BCC · Boise Cascade Company

Boise Cascade’s Q1 2026 results reflect pronounced earnings contraction—net income fell 56% year-over-year to $17.8 million—driven by persistent macroeconomic headwinds: geopolitical volatility, elevated and erratic mortgage rates, and severe weather disrupting construction activity. Single-family housing starts—a key demand driver—declined 5% year-over-year, compounding pressure on both operating segments. In Building Materials Distribution (BMD), sales dipped 1% to $1.39 billion, but segment income plunged 32% to $32.9 million due to a 6.5 million gross margin decline and $8.2 million higher selling and distribution expenses, particularly on EWP lines where margins compressed sharply. Wood Products’ income halved to $8.5 million on 4% lower sales, with LVL and I-joist price declines and elevated EWP conversion costs outweighing gains from higher plywood volumes and prices—and the favorable impact of resumed operations at the modernized Oakdale mill. Management emphasized resilience of the integrated model and customer reliance on Boise Cascade’s service and breadth during uncertainty. Capital allocation remained active: $10.4 million in dividends and $90.5 million in share repurchases (including $25 million in April) were executed, leaving $148 million available under the current authorization. Second-quarter guidance signals cautious optimism—BMD EBITDA is expected to rebound to $65–$80 million and Wood Products to $32–$47 million—but ranges remain wide, underscoring ongoing pricing and demand volatility, especially for commodity and EWP products tied to housing cycles. Liquidity remains robust at $734 million, supporting flexibility through the cycle.