Why Is Boise Cascade (BCC) Down 12.3% Since Last Earnings Report?

A month has gone by since the last earnings report for Boise Cascade (BCC). Shares have lost about 12.3% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Boise Cascade due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Boise Cascade, L.L.C. before we dive into how investors and analysts have reacted as of late.

Boise Cascade Q2 Earnings Beat Estimates on Plywood Strength

Boise Cascade reported second-quarter 2026 earnings of $1.63 per share, down 0.6% year over year but above the Zacks Consensus Estimate of $1.23 by 32.5%. Sales rose 5.2% year over year to $1.83 billion.

Higher plywood prices and volumes lifted Wood Products performance, while Building Materials Distribution (BMD) benefited from higher sales volumes and prices. The gains came despite a mixed housing backdrop, with U.S. single-family housing starts, a key demand driver for Boise Cascade, down 4% from a year earlier.

Boise Cascade's BMD Sales Rise on Volume Growth

BMD sales increased 5.1% year over year to $1.70 billion. The improvement reflected a 4% increase in net sales volume and a 1% rise in net sales prices. General line sales increased 9%, commodity sales rose 7% and engineered wood products (EWP) sales fell 6%.

BMD segment EBITDA declined 6.8% to $85.62 million, while segment income fell 10.1% to $70.12 million. Higher selling and distribution expenses and depreciation and amortization weighed on results. These pressures were partly offset by a $9.2 million gross-margin increase.

BCC's Wood Products Gains on Plywood Strength

Wood Products sales, including sales to BMD, advanced 2.8% year over year to $459.6 million. Plywood sales prices increased 15% and volumes rose 3%. In contrast, LVL prices and volumes declined 4% and 2%, respectively, while I-joist prices and volumes fell 7% and 2%.

Segment EBITDA jumped 40.4% to $52.37 million, while segment income surged 83.5% to $25.65 million. Higher plywood prices and volumes and lower per-unit oriented strand board costs drove the improvement, partly offset by lower EWP pricing and higher per-unit conversion costs.

BCC's Profitability Picture

Net income declined 7.5% year over year to $57.34 million. The year-ago quarter included $5.8 million of after-tax gains, or $0.15 per share, from sales of non-operating properties. Income from operations increased 4.3% to $83.98 million.

Adjusted EBITDA rose 6.1% to $126.24 million. Depreciation and amortization increased 14.2% to $42.71 million, while selling and distribution expenses rose 7.4% to $173.79 million, primarily due to higher shipping and handling and employee-related costs.

Boise Cascade's Liquidity Supports Capital Returns

Boise Cascade ended June with $304.82 million in cash and cash equivalents and $395.1 million of undrawn committed bank availability. Total available liquidity was $699.9 million, while outstanding debt stood at $452.5 million.

For the first six months of 2026, operating cash flow totaled $26.34 million and capital expenditures were $63.32 million. BCC paid $18.1 million in common dividends and $108.3 million to repurchase 1,404,815 shares. Its board also declared a quarterly dividend of $0.23 per share, with about $130 million remaining under the share repurchase program.

BCC's Q3 Outlook Reflects an Uneven Market

For the third quarter of 2026, BCC expects total adjusted EBITDA of $82-$114 million. BMD EBITDA is projected at $53-$68 million, Wood Products EBITDA at $42-$57 million and unallocated corporate costs at $11-$13 million.

Management expects BMD's daily sales pace to moderate from the second-quarter average based on end-market signals and supplier-transition activities. Wood Products expects a mid-single-digit sequential decline in EWP volumes and a low-single-digit decrease in plywood volumes. Plywood prices were running 5% above the second-quarter average quarter to date.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.

VGM Scores

Currently, Boise Cascade has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock was allocated a score of A on the value side, putting it in the top quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Boise Cascade has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

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This article originally published on Zacks Investment Research (zacks.com).

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