BlueLinx Announces Second Quarter 2025 Results

BlueLinx Holdings Inc., a leading U.S. wholesale distributor of building products, reported financial results for the three fiscal months ended June 28, 2025.

Second Quarter 2025 Highlights

• Net sales of $780 million
• Gross profit of $120 million, gross margin of 15.3% and specialty product gross margin of 18.5%
• Net income of $4.3 million, or $0.54 diluted earnings per share
• Adjusted net income of $5.6 million, or $0.70 adjusted diluted earnings per share
• Adjusted EBITDA of $26.8 million, or 3.4% of net sales
• Available liquidity of $730 million, including $387 million cash and cash equivalents on hand
• $20 million in share repurchases
• Announcement of new $50 million share repurchase authorization

“We are pleased with the continued execution of our product and channel strategies. Our second quarter results were highlighted by net sales and volume increases in both specialty products and structural products, despite soft market conditions,” said Shyam Reddy, President, and Chief Executive Officer of BlueLinx. “We were also pleased with our solid specialty product margins in a competitive pricing environment. Structural product margins benefited from an increase in lumber prices, partially offset by a significant decline in panel prices during the quarter. While current market conditions remain challenging, we will continue executing our long-term profitable sales growth strategy to yield market share gains in multi-family and other strategic areas of focus.”

“With our continued strong balance sheet, significant liquidity, and low leverage, we remain well-positioned to accelerate our profitable sales growth as the home building industry rebounds,” said C. Kelly Wall, Senior Vice President, Chief Financial Officer and Treasurer of BlueLinx. “During the second quarter, we purchased $20 million of stock, and today we announced a new $50 million share repurchase authorization, bringing the total availability for repurchase to $61.5 million. This new authorization further demonstrates our commitment to returning capital to shareholders.”

Second Quarter 2025 Financial Performance

In the second quarter of 2025, net sales were $780 million, an increase of $12 million, or 2% when compared to the second quarter of 2024. Sales growth in the current quarter was attributable to both structural and specialty products. Gross profit was $120 million, a decrease of $3 million, or 2%, year-over-year, and gross margin percentage was 15.3%, down 60 basis points from the same period last year.

Net sales of specialty products, which include products such as engineered wood, siding, millwork, outdoor living, specialty lumber and panels, and industrial products, were $543 million, an increase of $4 million, or 0.7% when compared to the second quarter of 2024. This increase in net sales for specialty products in the current quarter was due to higher volumes across several product categories, largely offset by price deflation driven by external market conditions. Gross profit from specialty product sales was $100 million, a decrease of $4 million, or 3.9% when compared to the second quarter of last year. Gross margin percentage for specialty products was 18.5% compared to 19.3% in the prior year quarter, a decline of 80 basis points.

Net sales of structural products, which include products such as lumber, panels (including plywood and oriented strand board), rebar, and remesh, increased $7.8 million, or 3.4% when compared to the second quarter of 2024, to $237 million in the second quarter of 2025. The increase in structural sales was due to overall increases in lumber pricing, and increased lumber and panel volumes, partially offset by price declines in panels. Gross profit from sales of structural products was $19.4 million, an increase of $1.3 million from the prior year period, and gross margin percentage was 8.2%, compared to 7.9% in the prior year quarter.

Selling, general and administrative (“SG&A”) expenses were $95 million in the second quarter of 2025, $5.8 million higher than the prior year quarter. The year-over-year change in SG&A was primarily due to increased sales and logistics expenses driven by higher product volumes, our strategy to grow sales in the multi-family channel, and expenses associated with our digital transformation initiative.

Net income was $4.3 million, or $0.54 per diluted share, versus $14.3 million, or $1.65 per diluted share, in the prior year quarter. Adjusted Net Income was $5.6 million, or $0.70 per diluted share compared to $14.7 million, or $1.68 per diluted share in the second quarter of last year.

Adjusted EBITDA was $26.8 million, or 3.4% of net sales, for the second quarter of 2025, compared to $34.4 million, or 4.5% of net sales in the second quarter of 2024.

Net cash used in operating activities was $27 million in the second quarter of 2025 and free cash flow was $(36) million due to lower net income, seasonal changes in working capital, and increases in capital expenditures largely tied to our growth strategies and digital transformation.

Capital Allocation and Financial Position

During the second quarter of 2025, we invested $9.9 million in property and equipment, primarily for improvements to our distribution facilities and for our digital transformation initiative. We also entered into new finance leases of $5 million, mainly to enhance our fleet. Additionally, we purchased approximately $20 million of the Company’s common stock through open market transactions under our previous $100 million share repurchase program announced in 2023.

Our Board of Directors has approved a new $50 million share repurchase authorization, bringing the total current authorized availability for repurchase to $61.5 million. Under the share repurchase authorization, the Company may repurchase its common stock from time to time, without prior notice, subject to prevailing market conditions and other considerations.

As of June 28, 2025, total debt and finance lease obligations, but excluding real property finance lease obligations, was $376 million. This consisted of $300 million of senior secured notes that mature in 2029 and $76 million of finance lease obligations for equipment. Net debt was ($11) million, which consisted of total debt and finance leases excluding real property finance lease obligations of $376 million, less cash and cash equivalents of $387 million, resulting in a net leverage ratio of (0.1x) using a trailing twelve-month Adjusted EBITDA of $105 million. Available liquidity was $730 million which included an undrawn revolving credit facility that had $343 million of availability plus cash and cash equivalents of $387 million.

Third Quarter 2025 Outlook

Through the first four weeks of the third quarter of 2025, specialty product gross margin was in the range of 17% to 18% and structural product gross margin was in the range of 8% to 9%. Average daily sales volumes were up slightly compared to the second quarter of 2025, and consistent with the third quarter of 2024.

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About BlueLinx

BlueLinx (NYSE: BXC) is a leading U.S. wholesale distributor of residential and commercial building products with both branded and private-label SKUs across product categories such as lumber, panels, engineered wood, siding, millwork, and industrial products. With a strong market position, broad geographic coverage footprint servicing 50 states, and the strength of a locally focused sales force, we distribute a comprehensive range of products to our customers which include national home centers, pro dealers, cooperatives, specialty distributors, regional and local dealers and industrial manufacturers. BlueLinx provides a wide range of value-added services and solutions to our customers and suppliers, and we operate our business through a broad network of distribution centers. To learn more about BlueLinx, please visit www.bluelinxco.com.

Contact:

Tom Morabito – Investor Relations Officer – (470) 394-0099 – investor@bluelinxco.com

Source: BlueLinx Holdings, Inc.