Boise Cascade Reports Decline in Sales and Net Income for Q1 2026

Boise Cascade Company reported a decline in financial performance for the first quarter of 2026, with total sales of $1.5 billion, down 2.5% from $1.54 billion in the same period of 2025. The company's net income also decreased significantly, falling to $17.8 million, or $0.50 per diluted share, compared to $40.3 million, or $1.06 per diluted share, in the prior year. This decline in profitability was attributed to increased operating expenses and lower gross margins across product lines, particularly in engineered wood products (EWP).

The company's costs and expenses for the quarter totaled $1.47 billion, a slight decrease from $1.48 billion in the previous year. Notably, materials, labor, and other operating expenses (excluding depreciation) decreased to $1.26 billion from $1.28 billion, reflecting lower purchased material costs. However, selling and distribution expenses rose to $150.4 million, up from $143.6 million, driven by higher employee-related costs and shipping expenses. The overall income from operations dropped to $27.8 million from $54.5 million year-over-year, indicating a challenging operational environment.

In terms of strategic developments, Boise Cascade continued to focus on its two reportable segments: Building Materials Distribution (BMD) and Wood Products. The BMD segment reported sales of $1.39 billion, a decrease from $1.41 billion, while the Wood Products segment saw sales decline to $398.2 million from $415.8 million. The company also repurchased 830,751 shares at a cost of $65.5 million during the quarter, as part of its ongoing share repurchase program, which has approximately $173.1 million remaining for future buybacks.

Operationally, Boise Cascade's employee headcount stood at approximately 7,660 as of April 26, 2026, with about 17% working under collective bargaining agreements. The company reported a significant increase in cash and cash equivalents, ending the quarter with $338.7 million, down from $477.2 million at the end of 2025. The company also maintained $395.1 million in undrawn committed bank line availability, providing a total liquidity of $733.8 million.

Looking ahead, Boise Cascade anticipates that demand for its products will remain closely tied to residential construction and repair-and-remodeling activities. While the company faces challenges from fluctuating mortgage rates and consumer sentiment, it remains optimistic about long-term demand drivers, including an undersupply of housing units and strong homeowner equity. The company plans to continue monitoring market conditions and adjusting its production and inventory strategies accordingly.