and supporting customers with in-stock availability and next-day delivery in a more cautious demand environment.

The company said high fuel prices and an inflation-driven increase in benchmark interest rates amplified affordability challenges that have constrained the new home market throughout 2026, and that homebuilders have pivoted toward build-to-order construction. Activity levels in the fourth quarter are expected to exhibit typical seasonality and decelerate through the winter. Early industry projections for 2027 indicate housing starts are expected to decline mid-single digits from 2026 levels, the company said.

Boise Cascade ended the quarter with $385.1 million of cash and cash equivalents and $395.1 million of undrawn committed bank line availability, for total available liquidity of $780.3 million. Outstanding debt was $452.5 million at September 30, 2026. The company expects 2026 capital expenditures, excluding potential acquisition spending, to total approximately $120 million to $140 million.

For the nine months ended September 30, 2026, the company paid $26.1 million in common stock dividends and $112.8 million to repurchase 1,466,250 shares. In October it repurchased an additional 65,006 shares at a cost of approximately $5 million. After those repurchases, approximately $120 million of outstanding common stock remained available under the existing program. On October 29, 2026, the board declared a quarterly dividend of $0.23 a share, payable December 16, 2026.

Fourth-quarter 2026 guidance is BMD EBITDA of $35 million to $45 million, Wood Products EBITDA of $10 million to $20 million, unallocated corporate costs of ($13) million to ($11) million, and total company EBITDA of $32 million to $54 million. Guidance is based on current plans and expectations and is subject to known and unknown uncertainties, including those related to recent supplier realignment.