The modern wood converting processes consists of several stages and material drying belongs to the most influencing future performances of products. The procedure of drying wood is usually realized between subsequent sawing operations, affecting significantly cutting conditions and general properties of material. An alternative methodology for determination of mechanical properties (fracture toughness and shear yield stress) based on cutting process analysis is presented here. Two wood species (pine and beech) representing soft and hard woods were investigated with respect to four diverse drying methods used in industry. Fracture toughness and shear yield stress were determined directly from the cutting power signal that was recorded while frame sawing. An original procedure for compensation of the wood density variation is proposed to generalize mechanical properties of wood and allow direct comparison between species and drying methods. Noticeable differences of fracture toughness and shear yield stress values were found among all drying techniques and for both species, but only for beech wood the differences were statistically significant. These observations provide a new highlight on the understanding of the effect of thermo-hydro modification of wood on mechanical performance of structures. It can be also highly useful to optimize woodworking machines by properly adjusting cutting power requirements.