Boise Cascade Q3 Sales Rise 8% as Wood Products Lifts EBITDA

Boise Cascade Company (NYSE: BCC) reported higher third-quarter sales and EBITDA as a sharp improvement in Wood Products offset weaker profitability in Building Materials Distribution. Sales rose 8% year over year to $1.80 billion, while EBITDA increased 32% to $98.5 million despite market headwinds and disruption related to the company’s transition to a new composite decking supplier.

Net income for the quarter ended September 30 was $36.4 million, or $1.04 per share, compared with $21.8 million a year earlier. Third-quarter 2026 EBITDA, a non-GAAP measure, increased from $74.4 million in the prior-year period but declined from $126.2 million in the second quarter of 2026.

Wood Products drives earnings increase

Wood Products sales rose to $461.2 million from $396.4 million a year earlier. Segment EBITDA increased to $42.7 million from $14.5 million, while segment income improved to $16.1 million from a loss of $12.1 million.

The segment’s plywood results reflected higher pricing and lower volumes. Plywood’s average net sales price reached $425 per thousand square feet on a 3/8-inch basis, up from $325 in the third quarter of 2025, while sales volume declined to 362 million square feet from 387 million.

In engineered wood products, laminated veneer lumber volume was 1.68 million cubic feet, compared with 1.70 million cubic feet a year earlier, while its indicated price increased to $59 per cubic foot from $53. I-joist volume rose to 5.4 million equivalent linear feet from 4.6 million, while pricing was broadly stable at $24.1 per thousand equivalent linear feet.

Distribution revenue grows as profitability narrows

Building Materials Distribution sales increased to $1.67 billion from $1.56 billion in the prior-year quarter. However, segment EBITDA decreased to $66.9 million from $69.8 million, and the EBITDA margin narrowed to 4.0% from 4.5%.

The company said both operating segments generated year-over-year revenue growth despite market pressures and supplier-transition disruptions. Boise Cascade continues to focus on activities associated with replacing its former composite decking supplier with a new third-party provider.

During the third quarter, the company allocated $27 million to sustaining the business, including $8 million in Building Materials Distribution and $19 million in Wood Products. It also made $8 million of dividend payments and spent $5 million repurchasing common shares.

Fourth-quarter outlook

Boise Cascade expects total company EBITDA of $32 million to $54 million in the fourth quarter. The forecast includes Building Materials Distribution EBITDA of $35 million to $45 million, Wood Products EBITDA of $10 million to $20 million, and unallocated corporate costs of $11 million to $13 million.

For Building Materials Distribution, quarter-to-date daily sales were running about 10% below the third-quarter average. Management said seasonal factors and supplier-transition activity would determine the extent of further moderation as the quarter progresses. The segment is expected to have 62 sales days and a gross margin of 14.0% to 14.75%.

Within Wood Products, engineered wood product volumes are expected to decline sequentially by a high-teen to mid-20s percentage, while prices are projected to increase slightly. Plywood volumes are expected to fall by a mid- to high-single-digit percentage from the third quarter. Quarter-to-date plywood pricing was about 5% above the third-quarter average, although the company said pricing for the rest of the period would depend on market conditions. Per-unit manufacturing costs are also expected to increase from third-quarter levels.

The company projects fourth-quarter depreciation and amortization of $42 million to $44 million and an effective tax rate of approximately 5%.

Management identified inflation, interest rates, mortgage-rate volatility and constrained housing affordability as key economic and end-market considerations. Other uncertainties include commodity price movements, competition, raw-material and transportation costs, manufacturing disruptions, customer concentration and the execution of the composite decking supplier transition.