Boise Cascade Company (BCC) Q1 2026 earnings summary

Executive summary

• First quarter 2026 sales were $1.5 billion, down 2% year-over-year, with net income of $17.8 million ($0.50 per share) versus $40.3 million ($1.06 per share) last year.

• Adjusted EBITDA for Q1 2026 was $66.6 million, a 27% decrease year-over-year.

• Income from operations fell to $27.8 million from $54.5 million in Q1 2025, driven by lower gross margins and higher expenses.

• Cash and cash equivalents ended at $338.7 million, with $733.8 million in total liquidity.

• Demand was mixed: mortgage rates declined but volatility and affordability concerns persisted, impacting residential construction activity.

Financial highlights

• BMD segment sales were $1.39 billion, down 1% year-over-year; Wood Products sales were $398.2 million, down 4%.

• Adjusted EBITDA dropped from $91.6 million to $66.6 million.

• Gross margin for the quarter was 14.4%, down 30 basis points year-over-year; BMD EBITDA margin was 3.5%, down from 4.5%.

• Operating cash flow was negative $16.0 million for Q1 2026, improved from negative $28.5 million in Q1 2025.

• Diluted EPS was $0.50, compared to $1.06 in the prior year.

Outlook and guidance

• Q2 2026 Adjusted EBITDA guidance: $83–$115 million; BMD $65–80 million, Wood Products $32–47 million.

• BMD daily sales pace is currently 15% above Q1, with gross margins expected between 14.25% and 15%.

• EWP and plywood volumes projected to see mid-single-digit sequential increases; plywood prices quarter-to-date are 8% above Q1 average.

• Management expects cash flows, current cash, and borrowing capacity to be adequate for operational and capital needs over the next 12 months.

• Market outlook remains cautious due to mortgage rate volatility, consumer sentiment, and geopolitical factors.