Boise Cascade expects market conditions to remain uneven as affordability constraints, elevated mortgage rates, persistent inflation and geopolitical uncertainty continue to limit residential construction activity. The company reported second-quarter net income of $57 million, down 7% from a year earlier, while sales increased 5% to $1.8 billion and adjusted EBITDA rose 6% to $126 million. Single-family housing starts, the company's primary demand driver, declined 4% from a year earlier, while total U.S. housing starts fell 1%, according to Boise Cascade.

The Building Materials Distribution segment increased sales 5% to $1.7 billion, driven by a 4% increase in sales volumes and a 1% increase in selling prices. General line product sales rose 9%, commodity product sales increased 7%, while engineered wood products (EWP) sales declined 6%. Segment income fell 10% to $70 million as higher selling, distribution and depreciation costs more than offset improved gross margins on commodity and general line products.

The Wood Products segment increased sales 3% to $460 million, while segment income rose 84% to $26 million. Higher plywood prices and volumes, together with lower per-unit OSB costs, offset weaker engineered wood products. Average plywood selling prices increased 15% from a year earlier and plywood sales volumes rose 3%. In contrast, average LVL selling prices declined 4% and volumes decreased 2%, while I-joist selling prices fell 7% and volumes declined 2%.

The company said homebuilders continue to rely on incentives to support demand while maintaining discipline around housing starts and speculative inventory. It expects long-term residential construction fundamentals to remain supported by an undersupplied housing market, demographic demand, high homeowner equity and an aging U.S. housing stock that continues to generate repair-and-remodel activity.

Boise Cascade expects product pricing to remain volatile as economic conditions, geopolitical developments, input costs, industry operating rates, supply disruptions, duties, tariffs, transportation availability, inventory levels and seasonal demand continue to influence the market. The company said it will continue to align production rates and inventory positions with end-market demand. For the third quarter of 2026, Boise Cascade expects adjusted EBITDA of $82 million to $114 million, including $53 million to $68 million from Building Materials Distribution and $42 million to $57 million from Wood Products.