Financial Data and Key Metrics Changes - The company reported net sales of $780 million, a 2% increase year over year, with total gross profit at $120 million and a gross margin of 15.3%, down 60 basis points from the prior period [24] - Adjusted EBITDA was $26.8 million, representing a 3.4% adjusted EBITDA margin, while adjusted net income was $5.6 million or $0.70 per share [11][25] - Specialty products accounted for approximately 70% of net sales and over 80% of gross profit for Q2, with specialty product net sales increasing slightly year over year [12][25] Business Line Data and Key Metrics Changes - Specialty products net sales were $543 million, up 1% year over year, driven by volume increases in engineered wood products and millwork, despite price declines [25][26] - Structural products net sales were $237 million, up 3.4% compared to the prior year, primarily due to higher lumber pricing and increased volumes [27] - Gross margins for specialty products were 18.5%, down 80 basis points year over year, while structural gross margin was 8.2%, up 30 basis points from the same period last year [26][27] Market Data and Key Metrics Changes - The U.S. is currently short 4 million homes, which is positive for the building product sector, although the housing market remains soft [16][17] - Multifamily housing starts were significantly higher year over year, serving as a seasonal catalyst for the company's strategy [18] - Repair and remodel spending continues to be soft due to low existing home sales, but the company is focused on growing its national accounts business [19] Company Strategy and Development Direction - The company is focused on creating demand through multifamily initiatives and builder pull-through efforts to drive growth, which has resulted in share gains [4][5] - Digital transformation efforts are on track, with Phase one set to be completed this year, including the implementation of an Oracle Transportation Management System [9] - The company continues to explore M&A and greenfield opportunities to expand geographic reach and support specialty product sales growth initiatives [10] Management's Comments on Operating Environment and Future Outlook - Management noted that while the housing market is currently soft, the long-term fundamentals of housing remain strong, with expectations for a recovery [16][17] - The company anticipates that tariffs, high mortgage rates, and general economic uncertainty may temper higher profitable sales growth [14] - Management expressed confidence in the long-term prospects of the housing and building product sector, estimating that over 1.5 million homes need to be built annually for the next ten years to meet anticipated demand [19] Other Important Information - The company repurchased $20 million of shares in Q2 and has a new $50 million share repurchase authorization [5][31] - The balance sheet remains strong, with cash on hand of $387 million and total liquidity of approximately $730 million [28][29] - Operating cash flow was negative $27 million and free cash flow was negative $36 million, primarily due to lower net income and seasonal changes in working capital [30] Q&A Session Summary Question: How did specialty volumes trend throughout the quarter? - Management emphasized that their strategy to create demand through multifamily and builder pull-through efforts is working, leading to share gains despite a down market [36][38] Question: What are the primary drivers of the strong share gains in multifamily? - The company made early investments in multifamily, which provided a seasonal catalyst, and they are working closely with key customers to support their growth [39][40] Question: Has the success in Portland Greenfield accelerated future greenfield opportunities? - Management indicated that the success in Portland does accelerate their ability to pursue future greenfield opportunities, although finding the right real estate remains a constraint [43][45] Question: What are the current industry conditions and any emerging green shoots? - Management noted that while there is uncertainty, the tariff environment could unlock pent-up demand, and multifamily demand creation efforts are driving growth [48][49] Question: What changes are being observed in competition? - The competitive landscape remains challenging, with the need to compete harder to maintain and win business, but the company's creative approach is helping [51][52] Question: Can you elaborate on the working capital requirements for the second half? - Management expects to normalize inventory levels and believes this will be a source of cash moving forward, with free cash flow expected to be similar to 2024 [56][57] Question: How is the company managing commodity volatility in contracts? - The company has built a robust system for managing structural wood products, allowing them to navigate commodity volatility effectively [79][80]

Q2 2025 Financial Performance - Net sales increased by 1.5% year-over-year to $780 million[21] - Gross profit decreased by 2.3% year-over-year to $120 million[21] - Gross margin decreased by 60 bps year-over-year to 15.3%[21] - Adjusted EBITDA decreased by 22% year-over-year to $26.8 million, representing 3.4% of net sales[21] - Free cash flow was negative $36 million[21] Segment Performance - Specialty product net sales increased by 1% to $543 million, representing approximately 70% of total net sales[25] - Structural product net sales increased by 3% to $237 million[28] - Specialty product gross profits represent approximately 84% of total gross profit[25] - Structural product gross profits represent approximately 16% of total gross profit[28] Balance Sheet and Liquidity - Cash and cash equivalents totaled $387 million at the end of Q2 2025[34] - Total available liquidity was $730 million[34] - Net debt was negative $11 million, resulting in a net leverage ratio of (0.1x)[34]

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) [Q2 2025 Performance Overview](index=1&type=section&id=Q2%202025%20Performance%20Overview) BlueLinx achieved net sales of $780 million in Q2 2025, a 2% increase year-over-year, driven by growth in structural and specialty products despite a soft market - Net sales increased by **2% year-over-year**, with both structural and specialty products showing growth in sales and volume despite a soft market environment[4](index=4&type=chunk)[5](index=5&type=chunk) - Gross profit decreased by 2% year-over-year, and the gross margin declined by 60 basis points[4](index=4&type=chunk)[5](index=5&type=chunk) - The company repurchased **$20 million of common stock** in the second quarter and announced a new **$50 million share repurchase authorization**, bringing the total availability to $61,5 million[4](index=4&type=chunk)[8](index=8&type=chunk)[13](index=13&type=chunk) Q2 2025 Key Financial Data | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | Change (%) | | :----- | :----------------- | :----------------- | :--------- | | Net Sales | $780 | $768 | 2% | | Gross Profit | $120 | $123 | -2% | | Gross Margin | 15.3% | 15.9% | -0.6 pts | | Net Income | $4.3 | $14.3 | -69.9% | | Diluted EPS | $0.54 | $1.65 | -67.3% | | Adjusted Net Income | $5.6 | $14.7 | -61.9% | | Adjusted Diluted EPS | $0.70 | $1.68 | -58.3% | | Adjusted EBITDA | $26.8 | $34.4 | -22.1% | [Strategic Focus & Capital Allocation Commentary](index=1&type=section&id=Strategic%20Focus%20%26%20Capital%20Allocation%20Commentary) BlueLinx continues to execute its product and channel strategies, achieving sales and volume growth in a challenging market while maintaining a strong balance sheet - The company continues to execute its product and channel strategies, achieving net sales and volume growth in both specialty and structural products despite a soft market[4](index=4&type=chunk) - The company will continue to execute its long-term strategy for profitable sales growth to gain market share in multi-family and other strategic focus areas[4](index=4&type=chunk)[9](index=9&type=chunk) - With a strong balance sheet, **$730 million in liquidity**, and low leverage, the company is positioned to accelerate profitable sales growth when the housing industry rebounds[4](index=4&type=chunk)[8](index=8&type=chunk)[14](index=14&type=chunk) [Financial Performance Analysis](index=1&type=section&id=Financial%20Performance%20Analysis) [Consolidated Financial Results](index=1&type=section&id=Consolidated%20Financial%20Results) In Q2 2025, consolidated net sales grew 1,5% to $780,1 million, but gross profit declined 2,2% to $119,7 million, with net income significantly decreasing to $4,3 million - Selling, General, and Administrative (SG&A) expenses increased by **$5,8 million** year-over-year, primarily due to higher product volumes, strategic growth in the multi-family channel, and digital transformation initiatives[9](index=9&type=chunk) Q2 2025 Consolidated Financial Results | Metric (Thousands) | Q2 2025 | Q2 2024 | YoY Change (%) | | :----- | :------------------ | :------------------ | :------------- | | Net Sales | $780,107 | $768,363 | 1.5% | | Cost of Products Sold | $660,418 | $645,919 | 2.2% | | Gross Profit | $119,689 | $122,444 | -2.2% | | Gross Margin | 15.3% | 15.9% | -0.6 pts | | SG&A Expenses | $95,265 | $89,453 | 6.5% | | Operating Income | $15,035 | $23,847 | -37.0% | | Net Income | $4,310 | $14,336 | -69.9% | | Adjusted Net Income | $5,606 | $14,658 | -61.8% | | Adjusted EBITDA | $26,764 | $34,395 | -22.1% | [Product Category Performance](index=1&type=section&id=Product%20Category%20Performance) Specialty products net sales grew slightly by 0,7% to $543 million, while structural products net sales increased by 3,4% to $237 million, driven by higher wood prices and volume [Specialty Products](index=1&type=section&id=Specialty%20Products) Specialty products net sales were $543 million in Q2 2025, a modest 0,7% increase from Q2 2024, driven by higher volumes but offset by price deflation - The increase in specialty products net sales was due to higher volumes across several product categories, largely offset by price deflation from external market conditions[6](index=6&type=chunk) Specialty Products Performance | Metric (Thousands) | Q2 2025 | Q2 2024 | YoY Change (%) | | :----- | :------------------ | :------------------ | :------------- | | Net Sales | $543,459 | $539,466 | 0.7% | | Gross Profit | $100,282 | $104,350 | -3.9% | | Gross Margin | 18.5% | 19.3% | -0.8 pts | [Structural Products](index=1&type=section&id=Structural%20Products) Structural products net sales grew 3,4% to $237 million in Q2 2025, primarily due to higher wood prices and increased volumes for both wood and panels - The growth in structural product sales was driven by an overall increase in wood prices and higher volumes in both wood and panels, partially offset by lower panel prices[7](index=7&type=chunk) Structural Products Performance | Metric (Thousands) | Q2 2025 | Q2 2024 | YoY Change (%) | | :----- | :------------------ | :------------------ | :------------- | | Net Sales | $236,648 | $228,897 | 3.4% | | Gross Profit | $19,407 | $18,094 | 7.2% | | Gross Margin | 8.2% | 7.9% | 0.3 pts | [Cash Flow](index=2&type=section&id=Cash%20Flow) BlueLinx experienced a net cash outflow from operating activities of $27 million in Q2 2025, resulting in a negative free cash flow of $36 million - The negative free cash flow was attributed to lower net income, seasonal changes in working capital, and increased capital expenditures related to growth strategies and digital transformation[11](index=11&type=chunk) Cash Flow Overview | Metric (Thousands) | Q2 2025 | Q2 2024 | | :----- | :------------------ | :------------------ | | Net cash (used in) provided by operating activities | $(26,758) | $35,803 | | Free cash flow (non-GAAP) | $(36,365) | $29,349 | [Capital Allocation and Financial Position](index=2&type=section&id=Capital%20Allocation%20and%20Financial%20Position) [Investments and Share Repurchases](index=2&type=section&id=Investments%20and%20Share%20Repurchases) In Q2 2025, BlueLinx invested $9,9 million in capital expenditures, repurchased $20 million of stock, and announced a new $50 million share repurchase authorization - Invested **$9,9 million** in property and equipment, primarily for distribution facility improvements and digital transformation initiatives[12](index=12&type=chunk) - Entered into **$5,0 million** of new finance leases, mainly for fleet upgrades[12](index=12&type=chunk) Share Repurchase Activity | Metric | Q2 2025 (Millions) | Total Authorized (Millions) | | :----- | :----------------- | :-------------------------- | | Share Repurchases (Q2) | $20 | N/A | | New Share Repurchase Authorization | $50 | N/A | | Total Authorized Availability | N/A | $61.5 | [Debt and Liquidity](index=2&type=section&id=Debt%20and%20Liquidity) As of June 28, 2025, BlueLinx maintained a strong liquidity position of $730 million and a negative net leverage ratio of (0,1x) based on TTM adjusted EBITDA - Available liquidity was **$730 million**, comprising $387 million in cash and cash equivalents and $343 million in undrawn revolving credit facility availability[8](index=8&type=chunk)[14](index=14&type=chunk) Debt and Liquidity Metrics | Metric (Millions) | As of June 28, 2025 | As of Dec 28, 2024 | | :----- | :----------------------------- | :---------------------------- | | Total Debt & Finance Lease Obligations (excl. real property) | $376 | N/A | | Cash and Cash Equivalents | $387 | $506 | | Net Debt (non-GAAP) | $230.8 | $86.9 | | Net Debt Excluding Real Property Finance Lease Liabilities (non-GAAP) | $(11.2) | $(155.8) | | Trailing Twelve-Month Adjusted EBITDA | $104.5 | $131.4 | | Net Leverage Ratio (non-GAAP) | 2.2x | 0.7x | | Net Leverage Ratio Excluding Real Property Finance Lease Liabilities (non-GAAP) | (0.1x) | (1.2x) | | Available Liquidity | $730 | N/A | [Outlook](index=2&type=section&id=Outlook) [Third Quarter 2025 Outlook](index=2&type=section&id=Third%20Quarter%202025%20Outlook) For the first four weeks of Q3 2025, BlueLinx anticipates specialty product gross margins between 17% and 18% and structural product gross margins between 8% and 9% - Average daily sales volume is expected to be slightly up compared to Q2 2025 and flat compared to Q3 2024[15](index=15&type=chunk) Third Quarter 2025 Outlook (First 4 Weeks) | Metric | Q3 2025 Outlook (First 4 Weeks) | | :----- | :------------------------------ | | Specialty Product Gross Margin | 17% to 18% | | Structural Product Gross Margin | 8% to 9% | [Company Information](index=4&type=section&id=Company%20Information) [About BlueLinx](index=4&type=section&id=About%20BlueLinx) BlueLinx is a leading U,S, wholesale distributor of residential and commercial building products, serving a diverse customer base across all 50 states - BlueLinx is a leading U,S, wholesale distributor of residential and commercial building products, offering branded and private-label SKUs across various categories[18](index=18&type=chunk) - The company has a strong market position and a broad geographic reach covering 50 states, distributing products through a network of distribution centers[18](index=18&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section contains cautionary notes regarding forward-looking statements, which are based on management's inherently uncertain estimates and assumptions - Forward-looking statements are based on management's estimates and assumptions, which are inherently uncertain, and actual results may differ materially[21](index=21&type=chunk) - Key risks include adverse housing market conditions, industry consolidation, trade policy changes, reliance on international suppliers, price fluctuations, and IT security risks[21](index=21&type=chunk) - The company disclaims any obligation to update or revise any forward-looking statements, except as required by law[23](index=23&type=chunk) [Non-GAAP Measures Explanation](index=6&type=section&id=Non-GAAP%20Measures%20Explanation) [Adjusted EBITDA and Margin Definition](index=6&type=section&id=Adjusted%20EBITDA%20and%20Margin%20Definition) Adjusted EBITDA is defined as net income plus interest, taxes, depreciation, and amortization, further adjusted for certain non-cash and special items - Adjusted EBITDA is defined as net income (loss) plus interest, taxes, depreciation, and amortization, further adjusted for non-cash and special items like share-based compensation and restructuring activities[25](index=25&type=chunk) - Adjusted EBITDA is a primary metric used by management to evaluate operating performance and enhance investors' understanding of the company's financial results[26](index=26&type=chunk) - Adjusted EBITDA margin is used to define profitability quality and operational efficiency more clearly[27](index=27&type=chunk) [Adjusted Net Income and EPS Definition](index=6&type=section&id=Adjusted%20Net%20Income%20and%20EPS%20Definition) Adjusted net income is net income adjusted for specific non-cash and special items and their tax effects, used to calculate adjusted earnings per share - Adjusted net income is net income adjusted for non-cash and special items such as share-based compensation, acquisition costs, and restructuring, along with their tax effects[28](index=28&type=chunk) - Adjusted earnings per share is calculated by dividing adjusted net income by the weighted-average number of diluted shares outstanding[28](index=28&type=chunk) - These metrics help investors understand financial performance and operating trends but are not GAAP presentations and may not be comparable to other companies' measures[28](index=28&type=chunk)[29](index=29&type=chunk) [Free Cash Flow Definition](index=7&type=section&id=Free%20Cash%20Flow%20Definition) Free cash flow is defined as net cash from operating activities less total capital expenditures, indicating cash available for investment and debt reduction - Free cash flow is defined as net cash provided by or used in operating activities less total capital expenditures[30](index=30&type=chunk) - This metric helps assess financial performance by linking operating cash flow with capital expenditures for ongoing and improved business operations[31](index=31&type=chunk) - Free cash flow is a non-GAAP measure and does not represent the residual cash flow available for discretionary expenditures[31](index=31&type=chunk) [Net Debt and Leverage Ratios Definition](index=8&type=section&id=Net%20Debt%20and%20Leverage%20Ratios%20Definition) Net debt is total debt less cash, and leverage ratios are calculated by dividing net debt by trailing twelve-month adjusted EBITDA to assess financial flexibility - Net debt is calculated as total short-term and long-term debt, including finance leases, less cash and cash equivalents[32](index=32&type=chunk) - Net debt excluding real property finance lease liabilities is calculated similarly but excludes the total amount of real property finance lease obligations[32](index=32&type=chunk) - Net leverage ratios are derived by dividing the respective net debt figures by trailing twelve-month adjusted EBITDA to measure the ability to meet future financial obligations[32](index=32&type=chunk) [Financial Statements](index=9&type=section&id=Financial%20Statements) [Condensed Consolidated Statements of Operations](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section presents the unaudited condensed consolidated statements of operations for the three and six months ended June 28, 2025, and June 29, 2024 Condensed Consolidated Statements of Operations (Selected) | Metric (Thousands) | 3 Months Ended June 28, 2025 | 3 Months Ended June 29, 2024 | 6 Months Ended June 28, 2025 | 6 Months Ended June 29, 2024 | | :----------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net sales | $780,107 | $768,363 | $1,489,333 | $1,494,607 | | Gross profit | $119,689 | $122,444 | $230,818 | $250,125 | | Operating income | $15,035 | $23,847 | $25,759 | $51,515 | | Net income | $4,310 | $14,336 | $7,115 | $31,828 | | Diluted earnings per share | $0.54 | $1.65 | $0.87 | $3.66 | [Condensed Consolidated Balance Sheets](index=10&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides the unaudited condensed consolidated balance sheets as of June 28, 2025, and December 28, 2024 Condensed Consolidated Balance Sheets (Selected) | Metric (Thousands) | As of June 28, 2025 | As of December 28, 2024 | | :----------------- | :------------------ | :---------------------- | | Total assets | $1,584,035 | $1,577,717 | | Total liabilities | $962,723 | $931,276 | | Total stockholders' equity | $621,312 | $646,441 | | Cash and cash equivalents | $386,765 | $505,622 | | Inventories, net | $391,484 | $355,909 | | Long-term debt | $295,723 | $295,061 | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section details the unaudited condensed consolidated statements of cash flows for the three and six months ended June 28, 2025, and June 29, 2024 Condensed Consolidated Statements of Cash Flows (Selected) | Metric (Thousands) | 3 Months Ended June 28, 2025 | 3 Months Ended June 29, 2024 | 6 Months Ended June 28, 2025 | 6 Months Ended June 29, 2024 | | :----------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net cash (used in) provided by operating activities | $(26,758) | $35,803 | $(60,666) | $4,668 | | Net cash used in investing activities | $(9,542) | $(6,307) | $(12,934) | $(11,627) | | Net cash used in financing activities | $(25,955) | $(19,413) | $(45,257) | $(23,392) | | Net change in cash and cash equivalents | $(62,255) | $10,083 | $(118,857) | $(30,351) | | Cash and cash equivalents at end of period | $386,765 | $491,392 | $386,765 | $491,392 | [Gross Profit and Gross Margin by Product Category](index=12&type=section&id=Gross%20Profit%20and%20Gross%20Margin%20by%20Product%20Category) This schedule details net sales, gross profit, and gross margin by specialty and structural product categories for recent fiscal periods Gross Profit and Gross Margin by Product Category (Selected) | Metric (Thousands) | Q2 2025 Specialty | Q2 2024 Specialty | Q2 2025 Structural | Q2 2024 Structural | | :----------------- | :---------------- | :---------------- | :----------------- | :----------------- | | Net sales | $543,459 | $539,466 | $236,648 | $228,897 | | Gross profit | $100,282 | $104,350 | $19,407 | $18,094 | | Gross margin % | 18.5% | 19.3% | 8.2% | 7.9% | [Non-GAAP Reconciliations](index=13&type=section&id=Non-GAAP%20Reconciliations) [Net Income to Adjusted EBITDA Reconciliation](index=13&type=section&id=Net%20Income%20to%20Adjusted%20EBITDA%20Reconciliation) This section provides a reconciliation of net income to Adjusted EBITDA for the three, six, and trailing twelve months ended June 28, 2025, and June 29, 2024 Net Income to Adjusted EBITDA Reconciliation (Selected) | Metric (Thousands) | 3 Months Ended June 28, 2025 | 3 Months Ended June 29, 2024 | 6 Months Ended June 28, 2025 | 6 Months Ended June 29, 2024 | | :----------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net income | $4,310 | $14,336 | $7,115 | $31,828 | | Depreciation and amortization | $9,790 | $10,120 | $19,344 | $19,553 | | Interest expense, net | $8,457 | $4,801 | $15,037 | $9,425 | | Provision for income taxes | $2,268 | $4,710 | $3,607 | $10,262 | | Share-based compensation expense | $2,341 | $1,405 | $4,863 | $3,755 | | Adjusted EBITDA | $26,764 | $34,395 | $46,322 | $73,176 | Trailing Twelve Months Net Income to Adjusted EBITDA Reconciliation (Selected) | Metric (Thousands) | Trailing Twelve Months Ended June 28, 2025 | Trailing Twelve Months Ended June 29, 2024 | | :----------------- | :----------------------------------------- | :----------------------------------------- | | Net income | $28,403 | $38,086 | | Adjusted EBITDA | $104,502 | $160,067 | [Net Income to Adjusted Net Income and EPS Reconciliation](index=14&type=section&id=Net%20Income%20to%20Adjusted%20Net%20Income%20and%20EPS%20Reconciliation) This section reconciles net income and diluted EPS to their adjusted non-GAAP counterparts for the three and six months ended June 28, 2025, and June 29, 2024 Net Income to Adjusted Net Income and EPS Reconciliation (Selected) | Metric (Thousands, except per share) | 3 Months Ended June 28, 2025 | 3 Months Ended June 29, 2024 | 6 Months Ended June 28, 2025 | 6 Months Ended June 29, 2024 | | :--------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net income | $4,310 | $14,336 | $7,115 | $31,828 | | Adjusted net income | $5,606 | $14,658 | $7,924 | $33,422 | | Diluted EPS | $0.54 | $1.65 | $0.87 | $3.66 | | Non-GAAP Adjusted Diluted EPS | $0.70 | $1.68 | $0.97 | $3.85 | Net Income as a Percentage of Net Sales and Adjusted EBITDA Margin (Selected) | Metric | 3 Months Ended June 28, 2025 | 3 Months Ended June 29, 2024 | 6 Months Ended June 28, 2025 | 6 Months Ended June 29, 2024 | | :----- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net income as a percentage of Net sales | 0.6% | 1.9% | 0.5% | 2.1% | | Adjusted EBITDA margin - non-GAAP | 3.4% | 4.5% | 3.1% | 4.9% | [Liquidity Measures Reconciliation](index=15&type=section&id=Liquidity%20Measures%20Reconciliation) This section reconciles total debt to net debt and net cash from operating activities to free cash flow, and details the calculation of leverage ratios Liquidity Measures Reconciliation (Selected) | Metric (Thousands) | As of June 28, 2025 | As of December 28, 2024 | As of June 29, 2024 | | :----------------- | :------------------ | :---------------------- | :------------------ | | Total debt and finance leases | $617,557 | $592,543 | $591,338 | | Less: available cash and cash equivalents | $386,765 | $505,622 | $491,392 | | Net debt (non-GAAP) | $230,792 | $86,921 | $99,946 | | Net debt, excluding finance lease liabilities for real property (non-GAAP) | $(11,195) | $(155,837) | $(143,413) | | Net leverage ratio | 2.2x | 0.7x | 0.6x | | Net leverage ratio excluding real property finance lease liabilities | (0.1x) | (1.2x) | (0.9x) | Operating Cash Flow to Free Cash Flow Reconciliation (Selected) | Metric (Thousands) | 3 Months Ended June 28, 2025 | 3 Months Ended June 29, 2024 | 6 Months Ended June 28, 2025 | 6 Months Ended June 29, 2024 | | :----------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net cash (used in) provided by operating activities | $(26,758) | $35,803 | $(60,666) | $4,668 | | Free cash flow - non-GAAP | $(36,365) | $29,349 | $(76,205) | $(7,233) | [Conference Call Information](index=2&type=section&id=Conference%20Call%20Information) [Conference Call Details](index=2&type=section&id=Conference%20Call%20Details) BlueLinx will host a conference call on July 30, 2025, at 10:00 a,m, ET, with a webcast and presentation available on its investor relations website - The conference call is scheduled for **July 30, 2025, at 10:00 a,m, Eastern Time**, with a webcast and presentation materials available on the investor relations website[16](index=16&type=chunk) - Domestic live call: 1-888-660-6392, passcode: 9140086; Replay available until August 6, 2025, at 1-800-770-2030, passcode: 9140086[17](index=17&type=chunk)

Group 1 - BlueLinx Holdings Inc. (NYSE: BXC) is focusing on investing in high margin specialty products, which is expected to enhance free cash flow growth [1] - The company has a diversified business model that includes a wide range of clients and suppliers, stock repurchases, and potential decreases in costs [1] Group 2 - The analyst has a beneficial long position in the shares of BXC through stock ownership, options, or other derivatives [2] - The article reflects the author's personal opinions and is not compensated beyond Seeking Alpha [2]

Group 1 - Louisiana-Pacific Corporation (LPX) expanded its distribution partnership with BlueLinx Holdings to include Springfield, MO, increasing product availability across 19 BlueLinx locations in five regions [1][9] - The company focuses on strategic growth through acquisitions and wider product availability, enhancing manufacturing capabilities to support its siding product range [2][4] - LPX expanded its Amazon storefront to include LP SmartSide ExpertFinish Trim & Siding accessories, aiming to improve accessibility and convenience for customers [3] Group 2 - In the past six months, LPX shares have lost 24.3%, while the Zacks Building Products - Wood industry declined by 5%, indicating challenges due to housing market softness, tariffs, and inflation [7] - Despite these challenges, increased demand for siding products and disciplined capital management are expected to support growth and profitability in the upcoming term [7] - Louisiana-Pacific currently holds a Zacks Rank 3 (Hold), reflecting its current market position [8]

Group 1 - The conference call for BlueLinx Holdings' first quarter 2025 earnings was initiated with participants in a listen-only mode [1] - Tom Morabito, the Investor Relations Officer, welcomed attendees and introduced key company executives [3] - The earnings release and Form 10-Q were made available on the company's investor website, encouraging participants to follow along with the webcast presentation [4] Group 2 - The discussion included forward-looking statements, with a note that actual results may differ due to various risks and uncertainties [5] - The presentation featured non-GAAP and adjusted financial measures, with reconciliations to GAAP measures provided in the appendix [5]

Financial Data and Key Metrics Changes - The company generated net sales of $709 million, with adjusted EBITDA of $19.6 million, resulting in a 2.8% adjusted EBITDA margin [7][20] - Adjusted net income was $2.3 million, or $0.27 per share [22] - Total gross profit was $111 million, with a gross margin of 15.7%, down 190 basis points from the prior period [21] Business Line Data and Key Metrics Changes - Specialty Products accounted for approximately 70% of net sales but saw a nearly 5% year-over-year decline due to price deflation and volume pressure [8][23] - Specialty Products gross margin was 18.7%, down 200 basis points from the previous year [24] - Structural Products revenues increased over 3%, primarily due to significant price increases in lumber and volume increases in both lumber and panels [9][25] Market Data and Key Metrics Changes - The average lumber prices were up 13%, while panel prices were down 13% year-over-year [9] - The company noted that the housing market is facing challenges, with the lowest existing housing sales backdrop in thirty years [12] - Multifamily housing starts were significantly higher on a year-over-year basis, indicating a potential area of growth [13] Company Strategy and Development Direction - The company is focused on expanding its specialty product categories and gaining market share in engineered wood, siding, millwork, and outdoor living products [4] - Digital transformation efforts are on track, with Phase one expected to be completed by Q3 2025 [5] - The company is exploring greenfield and M&A opportunities to expand geographic reach and support specialty product sales growth [5] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing price deflation and lower volumes due to weather and macroeconomic forces but expressed optimism about future growth [4][11] - The company believes that long-term fundamentals of housing remain strong despite current market challenges [12][14] - Management indicated that while the near-term outlook is uncertain, they remain committed to their strategic priorities and long-term growth [19] Other Important Information - The company repurchased $15 million in shares during the first quarter, demonstrating a commitment to returning capital to shareholders [11][29] - The liquidity position remains strong, with cash on hand of $449 million and total available liquidity of approximately $795 million [26] Q&A Session Summary Question: Can you talk about the impacts and the associated outlook as it relates to challenges in the overall market? - Management noted competitive pricing pressures and softer demand due to market conditions affecting specialty margins, with plans to pass along tariff impacts through pricing [35][36] Question: Why would volume increases not translate to better margins? - Management explained that competitive pricing pressures exist despite volume growth, particularly in certain markets like Texas [44][46] Question: What is the company's strategy regarding inventory levels? - Management emphasized a disciplined approach to inventory management, noting that elevated levels were influenced by weather conditions and market softness [39][40] Question: How is the company prioritizing capital allocation? - Management stated that they are committed to greenfield and M&A opportunities while also being opportunistic with share repurchases [59][60] Question: What percent of lumber is sourced from Canada, and how would tariffs affect sourcing? - Management indicated that less than 20% of lumber is sourced from Canada and expressed confidence in passing through any tariff costs [67] Question: How is the pilot program to increase sales concentration with production builders progressing? - Management reported positive results from investments in builder pull-through capabilities, contributing to volume improvements [70][73]

Financial Data and Key Metrics Changes - The company reported net sales of $709 million, a decrease of 2% year over year [19] - Adjusted EBITDA was $19.6 million, representing a 2.8% adjusted EBITDA margin [6][21] - Adjusted net income was $2.3 million, or $0.27 per share [6][21] - Total gross profit was $111 million, with a gross margin of 15.7%, down 190 basis points from the prior period [20] Business Line Data and Key Metrics Changes - Specialty Products accounted for approximately 70% of net sales but saw a nearly 5% decline year over year due to price deflation and volume pressures [7][22] - Specialty Products gross margin was 18.7%, down 200 basis points from the previous year [23] - Structural Products net sales increased over 3% year over year, primarily due to higher lumber prices and increased volumes [24] Market Data and Key Metrics Changes - The average lumber prices were up 13% year over year, while panel prices were down 13% [8][24] - The company noted that the housing market is facing challenges, with the lowest existing housing sales backdrop in thirty years [11] - Multifamily housing starts were significantly higher year over year, contrasting with declines in total and single-family housing starts [12] Company Strategy and Development Direction - The company is focused on expanding its specialty product categories and gaining market share in engineered wood, siding, millwork, and outdoor living products [4][14] - Digital transformation efforts are on track, with Phase one expected to be completed by Q3 2025 [5] - The company is exploring greenfield and M&A opportunities to expand geographic reach and support specialty product sales growth [5][28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term housing fundamentals despite current market challenges [11][13] - The company anticipates that homeowners will eventually need to improve existing homes, driving repair and remodel activity [12] - Management acknowledged uncertainty regarding the timing of a sustained housing recovery but remains committed to strategic growth initiatives [13][15] Other Important Information - The company repurchased $15 million in shares during the first quarter [10][28] - Cash on hand was $449 million, with total available liquidity of approximately $795 million [25] - The company plans to manage capital expenditures relative to market conditions while maintaining a strong balance sheet [27][28] Q&A Session Summary Question: Can you discuss the impacts on specialty gross margins related to market challenges and tariffs? - Management noted competitive pricing pressures and the challenge of passing tariff costs through to maintain historical margins [33][34] Question: How are inventory levels being managed given the elevated levels? - Management stated that inventory management remains disciplined, with some build due to weather impacts and market softness [37][38] Question: What is the company's strategy regarding M&A and capital allocation? - Management indicated a commitment to pursuing M&A opportunities while also being opportunistic with share repurchases [58][59] Question: What percentage of lumber is sourced from Canada, and how would tariffs affect sourcing? - Management confirmed less than 20% exposure to Canada and expressed confidence in passing through tariff costs quickly [66] Question: Can you provide an update on the pilot program to increase sales concentration with production builders? - Management reported positive progress in builder pull-through capabilities, contributing to volume improvements despite general market declines [70][72]

Financial Performance - Net sales decreased by 23% year-over-year to $709 million[16, 22, 24] - Gross profit decreased by 13% year-over-year to $111 million[12, 22] - Gross margin decreased by 190 bps year-over-year to 157%[16, 22, 24] - Adjusted EBITDA decreased by 496% year-over-year to $196 million, representing 28% of net sales[16, 22, 24] - Adjusted net income decreased by 88% year-over-year to $23 million[16, 22] - Free cash flow was negative $40 million[16, 22, 24] Product Category Performance - Specialty product net sales decreased by 5% to $479 million, representing approximately 70% of total net sales[24, 26] - Structural product net sales increased by 3% to $230 million[24, 29] - Specialty product gross profit was $90 million, representing approximately 81% of total gross profit[26] - Structural product gross profit was $21 million, representing approximately 19% of total gross profit[29] Balance Sheet and Liquidity - Cash and cash equivalents totaled $449 million at the end of Q1 2025[38] - Total available liquidity was $795 million at the end of Q1 2025[38] - Net debt was negative $75 million[38] - Net leverage ratio was negative 07x[16, 38]

[First Quarter 2025 Results Overview](index=1&type=section&id=First%20Quarter%202025%20Results%20Overview) [Management Commentary and Highlights](index=1&type=section&id=Management%20Commentary%20and%20Highlights) The company maintained solid margins and continued its capital return program despite challenging market and weather conditions - CEO Shyam Reddy stated that the company maintained **solid margins** in both specialty and structural products despite challenging weather and market conditions[4](index=4&type=chunk) - The company returned capital to shareholders by repurchasing **$15 million** worth of shares during the quarter, with **$31 million** remaining on the share repurchase authorization[4](index=4&type=chunk)[9](index=9&type=chunk) **Q1 2025 Key Metrics Summary** | Metric | Value | | :--- | :--- | | Net Sales | $709 million | | Gross Profit | $111 million | | Gross Margin | 15.7% | | Net Income | $2.8 million | | Diluted EPS | $0.33 | | Adjusted EBITDA | $19.6 million | | Available Liquidity | $795 million | | Share Repurchases | $15 million | [Financial Performance](index=1&type=section&id=Financial%20Performance) [Overall Financial Performance](index=1&type=section&id=Overall%20Financial%20Performance) Net sales decreased 2% year-over-year to $709 million, while net income declined significantly to $2.8 million **Q1 2025 vs Q1 2024 Key Financials** | Financial Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $709M | $726M | -2.3% | | Gross Profit | $111M | $128M | -13.3% | | Gross Margin | 15.7% | 17.6% | -190 bps | | Net Income | $2.8M | $17.5M | -84.0% | | Diluted EPS | $0.33 | $2.00 | -83.5% | | Adjusted Net Income | $2.3M | $18.8M | -87.8% | | Adjusted Diluted EPS | $0.27 | $2.14 | -87.4% | | Adjusted EBITDA | $19.6M | $38.8M | -49.5% | [Specialty Products](index=1&type=section&id=Specialty%20Products) Specialty products net sales decreased 4.9% YoY to $479 million, attributed to price deflation and lower volumes **Specialty Products Performance (Q1 2025 vs Q1 2024)** | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $479M | $504M | -4.9% | | Gross Profit | $90M | $104M | -13.7% | | Gross Margin | 18.7% | 20.7% | -200 bps | - The decrease in net sales was driven by **price deflation** from external market conditions and lower volumes for most specialty product categories[6](index=6&type=chunk) - Excluding import duty-related benefits, the specialty products gross margin was **18.2%** in Q1 2025 compared to **19.4%** in Q1 2024, a decline of 120 basis points[6](index=6&type=chunk)[8](index=8&type=chunk) [Structural Products](index=1&type=section&id=Structural%20Products) Structural products net sales grew 3.3% YoY to $230 million, driven by increased lumber pricing and higher volumes **Structural Products Performance (Q1 2025 vs Q1 2024)** | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $230M | $222M | +3.3% | | Gross Profit | $21.4M | $23.6M | -9.3% | | Gross Margin | 9.3% | 10.6% | -130 bps | - 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[7](index=7&type=chunk) [Operating Expenses and Cash Flow](index=3&type=section&id=Operating%20Expenses%20and%20Cash%20Flow) SG&A expenses increased by $2.8 million to $94 million, while the company experienced a seasonal net cash outflow from operations - SG&A expenses were **$94 million**, a $2.8 million increase from the prior year, mainly due to technology initiatives and higher logistics costs[11](index=11&type=chunk) - Net cash used in operating activities was **$(34) million**, and free cash flow was **$(40) million**, which is typical for the first fiscal quarter due to seasonality[14](index=14&type=chunk) [Capital Allocation and Financial Position](index=3&type=section&id=Capital%20Allocation%20and%20Financial%20Position) [Capital Investments and Share Repurchases](index=3&type=section&id=Capital%20Investments%20and%20Share%20Repurchases) The company invested in facilities and its fleet while continuing its share repurchase program with a $15 million buyback - Invested **$6.4 million** in property and equipment, primarily for improvements to distribution facilities and digital transformation[15](index=15&type=chunk) - Entered into **$28 million** of new finance leases, mainly to enhance the company's fleet[15](index=15&type=chunk) - Purchased approximately **$15 million** of the Company's common stock, with **$31 million** remaining under the $100 million share repurchase program[15](index=15&type=chunk) [Debt and Liquidity](index=3&type=section&id=Debt%20and%20Liquidity) The company maintained a strong liquidity position of $795 million with a negative net debt position and a low net leverage ratio **Debt and Liquidity Position (as of March 29, 2025)** | Metric | Value | | :--- | :--- | | Total Debt & Finance Leases (excl. real property) | $374 million | | Cash and Cash Equivalents | $449 million | | Net Debt (excl. real property) | ($75) million | | Available Liquidity | $795 million | | Net Leverage Ratio (excl. real property) | (0.7x) | [Business Outlook](index=3&type=section&id=Business%20Outlook) [Second Quarter 2025 Outlook](index=3&type=section&id=Second%20Quarter%202025%20Outlook) The company anticipates stable gross margins for Q2 2025 and has observed improved average daily sales volumes - Through the first four weeks of Q2 2025, specialty product gross margin was in the range of **17% to 18%**[17](index=17&type=chunk) - Structural product gross margin was in the range of **9% to 10%** for the same period[17](index=17&type=chunk) - **Average daily sales volumes improved** versus both Q1 2025 and Q2 2024[17](index=17&type=chunk) [Supplemental Information](index=3&type=section&id=Supplemental%20Information) [Conference Call Information](index=3&type=section&id=Conference%20Call%20Information) A conference call to discuss financial results is scheduled for April 30, 2025, with a webcast available online - A conference call to discuss results is scheduled for **April 30, 2025, at 10:00 a.m. Eastern Time**[18](index=18&type=chunk) - A webcast and replay will be available in the Investor Relations section of the BlueLinx website[18](index=18&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) The report contains forward-looking statements subject to risks and uncertainties that could cause results to differ materially - The report contains forward-looking statements about strategy, liquidity, debt, future share repurchases, and the Q2 2025 outlook[23](index=23&type=chunk) - These statements are subject to risks and uncertainties including, but not limited to, adverse housing market conditions, competition, trade policies, and pricing variability[24](index=24&type=chunk) [Non-GAAP Measures](index=7&type=section&id=Non-GAAP%20Measures) The company uses non-GAAP measures like Adjusted EBITDA and Free Cash Flow to provide a clearer view of its performance - **Adjusted EBITDA** is defined as net income plus interest, taxes, depreciation & amortization, and further adjusted for certain non-cash and special items[29](index=29&type=chunk) - **Adjusted Net Income** is defined as Net Income adjusted for certain non-cash and special items and their tax impacts[32](index=32&type=chunk) - **Free Cash Flow** is defined as net cash from operating activities less total capital expenditures[34](index=34&type=chunk) - **Net Debt** is calculated as total debt and finance lease obligations, less cash and cash equivalents, and is used to assess liquidity and leverage[37](index=37&type=chunk) [Financial Statements and Reconciliations](index=10&type=section&id=Financial%20Statements%20and%20Reconciliations) [Condensed Consolidated Statements of Operations](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q1 2025, the company reported net sales of $709.2 million and net income of $2.8 million, or $0.33 per diluted share **Condensed Consolidated Statements of Operations (Unaudited)** | (In thousands, except per share amounts) | Three Fiscal Months Ended March 29, 2025 | Three Fiscal Months Ended March 30, 2024 | | :--- | :--- | :--- | | Net sales | $ 709,226 | $ 726,244 | | Gross profit | $ 111,129 | $ 127,681 | | Operating income | $ 10,724 | $ 27,668 | | Net income | $ 2,805 | $ 17,492 | | Diluted earnings per share | $ 0.33 | $ 2.00 | [Condensed Consolidated Balance Sheets](index=11&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 29, 2025, total assets were $1.63 billion, with cash and cash equivalents decreasing to $449.0 million **Condensed Consolidated Balance Sheets (Unaudited)** | (In thousands) | As of March 29, 2025 | As of December 28, 2024 | | :--- | :--- | :--- | | **ASSETS** | | | | Cash and cash equivalents | $ 449,020 | $ 505,622 | | Inventories, net | $ 399,555 | $ 355,909 | | Total current assets | $ 1,166,303 | $ 1,133,988 | | Total assets | $ 1,633,470 | $ 1,577,717 | | **LIABILITIES AND EQUITY** | | | | Total current liabilities | $ 280,574 | $ 233,724 | | Total liabilities | $ 997,356 | $ 931,276 | | Total stockholders' equity | $ 636,114 | $ 646,441 | | Total liabilities and stockholders' equity | $ 1,633,470 | $ 1,577,717 | [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The first quarter saw a net cash usage of $33.9 million from operations and $19.3 million from financing activities **Condensed Consolidated Statements of Cash Flows (Unaudited)** | (In thousands) | Three Fiscal Months Ended March 29, 2025 | Three Fiscal Months Ended March 30, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $ (33,908) | $ (31,135) | | Net cash used in investing activities | $ (3,392) | $ (5,320) | | Net cash used in financing activities | $ (19,302) | $ (3,979) | | Net change in cash and cash equivalents | $ (56,602) | $ (40,434) | | Cash and cash equivalents at end of period | $ 449,020 | $ 481,309 | [Gross Profit and Gross Margin by Product Category](index=13&type=section&id=Gross%20Profit%20and%20Gross%20Margin%20by%20Product%20Category) This schedule disaggregates revenues and gross profit, showing an adjusted total gross margin of 15.3% for Q1 2025 **Gross Profit and Margin by Product Category (Q1 2025)** | Product Category | Net Sales ($M) | Gross Profit ($M) | Gross Margin % | | :--- | :--- | :--- | :--- | | Specialty products | $479.4 | $89.8 | 18.7% | | Structural products | $229.8 | $21.4 | 9.3% | | **Total** | **$709.2** | **$111.1** | **15.7%** | - Excluding a **$2.4 million** benefit from import duty-related items, the company's gross margin for Q1 2025 would have been **15.3%**, compared to 16.7% in Q1 2024 (which excluded a $6.5 million benefit)[46](index=46&type=chunk) [Reconciliation of Non-GAAP Measurements](index=14&type=section&id=Reconciliation%20of%20Non-GAAP%20Measurements) This section reconciles GAAP Net Income of $2.8 million to non-GAAP Adjusted EBITDA of $19.6 million for Q1 2025 **Reconciliation of Net Income to Adjusted EBITDA (Q1 2025 vs Q1 2024)** | (In thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income | $ 2,805 | $ 17,492 | | Depreciation and amortization | $ 9,554 | $ 9,433 | | Interest expense, net | $ 6,580 | $ 4,624 | | Provision for income taxes | $ 1,339 | $ 5,552 | | Other adjustments | $ (720) | $ 1,680 | | **Adjusted EBITDA** | **$ 19,558** | **$ 38,781** | **Reconciliation of Net Income to Adjusted Net Income (Q1 2025 vs Q1 2024)** | (In thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income | $ 2,805 | $ 17,492 | | Adjustments (pre-tax) | $ (720) | $ 1,680 | | Tax impacts of adjustments | $ 233 | $ (405) | | **Adjusted net income** | **$ 2,318** | **$ 18,767** | [Liquidity Measures](index=16&type=section&id=Liquidity%20Measures) The company reported a negative Net Debt of $74.7 million and a Net Leverage Ratio of (0.7x) as of March 29, 2025 **Net Debt and Leverage Ratio Calculation (as of March 29, 2025)** | ($ amounts in thousands) | Value | | :--- | :--- | | Total debt and finance leases | $ 616,755 | | Less: available cash and cash equivalents | $ 449,020 | | **Net debt (non-GAAP)** | **$ 167,735** | | **Net debt, excluding real property finance leases (non-GAAP)** | **$ (74,655)** | | Trailing twelve-month adjusted EBITDA | $ 112,133 | | **Net leverage ratio excl. real property finance leases** | **(0.7x)** | **Free Cash Flow Reconciliation (Q1 2025)** | (In thousands) | Value | | :--- | :--- | | Net cash used in operating activities | $ (33,908) | | Less: Disbursements for property and equipment | $ (5,932) | | **Free cash flow - non-GAAP** | **$ (39,840)** |