BlueLinx Holdings Inc. reported second-quarter 2025 net sales of $780 million, a 2% increase from $768 million in Q2 2024. Gross profit was $120 million, a 2% decrease year-over-year, with gross margin at 15.3%, down 60 basis points.
Specialty products net sales increased 0.7% to $543 million due to higher volumes, largely offset by price deflation. Structural products net sales rose 3.4% to $237 million, driven by higher lumber pricing and increased volumes, despite panel price declines.
Net income for the quarter was $4.3 million, or $0.54 per diluted share, a significant decrease from $14.3 million, or $1.65 per diluted share, in Q2 2024. Adjusted EBITDA was $26.8 million, or 3.4% of net sales, down from $34.4 million, or 4.5%, in the prior year.
The company experienced a net cash outflow of $27 million from operating activities and a free cash flow outflow of $36 million, attributed to lower net income, seasonal working capital changes, and increased capital expenditures. BlueLinx invested $9.9 million in property and equipment and $5 million in new finance leases.
BlueLinx repurchased $20 million of common stock during the quarter. The Board of Directors approved a new $50 million share repurchase authorization, bringing the total authorized availability to $61.5 million.
As of June 28, 2025, BlueLinx maintained strong liquidity of $730 million, including $387 million in cash and $343 million undrawn on its revolving credit facility. The net debt position was negative $11 million, with a net leverage ratio of (0.1x).
For the first four weeks of Q3 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 Q2 2025 and consistent with Q3 2024.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.