**FORM      10-Q**

| þ |   | **QUARTERLY              REPORT              PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF              1934** |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------|

**OR**

|  ̈ |   | **TRANSITION                REPORT                PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF                1934** |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------|

*www.bmhc.com*

**BUILDING      MATERIALS HOLDING CORPORATION**

| **Delaware**                                           |   | **91-1834269**                                      |
|--------------------------------------------------------|--------|-----------------------------------------------------|
| (State                of                incorporation) |   | (I.R.S.                Employer Identification No.) |

**Four      Embarcadero Center, Suite 3250, San Francisco, CA 94111**

**(415)      627-9100**

**N/A**

----

**FORM      10-Q**

| **PART                I - FINANCIAL INFORMATION**                                                                                                     |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                  |   |
|  **Item                1**-                Financial                Statements (unaudited)                                                       |   |
|                                                                                                                                                  |   |
|    Consolidated                Statements of Income for the Three and Six Months                Ended June 30, 2005 and 2004           | 2      |
|                                                                                                                                                  |   |
|    Consolidated                Balance Sheets as of June 30, 2005 and December                31, 2004                                 | 3      |
|                                                                                                                                                  |   |
|    Consolidated                Statements of Shareholders’ Equity for the Six                Months Ended June 30, 2005 and 2004 | 4      |
|                                                                                                                                                  |   |
|    Consolidated                Statements of Cash Flows for the Six Months Ended                June 30, 2005 and 2004                 | 5      |
|                                                                                                                                                  |   |
|    Notes                to Consolidated Financial Statements                                                                           | 6      |
|                                                                                                                                                  |   |
| ** Item                2**                - Management's Discussion and Analysis of Financial Condition                and Results of Operations | 17     |
|                                                                                                                                                  |   |
|  **Item                3**                -                Quantitative and Qualitative Disclosures about Market                Risk             | 25     |
|                                                                                                                                                  |   |
| ** Item                4**                - Controls and Procedures                                                                              | 26     |
|                                                                                                                                                  |   |
|                                                                                                                                                  |   |
| **PART                II - OTHER INFORMATION**                                                                                                        |   |
|                                                                                                                                                  |   |
| ** Item                1**                - Legal Proceedings                                                                                    | 27     |
|                                                                                                                                                  |   |
| ** Item                2**                - Unregistered Sales of Equity Securities and Use of                Proceeds                           | 27     |
|                                                                                                                                                  |   |
| ** Item                3**                - Defaults Upon Senior Securities                                                                      | 27     |
|                                                                                                                                                  |   |
| ** Item                4**                - Submission of Matters to a Vote of Security                Holders                                   | 27     |
|                                                                                                                                                  |   |
| ** Item                5**                - Other Information                                                                                    | 28     |
|                                                                                                                                                  |   |
| ** Item                6**                - Exhibits                                                                                             | 28     |
|                                                                                                                                                  |   |
|                                                                                                                                                  |   |
| **SIGNATURES**                                                                                                                                        | 29     |
|                                                                                                                                                  |   |

----

**Item      1 - Financial Statements**

**Building      Materials Holding Corporation**

**Consolidated      Statements of Income**

**(thousands,      except per share data)**

|                                                                                             |   | **Three                      Months Ended June 30** |                                    | **Six                      Months Ended June 30** |         |
|--------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------|-----------------------------------------|---------------------------------------------------|--------------|
|                                                                                             |   | **2005**                                            |                                    | **2004**                                          |         | **2005** |   | **2004** |   |
| **Sales**                                                                                        |   |                                                |                                    |                                              |         |   |   |   |   |
| Building                      products                                                           |   | **$**                                               | **344,632**                             |                                              | $            | 319,256 |   | **$** | **637,515** |   | $ | 566,613 |   |
| Construction                      services                                                       |   |                                                | **356,889**                             |                                              |         | 224,137 |   |   | **636,934** |   |   | 393,623 |   |
| **Total                      sales**                                                             |   |                                                | **701,521**                             |                                              |         | 543,393 |   |   | **1,274,449** |   |   | 960,236 |   |
|                                                                                             |   |                                                |                                    |                                              |         |   |   |   |   |   |   |   |   |
| **Costs                      and operating expenses **                                      |   |                                                |                                    |                                              |         |   |   |   |   |   |   |   |   |
| Cost                      of goods                      sold                                     |   |                                                |                                    |                                              |         |   |   |   |   |   |   |   |   |
| Building                      products                                                           |   |                                                | **253,779**                             |                                              |         | 244,172 |   |   | **469,427** |   |   | 430,391 |   |
| Construction                      services                                                       |   |                                                | **289,889**                             |                                              |         | 193,025 |   |   | **517,373** |   |   | 341,606 |   |
| Impairment                      of                      assets                                   |   |                                                | **463**                                 |                                              |         | ― |   |   | **463** |   |   | 1,273 |   |
| Selling,                      general and administrative expenses                           |   |                                                | **97,349**                              |                                              |         | 79,633 |   |   | **187,342** |   |   | 150,259 |   |
| Other                      (income) expense, net                                                 |   |                                                | **(851**                                | **)**                                             |         | 90 |   |   | **(1,356** | **)** |   | (417 | ) |
| Total                      costs                      and operating expenses                |   |                                                | **640,629**                             |                                              |         | 516,920 |   |   | **1,173,249** |   |   | 923,112 |   |
|                                                                                             |   |                                                |                          |                                              |    |                        |   |    |                        |   |    |                        |   |
| **Income                      from operations**                                                  |   |                                                | **60,892**                              |                                              |         | 26,473 |   |   | **101,200** |   |   | 37,124 |   |
|                                                                                             |   |                                                |                                    |                                              |         |   |   |   |   |   |   |   |   |
| Interest                      expense                                                            |   |                                                | **3,350**                               |                                              |         | 3,157 |   |   | **6,548** |   |   | 5,911 |   |
|                                                                                             |   |                                                |                                    |                                              |         |   |   |   |   |   |   |   |   |
| Income                      before                      income taxes and minority interests |   |                                                | **57,542**                              |                                              |         | 23,316 |   |   | **94,652** |   |   | 31,213 |   |
|                                                                                             |   |                                                |                                    |                                              |         |   |   |   |   |   |   |   |   |
| Income                      taxes                                                                |   |                                                | **20,420**                              |                                              |         | 8,214 |   |   | **33,381** |   |   | 10,948 |   |
|                                                                                             |   |                                                |                                    |                                              |         |   |   |   |   |   |   |   |   |
| Minority                      interests income, net                                              |   |                                                | **(3,808**                              | **)**                                             |         | (2,522 | ) |   | **(6,809** | **)** |   | (3,497 | ) |
|                                                                                             |   |                                                |                               |                                              |         |                        |   |   |                        |   |   |                        |   |
| **Net                      income**                                                              |   | **$**                                               | **33,314**                              |                                              | $            | 12,580 |   | **$** | **54,462** |   | $ | 16,768 |   |
|                                                                                             |   |                                                |                                    |                                              |         |   |   |   |   |   |   |   |   |
|                                                                                             |   |                                                |                                    |                                              |         |   |   |   |   |   |   |   |   |
|                                                                                             |   |                                                |                                    |                                              |         |   |   |   |   |   |   |   |   |
|                                                                                             |   |                                                |                                    |                                              |         |   |   |   |   |   |   |   |   |
| **Net                      income per share:**                                                   |   |                                                |                                    |                                              |         |   |   |   |   |   |   |   |   |
| Basic                                                                                            |   |                                                | **$2.38**                               |                                              |         | $0.94 |   |   | **$3.92** |   |   | $1.25 |   |
| Diluted                                                                                          |   |                                                | **$2.28**                               |                                              |         | $0.92 |   |   | **$3.75** |   |   | $1.23 |   |

----

**Building      Materials Holding Corporation**

**Consolidated      Balance Sheets**

**(thousands,      except share data)**

|                                                             |   |   | **June                    30** |   |   | **December                    31** |   |   |                                                                                    |   |   | **June                    30** |   |   | **December                    31** |   |
|------------------------------------------------------------------|--------|--------|--------------------------------|--------|--------|------------------------------------|--------|--------|-----------------------------------------------------------------------------------------|--------|--------|--------------------------------|--------|--------|------------------------------------|--------|
|                                                             |   |   | **2005**                       |   |   | **2004**                           |   |   |                                                                                    |   |   | **2005**                       |   |   | **2004**                           |   |
| **ASSETS**                                                       |   |   |                           |   |   |                               |   |   | **LIABILITIES,                      MINORITY INTERESTS AND SHAREHOLDERS’ EQUITY** |   |   |                           |   |   |                               |   |
| Cash                    and cash                    equivalents  |   | **$**  | **34,955**                     |   | $      | 19,496                             |   |   | Accounts                    payable                                                     |   | **$**  | **110,672**                    |   | $      | 77,591                             |   |
| Marketable                    securities                         |   |   | **2,832**                      |   |   | 2,216                              |   |   | Accrued                    compensation                                                 |   |   | **51,161**                     |   |   | 34,078                             |   |
| Receivables,                    net of $4,720 and                |   |   |                           |   |   |                               |   |   | Insurance                    deductible reserves                                        |   |   | **34,976**                     |   |   | 26,639                             |   |
| $4,367                                                           |   |   | **302,425**                    |   |   | 238,071                            |   |   | Other                    accrued                    liabilities                         |   |   | **36,748**                     |   |   | 26,177                             |   |
| Inventory                                                        |   |   | **183,400**                    |   |   | 153,391                            |   |   | Billings                    in                    excess of costs and                   |   |   |                           |   |   |                               |   |
| Unbilled                    receivables                          |   |   | **24,387**                     |   |   | 17,196                             |   |   | estimated                    earnings                                                   |   |   | **27,028**                     |   |   | 11,274                             |   |
| Deferred                    income taxes                         |   |   | **14,143**                     |   |   | 11,913                             |   |   | Current                    portion of long-term debt                                    |   |   | **2,497**                      |   |   | 3,404                              |   |
| Prepaid                    expenses and other                    |   |   | **4,321**                      |   |   | 7,317                              |   |   |                                                                                    |   |   |                           |   |   |                               |   |
| Total                    current                    assets       |   |   | **566,463**                    |   |   | 449,600                            |   |   | Total                    current                    liabilities                         |   |   | **263,082**                    |   |   | 179,163                            |   |
|                                                             |   |   |                           |   |   |                               |   |   |                                                                                    |   |   |                           |   |   |                               |   |
| Property                    and                    equipment     |   |   |                           |   |   |                               |   |   | Deferred                    income taxes                                                |   |   | **126**                        |   |   | 297                                |   |
| Land                                                             |   |   | **37,019**                     |   |   | 37,036                             |   |   | Long-term                    debt                                                       |   |   | **199,917**                    |   |   | 206,419                            |   |
| Buildings                    and                    improvements |   |   | **104,043**                    |   |   | 104,667                            |   |   | Other                    long-term liabilities                                          |   |   | **25,284**                     |   |   | 23,162                             |   |
| Equipment                                                        |   |   | **134,855**                    |   |   | 122,105                            |   |   | Total                    liabilities                                                    |   |   | **488,409**                    |   |   | 409,041                            |   |
| Construction                    in progress                      |   |   | **14,574**                     |   |   | 4,956                              |   |   |                                                                                    |   |   |                           |   |   |                               |   |
| Accumulated                    depreciation                      |   |   | **(113,375**                   | **)**  |   | (104,453                           | )      |   | Minority                    interests                                                   |   |   | **13,160**                     |   |   | 6,325                              |   |
| Marketable                    securities                         |   |   | **20,231**                     |   |   | 16,760                             |   |   |                                                                                    |   |   |                           |   |   |                               |   |
| Deferred                    loan                    costs        |   |   | **3,988**                      |   |   | 2,084                              |   |   | Commitments                    and contingent liabilities                               |   |   | ―                        |   |   | ―                            |   |
| Other                    long-term assets                        |   |   | **17,771**                     |   |   | 16,281                             |   |   |                                                                                    |   |   |                           |   |   |                               |   |
| Other                    intangibles, net                        |   |   | **14,755**                     |   |   | 13,692                             |   |   | Shareholders’                    equity                                           |   |   |                           |   |   |                               |   |
| Goodwill                                                         |   |   | **91,584**                     |   |   | 80,316                             |   |   | Common                    stock,                    $0.001 par value:                   |   |   |                           |   |   |                               |   |
| Total                    assets                                  |   | **$**  | **891,908**                    |   | $      | 743,044                            |   |   | authorized                    50,000,000 shares;                                        |   |   |                           |   |   |                               |   |
|                                                                  |   |   |                           |   |   |                               |   |   | issued                    and                    outstanding 14,231,241                 |   |   |                           |   |   |                               |   |
|                                                                  |   |   |                           |   |   |                               |   |   | and                    13,852,683                    shares                             |   |   | **14**                         |   |   | 14                                 |   |
|                                                                  |   |   |                           |   |   |                               |   |   | Additional                    paid-in capital                                           |   |   | **136,923**                    |   |   | 124,594                            |   |
|                                                                  |   |   |                           |   |   |                               |   |   | Unearned                    compensation                                                |   |   | **(3,417**                     | **)**  |   | (1,383                             | )      |
|                                                                  |   |   |                           |   |   |                               |   |   | Retained                    earnings                                                    |   |   | **257,731**                    |   |   | 205,812                            |   |
|                                                                  |   |   |                           |   |   |                               |   |   | Accumulated                    other comprehensive loss, net                            |   |   | **(912**                       | **)**  |   | (1,359                             | )      |
|                                                                  |   |   |                           |   |   |                               |   |   | Total                    shareholders’ equity                                     |   |   | **390,339**                    |   |   | 327,678                            |   |
|                                                                  |   |   |                           |   |   |                               |   |   | Total                    liabilities, minority interests and shareholders’ equity |   | **$**  | **891,908**                    |   | $      | 743,044                            |   |

----

**Building      Materials Holding Corporation**

**Consolidated      Statements of Shareholders’ Equity**

**(thousands)**

|                                                                                                                                                                               |   |                         |       |                                 |                             |   |                         |   |                     |                                                          |                       | Accumulated                Other                Comprehensive Income (Loss) |                    |   |        |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|------------|--------------------------------------|----------------------------------|--------|------------------------------|--------|--------------------------|---------------------------------------------------------------|----------------------------|-----------------------------------------------------------------------------|-------------------------|--------|-------------|
|                                                                                                                                                                               |   |                         |       |  AdditionalPaid-inCapital  |                             |   |                         |   |                     | Net                Unrealized Gain                (Loss) From |                       |                                                                        |                    |
|                                                                                                                                                                               |   | Common                Shares |       |                                 | Unearned Compensation  |   | Retained Earnings  |   | HedgingDerivatives  |                                                          | MarketableSecurities  |                                                                        |                    |   |
|                                                                                                                                                                                    |        | Shares                       |       | Amount                               |                             |   |                         |   |                     |                                                          | Total                 |                                                                        |
| **Balance                at December 31, 2003**                                                                                                                                    |   |                         | **13,334** |                                 | **$**                            | **13** |                         | **$**  | **115,282**              |                                                          | **$**                      | **―**                                                                 |                    | **$**  | **155,715** |   | **$** | **―** |   | **$** | **―** |   | **$** | **271,010** |   |
|    Net                income                                                                                                                                        |   |                         |       |                                 |                             |   |                         |   |                     |                                                          |                       |                                                                        |                    |   | **16,768**  |   |   |   |   |   |   |   |   | **16,768** |   |
|    Unrealized                loss from interest rate swap contracts                                                                                                 |   |                         |       |                                 |                             |   |                         |   |                     |                                                          |                       |                                                                        |                    |   |        |   |   | **(862** | **)** |   |   |   |   | **(862** | **)** |
|       Taxes                for unrealized gain from interest         rate                swap contracts |   |                         |       |                                 |                             |   |                         |   |                     |                                                          |                       |                                                                        |                    |   |        |   |   | **341** |   |   |   |   |   | **341** |   |
|    Unrealized                gain from marketable securities                                                                                                        |   |                         |       |                                 |                             |   |                         |   |                     |                                                          |                       |                                                                        |                    |   |        |   |   |   |   |   | **21** |   |   | **21** |   |
|    Comprehensive                income                                                                                                                              |   |                         |       |                                 |                             |   |                         |   |                     |                                                          |                       |                                                                        |                    |   |        |   |   |   |   |   |   |   |   | **16,268** |   |
|                                                                                                                                                                               |   |                         |       |                                 |                             |   |                         |   |                     |                                                          |                       |                                                                        |                    |   |        |   |   |   |   |   |   |   |   |   |   |
|    Share                options exercised                                                                                                                           |   |                         | **85**     |                                 |                             |   |                         |   | **930**                  |                                                          |                       |                                                                        |                    |   |        |   |   |   |   |   |   |   |   | **930** |   |
|    Shares                issued from Employee Plan                                                                                                                  |   |                         | **3**      |                                 |                             |   |                         |   | **47**                   |                                                          |                       |                                                                        |                    |   |        |   |   |   |   |   |   |   |   | **47** |   |
|    Cash                dividends on common shares                                                                                                                   |   |                         |       |                                 |                             |   |                         |   |                     |                                                          |                       |                                                                        |                    |   | **(1,607**  | **)** |   |   |   |   |   |   |   | **(1,607** | **)** |
| **Balance                at June 30, 2004**                                                                                                                                        |   |                         | **13,422** |                                 | **$**                            | **13** |                         | **$**  | **116,259**              |                                                          | **$**                      | **―**                                                                 |                    | **$**  | **170,876** |   | **$** | **(521** | **)** | **$** | **21** |   | **$** | **286,648** |   |
|                                                                                                                                                                               |   |                         |       |                                 |                             |   |                         |   |                     |                                                          |                       |                                                                        |                    |   |        |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                               |   |                         |       |                                 |                             |   |                         |   |                     |                                                          |                       |                                                                        |                    |   |        |   |   |   |   |   |   |   |   |   |   |
| **Balance                at December 31, 2004**                                                                                                                                    |   |                         | **13,853** |                                 | **$**                            | **14** |                         | **$**  | **124,594**              |                                                          | **$**                      | **(1,383**                                                                  | **)**                   | **$**  | **205,812** |   | **$** | **(1,362** | **)** | **$** | **3** |   | **$** | **327,678** |   |
|    Net                income                                                                                                                                        |   |                         |       |                                 |                             |   |                         |   |                     |                                                          |                       |                                                                        |                    |   | **54,462**  |   |   |   |   |   |   |   |   | **54,462** |   |
|    Unrealized                gain from interest rate swap contracts                                                                                                 |   |                         |       |                                 |                             |   |                         |   |                     |                                                          |                       |                                                                        |                    |   |        |   |   | **834** |   |   |   |   |   | **834** |   |
|       Taxes                for unrealized gain from interest         rate                swap contracts |   |                         |       |                                 |                             |   |                         |   |                     |                                                          |                       |                                                                        |                    |   |        |   |   | **(328** | **)** |   |   |   |   | **(328** | **)** |
|    Unrealized                loss from marketable securities                                                                                                        |   |                         |       |                                 |                             |   |                         |   |                     |                                                          |                       |                                                                        |                    |   |        |   |   |   |   |   | **(96** | **)** |   | **(96** | **)** |
|       Tax                benefit for unrealized gain from marketable          securities                |   |                         |       |                                 |                             |   |                         |   |                     |                                                          |                       |                                                                        |                    |   |        |   |   |   |   |   | **37** |   |   | **37** |   |
|    Comprehensive                income                                                                                                                              |   |                         |       |                                 |                             |   |                         |   |                     |                                                          |                       |                                                                        |                    |   |        |   |   |   |   |   |   |   |   | **54,909** |   |
|                                                                                                                                                                               |   |                         |       |                                 |                             |   |                         |   |                     |                                                          |                       |                                                                        |                    |   |        |   |   |   |   |   |   |   |   |   |   |
|    Share                options exercised                                                                                                                           |   |                         | **287**    |                                 |                             |   |                         |   | **3,167**                |                                                          |                       |                                                                        |                    |   |        |   |   |   |   |   |   |   |   | **3,167** |   |
|       Tax                benefit for share options exercised                                                                                         |   |                         |       |                                 |                             |   |                         |   | **4,697**                |                                                          |                       |                                                                        |                    |   |        |   |   |   |   |   |   |   |   | **4,697** |   |
|    Shares                issued from Director Plan                                                                                                                  |   |                         | **7**      |                                 |                             |   |                         |   | **380**                  |                                                          |                       |                                                                        |                    |   |        |   |   |   |   |   |   |   |   | **380** |   |
|    Shares                issued from Employee Plan                                                                                                                  |   |                         | **9**      |                                 |                             |   |                         |   | **432**                  |                                                          |                       |                                                                        |                    |   |        |   |   |   |   |   |   |   |   | **432** |   |
|    Shares                issued for acquisition                                                                                                                     |   |                         | **17**     |                                 |                             |   |                         |   | **1,000**                |                                                          |                       |                                                                        |                    |   |        |   |   |   |   |   |   |   |   | **1,000** |   |
|    Issuance                of restricted shares                                                                                                                     |   |                         | **58**     |                                 |                             |   |                         |   | **2,653**                |                                                          |                       | **(2,653**                                                                  | **)**                   |   |        |   |   |   |   |   |   |   |   | **―** |   |
|       Earned                compensation expense                                                                                                     |   |                         |       |                                 |                             |   |                         |   |                     |                                                          |                       | **619**                                                                     |                    |   |        |   |   |   |   |   |   |   |   | **619** |   |
|    Cash                dividends on common shares                                                                                                                   |   |                         |       |                                 |                             |   |                         |   |                     |                                                          |                       |                                                                        |                    |   | **(2,543**  | **)   ** |   |   |   |   |   |   |   | **(2,543** | **)** |
| **Balance                at June 30, 2005**                                                                                                                                        |   |                         | **14,231** |                                 | **$**                            | **14** |                         | **$**  | **136,923**              |                                                          | **$**                      | **(3,417**                                                                  | **)   ** | **$**  | **257,731** |   | **$** | **(856** | **)   ** | **$** | **(56** | **)   ** | **$** | **390,339** |   |

----

**Building      Materials Holding Corporation**

**Consolidated      Statements of Cash Flows**

**(thousands)**

|                                                                                                                            |   | **Six                        Months Ended June 30** |        |
|---------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------|-------------|
|                                                                                                                            |   | **2005**                                            |        | **2004** |   |
| **Operating                        Activities**                                                                                 |   |                                                |        |   |   |
|    Net                        income                                                                             |   | **$**                                               | **54,462**  |   | $ | 16,768 |   |
|    Items                        in net income not using (providing) cash:                                        |   |                                                |        |   |   |   |   |
|       Minority                        interests income, net                                       |   |                                                | **6,809**   |   |   | 3,497 |   |
|       Impairment                        of assets                                                 |   |                                                | **463**     |   |   | 1,273 |   |
|       Depreciation                        and amortization                                        |   |                                                | **11,585**  |   |   | 11,198 |   |
|       Loss                        (gain) on sale of assets, net                                   |   |                                                | **33**      |   |   | (743 | ) |
|       Deferred                        income taxes                                                |   |                                                | **(2,401**  | **)** |   | (4,934 | ) |
|       Changes                        in assets and liabilities, net of effects of acquisitions:   |   |                                                |        |   |   |   |   |
|          Receivables,                        net                                   |   |                                                | **(38,945** | **)** |   | (56,616 | ) |
|          Inventory                                                                 |   |                                                | **(28,650** | **)** |   | (56,854 | ) |
|          Unbilled                        receivables                               |   |                                                | **(2,942**  | **)** |   | (5,098 | ) |
|          Prepaid                        expenses and other current assets          |   |                                                | **4,436**   |   |   | 2,399 |   |
|          Accounts                        payable                                   |   |                                                | **29,763**  |   |   | 38,652 |   |
|          Accrued                        compensation                               |   |                                                | **13,013**  |   |   | 11,348 |   |
|          Insurance                        deductible reserves                      |   |                                                | **8,337**   |   |   | 8,960 |   |
|          Other                        accrued liabilities                          |   |                                                | **5,687**   |   |   | 5,888 |   |
|          Billings                        in excess of costs and estimated earnings |   |                                                | **10,329**  |   |   | 774 |   |
|          Other                        long-term assets and liabilities             |   |                                                | **1,952**   |   |   | 3,217 |   |
|       Other,                        net                                                           |   |                                                | **6,765**   |   |   | (1,353 | ) |
|    Cash                        flows provided (used) by operating activities                                     |   |                                                | **80,696**  |   |   | (21,624 | ) |
|                                                                                                                            |   |                                                |        |   |   |   |   |
| **Investing                        Activities**                                                                                 |   |                                                |        |   |   |   |   |
|    Purchases                        of property and equipment                                                    |   |                                                | **(17,202** | **)** |   | (14,314 | ) |
|    Acquisitions                        and investments in businesses, net of cash acquired                       |   |                                                | **(27,088** | **)** |   | (4,810 | ) |
|    Proceeds                        from dispositions of property and equipment                                   |   |                                                | **300**     |   |   | 4,443 |   |
|    Purchases                        of marketable securities                                                     |   |                                                | **(4,224**  | **)** |   | (9,000 | ) |
|    Other,                        net                                                                             |   |                                                | **760**     |   |   | (833 | ) |
|    Cash                        flows used by investing activities                                                |   |                                                | **(47,454** | **)** |   | (24,514 | ) |
|                                                                                                                            |   |                                                |        |   |   |   |   |
| **Financing                        Activities**                                                                                 |   |                                                |        |   |   |   |   |
|    Net                        (payments) borrowings under revolving credit facility                              |   |                                                | **(81,200** | **)** |   | 61,400 |   |
|    Borrowings                        under term note                                                             |   |                                                | **75,000**  |   |   | ― |   |
|    Principal                        payments on term note                                                        |   |                                                | **(626**    | **)** |   | (625 | ) |
|    Net                        (payments) borrowings on other notes payable                                       |   |                                                | **(4,096**  | **)** |   | (937 | ) |
|    Decrease                        in book overdrafts                                                            |   |                                                | **(4,443**  | **)** |   | (2,916 | ) |
|    Stock                        options exercised                                                                |   |                                                | **3,167**   |   |   | 930 |   |
|    Dividends                        paid                                                                         |   |                                                | **(2,230**  | **)** |   | (1,603 | ) |
|    Deferred                        financing costs                                                               |   |                                                | **(2,193**  | **)** |   | ― |   |
|    Other,                        net                                                                             |   |                                                | **(1,162**  | **)** |   | (5 | ) |
|    Cash                        flows (used) provided by financing activities                                     |   |                                                | **(17,783** | **)** |   | 56,244 |   |
|                                                                                                                            |   |                                                |        |   |   |   |   |
| **Increase                        in Cash and Cash Equivalents**                                                                |   |                                                | **15,459**  |   |   | 10,106 |   |
|    Cash,                        beginning of year                                                                |   |                                                | **19,496**  |   |   | 19,506 |   |
|    Cash,                        end of period                                                                    |   | **$**                                               | **34,955**  |   | $ | 29,612 |   |
|                                                                                                                            |   |                                                |        |   |   |   |   |
| **Supplemental                        Disclosure of Cash Flow Information**                                                     |   |                                                |        |   |   |   |   |
|    Accrued                        but unpaid dividends                                                           |   | **$**                                               | **1,421**   |   | $ | 805 |   |
|    Cash                        paid for interest                                                                 |   | **$**                                               | **6,480**   |   | $ | 5,137 |   |
|    Cash                        paid for income taxes                                                             |   | **$**                                               | **26,057**  |   | $ | 11,618 |   |

----

***Notes      to Consolidated Financial      Statements***

***1.***
***Basis      of Presentation***

***Recent      Accounting Principles***

*Share-Based      Payment*
*Accounting      for      Stock Issued to Employees*

----

***2.***
***Net      Income Per Share***

|                                                                                                                |   |   | **Three                    Months Ended June 30** |   |   | **Six                    Months Ended June 30** |   |
|---------------------------------------------------------------------------------------------------------------------|--------|--------|---------------------------------------------------|--------|--------|-------------------------------------------------|--------|
|                                                                                                                     |   |   | **2005**                                          |   |   | 2004                                            |   |   | **2005** |   |   | 2004 |   |
| Net                    income                                                                                       |   | **$**  | **33,314**                                        |   | $      | 12,580                                          |   | **$** | **54,462** |   | $ | 16,768 |   |
|                                                                                                                |   |   |                                              |   |   |                                            |   |   |   |   |   |   |   |
| Weighted                    average shares used to determine basic net income per                    share          |   |   | **13,978**                                        |   |   | 13,408                                          |   |   | **13,907** |   |   | 13,380 |   |
| Net                    effect of                    dilutive stock options and restricted stock (1) ** ** |   |   | **648**                                           |   |   | 295                                             |   |   | **623** |   |   | 277 |   |
| Weighted                    average shares used to determine diluted net income per                    share        |   |   | **14,626**                                        |   |   | 13,703                                          |   |   | **14,530** |   |   | 13,657 |   |
|                                                                                                                |   |   |                                              |   |   |                                            |   |   |   |   |   |   |   |
| Net                    income                    per share:                                                         |   |   |                                              |   |   |                                            |   |   |   |   |   |   |   |
|    Basic                                                                                             |   |   | **$2.38**                                         |   |   | $0.94                                           |   |   | **$3.92** |   |   | $1.25 |   |
|    Diluted                                                                                           |   |   | **$2.28**                                         |   |   | $0.92                                           |   |   | **$3.75** |   |   | $1.23 |   |
|                                                                                                                |   |   |                                              |   |   |                                            |   |   |   |   |   |   |   |
| Cash                    dividends declared per share                                                                |   |   | **$0.10**                                         |   |   | $0.06                                           |   |   | **$0.18** |   |   | $0.12 |   |

| (1)   | There                were no                options excluded from the computation of net income per diluted                share                for the second quarter of 2005.  Options to purchase                shares of                55,535 for the second quarter of 2004 and options to purchase shares                of                4,000 and 69,450 for the six months ended June 30, 2005 and 2004,                respectively were not dilutive and therefore excluded in the                computations of net income per diluted share.  Options                categorized as not dilutive were defined on the basis of the exercise                price being greater than the average market value of the common shares                in                the periods presented. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

***3.***
***Share-Based      Compensation***

*Accounting      for      Stock Issued to Employees*
*Accounting      for      Stock-Based Compensation*

|                                                                                                                                                                                                        |   | **Three                  Months Ended June 30** |       | **Six                  Months Ended June 30** |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------|------------|-----------------------------------------------|--------|
|                                                                                                                                                                                                        |   | **2005**                                        |       | 2004                                          |   |  **2005** |   |  2004 |   |
| Net                  income,                  as reported                                                                                                                                                   |   | **$**                                           | **33,314** |                                          | $      | 12,580 |   | **$** | **54,462** |   | $ | 16,768 |   |
| Add:                  Share-based employee compensation expense determined under APB                  25, net of related tax effects                                                                   |   |                                            | **208**    |                                          |   | 97 |   |   | **346** |   |   | 339 |   |
| Deduct:                  Share-based employee compensation expense determined                  under fair value method for all awards, net of related                  tax effects |   |                                            | **(764**   | **)**                                         |   | (335 | ) |   | **(1,321** | **)** |   | (817 | ) |
| Pro                  forma net                  income                                                                                                                                                      |   | **$**                                           | **32,758** |                                          | $      | 12,342 |   | **$** | **53,487** |   | $ | 16,290 |   |
|                                                                                                                                                                                                        |   |                                            |       |                                          |   |   |   |   |   |   |   |   |   |
| Earnings                  per                  share:                                                                                                                                                       |   |                                            |       |                                          |   |   |   |   |   |   |   |   |   |
|    Basic                  - as reported                                                                                                                                                      |   |                                            | **$2.38**  |                                          |   | $0.94 |   |   | **$3.92** |   |   | $1.25 |   |
|    Basic                  - pro forma                                                                                                                                                        |   |                                            | **$2.34**  |                                          |   | $0.92 |   |   | **$3.85** |   |   | $1.22 |   |
|                                                                                                                                                                                                        |   |                                            |       |                                          |   |   |   |   |   |   |   |   |   |
|    Diluted                  - as reported                                                                                                                                                    |   |                                            | **$2.28**  |                                          |   | $0.92 |   |   | **$3.75** |   |   | $1.23 |   |
|    Diluted                  - pro forma                                                                                                                                                      |   |                                            | **$2.24**  |                                          |   | $0.90 |   |   | **$3.68** |   |   | $1.19 |   |

***4.***
***Impairment      of Assets***

----

***5.***
***Minority      Interests and Acquisitions***

***Minority      Interests***

***·***
***Riggs      Plumbing***

***·***
***RCI      Construction***

**·**
***A-1      Truss***

***·***
***WBC      Mid-Atlantic***

----

***·***
***WBC      Construction***

***·***
***KBI      Norcal***

***Subsequent      to June 30, 2005***

***·***
***BBP      Companies***

----

|                              | **Call                  Options**                                     |   | **Put                  Options**                                      |
|-----------------------------------|-----------------------------------------------------------------------|--------|-----------------------------------------------------------------------|
| BBP                  Companies    | July                  2008                  through June 2015         |   | July                  2008                  through June 2015         |
| Riggs                  Plumbing   | April                  2008                  through March 2013       |   | April                  2008                  through March 2013       |
| RCI                  Construction | January                  2008                  through January 2012   |   | January                  2008                  through January 2012   |
| A-1                  Truss        | September                  2004 through August 2014                   |   | September                  2009 through August 2014                   |
| WBC                  Mid-Atlantic | October                  2003                  through September 2010 |   | October                  2008                  through September 2010 |
| WBC                  Construction | January                  2006                  through January 2009   |   | January                  2007                  through January 2009   |

***Acquisitions***

|   | · |   | In              May 2005, BMC Construction              acquired a stucco business in Las Vegas, Nevada for $6.1 million in              cash.  Assets acquired included receivables of $3.6 million,              unbilled receivables of $1.5 million, inventory of $0.1 million, property              and equipment of $1.9 million, billings in excess of costs of $0.3              million              and other liabilities of $0.7              million.   |
|--------|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · |   | In                June 2004, BMC West                acquired a framing business in Denver, Colorado for $0.8 million                in                cash.  Assets acquired included prepaid expenses of                $0.1                million, property and equipment of $0.1 million, other long-term                assets of                $0.3 million, intangibles of $0.1 million and goodwill of $0.2                million.   |
|--------|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · |   | In                  March 2004, BMC                  Construction acquired a distribution facility in Tucson, Arizona                  for $4.1                  million in cash.  In October 2004, BMC Construction                  acquired a                  window installation business in Napa, California for $1.8 million                  in                  cash.  Assets acquired in these acquisitions included                  receivables of $1.8 million, inventory of $0.8 million, property                  and                  equipment of $2.3 million, intangibles of $0.3 million, goodwill                  of $1.0                  million and liabilities of $0.3 million.   |
|--------|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

***6.***
***Intangible      Assets and Goodwill***

|                                                           |   | **June                    30, 2005**                  |       |
|----------------------------------------------------------------|--------|-------------------------------------------------------|------------|
|                                                           |   |  **Gross****Carrying                    Amount** |       |  **Accumulated                    Amortization** |   | **Net                    Carrying Amount** |   |
| Customer                    relationships                      |   | **$**                                                 | **18,908** |   | **$** | **(6,263** | **)** | **$** | **12,645** |   |
| Covenants                    not                    to compete |   |                                                  | **3,549**  |   |   | **(1,699** | **)** |   | **1,850** |   |
| Trade                    names                                 |   |                                                  | **204**    |   |   | **(57** | **)** |   | **147** |   |
| Other                                                          |   |                                                  | **120**    |   |   | **(7** | **)** |   | **113** |   |
|                                                           |   | **$**                                                 | **22,781** |   | **$** | **(8,026** | **)** | **$** | **14,755** |   |

|                                                       |   | **December                  31, 2004**        |   |
|------------------------------------------------------------|--------|-----------------------------------------------|--------|
|                                                       |   | **Gross****Carrying                  Amount** |   | **Accumulated                  Amortization** |   | **Net                  Carrying Amount** |   |
| Customer                  relationships                    |   | $                                             | 17,134 |   | $ | (5,116 | ) | $ | 12,018 |   |
| Covenants                  not                  to compete |   |                                          | 2,919  |   |   | (1,426 | ) |   | 1,493 |   |
| Trade                  names                               |   |                                          | 204    |   |   | (23 | ) |   | 181 |   |
| Other                                                      |   |                                          | 500    |   |   | (500 | ) |   | ― |   |
|                                                       |   | $                                             | 20,757 |   | $ | (7,065 | ) | $ | 13,692 |   |

|                                                           |   | **BMC                  West** |       | **BMC                  Construction** |   | **Total**  |   |
|----------------------------------------------------------------|--------|-------------------------------|------------|---------------------------------------|--------|------------|--------|
| Balance                  at                  December 31, 2004 |   | $                             | 20,063     |                                  | $      | 60,253     |   | $ | 80,316 |   |
| Goodwill                  acquired                             |   |                          | 3          |                                  |   | 11,265     |   |   | 11,268 |   |
| Balance                  at                  June 30, 2005     |   | **$**                         | **20,066** |                                  | **$**  | **71,518** |   | **$** | **91,584** |   |

----

***7.***
***Debt***

| **As                      of                      June 30, 2005**  |        |              |                                          |                                                                           |                                                            |   | **Effective                      Interest Rate** |
|-------------------------------------------------------------------------|-------------|-------------------|-----------------------------------------------|--------------------------------------------------------------------------------|-----------------------------------------------------------------|--------|--------------------------------------------------|
|                                                                    | **Balance** |              | **Stated                      Interest Rate** |                                                                           | **Notional                      Amount of Interest Rate Swaps** |   | **Average                      for Quarter**     | **As                      of                      June 30** |
| Revolving                      credit facility                          | **$**       | **―**  |                                          | LIBOR                      plus                      0.75% or Prime plus 0.00% |                                                            | **$**  | ―                                     |   | **4.12%** | **4.24%** |
| Term                      note                                          |        | **75,000**   |                                          | LIBOR                      plus                      0.75% or Prime plus 0.00% |                                                            |   | ―                                     |   | **―   ** | **4.24%** |
| Term                      note                                          |        | **122,500**  |                                          | LIBOR                      plus                      1.75%                     |                                                            |   | **100,000**                                 |   | **6.18%** | **5.98%** |
| Other                                                                   |        | **4,914**    |                                          | Various                                                                        |                                                            |   | ―                                     |   | ―    | ―    |
|                                                                    |        | **202,414**  |                                          |                                                                           |                                                            | **$**  | **100,000**                                 |   |   |   |
|                                                                    |        |              |                                          |                                                                           |                                                            |   |                                             |   |   |   |
| Less:  Current                      portion                   |        | **2,497**    |                                          |                                                                           |                                                            |   |                                             |   |   |   |
|                                                                    | **$**       | **199,917**  |                                          |                                                                           |                                                            |   |                                             |   |   |   |

| **As                    of                    December 31, 2004** |        |          |                                        |                                                                       |                                                                | **Effective                    Interest Rate** |
|-------------------------------------------------------------------|-------------|---------------|---------------------------------------------|----------------------------------------------------------------------------|---------------------------------------------------------------------|------------------------------------------------|
|                                                              | **Balance** |          | **Stated                    Interest Rate** |                                                                       | ** Notional                    Amount of Interest Rate Swaps** |                                           | **Average                    for Year** | **As                    of                    December 31** |
| Revolving                    credit facility                      | $           | 81,200   |                                        | LIBOR                    plus                    1.75% or Prime plus 0.50% |                                                                | $                                              | ―  |   | 4.88% | 5.25% |
| Term                    note                                      |        | 123,125  |                                        | LIBOR                    plus                    2.00%                     |                                                                |                                           | 100,000  |   | 5.65% | 6.80% |
| Other                                                             |        | 5,498    |                                        | Various                                                                    |                                                                |                                           | ―  |   | ―    | ―    |
|                                                              |        | 209,823  |                                        |                                                                       |                                                                | $                                              | 100,000  |   |   |   |
|                                                              |        |          |                                        |                                                                       |                                                                |                                           |   |   |   |   |
| Less:  Current                    portion               |        | 3,404    |                                        |                                                                       |                                                                |                                           |   |   |   |   |
|                                                              | $           | 206,419  |                                        |                                                                       |                                                                |                                           |   |   |   |   |

***Revolving        Credit Facility***

----

***Term      Notes***

***Other***

***Expansion        of Credit Facility, Covenants and Maturities***

| 2005       |   | $      | 1,536   |   |
|------------|--------|--------|---------|--------|
| 2006       |   |   | 7,891   |   |
| 2007       |   |   | 9,239   |   |
| 2008       |   |   | 12,922  |   |
| 2009       |   |   | 77,061  |   |
| Thereafter |   |   | 93,765  |   |
|       |   | $      | 202,414 |   |

***Hedging      Activities***

----

***8.***
***Shareholders’      Equity***

***Common      Shares***

***9.***
***Legal      Proceedings***

***10.***
***Segment      Information***

----

|                                                                    |   | **Sales**                                      |               |                                                       |
|-------------------------------------------------------------------------|--------|------------------------------------------------|---------------|------------------------------------------------------------|
|                                                                    |   | **Segment                              Sales** |          | **Intersegment                              Eliminations** |   | **Total** |   | **Income                              Before Taxes and Minority Interests** |   |
| **Three                              Months Ended June 30, 2005**  |   |                                           |          |                                                       |   |   |   |   |   |
|    BMC                              West                 |   | $                                              | 398,230       |                                                       | $ | (344 | ) | $ | 397,886 |   | $ | 41,030 |   |
|    BMC                              Construction         |   |                                           | 303,648       |                                                       |   | (13 | ) |   | 303,635 |   |   | 36,756 |   |
|    Corporate                              and other      |   |                                           | ―       |                                                       |   | ― |   |   | ― |   |   | (16,894 | ) |
|                                                                    |   | $                                              | 701,878       |                                                       | $ | (357 | ) | $ | 701,521 |   |   | 60,892 |   |
| Interest                              expense                           |   |                                           |          |                                                       |   |   |   |   |   |   |   | 3,350 |   |
|                                                                    |   |                                           |          |                                                       |   |   |   |   |   |   | $ | 57,542 |   |
|                                                                    |   |                                           |          |                                                       |   |   |   |   |   |   |   |   |   |
| **Three                              Months Ended June 30, 2004**       |   |                                           |          |                                                       |   |   |   |   |   |   |   |   |   |
|    BMC                              West                 |   | $                                              | 360,185       |                                                       | $ | (431 | ) | $ | 359,754 |   | $ | 26,383 |   |
|    BMC                              Construction         |   |                                           | 183,659       |                                                       |   | (20 | ) |   | 183,639 |   |   | 13,338 |   |
|    Corporate                              and other      |   |                                           | ―       |                                                       |   | ― |   |   | ― |   |   | (13,248 | ) |
|                                                                    |   | $                                              | 543,844  |                                                       | $ | (451 | ) | $ | 543,393 |   |   | 26,473 |   |
| Interest                              expense                           |   |                                           |          |                                                       |   |   |   |   |   |   |   | 3,157 |   |
|                                                                    |   |                                           |          |                                                       |   |   |   |   |   |   | $ | 23,316 |   |

|                                                      |   | **Sales**                          |      |                                           |
|-----------------------------------------------------------|--------|------------------------------------|-----------|------------------------------------------------|
|                                                      |   | **Segment                  Sales** |      | **Intersegment                  Eliminations** |   | **Total** |   | ****Income                  Before**Taxes and                  Minority Interests** |   |
| **Six                  Months Ended June 30, 2005**       |   |                               |      |                                      |   |    |   |    |   |
|    BMC                  West               |   | $                                  | 729,049   |                                           | $ | (477 | ) | $ | 728,572 |   | $ | 69,905 |   |
|    BMC                  Construction       |   |                               | 546,149   |                                           |   | (272 | ) |   | 545,877 |   |   | 65,288 |   |
|    Corporate                  and other    |   |                               | ―   |                                           |   | ― |   |   | ― |   |   | (33,993 | ) |
|                                                      |   | $                                  | 1,275,198 |                                           | $ | (749 | ) | $ | 1,274,449 |   |   | 101,200 |   |
| Interest                  expense                         |   |                               |      |                                           |   |   |   |   |   |   |   | 6,548 |   |
|                                                      |   |                               |      |                                           |   |   |   |   |   |   | $ | 94,652 |   |
| ** Six                  Months Ended June 30, 2004** |   |                               |      |                                           |   |   |   |   |   |   |   |   |   |
|    BMC                  West               |   | $                                  | 636,310   |                                           | $ | (1,110 | ) | $ | 635,200 |   | $ | 40,565 |   |
|    BMC                  Construction       |   |                               | 325,077   |                                           |   | (41 | ) |   | 325,036 |   |   | 20,067 |   |
|    Corporate                  and other    |   |                               | ―   |                                           |   | ― |   |   | ― |   |   | (23,508 | ) |
|                                                      |   | $                                  | 961,387   |                                           | $ | (1,151 | ) | $ | 960,236 |   |   | 37,124 |   |
| Interest                  expense                         |   |                               |      |                                           |   |   |   |   |   |   |   | 5,911 |   |
|                                                      |   |                               |      |                                           |   |   |   |   |   |   | $ | 31,213 |   |

----

| **Item              2 -** | **MANAGEMENT’S              DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND              RESULTS OF OPERATIONS** |
|---------------------------|---------------------------------------------------------------------------------------------------------------------------|

***Overview***

**BMC      West**
**BMC      Construction**

| ·   | RCI                  Construction - a 51% interest in a company providing framing services                  in                  the greater Chicago area (January                  2005) |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·                  | Riggs                  Plumbing - a 73% interest in a business providing plumbing services                  in                  Phoenix and Tucson (60% acquired in April 2005 and 13% in July                  2005) |
|------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Purchase                  of a                  stucco business in the Las Vegas market (May                  2005) |
|--------------------|---------------------------------------------------------------------------------------------------------------------|

| ·   | BBP                  Companies                  - a 51% interest in a company providing concrete foundation services                  in                  Arizona (July 2005) |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

***Results      of Operations***

|                                                                                    |   | **Three                    Months Ended June 30** |      | **Six                    Months Ended June 30** |   |
|-----------------------------------------------------------------------------------------|--------|---------------------------------------------------|-----------|-------------------------------------------------|--------|
|                                                                                    |   | **2005**                                          |      | 2004                                            |   | **2005** |   | 2004 |   |
| **Sales**                                                                               |   |                                              |      |                                            |   |    |   |   |   |    |   |   |   |    |   |   |   |
| Building                    products                                                    |   | **$**                                             | **344.6** |                                            |   | **49.1** | **%** | $ | 319.3 |   |   | 58.8 | % | **$** | **637.5** |   |   | **50.0** | **%** | $ | 566.6 |   |   | 59.0 | % |
| Construction                    services                                                |   |                                              | **356.9** |                                            |   | **50.9** |   |   | 224.1 |   |   | 41.2 |   |   | **636.9** |   |   | **50.0** |   |   | 393.6 |   |   | 41.0 |   |
| Total                    sales                                                          |   |                                              | **701.5** |                                            |   | **100.0** |   |   | 543.4 |   |   | 100.0 |   |   | **1,274.4** |   |   | **100.0** |   |   | 960.2 |   |   | 100.0 |   |
|                                                                                    |   |                                              |      |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Costs                    and operating expenses**                                     |   |                                              |      |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost                    of goods                    sold                                |   |                                              |      |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Building                    products                                                    |   |                                              | **253.8** |                                            |   | **73.7** |   |   | 244.2 |   |   | 76.5 |   |   | **469.4** |   |   | **73.6** |   |   | 430.4 |   |   | 76.0 |   |
| Construction                    services                                                |   |                                              | **289.9** |                                            |   | **81.2** |   |   | 193.0 |   |   | 86.1 |   |   | **517.4** |   |   | **81.2** |   |   | 341.6 |   |   | 86.8 |   |
|    Impairment                    of assets                               |   |                                              | **0.5**   |                                            |   | **0.1** |   |   | ― |   |   | ― |   |   | **0.5** |   |   | **―** |   |   | 1.3 |   |   | 0.1 |   |
|    Selling,                    general and administrative expenses  |   |                                              | **97.3**  |                                            |   | **13.9** |   |   | 79.6 |   |   | 14.6 |   |   | **187.3** |   |   | **14.7** |   |   | 150.2 |   |   | 15.6 |   |
|    Other                    (income) expense, net                        |   |                                              | **(0.9**  | **)**                                           |   | **(0.1** | **)** |   | 0.1 |   |   | ― |   |   | **(1.4** | **)** |   | **(0.1** | **)** |   | (0.4 | ) |   | ― |   |
| Total                    costs                    and operating expenses                |   |                                              | **640.6** |                                            |   | **91.3** |   |   | 516.9 |   |   | 95.1 |   |   | **1,173.2** |   |   | **92.1** |   |   | 923.1 |   |   | 96.1 |   |
|                                                                                    |   |                                              |      |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Income                    from operations**                                           |   |                                              | **60.9**  |                                            |   | **8.7** |   |   | 26.5 |   |   | 4.9 |   |   | **101.2** |   |   | **7.9** |   |   | 37.1 |   |   | 3.9 |   |
|                                                                                    |   |                                              |      |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                    expense                                                     |   |                                              | **3.4**   |                                            |   | **0.5** |   |   | 3.2 |   |   | 0.6 |   |   | **6.5** |   |   | **0.5** |   |   | 5.9 |   |   | 0.6 |   |
| Income                    before                    income taxes and minority interests |   |                                              | **57.5**  |                                            |   | **8.2** |   |   | 23.3 |   |   | 4.3 |   |   | **94.7** |   |   | **7.4** |   |   | 31.2 |   |   | 3.3 |   |
| Income                    taxes                                                         |   |                                              | **20.4**  |                                            |   | **2.9** |   |   | 8.2 |   |   | 1.5 |   |   | **33.4** |   |   | **2.6** |   |   | 10.9 |   |   | 1.1 |   |
| Minority                    interests income, net                                       |   |                                              | **(3.8**  | **)**                                           |   | **(0.5** | **)** |   | (2.5 | ) |   | (0.5 | ) |   | **(6.8** | **)** |   | **(0.5** | **)** |   | (3.5 | ) |   | (0.4 | ) |
| **Net                    income**                                                       |   | **$**                                             | **33.3**  |                                            |   | **4.8** |   | $ | 12.6 |   |   | 2.3 |   | **$** | **54.5** |   |   | **4.3** |   | $ | 16.8 |   |   | 1.8 |   |

**SECOND      QUARTER OF 2005 COMPARED TO THE SECOND QUARTER OF 2004**

***Consolidated      Financial Results***

|                                                 |   | **Three                Months Ended June 30** |      |
|------------------------------------------------------|--------|-----------------------------------------------|-----------|
|                                                 |   | **2005**                                      |      |  2004 |   |
| Sales                                                |   |                                          |      |    |   |
| Building                products                     |   | **$**                                         | **344.6** |   | $ | 319.3 |   |
| Construction                services                 |   |                                          | **356.9** |   |   | 224.1 |   |
|                                                 |   | **$**                                         | **701.5** |   | $ | 543.4 |   |
|                                                 |   |                                          |      |   |   |   |   |
| Income                from                operations |   | **$**                                         | **60.9**  |   | $ | 26.5 |   |

----

***BMC      West***

|                                                 |   | **Three                Months Ended June 30** |      |
|------------------------------------------------------|--------|-----------------------------------------------|-----------|
|                                                 |   | **2005**                                      |      |  2004 |   |
|                                                 |   |                                          |      |    |   |
| Sales                                                |   | **$**                                         | **397.9** |   | $ | 359.8 |   |
|                                                 |   |                                          |      |   |   |   |   |
| Income                from                operations |   | **$**                                         | **41.0**  |   | $ | 26.4 |   |

***BMC      Construction***

|                                                     |   |   | **Three                  Months Ended June 30** |   |
|----------------------------------------------------------|--------|--------|-------------------------------------------------|--------|
|                                                     |   |   | **2005**                                        |   |   | 2004 |   |
|                                                     |   |   |                                            |   |   |   |   |
| Sales                                                    |   | **$**  | **303.6**                                       |   | $ | 183.6 |   |
| Less:                   Acquisitions                |   |   | **(51.1**                                       | **)**  |   | ― |   |
|                                                     |   | **$**  | **252.5**                                       |   | $ | 183.6 |   |
|                                                     |   |   |                                            |   |   |   |   |
| Income                  from                  operations |   | **$**  | **36.8**                                        |   | $ | 13.3 |   |
| Less:                   Acquisitions                |   |   | **(3.5**                                        | **)**  |   | ― |   |
|                                                     |   | **$**  | **33.3**                                        |   | $ | 13.3 |   |

***Corporate***

|                                      |   | **Three                  Months Ended June 30** |     |
|-------------------------------------------|--------|-------------------------------------------------|----------|
|                                      |   | **2005**                                        |     |  2004 |   |
|                                      |   |                                            |     |    |   |
| **Operating                    expenses** |   | **$**                                           | **16.9** |   | $ | 13.2 |   |
|                                      |   |                                            |     |   |   |   |   |

----

**FIRST      SIX MONTHS OF 2005 COMPARED TO THE FIRST SIX MONTHS OF      2004**

***Consolidated      Financial Results***

| ** **                                               | ** ** | ** ** | **Six Months                  Ended****June                  30** | ** ** |
|----------------------------------------------------------|------------|------------|------------------------------------------------------------------------|------------|
| ** **                                               | ** ** | ** ** | **2005**                                                               | ** ** | ** ** | **2004** | ** ** |
| Sales                                                    |       |       |                                                                   |       |   |   |   |
| Building                  products                       |       | **$**      | **637.5**                                                              |       | $ | 566.6 |   |
| Construction                  services                   |       |       | **636.9**                                                              |       |   | 393.6 |   |
|                                                     |       | **$**      | **1,274.4**                                                            |       | $ | 960.2 |   |
|                                                     |       |       |                                                                   |       |   |   |   |
| Income                  from                  operations |       | **$**      | **101.2**                                                              |       | $ | 37.1 |   |

***BMC      West***

|                                                     |   |   | **Six                  Months Ended****June                  30** |   |
|----------------------------------------------------------|--------|--------|-------------------------------------------------------------------|--------|
|                                                     |   |   | **2005**                                                          |   |   | 2004 |   |
|                                                     |   |   |                                                              |   |   |   |   |
| Sales                                                    |   | **$**  | **728.6**                                                         |   | $ | 635.2 |   |
|                                                     |   |   |                                                              |   |   |   |   |
| Income                  from                  operations |   | **$**  | **69.9**                                                          |   | $ | 40.6 |   |

----

***BMC      Construction***

|                                                     |   |   | **Six                  Months Ended****June                  30** |   |
|----------------------------------------------------------|--------|--------|-------------------------------------------------------------------|--------|
|                                                     |   |   | **2005**                                                          |   |   | 2004 |   |
|                                                     |   |   |                                                              |   |   |   |   |
| Sales                                                    |   | **$**  | **545.9**                                                         |   | $ | 325.0 |   |
| Less:                   Acquisitions                |   |   | **(77.0**                                                         | **)**  |   | ― |   |
|                                                     |   | **$**  | **468.9**                                                         |   | $ | 325.0 |   |
|                                                     |   |   |                                                              |   |   |   |   |
| Income                  from                  operations |   | **$**  | **65.3**                                                          |   | $ | 20.1 |   |
| Less:                   Acquisitions                |   |   | **(4.5**                                                          | **)**  |   | ― |   |
|                                                     |   | **$**  | **60.8**                                                          |   | $ | 20.1 |   |

***Corporate***

|                                    |   | **Six                    Months Ended****June                    30** |     |
|-----------------------------------------|--------|-----------------------------------------------------------------------|----------|
|                                    |   | **2005**                                                              |     |  2004 |   |
|                                    |   |                                                                  |     |    |   |
| Operating                      expenses |   | **$**                                                                 | **34.0** |   | $ | 23.5 |   |

**LIQUIDITY      AND CAPITAL RESOURCES**

***Operations***

----

***Capital      Investments and Acquisitions***

***Financing***

***Revolving      Credit Facility***

***Term      Notes***

***Other***

***Expansion        of Credit Facility, Covenants and Maturities***

***Hedging      Activities***

----

***Equity***

**Business      Risks And Forward-Looking Statements**

| ·   | demand                for                homebuilding which is influenced by changes in the overall condition                of                the U.S. economy, including job formation, interest rates and consumer                confidence as well as other important                factors; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | fluctuations                  in our costs and availability of sourcing channels for commodity                  wood                  products and building                  materials; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | changes                in                the business models of our                customers; |
|--------------------|-----------------------------------------------------------------------------------------------|

| ·   | intense                competition; |
|--------------------|-------------------------------------|

| ·   | integration                of acquired businesses may not result in anticipated cost savings                and                revenue synergies being fully realized or it may take longer to realize                than expected; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | our                ability                to identify suitable acquisition                candidates; |
|--------------------|-------------------------------------------------------------------------------------------------------|

| ·   | availability                of and ability to attract, train and retain qualified                individuals; |
|--------------------|---------------------------------------------------------------------------------------------------------------|

| ·   | unanticipated                weather conditions including natural catastrophic events such as                earthquakes, fire, flood, hurricanes, tornadoes,                etc.; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | implementation                of cost structures that align with revenue                growth; |
|--------------------|-------------------------------------------------------------------------------------------------|

| ·   | actual                and                perceived vulnerabilities as a result of terrorist activities and                armed                conflict; and |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | numerous                other matters of a local and regional scale, including those of a                political, economic, business, competitive or regulatory                nature. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Critical      Accounting Estimates***

----

**Item      3**-*** *****Quantitative      and Qualitative Disclosures about Market Risk**

----

**Item      4***-***Controls      and Procedures** 

**Evaluation      of Disclosure Controls and Procedures**

**Changes      in      Internal Controls Over Financial Reporting**

----

**PART      II - OTHER INFORMATION**

**Item      1**-**Legal      Proceedings**

**Item      2**-**Unregistered Sales of Equity Securities and Use of      Proceeds**

**Item      3**-**Defaults      Upon Senior Securities**

**Item      4**-**Submission      of Matters to a Vote of Security Holders**

***Election      of Board of Directors***

|                                                 |   | **For**                |   | **Withheld**                            |
|------------------------------------------------------|--------|------------------------|--------|-----------------------------------------|
| Robert                E.                Mellor       |   | 11,370,574   |   | 432,299                       |
| Alec                F.                Beck           |   | 11,267,783   |   | 535,190                       |
| Sara                L.                Beckman        |   | 11,744,144   |   | 58,829                                  |
| H.                James                Brown         |   | 11,716,926   |   | 86,047                                  |
| James                K.                Jennings, Jr. |   | 11,744,217   |   | 58,756                                  |
| R.                Scott                Morrison, Jr. |   | 11,741,139   |   | 61,834                                  |
| Peter                S.                O’Neill |   | 11,715,343   |   | 87,630                                  |
| Richard                G.                Reiten      |   | 5,824,356              |   | 5,978,617      |

***Increase      Authorized Common Shares to 50 Million***

| **For**    |   | **Withheld** |   | **Abstain** |   | **Not                Voted** |
|------------|--------|--------------|--------|-------------|--------|------------------------------|
| 10,265,693 |   | 1,524,134    |   | 13,135      |   | 11                           |

----

***Ratification      of Independent Registered Public Accounting Firm***

| **For**    |   | **Withheld** |   | **Abstain** |   | **Not                Voted** |
|------------|--------|--------------|--------|-------------|--------|------------------------------|
| 11,724,765 |   | 63,058       |   | 15,140      |   | 10                           |

**Item      5**-**Other      Information**

**Item      6**-**Exhibits**

| (a) |   | Exhibits |   |   |
|-----|--------|----------|--------|--------|

|   |                    **Number** |   | **Description** |  |
|--------|----------------------------------------------|--------|-----------------|--|

|   |   | 10.1    |   | Amended                  and                  Restated Credit Agreement among Building Materials Holding Corporation,                  BMC West Corporation and other Subsidiary Guarantors, Wells Fargo                  Bank,                  National Association, as Administrative Agent, Co-Lead Arranger,                  Sole Book                  Runner and L/C Issuer, and Suntrust Bank as Co-Lead Arranger and                  Syndication Agent and the other financial institutions party                  hereto.  Incorporated by reference to Exhibit 10.1                  to the Form                  8-K filed on July 6, 2005. |
|--------|--------|---------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |   | 10.43.1 |   | Incentive                and                Performance Compensation Pursuant to 2005 Financial                Performance.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |   |    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |   | 10.45   |   | Second                  Amendment to the Employment Agreement between Robert E. Mellor                  and                  Building Materials Holding Corporation as of June 16,                  2005.  Incorporated by reference to Exhibit 10.45                  to the Form                  8-K filed on June 20, 2005.                                                                                                                                                                                                                                                                                                                           |
|   |   |    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |   | 10.46   |   | First                  Amendment to the Severance Plan for Certain Executive Officers,                  Senior                  Management and Key Employees of Building Materials Holding Corporation,                  effective as of June 16, 2005.  Incorporated by reference                  to                  Exhibit 10.46 to the Form 8-K filed on June 20, 2005.                                                                                                                                                                                                                                                                             |
|   |   |    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |   | 11.0    |   | Statement                  regarding computation of earnings per share (see Note                  2)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |   |    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |   | 31.1    |   | Section                  302                  Certification                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |   |    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |   | 31.2    |   | Section                  302                  Certification                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |   |    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |   | 32.0    |   | Section                  906                  Certifications                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |

----

**SIGNATURES**

|                                               | BUILDING                MATERIALS HOLDING CORPORATION                                                                                                                                 |
|----------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Date:                August                3, 2005 | */s/                Robert E. Mellor*                                                                                                                                                      |   |
|                                               | Robert                E.                MellorChairman                of                the Board, President and Chief Executive Officer(Principal                Executive Officer)  |
| Date:                August                3, 2005 | */s/                William M. Smartt*                                                                                                                                                     |   |
|                                               | William                M.                SmarttSenior                Vice                President and Chief Financial Officer (Principal                Financial Officer)                |

----