BlueLinx Announces First Quarter 2025 Results

BlueLinx Holdings Inc., a leading U.S. wholesale distributor of building products, today reported financial results for the three fiscal months ended March 29, 2025.

First Quarter 2025 Highlights

• Net sales of $709 million
• Gross profit of $111 million, gross margin of 15.7% and specialty product gross margin of 18.7%
• Net income of $2.8 million, or $0.33 diluted earnings per share
• Adjusted net income of $2.3 million, or $0.27 adjusted diluted earnings per share
• Adjusted EBITDA of $19.6 million, or 2.8% of net sales
• Available liquidity of $795 million, including $449 million cash and cash equivalents on hand
• $15 million in share repurchases, with $31 million remaining on the share repurchase authorization as of quarter-end

“Our first quarter results demonstrated our continued ability to drive profitable sales, despite challenging weather and market conditions,” said Shyam Reddy, President, and CEO of BlueLinx. “We are pleased with maintaining solid margins in both specialty products and structural products during the quarter. While current market conditions remain uncertain, we are well-positioned to benefit from an industry recovery given our strong balance sheet, ample liquidity and our continued success executing our long-term profitable sales growth strategy. In addition, we once again returned capital to shareholders by repurchasing $15 million worth of our shares in the quarter. At the end of March, we had $31 million remaining on our share repurchase authorization and remain committed to repurchasing shares opportunistically under this authorization.”

First Quarter 2025 Financial Performance

In the first quarter of 2025, net sales were $709 million, a decrease of $17 million, or 2% when compared to the first quarter of 2024. Gross profit was $111 million, a decrease of $17 million, or 13%, year-over-year, and gross margin was 15.7%, down 190 basis points from the same period last year.

Net sales of specialty products, which includes products such as engineered wood, siding, millwork, outdoor living, specialty lumber and panels, and industrial products, were $479 million, a decrease of $24 million, or 4.9% when compared to the first quarter of 2024. This decrease in net sales for specialty products in the current fiscal quarter was due to price deflation driven by external market conditions, as well as lower volumes for most categories of specialty products. Gross profit from specialty product sales was $90 million, a decrease of $14 million, or 13.7% when compared to the first quarter of last year. Gross margin for specialty products was 18.7% compared to 20.7% in the prior year quarter, a decline of 200 basis points. The current period included a benefit of $2.4 million, and the prior-period quarter included a net benefit of $6.5 million, for import duty-related items. Excluding these benefits, gross margin was 18.2% and 19.4% for first quarter 2025 and first quarter 2024, respectively, a decline of 120 basis points. The duty items were related to changes in retroactive rates for anti-dumping duties and to classification adjustments for certain goods imported by the Company.

Net sales of structural products, which includes products such as lumber, panels (including plywood and oriented strand board), rebar, and remesh, increased $7.4 million, or 3.3% when compared to the first quarter of 2024, to $230 million in the first 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 $21.4 million, a decrease of $2.3 million from the prior year period, and gross margin was 9.3%, compared to 10.6% in the prior year period. Increased pricing in the current quarter was offset by higher costs of product sold in the current quarter.

Excluding the duty-related items for specialty products, which benefited first quarter 2025 and first quarter 2024, totaling $2.4 million and $6.5 million, respectively, Company gross margin would have been 15.3% and 16.7%, respectively.

Selling, general and administrative (“SG&A”) expenses were $94 million in the first quarter of 2025, $2.8 million higher than the prior year period. The year-over-year change in SG&A was primarily due to continuing technology initiatives associated with our digital transformation and also to higher logistics costs.

Net income was $2.8 million, or $0.33 per diluted share, versus $17.5 million, or $2.00 per diluted share, in the prior year period. Adjusted Net Income was $2.3 million, or $0.27 per diluted share compared to $18.8 million, or $2.14 per diluted share in the first quarter of last year.

Adjusted EBITDA was $19.6 million, or 2.8% of net sales, for the first quarter of 2025, compared to $38.8 million, or 5.3% of net sales in the first quarter of 2024. The current and prior quarterly periods include the benefit of the aforementioned duty-related matters, and not including these items, Adjusted EBITDA would have been $17.1 million, or 2.4% of net sales for first quarter 2025, and $32.3 million, or 4.5% of net sales, in the first quarter of 2024.

Net cash used in operating activities was $(34) million in the first quarter of 2025 and free cash flow was $(40) million. Our first fiscal quarter typically has negative cash flows from operations due to seasonality.

Capital Allocation and Financial Position

During the first quarter 2025, we invested $6.4 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 $28 million, mainly to enhance our fleet. Additionally, we purchased approximately $15 million of the Company’s common stock through open market transactions under our $100 million share repurchase program. At quarter-end, we had $31 million remaining under this authorization and we plan to continue to be opportunistic with respect to repurchasing shares.

As of March 29, 2025, total debt and finance lease obligations, but excluding real property finance lease obligations, was $374 million. This consisted of $300 million of senior secured notes that mature in 2029 and $74 million of finance lease obligations for equipment. Net debt was ($75) million, which consisted of total debt and finance leases excluding real property finance lease obligations of $374 million, less cash and cash equivalents of $449 million, resulting in a net leverage ratio of (0.7x) using a trailing twelve-month Adjusted EBITDA of $112 million. Available liquidity was $795 million which included an undrawn revolving credit facility that had $346 million of availability plus cash and cash equivalents of $449 million.

Second Quarter 2025 Outlook

Through the first four weeks of the second 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 9% to 10%. Average daily sales volumes were improved versus both the first quarter of 2025 and the second quarter of 2024.

For the full first quarter results, click here.

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.