BlueLinx Holdings Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net sales reached $813 million, an 8.5% increase year-over-year compared to $749 million in the third quarter of 2025.
• Gross profit was $131 million, a 21% increase year-over-year, with gross margin expanding to 16.1% from 14.4% in the prior year quarter.
• Net loss was $0.6 million ($0.07 per share), compared to net income of $1.7 million ($0.20 per share) in the third quarter of 2025.
• Adjusted net income was $5.5 million ($0.68 adjusted diluted EPS), up from $3.7 million ($0.45 adjusted diluted EPS) in the prior year quarter.
• Adjusted EBITDA was $31.7 million (3.9% of net sales), a 42% increase from $22.4 million (3.0% of net sales) in the third quarter of 2025.
• Net cash flows provided by operating activities were $44.7 million, a decrease of $13.9 million from $59.0 million in the prior year quarter.
• Free cash flow was $39.6 million, a $13.1 million decrease from the prior year quarter.
• Total debt and finance lease obligations were $371 million, resulting in a net debt of $21 million and a net leverage ratio of 0.2x based on trailing twelve-month Adjusted EBITDA of $105 million.
• Available liquidity was $689 million, comprising $350 million in cash and cash equivalents and $339 million of availability under an undrawn revolving credit facility.

Guidance and Future Outlook:

• Fourth quarter 2026 specialty product gross margin is expected to range between 17.5% and 18.5%.
• Fourth quarter 2026 structural product gross margin is expected to range between 9.0% and 10.0%.
• Average daily sales volumes are expected to be slightly lower in the fourth quarter of 2026 compared to the fourth quarter of fiscal 2025 and the third quarter of 2026.

Business Segments and Product Lines:

• Specialty products net sales were $550 million, an increase of 4.6% year-over-year, driven by the Disdero Lumber Co., LLC acquisition and higher pricing, partially offset by lower volumes.
• Specialty products gross margin was 18.7%, up from 16.6% in the prior year quarter.
• Structural products net sales were $263 million, an increase of $40 million year-over-year, driven by increases in pricing and volumes for lumber and panels.
• Structural products gross margin improved to 10.7% from 9.3% in the prior year quarter.
• The company recorded an unusual inventory provision of $2.9 million for discontinued inventory resulting from a strategic brand and vendor change for one key product line.
• The company recorded a $2.2 million net benefit for import duty-related items in the third quarter of 2026, compared to a $2.2 million expense in the third quarter of 2025.

Market and Competitive Landscape:

• BlueLinx operates as a leading U.S. wholesale distributor with a footprint servicing 50 states, serving customers including national home centers, pro dealers, cooperatives, and industrial manufacturers.
• Sales growth in the current quarter was attributable to both specialty and structural product categories.

Risks and Challenges:

• SG&A expenses increased by $16.6 million year-over-year to $106 million, primarily due to the inclusion of Disdero, higher fuel and third-party freight expenses, and employee-related expenses.
• Operating results are subject to risks including adverse housing market conditions, construction labor shortages, interest rates, and retaliatory trade policies.
• The company faces exposure to risks related to international suppliers, new or increased tariffs, antidumping and countervailing duties, and pricing/product cost variability.

Management Commentary and Tone:

• CEO Shyam Reddy stated the company delivered year-over-year profitable sales growth at improved gross margins in specialty and structural product categories, noting that investments in growth initiatives, operational excellence, and process improvements are helping navigate a challenging environment.
• CFO Kelly Wall highlighted strong operational execution and effective working capital management contributing to strong cash flow, emphasizing a strong balance sheet and liquidity providing flexibility to execute strategic initiatives.

Other Key Points:

• The company did not repurchase any shares of common stock during the third quarter of 2026.
• At quarter-end, $53.7 million remained available under share repurchase programs ($3.7 million under the October 2023 program and $50 million under the July 2025 program).
• Capital expenditures included $5.2 million in property and equipment purchases plus $1.3 million obtained through finance leases, primarily for fleet, facility, and technology improvements.
• The Disdero Lumber Co., LLC acquisition contributed to the growth in specialty product sales.
• Trailing twelve-month Adjusted EBITDA was $105 million as of October 3, 2026.