What changed in this filing

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Item 1. Financial Statements

2026-08-05 compared with 2026-05-06 · 121 added, 64 removed, 351 unchanged (35% of the section changed)

2 unchanged sentences

Amounts in millions, except per share amounts

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Net sales $ 664 $ 755 $ 1,239 $ 1,478

2 unchanged sentences

Selling, general, and administrative expenses ( 80 ) ( 79 ) ( 158 ) ( 154 )

Loss on impairment — ( 17 ) — ( 17 )

Other operating credits and charges, net ( 5 ) ( 2 ) ( 7 ) ( 4 )

5 unchanged sentences

Provision for income taxes ( 8 ) ( 19 ) ( 17 ) ( 45 )

Equity in unconsolidated affiliate — — — 1

Net income $ 26 $ 54 $ 53 $ 145

3 unchanged sentences

Average shares of common stock used to compute net income per share:

Basic 70 70 70 70

Diluted 70 70 70 70

2 unchanged sentences

Amounts in millions

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Net income $ 26 $ 54 $ 53 $ 145

4 unchanged sentences

Condensed Consolidated Balance Sheets

Amounts in millions, except per share amounts

March 31, 2026 December 31, 2025

Amounts in millions

June 30, 2026 December 31, 2025

Cash and cash equivalents $ 228 $ 292

Receivables, net of allowance for doubtful accounts of $ 1 as of March 31, 2026 and December 31, 2025

Receivables, net of allowance for doubtful accounts of $ 1 as of June 30, 2026 and December 31, 2025

Inventories 373 363

21 unchanged sentences

Common stock, $ 1 par value per share, 200 shares authorized;

85 shares issued and 70 shares issued and outstanding as of March 31, 2026 and December 31, 2025

85 shares issued and 70 shares issued and outstanding as of June 30, 2026 and December 31, 2025

Additional paid-in capital 515 508

Retained earnings 1,633 1,621

Treasury stock, 15 shares at cost as of March 31, 2026 and December 31, 2025

Treasury stock, 15 shares at cost as of June 30, 2026 and December 31, 2025

( 386 ) ( 385 )

5 unchanged sentences

Amounts in millions

Three Months Ended March 31,

Six Months Ended June 30,

CASH FLOWS FROM OPERATING ACTIVITIES:

2 unchanged sentences

Depreciation and amortization 77 70

Impairment of goodwill and long-lived assets — 17

Stock-based compensation expense 12 12

8 unchanged sentences

Income taxes payable, net of receivables ( 9 ) 21

Net cash (used in) provided by operating activities ( 38 ) 64

Net cash provided by operating activities 102 226

CASH FLOWS FROM INVESTING ACTIVITIES:

28 unchanged sentences

Balance, March 31, 2026 85 $ 85 15 $ ( 388 ) $ 509 $ 1,627 $ ( 103 ) $ 1,730

Net income — — — — — 26 — 26

Dividends paid ($ 0.30 per share)

— — — — — ( 21 ) — ( 21 )

Issuance of shares under stock plans — — — 2 1 — — 3

Compensation expense associated with stock-based compensation — — — — 5 — — 5

Other comprehensive income (loss) — — — — — — 1 1

Balance, June 30, 2026 85 $ 85 15 $ ( 386 ) $ 515 $ 1,633 $ ( 103 ) $ 1,744

Common Stock Treasury Stock Additional Paid-in Capital Retained Earnings Accumulated Comprehensive (Loss) Income Total Stockholders’ Equity

10 unchanged sentences

Balance, March 31, 2025 85 $ 85 15 $ ( 388 ) $ 480 $ 1,625 $ ( 110 ) $ 1,692

Net income — — — — — 54 — 54

Dividends paid ($ 0.28 per share)

— — — — — ( 19 ) — ( 19 )

Issuance of shares under stock plans — — — 2 1 — — 3

Taxes paid related to net settlement of stock-based awards — — — ( 1 ) — — — ( 1 )

Compensation expense associated with stock-based compensation — — — — 7 — — 7

Other comprehensive income (loss) — — — — — — 6 6

Balance, June 30, 2025 85 $ 85 15 $ ( 386 ) $ 488 $ 1,659 $ ( 104 ) $ 1,742

The accompanying Notes are an integral part of these unaudited Condensed Consolidated Financial Statements.

23 unchanged sentences

The following tables present our reportable segment revenues, disaggregated by revenue source (dollar amounts in millions):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Siding $ 439 $ 458 $ 798 $ 857

Other 2 2 3 5

Net sales attributable to Siding 441 460 801 862

1 unchanged sentence

OSB - Commodity 82 104 155 224

Other 2 3 5 7

Net sales attributable to OSB 182 250 350 517

Other 41 45 87 99

Total Sales $ 664 $ 755 $ 1,239 $ 1,478

8 unchanged sentences

The costs include, but are not limited to, volume allowances and rebates, promotional allowances, and cooperative advertising programs.

These costs are recorded at the later of the time of sale or the implementation of the program based on management’s best estimates.

Estimates are based on historical and projected experience for each type of program or customer.

These costs are recorded using management’s best estimates, which are based on historical and projected experience for each type of program or customer.

Volume allowances are accrued based on our estimates of customer volume achievement and other factors incorporated into customer agreements, such as new product purchases, store sell-through, merchandising support, and customer training.

10 unchanged sentences

The following table sets forth the computation of basic and diluted earnings per share (dollar and share amounts in millions, except per share amounts):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Net income $ 26 $ 54 $ 53 $ 145

8 unchanged sentences

Receivables consisted of the following (dollar amounts in millions):

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Trade receivables $ 111 $ 95

3 unchanged sentences

Total Receivables $ 143 $ 127

Other receivables as of March 31, 2026, and December 31, 2025, primarily consisted of sales tax receivables and other miscellaneous receivables.

Other receivables as of June 30, 2026, and December 31, 2025, primarily consisted of sales tax receivables and other miscellaneous receivables.

Inventories are valued at the lower of cost or net realizable value.

1 unchanged sentence

The first-in, first-out or average cost methods are used to value our inventories.

Inventories include a lower of cost or market adjustment of $ 18 million and $ 23 million as of March 31, 2026, and December 31, 2025, respectively.

Inventories include a lower of cost or market adjustment of $ 19 million and $ 23 million as of June 30, 2026, and December 31, 2025, respectively.

Inventory consisted of the following (dollar amounts in millions):

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Logs $ 63 $ 62

5 unchanged sentences

Property, plant, and equipment, including capitalized interest, are recorded at cost and consisted of the following (dollar amounts in millions):

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Land, land improvements, and logging roads, net of road amortization $ 231 $ 225

8 unchanged sentences

The Company’s annual assessment date is October 1.

Changes in goodwill and other intangible assets for the three months ended March 31, 2026, are provided in the following table (dollar amounts in millions):

Changes in goodwill and other intangible assets for the six months ended June 30, 2026, are provided in the following table (dollar amounts in millions):

Goodwill Developed Technology Total Goodwill and Intangibles

2 unchanged sentences

Amortization — ( 3 ) ( 3 )

Ending balance March 31, 2026

Ending balance June 30, 2026

$ 19 $ — $ 19

1 Timber licenses are included in timber and timberlands on the Condensed Consolidated Balance Sheets.

Timber and Timberlands

1 unchanged sentence

Timber deeds are transactions in which we purchase timber but not the underlying land.

We had timber and timberlands of $ 4 million and $ 5 million as of March 31, 2026, and December 31, 2025, respectively.

We had timber and timberlands of $ 2 million and $ 5 million as of June 30, 2026, and December 31, 2025, respectively.

Timber licenses have a life of 20 to 25 years and are amortized on a straight-line basis over the life of the agreement.

Changes in timber licenses for the three months ended March 31, 2026, are provided in the following table (dollar amounts in millions):

Timber Licenses 1

Beginning balance December 31, 2025

Ending Balance March 31, 2026

Changes in timber licenses for the six months ended June 30, 2026, are provided in the following table (dollar amounts in millions):

Beginning balance $ 8 $ 23

Amortization ( 1 ) ( 1 )

Ending balance 1

1 Timber licenses are included in timber and timberlands on the Condensed Consolidated Balance Sheets.

1 unchanged sentence

Accounts payable and accrued liabilities were as follows (dollars amounts in millions):

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Trade accounts payable $ 122 $ 129

5 unchanged sentences

Total accounts payable and accrued liabilities

Other accrued liabilities as of March 31, 2026, and December 31, 2025, primarily consisted of accrued interest, the short-term portion of workers' compensation liabilities, the current portion of product warranties, and other items.

Additionally, trade accounts payable included $ 17 million and $ 33 million related to capital expenditures that had not yet been paid as of March 31, 2026, and December 31, 2025, respectively.

Other accrued liabilities as of June 30, 2026, and December 31, 2025, primarily consisted of accrued interest, the short-term portion of workers' compensation liabilities, the current portion of product warranties, and other items.

Additionally, trade accounts payable included $ 14 million and $ 33 million related to capital expenditures that had not yet been paid as of June 30, 2026, and December 31, 2025, respectively.

Other Long-Term Liabilities

Other long-term liabilities were as follows (dollar amounts in millions):

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Post-retirement obligations $ 6 $ 6

3 unchanged sentences

Total other long-term liabilities

Other long-term liabilities as of March 31, 2026, and December 31, 2025, consisted primarily of executive deferred compensation and the long-term portion of workers’ compensation liabilities.

Other long-term liabilities as of June 30, 2026, and December 31, 2025, consisted primarily of executive deferred compensation and the long-term portion of workers’ compensation liabilities.

See “Note 10.

14 unchanged sentences

Carrying amounts reported on the balance sheet for cash and cash equivalents, receivables, and accounts payable approximate fair value due to the short-term maturity of these instruments.

The net carrying value of the Company's 3.625 % Senior Notes due in 2029 (2029 Senior Notes) was $ 348 million as of March 31, 2026 and December 31, 2025.

Based on market quotations, the fair value of the 2029 Senior Notes was estimated to be $ 336 million and $ 341 million as of March 31, 2026 and December 31, 2025, respectively.

The net carrying value of the Company's 3.625 % Senior Notes due in 2029 (2029 Senior Notes) was $ 348 million as of June 30, 2026 and December 31, 2025.

Based on market quotations, the fair value of the 2029 Senior Notes was estimated to be $ 335 million and $ 341 million as of June 30, 2026 and December 31, 2025, respectively.

The 2029 Senior Notes and other long-term debt are categorized as Level 1 in the U.S.

4 unchanged sentences

extend the maturity date to March 26, 2032.

As of March 31, 2026, there were no outstanding borrowings pursuant to the Amended Credit Facility.

As of June 30, 2026, there were no outstanding borrowings pursuant to the Amended Credit Facility.

For interim periods, income tax expense is recognized by applying the estimated annual effective tax rate to year-to-date results, unless doing so does not yield a reliable estimate.

1 unchanged sentence

Changes in profitability estimates across jurisdictions may affect quarterly effective tax rates.

The provision for income taxes for the three months ended March 31, 2026, and 2025, reflected an estimated annual effective tax rate of 24 % excluding discrete items discussed below.

The total tax provision for the three months ended March 31, 2026, was $ 9 million, compared to $ 26 million for the corresponding period in 2025.

The total effective tax rate for the three months ended March 31, 2026, was 25 %, compared to 22 % for the corresponding period in 2025.

The year-over-year increase in the total effective tax rate resulted from discrete tax benefits in the prior year not present in the current year.

During the three months ended March 31, 2026, discrete items were insignificant.

During the three months ended March 31, 2025, we recognized a $ 3 million net discrete tax benefit primarily related to inflationary and foreign currency exchange-related effects and stock-based compensation.

The provision for income taxes for the six months ended June 30, 2026, and 2025, reflected an estimated annual effective tax rate of 26 % excluding discrete items discussed below.

The total tax provision for the three and six months ended June 30, 2026, was $ 8 million and $ 17 million, respectively, compared to $ 19 million and $ 45 million for the corresponding periods in 2025.

The total effective tax rate for the three and six months ended June 30, 2026, was 22 % and 24 %, respectively, compared to 26 % and 24 % for the corresponding periods in 2025.

During the six months ended June 30, 2026, we recognized a $ 1 million net discrete tax benefit primarily related to inflationary and foreign currency exchange-related effects.

During the six months ended June 30, 2025, we recognized a $ 4 million net discrete tax benefit primarily related to inflationary and foreign currency exchange-related effects and stock-based compensation.

OTHER OPERATING AND NON-OPERATING ITEMS

1 unchanged sentence

Other operating credits and charges, net, is comprised of the following components (dollar amounts in millions):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Reorganization charges $ ( 1 ) $ ( 3 ) $ ( 3 ) $ ( 5 )

1 unchanged sentence

Loss on asset disposal ( 4 ) — ( 4 ) ( 1 )

Other — 2 1 2

Other operating credits and charges, net $ ( 5 ) $ ( 2 ) $ ( 7 ) $ ( 4 )

1 unchanged sentence

Non-operating income (expense) is comprised of the following components (dollar amounts in millions):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Foreign currency gain (loss) $ 1 $ ( 7 ) $ 4 $ ( 12 )

Other non-operating income (expense)

$ 1 $ ( 7 ) $ 4 $ ( 12 )

IMPAIRMENT OF LONG-LIVED ASSETS

1 unchanged sentence

However, if demand and pricing for our products fall to levels significantly below cycle-average demand and pricing, should we decide to invest capital in alternative projects, or should changes occur related to our wood supply for our mills, it is possible that future impairment charges will be required.

Potential asset dispositions are also periodically reviewed, taking into account current and anticipated economic and industry conditions, the strategic plan, and other relevant factors.

A decision to dispose of specific assets may

require management to make assumptions regarding the transaction structure of the disposition and to estimate the net sales proceeds, which may be less than previous estimates of undiscounted future net cash flows.

As a result, impairment charges may be necessary in connection with such dispositions.

No impairment was recognized during the three months ended March 31, 2026.

Potential changes to our strategic plans, including decisions regarding the continued use or disposition of specific assets, are also periodically evaluated, taking into account current and anticipated economic and industry conditions,

and other relevant factors.

Such decisions may require management to revise assumptions regarding expected future cash flows or estimated recoverable values.

If revised estimates indicate that the carrying amount of an asset is not recoverable, impairment charges may be required.

No impairment was recognized during the three and six months ended June 30, 2026.

COMMITMENTS AND CONTINGENCIES

Reserves for various contingent liabilities were as follows (dollar amounts in millions):

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Environmental reserves $ 27 $ 27

21 unchanged sentences

Such accruals are based upon historical experience and management’s estimate of the level of future claims.

The activity in the warranty reserves is summarized in the following table for the three months ended March 31, 2026, and 2025 (dollar amounts in millions):

Three Months Ended March 31,

The activity in the warranty reserves is summarized in the following table for the three and six months ended June 30, 2026 and 2025 (dollar amounts in millions):

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Beginning balance $ 7 $ 6 $ 6 $ 6

Change in warranty provision — — 1 —

Payments made — — — ( 1 )

Total warranty reserves 7 6 7 6

1 unchanged sentence

Long-term portion of warranty reserves (included in other long-term liabilities) $ 5 $ 4 $ 5 $ 4

Warranty and other product-related claims continue to be monitored by management, and as of March 31, 2026, the warranty reserve balances associated with these matters are considered adequate to cover future warranty payments.

Warranty and other product-related claims continue to be monitored by management, and as of June 30, 2026, the warranty reserve balances associated with these matters are considered adequate to cover future warranty payments.

However, it is possible that additional adjustments may be required in the future.

3 unchanged sentences

Siding and OSB.

Other comprises our South American operations and other products that are not individually significant.

Other comprises our South American operations and other products and services that are not individually significant.

• The Siding segment serves diverse end markets with a broad product portfolio of engineered wood siding, trim, soffit, and fascia.

5 unchanged sentences

Information regarding the Company’s business segments is presented below (dollar amounts in millions):

Three Months Ended March 31, 2026

Three Months Ended June 30, 2026

Siding OSB Total

Revenues from external customers $ 441 $ 182 $ 623

$ 360 $ 168 $ 528

Reconciliation of revenue

6 unchanged sentences

Reportable segment Adjusted EBITDA $ 113 $ ( 21 ) $ 92

$ 101 $ ( 12 ) $ 89

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

Siding OSB Total

Revenues from external customers $ 460 $ 250 $ 710

$ 402 $ 267 $ 669

Reconciliation of revenue

6 unchanged sentences

Reportable segment Adjusted EBITDA $ 125 $ 19 $ 143

$ 106 $ 54 $ 160

1 Other revenues include sales from the Company's South American operations and other minor products and services.

1 Other revenues include sales from the Company's South American operations and other products and services that are not individually significant.

2 Other segment items include stock compensation expense.

Three Months Ended March 31,

Six Months Ended June 30, 2026

Siding OSB Total

Revenues from external customers $ 801 $ 350 $ 1,151

Reconciliation of revenue

Other revenues 1

Total consolidated revenues $ 1,239

Cost of sales ( 552 ) ( 379 )

Selling, general, and administrative expenses ( 83 ) ( 34 )

Depreciation and amortization 44 28

Other segment items 2

Reportable segment Adjusted EBITDA $ 214 $ ( 33 ) $ 181

Six Months Ended June 30, 2025

Siding OSB Total

Revenues from external customers $ 862 $ 517 $ 1,379

Reconciliation of revenue

Other revenues 1

Total consolidated revenues $ 1,478

Cost of sales ( 590 ) ( 440 )

Selling, general, and administrative expenses ( 85 ) ( 34 )

Depreciation and amortization 40 26

Other segment items 2

Reportable segment Adjusted EBITDA $ 230 $ 73 $ 303

1 Other revenues include sales from the Company's South American operations and other products and services that are not individually significant.

2 Other segment items include stock compensation expense.

The following table presents significant items and reconciles reportable segment Adjusted EBITDA to income before income taxes (dollar amounts in millions):

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Reconciliation of profit (loss)

Reportable segment Adjusted EBITDA

$ 92 $ 143 $ 181 $ 303

Add (deduct):

Other Adjusted EBITDA 1

( 13 ) ( 1 ) ( 19 ) 1

Equity in unconsolidated affiliate — — — ( 1 )

Depreciation and amortization ( 39 ) ( 36 ) ( 77 ) ( 70 )

Stock-based compensation expense ( 5 ) ( 7 ) ( 12 ) ( 12 )

Loss on impairment — ( 17 ) — ( 17 )

Other operating credits and charges, net ( 5 ) ( 2 ) ( 6 ) ( 4 )

3 unchanged sentences

Other non-operating (expense) income 2

1 ( 7 ) 4 ( 12 )

Income before income taxes

1 Other Adjusted EBITDA includes the Company's South American operations, unallocated corporate expenses, and other minor products and services.

2 See further discussion in “Note 7 - Other Operating and Non-Operating Items” of the Notes to the Condensed Consolidated Financial Statements.

$ 34 $ 73 $ 70 $ 189

1 Other Adjusted EBITDA includes the Company's South American operations, unallocated corporate expenses, and other products and services that are not individually significant.

Information concerning identifiable assets by segment is as follows (dollar amounts in millions):

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Identifiable Assets

Siding $ 1,461 $ 1,419

Total segment assets 1,983 1,950

Other 624 677

Total assets $ 2,607 $ 2,627

Other segment related assets include cash and cash equivalents, accounts receivable, short-term and long-term investments, corporate assets, and other items.

Other assets include cash and cash equivalents, accounts receivable, South American assets, short-term and long-term investments, corporate assets, and other items.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements