BlueLinx’s second quarter results were highlighted by “solid volume growth” in several key specialty product categories despite “a challenging macro environment,” according to president and CEO Shyam Reddy.
“Although current market conditions are challenging, we believe we are well-positioned for long-term success because our vision is supported by a well-defined sales growth strategy, strong liquidity, and minimal debt,” Reddy said.
In the second quarter of 2024, BlueLinx reported net sales of $768 million, a 6% decrease compared to the second quarter of 2023. The company reported gross profit of $122 million, a 10% decline on a year-over-year basis.
Net sales of specialty products, which includes products such as engineered wood, siding, millwork, outdoor living, specialty lumber and panels, and industrial products, were $539 million, 5.2% lower than the second quarter of 2023. BlueLinx attributed the decrease due to price deflation across specialty products. Gross profit from specialty product sales was $104 million, a decrease of 4.1% compared to the second quarter of last year. Gross margin was 19.3% compared to 19.1% in the prior-year period.
Net sales of structural products, which includes products such as lumber, plywood, oriented strand board, rebar, and remesh, decreased $16 million to $229 million in the second quarter of 2024. The decrease in structural sales was due primarily to lower volumes and a decline in lumber selling prices, which correlated to a year-over-year decline in the average composite price of framing lumber. Gross profit from sales of structural products was $18 million, a decrease of $9 million; gross margin was 7.9%, compared to 11.0% in the prior year period.
“The quarter was adversely impacted by structural products, primarily driven by declining lumber and panel prices, in addition to volume declines due to challenges in the housing and building products sector,” Shyam Reddy said.
Net income was $14 million in the period for BlueLinx, down from $24 million in the year-prior period. Adjusted EBITDA was $34 million, or 4.5% of net sales, for the second quarter, compared to $49 million, or 6.0% of net sales in the second quarter of 2023.
