A maker and wholesale distributor of building materials. Its Wood Products division manufactures engineered wood products like LVL, I-joists, and laminated beams, while its distribution arm supplies lumber and other building goods to customers including Home Depot and builders. Formed in 1957 when the Boise Payette Lumber Company merged with the Cascade Lumber Company, its name combines the two founding firms' names. Boise Payette's timberlands were so depleted by the post-war building boom that the merger brought in Cascade's fresh timber.
Wood Products segment income nearly doubled to $25.7M as plywood pricing and volumes rose, while a supplier loss threatens future sales.
Wood Products swung from near-breakeven to a $25.7 million profit. rose 5% to $1.83 billion and widened 0.7 points to 17.9%, driven by a 15% increase in plywood prices and lower OSB costs. The company now faces a transition to a single composite decking supplier that could disrupt sales and margins.
Key takeaways
Wood Products income nearly doubled to $25.7 million from $14.0 million a year ago, as a 15% increase in plywood sales prices, higher plywood volumes, and lower per-unit OSB costs more than offset continued declines in EWP pricing.
Building Materials Distribution income fell 10% to $70.1 million, as a $9.2 million improvement was more than offset by higher selling, distribution, and costs and the absence of a $3.8 million property sale gain recorded in the prior-year quarter.
Section summaries
Management's Discussion and Analysis
Q2 2026 operating income rose 4% to $84.0M as Wood Products gains offset BMD expense increases and prior-year property sale gains.
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Total sales grew 5% to $1.83B, driven by a 5% BMD sales increase on higher volumes and prices, while Wood Products sales rose 3% on stronger plywood pricing and volumes.
BMD income fell 10% to $70.1M as higher selling, distribution, and costs and a prior-year $3.8M property gain more than offset a $9.2M improvement.
widened 0.7 points to 17.9%, and rose 1.7 points sequentially from Q1 2026, as the mix of business shifted toward the higher-margin distribution and plywood pricing improved.
was $42.3 million in the quarter, up 28% from $33.2 million a year ago, bringing first-half operating cash flow to $26.3 million compared with $4.7 million in the prior-year period, aided by a smaller seasonal build.
Cash and equivalents fell to $304.8 million, down $173.9 million from year-end, as $65.5 million in share repurchases and dividends in Q1 and ongoing outpaced ; total liquidity stood at $699.9 million with no borrowings on the $400 million .
The company disclosed that its primary composite decking supplier relationship will terminate effective July 31, 2026, forcing a rapid transition to a single new supplier and creating risk of product shortages, customer losses, and liquidation costs.
What changed
The 0.4-point sequential improvement flagged in Q1 2026 accelerated to a 1.7-point gain in Q2, reaching 17.9% — the highest level since Q2 2025 — as the mix shift toward distribution and plywood price recovery took hold.
EWP pricing trends, watched for over a year for signs of stabilization, showed no recovery: Wood Products income improved on plywood strength and lower OSB costs, while EWP pricing continued to decline, partially offsetting those gains.
The Oakdale mill modernization project was not cited as a material drag on Q2 results, a departure from every quarter in 2025 and Q1 2026, suggesting the per-unit conversion cost from downtime may be easing as the project progresses.
Cash declined a further $33.9 million in the quarter to $304.8 million, extending the drawdown that earlier filings flagged as a concern; the pace of share repurchases against remains the key variable for liquidity.
What to watch
Composite decking transition execution in Q3 2026, including any liquidation charges, product shortages, or customer losses following the July 31 supplier termination.
EWP pricing trends in Q3 2026, to determine whether the seasonal demand slowdown extends the price erosion that has now persisted for over a year, or whether the plywood-led recovery broadens.
progression in Q3 2026, to assess whether the 17.9% Q2 level can be sustained as the mix benefit from the spring building season fades and the decking supplier transition begins.
Cash balance and activity, after cash fell to $304.8 million; the pace of buybacks against will determine whether the company needs to draw on its $400 million .
Wood Products income nearly doubled to $25.7M, primarily due to a 15% increase in plywood sales prices, higher plywood volumes, and lower per-unit OSB costs, partially offset by lower EWP pricing.
improved to $26.3M for the first half of 2026 from $4.7M a year ago, aided by a smaller increase and lower tax payments.
Total available liquidity stood at $699.9M at quarter-end, with $304.8M in cash and $395.1M in undrawn credit line availability, against $452.5M in outstanding debt.
Management expects 2026 of $150M–$170M and believes current liquidity will fund operations, debt service, dividends, and share repurchases over the next 12 months.
Quantitative and Qualitative Disclosures About Market Risk
For information relating to quantitative and qualitative disclosures about market risk, see the discussion under "Item 7A. Quantitative and Qualitative Disclosures About Market Risk" and under the headings Disclosures of Financial Market Risks and Financial Instruments in "Item…
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For information relating to quantitative and qualitative disclosures about market risk, see the discussion under "Item 7A. Quantitative and Qualitative Disclosures About Market Risk" and under the headings Disclosures of Financial Market Risks and Financial Instruments in "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" in our 2025 Form 10-K. As of June 30, 2026, there have been no material changes in our exposure to market risk from those disclosed in our 2025 Form 10-K.
We are a party to legal proceedings that arise in the ordinary course of our business, including commercial liability claims, premises claims, environmental claims, employment-related claims, and governmental investigations and audits, among others. As of the date of this filing…
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We are a party to legal proceedings that arise in the ordinary course of our business, including commercial liability claims, premises claims, environmental claims, employment-related claims, and governmental investigations and audits, among others. As of the date of this filing, we do not believe that we are party to any legal action that could reasonably be expected to have, individually or in the aggregate, a material adverse effect on our financial position, results of operations, or cash flows. See Note 12, Commitments, Legal Proceedings and Contingencies, and Guarantees, of the Condensed Notes to Unaudited Quarterly Consolidated Financial Statements in "Item 1. Financial Statements" of this Form 10-Q for a discussion of material legal proceedings in which we are involved.
SEC regulations require us to disclose certain information about proceedings arising under federal, state or local environmental provisions if we reasonably believe that such proceedings may result in monetary sanctions above a stated threshold. Pursuant to the SEC regulations, we use a threshold of $1 million or more for purposes of determining whether disclosure of any such proceedings is required.