Core Insights - Northborne Partners acted as the financial advisor for Tumac Lumber Company in the sale of its subsidiary, Disdero Lumber Company, to BlueLinx Holdings [1][3]. Company Overview - Disdero Lumber Company, founded in 1953 and headquartered in Clackamas, Oregon, is a leading value-added wholesale distributor of premium specialty forest products and building materials, primarily for custom single-family homes and high-end multi-family residential projects [2][5]. - Disdero offers a curated product portfolio sourced from top-tier domestic and international suppliers, ensuring exceptional quality and reliability for lumber yards and professional dealers [2][5]. Transaction Details - Ryan Kline, CEO of Disdero, expressed that BlueLinx is an ideal partner, emphasizing that their scale and resources will accelerate Disdero's growth while maintaining the company's core values [3]. - Paul Jevnick, Managing Director at Northborne, highlighted the successful positioning of Disdero despite challenging market conditions in the lumber industry [3]. - Brad McMurchie, Chairman of Tumac, acknowledged Northborne's expertise in the lumber and building materials marketplace, which was crucial for achieving a successful transaction outcome [3]. BlueLinx Holdings Overview - BlueLinx Holdings Inc. is a prominent U.S. wholesale distributor of residential and commercial building products, offering a wide range of branded and private-label SKUs across various product categories [6]. - The company has a strong market position with broad geographic coverage across fifty states, servicing a diverse customer base that includes national home centers, pro dealers, and industrial manufacturers [6].

Core Insights - The presentation is focused on E3 Lithium's fourth quarter update, highlighting progress, recent announcements, and future outlook [1][2] Company Achievements - A summary of the achievements of the Phase 1 demonstration facility will be provided [2] - An update on Phase 2 of the demonstration facility is also included [2] Financial Updates - A review of the recently closed equity financing will be discussed [2] Government Initiatives - Recent federal and provincial government initiatives supporting the lithium industry will be covered [2]

Financial Data and Key Metrics Changes - The company reported net sales of $749 million for Q3 2025, a slight increase year-over-year, with adjusted EBITDA of $22.4 million, resulting in a 3.0% adjusted EBITDA margin [12][24] - Adjusted net income was $3.7 million, or $0.45 per share, reflecting a challenging market environment [12][25] - Total gross profit was $108 million, with a gross margin of 14.4%, down from 16.8% in the prior period [24][25] Business Line Data and Key Metrics Changes - Specialty products accounted for approximately 70% of net sales and over 80% of gross profit for Q3, with net sales for specialty products at $525 million, up 1% year-over-year [12][25] - Structural products net sales were $223 million, down 2% compared to the prior year, primarily due to lower panel pricing and volumes [27] - Specialty product gross margin was 16.6%, down from 19.4% year-over-year, primarily due to price deflation and duty-related adjustments [26][27] Market Data and Key Metrics Changes - Market-driven price deflation for specialty products stabilized, with pricing flat for Q3 compared to a decline of high single digits the previous year [6][15] - Average lumber prices increased by 6%, while panel prices decreased by 14% year-over-year [15][28] - Housing starts were down nearly 6% year-over-year, with single-family housing starts down nearly 12% [17][18] Company Strategy and Development Direction - The company is focused on expanding its specialty product categories and enhancing its multifamily business, builder pull-through efforts, and national accounts [8][20] - The acquisition of Distero Lumber Company is expected to support the company's strategy to shift towards higher-margin specialty products and expand its presence in the Western U.S. [11][12][24] - Digital transformation initiatives are ongoing, with phase one expected to be completed this year, aimed at improving efficiency and productivity [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term housing demand despite current market challenges, citing a shortage of 4 million homes in the U.S. [17][19] - The company anticipates solid rebounds in the multifamily segment, which addresses housing demand and affordability [9][20] - Management acknowledged the impact of tariffs, high mortgage rates, and economic uncertainty on profitable sales growth [15][16] Other Important Information - The company repurchased $2.7 million of shares in Q3, with a total availability of $58.7 million for share repurchases [16][32] - The acquisition of Distero was funded with cash on hand for $96 million, expected to be immediately accretive to adjusted EBITDA [22][23] Q&A Session Summary Question: Insights on the Distero acquisition and its valuation - Management highlighted the strategic fit of Distero within the specialty product space, with expected cost and revenue synergies justifying the purchase price [34][35] Question: Future SG&A expectations - SG&A as a percentage of sales is expected to be slightly elevated year-over-year due to ongoing investments in multifamily and digital transformation initiatives [39] Question: Specialty volumes trend throughout the quarter - Specialty volumes saw slight increases, particularly in engineered wood products, although a deceleration is expected in Q4 [40][41] Question: Impact of market consolidation on opportunities - Management noted that supplier consolidation could create new opportunities, particularly in the multifamily channel [48] Question: Inventory management strategy - The company maintains a disciplined approach to inventory management, adapting to market conditions without overextending [50] Question: Price stabilization in engineered wood products - Management confirmed that prices for engineered wood products have stabilized, with ongoing efforts to enhance value-added services [51]

Q3 2025 Financial Performance - Net sales reached $749 million, a 0.2% increase year-over-year, driven by higher volumes in specialty products[15, 21] - Gross profit decreased by 14% year-over-year to $108 million, with specialty products contributing 81% of the total gross profit[15] - Gross margin declined by 240 bps to 14.4%, with specialty gross margin at 16.6% and structural gross margin at 9.3%[15] - Adjusted EBITDA was $22.4 million, representing 3% of net sales[15, 21] - Free cash flow amounted to $53 million, with cash provided by operations at $59 million[15, 21] Segment Performance - Specialty products net sales increased by 1% to $525 million, accounting for approximately 70% of total net sales[25] - Structural products net sales decreased by 2% to $223 million, impacted by lower volumes in lumber and panels, as well as lower pricing in panels[28] Housing Market and Macro Trends - Total housing starts in August 2025 decreased by 9% from July 2025 and 6% from August 2024[16] - Single-family housing starts were down 7% from July 2025 and 12% year-over-year[16] - Multi-family housing starts decreased by 11% from July 2025 but increased by 16% year-over-year[19] Balance Sheet and Capital Allocation - Cash and cash equivalents stood at $429 million at the end of Q3 2025, with total available liquidity of $777 million[34] - Net debt was negative $49 million, resulting in a net leverage ratio of (0.5x)[34]

Financial Performance - In Q3 2025, BlueLinx reported net sales of $749 million, a slight increase of $2 million or 0.2% compared to Q3 2024[5] - Gross profit for the quarter was $108 million, down $17 million or 14% year-over-year, with a gross margin percentage of 14.4%, a decrease of 240 basis points from the previous year[5] - Net income for the quarter was $1.7 million, or $0.20 per diluted share, compared to $16.0 million, or $1.87 per diluted share in the prior year[11] - Adjusted EBITDA was $22.4 million, or 3.0% of net sales, down from $36.6 million, or 4.9% of net sales in Q3 2024[12] - Adjusted EBITDA for the three fiscal months ended September 27, 2025, was $9,966,000, compared to $24,025,000 for the same period in 2024, indicating a decline in operating performance[38] - Operating income for the three months ended September 27, 2025, was $9,966,000, a significant decrease from $24,025,000 in the same period of 2024[38] - Net income for the three months ended September 27, 2025, was $1,655,000, down from $16,016,000 in the same period last year, representing a decline of approximately 89.7%[38] - Basic earnings per share for the three months ended September 27, 2025, were $0.20, compared to $1.88 for the same period in 2024, indicating a substantial decrease[38] Sales Performance - Specialty product net sales reached $525 million, an increase of $6 million or 1.2% year-over-year, driven by higher volumes in engineered wood products and outdoor living[6] - Structural product net sales decreased by $4.9 million or 2.1% year-over-year to $223 million, primarily due to volume and price declines in lumber and panels[7] - Net sales for the three fiscal months ended September 27, 2025, were $748,870,000, slightly up from $747,288,000 in the same period last year, reflecting a marginal growth of 0.2%[38] - Total net sales for the three fiscal months ended September 27, 2025, were $748,870,000, slightly up from $747,288,000 in the prior year[44] - Specialty products net sales for the three fiscal months ended September 27, 2025, were $525,455,000, compared to $519,000,000 in the same period last year[44] Cash Flow and Liquidity - The company generated free cash flow of $53 million during the quarter, with net cash provided by operating activities at $59 million[13] - Free cash flow is defined as net cash provided by operating activities less total capital expenditures, which is a key measure for assessing financial performance[35] - Cash flows from operating activities for the three fiscal months ended September 27, 2025, were $58,616,000, compared to $61,766,000 for the same period in 2024[42] - The company reported a net cash used in investing activities of $5,927,000 for the three fiscal months ended September 27, 2025[42] - The company’s cash and cash equivalents at the end of the period were $429,360,000, down from $526,281,000 at the end of the previous year[42] - The company has available cash and cash equivalents of $429.4 million as of September 27, 2025, down from $505.6 million as of December 28, 2024[51] Debt and Liabilities - As of September 27, 2025, total debt was $380 million, with available liquidity of $777 million, including $429 million in cash[15] - As of September 27, 2025, total debt and finance leases amount to $621.8 million, an increase from $592.5 million as of December 28, 2024[51] - Net debt (non-GAAP) stands at $192.4 million as of September 27, 2025, compared to $86.9 million as of September 28, 2024[51] - The net leverage ratio is 2.1x as of September 27, 2025, compared to 0.7x as of September 28, 2024[51] - Total liabilities as of September 27, 2025, were $958,946,000, compared to $931,276,000 as of December 28, 2024, indicating an increase in financial obligations[40] Equity and Assets - Total current assets as of September 27, 2025, were $1,098,924,000, a decrease from $1,133,988,000 as of December 28, 2024[40] - Total stockholders' equity decreased to $623,018,000 as of September 27, 2025, down from $646,441,000 as of December 28, 2024, reflecting a decline in shareholder value[40] Acquisition - BlueLinx announced the acquisition of Disdero Lumber Company for approximately $96 million, expected to be immediately accretive to earnings[16] Future Outlook - The outlook for Q4 2025 indicates specialty product gross margin in the range of 17% to 18% and structural product gross margin in the range of 8% to 9%[17]

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]