BOISE CASCADE Co

Previous wording

We recorded income from operations of $84.0 million during the three months ended June 30, 2026, compared with income from operations of $80.5 million during the three months ended June 30, 2025. In our BMD segment, income decreased $7.9 million to $70.1 million for the three months ended June 30, 2026, from $78.0 million for the three months ended June 30, 2025. The decrease in segment income was driven by increased selling and distribution expenses and depreciation and amortization expense of $10.8 million and $1.7 million, respectively. Additionally, segment income in second quarter 2025 benefited from a $3.8 million gain on the sale of a non-operating property. These decreases in segment income were offset partially by a gross margin increase of $9.2 million, resulting from higher gross margins on commodity and general line products, which were offset partially by lower gross margins on EWP. In our Wood Products segment, income increased $11.7 million to $25.7 million for the three months ended June 30, 2026, from $14.0 million for the three months ended June 30, 2025. The increase in segment income was primarily due to higher plywood sales prices and sales volumes, as well as lower per-unit OSB costs. These increases in segment income were offset partially by lower EWP sales prices and higher per-unit conversion costs. Additionally, segment income in second quarter 2025 benefited from a $3.9 million gain on the sale of a non-operating property. These changes are discussed further in "Our Operating Results" below.

Current wording

We recorded income from operations of $55.8 million during the three months ended September 30, 2026, compared with income from operations of $32.3 million during the three months ended September 30, 2025. In our BMD segment, income decreased $3.0 million to $51.3 million for the three months ended September 30, 2026, from $54.3 million for the three months ended September 30, 2025. The decrease in segment income was driven by increased selling and distribution expenses of $6.9 million, offset partially by a gross margin increase of $3.6 million. The increase in gross margin was driven by higher gross margins on commodity products, offset partially by lower gross margins on general line products. In our Wood Products segment, we recorded income of $16.1 million for the three months ended September 30, 2026, compared with a $12.1 million segment loss for the three months ended September 30, 2025. The increase in segment income was primarily due to higher plywood sales prices and EWP sales volumes, offset partially by higher per-unit conversion costs. These changes are discussed further in "Our Operating Results" below.

Previous wording

We ended second quarter 2026 with $304.8 million of cash and cash equivalents and $395.1 million of undrawn committed bank line availability, for total available liquidity of $699.9 million. We had $452.5 million of outstanding debt at June 30, 2026. We used $172.4 million of cash during the six months ended June 30, 2026, to fund seasonal working capital increases, capital spending, share repurchases, and dividends paid on our common stock. A further description of our cash sources and uses for the six-month comparative periods are discussed in "Liquidity and Capital Resources" below.

Current wording

We ended third quarter 2026 with $385.1 million of cash and cash equivalents and $395.1 million of undrawn committed bank line availability, for total available liquidity of $780.3 million. We had $452.5 million of outstanding debt at September 30, 2026. We used $92.1 million of cash during the nine months ended September 30, 2026, as cash provided by operations was offset by capital spending, share repurchases, and dividends paid on our common stock. A further description of our cash sources and uses for the nine-month comparative periods are discussed in "Liquidity and Capital Resources" below.

Previous wording

Our distribution business, which purchases and resells a diverse range of products, may benefit from rising prices through increased sales and margins, while periods of declining prices may present challenges. Future product pricing, particularly for commodity products we distribute and manufacture, is expected to remain dynamic, influenced by economic and geopolitical conditions, input costs, industry operating rates, supply disruptions, duties, tariffs, cost and availability of transportation, inventory levels, and seasonal demand patterns. We will continue to monitor end market demand signals and align production rates and inventory stocking positions accordingly.

Current wording

Our distribution business, which purchases and resells a diverse range of products, may benefit from rising prices through increased sales and margins, while periods of declining prices may present challenges. Future product pricing, particularly for commodity products we distribute and manufacture, is expected to remain dynamic, influenced by economic and geopolitical conditions, duties and tariffs, input costs, industry operating rates, supply disruptions, transportation costs and availability, inventory levels, and seasonal demand patterns. Our ability to capture market share associated with recent supplier realignment is dependent upon effective execution of inventory load-in, and maintaining inventory positions sufficient to meet customer demand. Customer reliance on our distribution business increases during periods of market uncertainty, as customers respond to slowing sales with more conservative inventory practices, while greater demand certainty typically moderates this effect. We will continue to monitor end-market demand signals and align production rates and inventory stocking positions accordingly.

Previous wording

The following tables set forth our operating results in dollars and as a percentage of sales for the three and six months ended June 30, 2026 and 2025:

Current wording

The following tables set forth our operating results in dollars and as a percentage of sales for the three and nine months ended September 30, 2026 and 2025:

Previous wording

Set forth below are historical U.S. housing starts data, sales mix and gross margin information for our BMD segment, and segment sales volumes and average net selling prices for the principal products sold by our Wood Products segment for the three and six months ended June 30, 2026 and 2025:

Current wording

Set forth below are historical U.S. housing starts data, sales mix and gross margin information for our BMD segment, and segment sales volumes and average net selling prices for the principal products sold by our Wood Products segment for the three and nine months ended September 30, 2026 and 2025:

Previous wording

For the three months ended June 30, 2026, total sales increased $91.2 million, or 5%, to $1,831.3 million from $1,740.1 million during the three months ended June 30, 2025. For the six months ended June 30, 2026, total sales increased $53.3 million, or 2%, to $3,329.9 million from $3,276.6 million for the same period in the prior year. As described below, the change in sales in both periods was driven by the changes in sales prices and volumes for the products we distribute and manufacture, with single-family residential construction activity being the key demand driver for our sales. In second quarter 2026, total U.S. housing starts and single-family housing starts decreased 1% and 4%, respectively, compared with the same period in 2025. On a year-to-date basis through June 2026, total U.S. housing starts were flat, while single-family housing starts decreased 5% compared to the same period in 2025. Average composite lumber prices for the three and six months ended June 30, 2026 were 8% and 2% higher, respectively, than in the same periods in the prior year, as reflected by Random Lengths composite lumber pricing. Average composite panel prices for the three and six months ended June 30, 2026 were 1% and 8% lower, respectively, than in the same periods in the prior year, as reflected by Random Lengths composite panel pricing.

Current wording

For the three months ended September 30, 2026, total sales increased $134.4 million, or 8%, to $1,802.2 million from $1,667.8 million during the three months ended September 30, 2025. For the nine months ended September 30, 2026, total sales increased $187.7 million, or 4%, to $5,132.1 million from $4,944.4 million for the same period in the prior year. As described below, the increase in sales in both periods was driven by the changes in sales prices and volumes for the products we distribute and manufacture, with single-family residential construction activity being the key demand driver for our sales. In third quarter 2026, total U.S. housing starts and single-family housing starts decreased 4% and 2%, respectively, compared with the same period in 2025. On a year-to-date basis through September 2026, total U.S. housing starts and single-family housing starts decreased 1% and 4%, respectively, compared to the same period in 2025. Average composite panel prices for the three and nine months ended September 30, 2026 were 14% higher and 2% lower, respectively, than in the same periods in the prior year, as reflected by Random Lengths composite panel pricing. Average composite lumber prices for the three and nine months ended September 30, 2026 were 25% and 9% higher, respectively, than in the same periods in the prior year, as reflected by Random Lengths composite lumber pricing.

Previous wording

Building Materials Distribution. Sales increased $82.6 million, or 5%, to $1,697.5 million for the three months ended June 30, 2026, from $1,614.9 million for the three months ended June 30, 2025. The overall increase in sales was driven by net sales volume and net sales price increases of 4% and 1%, respectively. By product line, general line product sales increased 9%, or $62.7 million; commodity sales increased 7%, or $38.6 million; and EWP sales (substantially all of which are sourced through our Wood Products segment) decreased 6%, or $18.7 million.

Current wording

Building Materials Distribution. Sales increased $113.3 million, or 7%, to $1,669.5 million for the three months ended September 30, 2026, from $1,556.2 million for the three months ended September 30, 2025. The overall increase in sales was driven by net sales price and net sales volume increases of 5% and 2%, respectively. By product line, general line product sales increased 4%, or $31.0 million; commodity sales increased 15%, or $78.8 million; and EWP sales (substantially all of which are sourced through our Wood Products segment) increased 1%, or $3.5 million.

Previous wording

During the six months ended June 30, 2026, sales increased $64.4 million, or 2%, to $3,086.4 million from $3,022.0 million for the same period in the prior year. The overall increase in sales was driven by net sales volume increases of 3%, offset partially by net sales price decreases of 1%. By product line, general line product sales increased 7%, or $87.9 million; commodity sales increased 1%, or $14.6 million; and sales of EWP decreased 6%, or $38.1 million.

Current wording

During the nine months ended September 30, 2026, sales increased $177.7 million, or 4%, to $4,755.9 million from $4,578.2 million for the same period in the prior year. The overall increase in sales was driven by increases of 2% for both net sales prices and net sales volumes. By product line, general line product sales increased 6%, or $118.8 million; commodity sales increased 6%, or $93.5 million; and sales of EWP decreased 4%, or $34.6 million.

Previous wording

Wood Products. Sales, including sales to our BMD segment, increased $12.4 million, or 3%, to $459.6 million for the three months ended June 30, 2026, from $447.2 million for the three months ended June 30, 2025. The increase in sales was driven by higher plywood sales prices and sales volumes of 15% and 3%, respectively, resulting in increased sales of $18.8 million and $4.1 million, respectively. These increases were offset partially by lower sales prices for I-joists and LVL (collectively referred to as EWP) of 7% and 4%, respectively, resulting in decreased sales of $7.5 million and $5.9 million, respectively. Additionally, EWP sales volumes decreased by 2%, resulting in decreased sales of $5.3 million.

Current wording

Wood Products. Sales, including sales to our BMD segment, increased $64.8 million, or 16%, to $461.2 million for the three months ended September 30, 2026, from $396.4 million for the three months ended September 30, 2025. The increase in sales was driven by higher plywood sales prices of 31%, resulting in increased sales of $36.2 million. In addition, higher sales volumes for LVL and I-joists (collectively referred to as EWP) of 18% and 10%, respectively, resulted in increased sales of $19.8 million and $9.2 million, respectively. These increases were offset partially by lower plywood sales volumes of 7%, resulting in decreased sales of $8.2 million. EWP sales prices were consistent with the same period in the prior year.

Previous wording

For the six months ended June 30, 2026, sales, including sales to our BMD segment, decreased $5.3 million, or 1%, to $857.8 million from $863.1 million for the same period in the prior year. The decrease in sales was driven by lower sales prices for LVL and I-joists of 6% and 7%, respectively, resulting in decreased sales of $14.5 million and $14.4 million, respectively. Additionally, sales volumes for I-joists and LVL decreased by 3% and 2%, respectively, resulting in decreased sales of $6.9 million and $4.9 million, respectively. These decreases were offset partially by higher plywood sales prices and sales volumes of 8% and 3%, respectively, resulting in increased sales of $19.7 million and $7.7 million, respectively.

Current wording

For the nine months ended September 30, 2026, sales, including sales to our BMD segment, increased $59.6 million, or 5%, to $1,319.0 million from $1,259.5 million for the same period in the prior year. The increase in sales was driven by higher plywood sales prices of 15%, resulting in increased sales of $56.3 million. In addition, sales volumes for LVL and I-joists increased 4% and 1%, respectively, resulting in increased sales of $15.9 million and $2.9 million, respectively. These increases were offset partially by lower I-joist and LVL sales prices of 5% and 4%, respectively, resulting in decreased sales of $31.0 million. Plywood sales volumes were consistent with the same period in the prior year.

Previous wording

Materials, labor, and other operating expenses (excluding depreciation) increased $62.0 million, or 4%, to $1,503.5 million for the three months ended June 30, 2026, compared with $1,441.5 million during the same period in the prior year. In BMD, the increase in materials, labor, and other operating expenses was driven by increased sales volumes compared with second quarter 2025. Materials, labor, and other operating expenses as a percentage of sales (MLO rate) in our BMD segment increased 20 basis points, driven by lower margin percentages on general line products and EWP, offset partially by higher margin percentages on commodity products. In our Wood Products segment, materials, labor, and other operating expenses decreased primarily due to lower per-unit costs of OSB (used in the manufacture of I-joists) and decreased EWP sales volumes. These decreases were offset partially by higher labor costs compared with second quarter 2025. The MLO rate in our Wood Products segment decreased by 410 basis points, primarily as the result of higher plywood sales prices and sales volumes.

Current wording

Materials, labor, and other operating expenses (excluding depreciation) increased $102.3 million, or 7%, to $1,506.6 million for the three months ended September 30, 2026, compared with $1,404.3 million during the same period in the prior year. In BMD, the increase in materials, labor, and other operating expenses was driven by increased prices for products purchased for resale, as well as higher sales volumes compared with third quarter 2025. Materials, labor, and other operating expenses as a percentage of sales (MLO rate) in our BMD segment increased 80 basis points, driven by lower margin percentages on general line products, offset partially by higher margin percentages on commodity products. Our MLO rate was also impacted by an increased proportion of sales attributed to commodity products, which have lower margins than general line products and EWP. In our Wood Products segment, materials, labor, and other operating expenses increased primarily due to higher labor and other conversion costs, higher EWP sales volumes, and higher costs of glues and resins compared with third quarter 2025. However, the MLO rate in our Wood Products segment decreased by 530 basis points, primarily as the result of higher plywood sales prices and higher EWP sales volumes.

Previous wording

For the six months ended June 30, 2026, materials, labor, and other operating expenses (excluding depreciation) increased $40.9 million, or 2%, to $2,758.5 million, compared with $2,717.6 million in the same period in the prior year. In BMD, the increase in materials, labor, and other operating expenses was driven by increased sales volumes, compared with the first six months of 2025. The BMD segment MLO rate increased 30 basis points, driven by lower margin percentages on general line products and EWP, offset partially by higher margin percentages on commodity products. In our Wood Products segment, materials, labor, and other operating expenses decreased primarily due to lower per-unit costs of OSB and decreased EWP sales volumes. Additionally, reduced purchases of external veneer for our Alexandria EWP mill contributed to the decrease in MLO, as operations resumed at our Oakdale veneer and plywood mill following planned downtime to complete significant mill modernization projects in 2025. These decreases were offset partially by higher labor costs compared with the first six months of 2025. The MLO rate in our Wood Products segment decreased by 140 basis points, primarily as the result of higher plywood sales prices and sales volumes.

Current wording

For the nine months ended September 30, 2026, materials, labor, and other operating expenses (excluding depreciation) increased $143.2 million, or 3%, to $4,265.1 million, compared with $4,122.0 million in the same period in the prior year. In BMD, the increase in materials, labor, and other operating expenses was driven by increased prices for products purchased for resale, as well as higher sales volumes compared with the first nine months of 2025. The BMD segment MLO rate increased 50 basis points, driven by lower margin percentages on general line products, offset partially by higher margin percentages on commodity products. In our Wood Products segment, materials, labor, and other operating expenses increased primarily due to higher labor and other conversion costs, as well as higher costs of glues and resins. These increases were offset partially by lower costs of OSB compared with the first nine months of 2025. However, the MLO rate in our Wood Products segment decreased by 260 basis points, primarily as the result of higher plywood sales prices.

Previous wording

Depreciation and amortization expense increased $5.3 million, or 14%, to $42.7 million for the three months ended June 30, 2026, compared with $37.4 million during the same period in the prior year. For the six months ended June 30, 2026, these expenses increased $7.2 million, or 10%, to $81.8 million, compared with $74.5 million in the same period in the prior year. The increase in both periods was primarily due to recent investments in support of our EWP capabilities in our Wood Products segment, as well as organic growth and a fourth quarter 2025 acquisition in our BMD segment.

Current wording

Depreciation and amortization expense increased $0.4 million, or 1%, to $42.7 million for the three months ended September 30, 2026, compared with $42.4 million during the same period in the prior year. For the nine months ended September 30, 2026, these expenses increased $7.6 million, or 6%, to $124.5 million, compared with $116.9 million in the same period in the prior year. The increase in both periods was primarily due to recent investments in support of our EWP capabilities in our Wood Products segment, as well as organic growth and a fourth quarter 2025 acquisition in our BMD segment.

Previous wording

Selling and distribution expenses increased $12.0 million, or 7%, to $173.8 million for the three months ended June 30, 2026, compared with $161.8 million during the same period in the prior year. The increase was due primarily to higher shipping and handling costs of $6.2 million, as well as higher employee-related expenses of $5.6 million. For the six months ended June 30, 2026, selling and distribution expenses increased $18.8 million, or 6%, to $324.2 million, compared with $305.5 million during the same period in 2025. The increase was primarily a result of higher employee-related expenses of $10.5 million, as well as higher shipping and handling costs of $8.5 million.

Current wording

Selling and distribution expenses increased $7.6 million, or 5%, to $172.7 million for the three months ended September 30, 2026, compared with $165.1 million during the same period in the prior year. The increase was due primarily to higher shipping and handling costs of $6.9 million, as well as higher employee-related expenses of $2.6 million. For the nine months ended September 30, 2026, selling and distribution expenses increased $26.4 million, or 6%, to $497.0 million, compared with $470.5 million during the same period in 2025. The increase was primarily a result of higher shipping and handling costs of $15.4 million, as well as higher employee-related expenses of $13.1 million.

Previous wording

General and administrative expenses increased $0.8 million, or 3%, to $27.3 million for the three months ended June 30, 2026, compared with $26.5 million for the same period in the prior year. For the six months ended June 30, 2026, general and administrative expenses increased $2.1 million, or 4%, to $53.6 million, compared with $51.5 million during the same period in 2025. The increase in both periods was due primarily to higher employee-related expenses and incentive compensation expense.

Current wording

General and administrative expenses decreased $1.2 million, or 4%, to $24.6 million for the three months ended September 30, 2026, compared with $25.8 million for the same period in the prior year. The decrease was due primarily to lower professional fees, offset partially by higher incentive compensation expense. For the nine months ended September 30, 2026, general and administrative expenses increased $0.9 million, or 1%, to $78.2 million, compared with $77.2 million during the same period in 2025. The increase was due primarily to higher employee-related expenses and incentive compensation expense, offset partially by lower professional fees.

Previous wording

For the three and six months ended June 30, 2025, other (income) expense, net was $7.6 million and $7.5 million of income, respectively. For both periods, the income primarily relates to gains on the sale of non-operating properties in our Wood Products and BMD segments.

Current wording

For the three months ended September 30, 2025, other (income) expense, net was $2.0 million of income, primarily resulting from a settlement gain associated with a fire at our BMD Phoenix location in second quarter 2021. For the nine months ended September 30, 2025, other (income) expense, net was $9.6 million of income, primarily related to gains on the sale of non-operating properties in our Wood Products and BMD segments in second quarter 2025, as well as the settlement gain discussed above.

Previous wording

Corporate. Unallocated corporate expenses increased $0.3 million to $11.8 million for the three months ended June 30, 2026, from $11.5 million for the same period in the prior year. The increase was primarily due to higher incentive compensation expense and other employee-related expenses. For the six months ended June 30, 2026, unallocated corporate expenses increased $2.4 million to $25.4 million from $23.1 million for the six months ended June 30, 2025. The increase was primarily due to the absorption of approximately $1.8 million of estimated insurance losses related to a fire at our Florien veneer and plywood facility in first quarter 2026, in accordance with our self-insured risk retention program.

Current wording

Corporate. Unallocated corporate expenses increased $1.6 million to $11.5 million for the three months ended September 30, 2026, from $9.9 million for the same period in the prior year. The increase was primarily due to a $1.9 million settlement gain recognized in third quarter 2025, which reduced expenses in the prior-year period. For the nine months ended September 30, 2026, unallocated corporate expenses increased $4.0 million to $37.0 million from $33.0 million for the nine months ended September 30, 2025. The increase was primarily due to the absorption of approximately $1.8 million of estimated insurance losses related to a fire at our Florien veneer and plywood facility in first quarter 2026 under our self-insured risk retention program, as well as the $1.9 million settlement gain in 2025, which reduced expenses in the prior-year period.

Previous wording

Interest Income. Interest income decreased $2.5 million to $2.2 million for the three months ended June 30, 2026, from $4.6 million for the same period in the prior year. For the six months ended June 30, 2026, interest income decreased $5.0 million to $5.1 million from $10.1 million for the six months ended June 30, 2025. The decrease in both periods was due primarily to lower average balances of cash equivalents, as well as lower interest rates.

Current wording

Interest Income. Interest income decreased $2.1 million to $2.1 million for the three months ended September 30, 2026, from $4.2 million for the same period in the prior year. For the nine months ended September 30, 2026, interest income decreased $7.1 million to $7.2 million from $14.3 million for the nine months ended September 30, 2025. The decrease in both periods was due primarily to lower average balances of cash equivalents, as well as lower interest rates.

Previous wording

For the three and six months ended June 30, 2026, we recorded $21.2 million and $27.8 million, respectively, of income tax expense and had an effective tax rate of 27.0% in both periods. For the three and six months ended June 30, 2025, we recorded $18.6 million and $32.5 million, respectively, of income tax expense and had an effective tax rate of 23.1% and 24.1%, respectively. For all periods, the primary reason for the difference between the federal statutory income tax rate of 21% and the effective tax rate was the effect of state taxes.

Current wording

For the three and nine months ended September 30, 2026, we recorded $14.4 million and $42.2 million, respectively, of income tax expense and had an effective tax rate of 28.4% and 27.5%, respectively. For the three and nine months ended September 30, 2025, we recorded $9.1 million and $41.5 million, respectively, of income tax expense and had an effective tax rate of 29.5% and 25.1%, respectively. For all periods, the primary reason for the difference between the federal statutory income tax rate of 21% and the effective tax rate was the effect of state taxes. In addition, our effective tax rates during the three months ended September 30, 2026 and 2025 were adversely impacted because permanent tax differences had a greater effect relative to the lower levels of pre-tax book income during those periods.

Previous wording

We ended second quarter 2026 with $304.8 million of cash and cash equivalents and $452.5 million of debt. At June 30, 2026, we had $699.9 million of available liquidity (cash and cash equivalents and undrawn committed bank line availability). Our cash and cash equivalents decreased by $172.4 million during the six months ended June 30, 2026, as we used cash to fund seasonal working capital increases, capital spending, share repurchases, and dividends paid on our common stock. Further descriptions of our cash sources and uses for the six-month comparative periods are noted below.

Current wording

We ended third quarter 2026 with $385.1 million of cash and cash equivalents and $452.5 million of debt. At September 30, 2026, we had $780.3 million of available liquidity (cash and cash equivalents and undrawn committed bank line availability). Our cash and cash equivalents decreased by $92.1 million during the nine months ended September 30, 2026, as cash provided by operations was offset by capital spending, share repurchases, and dividends paid on our common stock. Further descriptions of our cash sources and uses for the nine-month comparative periods are noted below.

Previous wording

For the six months ended June 30, 2026, our operating activities generated $26.3 million of cash, compared with $4.7 million of cash generated in the same period in 2025. The $21.6 million increase in cash provided by operations was due primarily to a lesser year-over-year increase in working capital and a $13.6 million decrease in cash paid for taxes, net of refunds, offset partially by a decrease in income from operations, compared to the same period in 2025. Working capital increased $142.4 million during the six months ended June 30, 2026, compared with a $170.3 million increase for the same period in the prior year. See "Our Operating Results" in this Management's Discussion and Analysis of Financial Condition and Results of Operations for more information related to factors affecting our operating results.

Current wording

For the nine months ended September 30, 2026, our operating activities generated $146.3 million of cash, compared with $123.1 million of cash generated during the same period in 2025. The $23.2 million increase in cash provided by operations was due to a lesser year-over-year increase in working capital, as well as a $11.6 million decrease in cash paid for taxes, net of refunds, compared to the same period in 2025. Working capital increased $113.8 million during the nine months ended September 30, 2026, compared with a $122.8 million increase for the same period in the prior year. See "Our Operating Results" in this Management's Discussion and Analysis of Financial Condition and Results of Operations for more information related to factors affecting our operating results.

Previous wording

The increase in working capital during both periods was primarily attributable to higher receivables and inventories, offset by an increase in accounts payable and accrued liabilities. The increase in receivables in both periods primarily reflect increased sales of approximately 44% and 22%, comparing sales for the months of June 2026 and 2025 with sales for the months of December 2025 and 2024, respectively. Inventories increased during both periods due to seasonally higher inventory purchases in our BMD segment for the summer building season, as well as participation in certain BMD vendors' early-buy programs. During the six months ended June 30, 2026, the increase in accounts payable and accrued liabilities was related to the increase in inventories and extended terms offered by certain BMD vendors. During the six months ended June 30, 2025, the increase in accounts payable and accrued liabilities was related to the increase in inventories and extended terms offered by certain BMD vendors, offset partially by employee compensation payouts made during the period.

Current wording

The increase in working capital during both periods was primarily attributable to higher receivables and inventories, offset by an increase in accounts payable and accrued liabilities. The increase in receivables in both periods primarily reflect increased sales of approximately 26% and 15%, comparing sales for the months of September 2026 and 2025 with sales for the months of December 2025 and 2024, respectively. Inventories increased during the nine months ended September 30, 2026 due to seasonally higher inventory purchases in our BMD segment for the summer building season, increased prices resulting in higher inventory valuations, as well as load-in of inventory related to our previously announced supplier transition. During the nine months ended September 30, 2025, inventories increased due to seasonally higher inventory purchases in our BMD segment for the summer building season, as well as expansions at some of our BMD facilities. During the nine months ended September 30, 2026, the increase in accounts payable and accrued liabilities was related to the increase in inventories, and an increase in accrued employee incentive compensation. During the nine months ended September 30, 2025, the increase in accounts payable and accrued liabilities was primarily related to the increase in inventories and extended terms offered by certain BMD vendors, offset partially by lower accrued employee incentive compensation and employee incentive compensation payouts made during the period.

Previous wording

During the six months ended June 30, 2026 and 2025, we used $63.3 million and $132.3 million, respectively, of cash for purchases of property and equipment, including business improvement and quality/efficiency projects, replacement and expansion projects, and ongoing environmental compliance. During the six months ended June 30, 2025, we received proceeds of $10.2 million from the sale of assets.

Current wording

During the nine months ended September 30, 2026 and 2025, we used $90.4 million and $187.4 million, respectively, of cash for purchases of property and equipment, including replacement and expansion projects, business improvement and quality/efficiency projects, and ongoing environmental compliance. During the nine months ended September 30, 2025, we received proceeds of $11.1 million from the sale of assets.

Previous wording

Excluding potential acquisitions, we expect capital expenditures in 2026 to total approximately $150 million to $170 million. We expect our capital spending in 2026 will be for BMD growth projects, business improvement and efficiency projects, replacement projects, and ongoing environmental compliance. This level of capital expenditures could increase or decrease as a result of several factors, including efforts to further accelerate organic growth, exercise of lease purchase options, our financial results, future economic conditions, availability of engineering and construction resources, and timing and availability of equipment purchases.

Current wording

Excluding potential acquisitions, we expect capital expenditures in 2026 to total approximately $120 million to $140 million. This level of capital expenditures could increase or decrease as a result of several factors, including availability of engineering and construction resources and timing and availability of equipment purchases.

Previous wording

During the six months ended June 30, 2026, our financing activities used $135.7 million of cash, including $108.3 million for the repurchase of 1,404,815 shares of our common stock, $18.1 million in common stock dividend payments, and $6.2 million of tax withholding payments on stock-based awards. During the six months ended June 30, 2026, non-cash investing and financing activities included the issuance of a $2.5 million promissory note to partially finance a property purchase. During the six months ended June 30, 2026, we did not borrow under our revolving credit facility. At June 30, 2026, we had $50.0 million of borrowings outstanding under the revolving credit facility.

Current wording

During the nine months ended September 30, 2026, our financing activities used $148.8 million of cash, including $112.8 million for the repurchase of 1,466,250 shares of our common stock, $26.1 million in common stock dividend payments, and $6.2 million of tax withholding payments on stock-based awards. During the nine months ended September 30, 2026, non-cash investing and financing activities included the issuance of a $2.5 million promissory note to partially finance a property purchase. During the nine months ended September 30, 2026, we did not borrow under our revolving credit facility. At September 30, 2026, we had $50.0 million of borrowings outstanding under the revolving credit facility.

Previous wording

During the six months ended June 30, 2025, our financing activities used $114.8 million of cash, including $86.0 million for the repurchase of 837,352 shares of our common stock, $18.4 million in common stock dividend payments, and $5.9 million of tax withholding payments on stock-based awards. On April 14, 2025, we entered into a credit agreement for a $450.0 million revolving credit facility which matures on April 12, 2030. At closing, $50.0 million under the facility was borrowed. Proceeds from the facility were used to repay the $50.0 million term loan under the asset-based revolving credit facility.

Current wording

During the nine months ended September 30, 2025, our financing activities used $148.2 million of cash, including $111.0 million for the repurchase of 1,128,752 shares of our common stock, $26.6 million in common stock dividend payments, and $5.9 million of tax withholding payments on stock-based awards. On April 14, 2025, we entered into a credit agreement for a $450.0 million revolving credit facility which matures on April 12, 2030. At closing, $50.0 million under the facility was borrowed. Proceeds from the facility were used to repay the $50.0 million term loan under the asset-based revolving credit facility.

Previous wording

As of July 19, 2026, we had approximately 7,740 employees. Approximately 17% of these employees work pursuant to collective bargaining agreements. As of July 19, 2026, we had nine collective bargaining agreements. One agreement covering approximately 80 employees at our Canadian EWP facility is set to expire on December 31, 2026. The terms and conditions of this agreement will remain in effect after expiration, pending negotiation of a new agreement.

Current wording

As of October 25, 2026, we had approximately 7,760 employees. Approximately 17% of these employees work pursuant to collective bargaining agreements. As of October 25, 2026, we had nine collective bargaining agreements. One agreement covering approximately 80 employees at our Canadian EWP facility is set to expire on December 31, 2026. The terms and conditions of this agreement will remain in effect after expiration, pending negotiation of a new agreement.

Previous wording

Critical accounting estimates are those that are most important to the portrayal of our financial condition and results. These estimates require management's most difficult, subjective, or complex judgments, often as a result of the need to estimate matters that are inherently uncertain. We review the development, selection, and disclosure of our critical accounting estimates with the Audit Committee of our board of directors. For information about critical accounting estimates, see Critical

Current wording

Critical accounting estimates are those that are most important to the portrayal of our financial condition and results. These estimates require management's most difficult, subjective, or complex judgments, often as a result of the need to estimate matters that are inherently uncertain. We review the development, selection, and disclosure of our critical accounting estimates with the Audit Committee of our board of directors. For information about critical accounting estimates, see Critical Accounting Estimates in "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" in our 2025 Form 10-K. At September 30, 2026, there have been no material changes to our critical accounting estimates from those disclosed in our 2025 Form 10-K.