Despite challenging market conditions, BlueLinx Holdings delivered solid third quarter results, highlighted by volume growth in several specialty product categories and its structural products business.
“Specialty products’ gross margins were within our expected range and structural products’ gross margins were strong, despite the effects of continued price deflation for both product categories,” president and CEO Shyam Reddy said. “Current market conditions remain challenging, but we believe our growth strategy, significant liquidity, and strong balance sheet will continue to position us well for an industry rebound.”
BlueLinx recorded net sales of $747 million in the third quarter, a decrease of 8% compared to the prior-year period. Gross profit for the distributor was $126 million, a decline of $14 million compared to the third quarter of 2023, while gross margin declined 40 basis points to 16.8%.
Net sales of specialty products—which includes products such as engineered wood, siding, millwork, outdoor living, specialty lumber and panels, and industrial products—were $519 million, a decrease of 7.1% compared to the third quarter of 2023. The company attributed the decrease due to price deflation across the category, partially offset by volume increases. Specialty product gross profit was $100 million, a 9.4% decrease on a year-over-year basis.
Net sales of structural products—which includes products such as lumber, plywood, oriented strand board, rebar, and remesh—decreased $23 million on a year-over-year basis to $228 million. The decrease was primarily attributed to price deflation in both lumber and panels, partially offset by volume growth. Gross profit for the category declined by $3 million year-over-year to $25 million.
BlueLinx reported a third quarter profit of $16 million, or $1.87 per share, down from $24 million, or $2.71 per share, in the prior-year period. Adjusted EBITDA was $47 million, or 4.9% of net sales, in the third quarter, down from $50 million in the third quarter of 2023.
