BlueLinx Q4 Earnings Call Highlights

Key Points

• BlueLinx ended FY2025 with flat net sales of $3.0 billion and adjusted EBITDA of $83 million (2.8% margin); fiscal Q4 (14 weeks) reported $716 million in net sales, $13.9 million of adjusted EBITDA and an adjusted net loss of $3.7 million.
• A specialty-heavy mix—about 70% of net sales and >80% of gross profit—drove volume gains despite a soft single-family market, while price deflation in structural lumber and panels compressed structural margins.
• Management is prioritizing multifamily growth (19% volume increase), digital/AI initiatives and the Disdero acquisition to expand specialty and geographic reach, and the company finished the year with strong liquidity—$386M cash, ~$726M total liquidity and net debt of negative $5M—after $38M of share repurchases in 2025.

BlueLinx NYSE: BXC executives told investors its fourth quarter and full-year 2025 results reflected “grit and determination” as the company navigated a soft housing market, competitive pricing, and continued deflation in key structural product categories. Management emphasized that its strategy—centered on profitable sales growth, specialty product expansion, and channel initiatives including multifamily and national accounts—helped deliver flat full-year net sales with higher volumes and solid margins versus 2024.

2025 performance amid a soft housing market

Chief Executive Officer Shyam Reddy said BlueLinx grew the business despite market headwinds, pointing to 2025 single-family housing starts that were down 7% year-over-year. Reddy said the company’s execution drove share gains across multiple product lines and customer channels, with gains supported by product expansion, builder “pull-through” programs, value-added services, multifamily efforts, and growth with large accounts.

Reddy also highlighted the company’s product mix, noting that specialty products represented about 70% of net sales and more than 80% of gross profit for both the fourth quarter and the full year.

Fourth-quarter results included an extra week

Chief Financial Officer Kelly Wall noted fiscal fourth quarter 2025 included 14 weeks rather than the usual 13, and the fiscal year had 53 weeks. For the quarter, BlueLinx reported:

• Net sales: $716 million, up slightly year-over-year
• Gross profit: $113 million
• Gross margin: 15.7%, down from 15.9% a year earlier
• SG&A: $102 million, up $10 million year-over-year
• Net loss: $8.6 million, or $1.08 per share
• Adjusted net loss: $3.7 million, or $0.47 per share
• Adjusted EBITDA: $13.9 million

Wall said SG&A rose primarily due to higher personnel expense, the addition of Disdero Lumber Co., the extra week, and increased sales and logistics costs tied to strategic channel growth, including multifamily. She added that the company remained focused on “rigorous expense management” and improving operational efficiency.

Specialty and structural segments: volume growth vs. price deflation

In specialty products, fourth-quarter net sales were $505 million, up more than 4% year-over-year. Wall attributed the increase to higher volumes in nearly all categories, modest price increases in millwork and siding, and the inclusion of Disdero, partially offset by volume declines in millwork. Specialty gross profit rose 3% to $92 million, while specialty gross margin was 18.1% versus 18.4% a year earlier. Wall said the margin decline was mainly tied to price deflation in certain categories, partially offset by Disdero’s higher-margin business.

Sequentially, Wall said specialty gross margin improved 150 basis points from the third quarter of 2025. In response to an analyst question, Wall said about half of the sequential improvement was due to a “one-time rebate-related true-up” in the prior quarter, with the remaining benefit driven by continued pricing discipline. Based on the first seven weeks of the first quarter, Wall said management expected specialty gross margin to be 17% to 18%, with daily sales volumes below the fourth quarter and above the year-ago first quarter, which was impacted by severe weather.

For structural products, fourth-quarter net sales were $211 million, down 7% year-over-year. Wall said lower pricing for lumber and panels more than offset higher volumes. Structural gross profit declined 14% to $21 million, and structural gross margin fell to 10% from 10.8% a year earlier. She also provided commodity price context, stating average lumber prices were about $378 per 1,000 board feet and panel prices about $438 per 1,000 square feet—down 12% and 20%, respectively, from the prior-year quarter.

Looking to the first quarter, Wall said the company expected structural gross margin of 9% to 10%, with daily volumes down versus the fourth quarter and up versus the prior-year first quarter, again citing severe weather impacts in early 2025.

Management said pricing in engineered wood products (EWP) appeared to have stabilized. Reddy said the company agreed with commentary that sequential EWP declines were likely at a bottom, based on macro data and conversations with customers and suppliers, adding that BlueLinx’s channel focus and “creative programs” helped it drive volumes while maintaining margins in a competitive environment.

Full-year results, cash flow, and balance sheet strength

For full-year 2025, BlueLinx reported net sales of $3.0 billion (flat versus 2024) and adjusted EBITDA of $83 million, representing a 2.8% adjusted EBITDA margin. Adjusted net income was $7.8 million, or $0.97 per diluted share. GAAP net income was $219,000, or $0.02 per share.

Wall said full-year gross profit was $452 million and gross margin was 15.3%, down 130 basis points year-over-year. SG&A was $381 million, up 4%, driven by Disdero, the extra week, increased sales and logistics expenses tied to channel growth, and investments in headcount and technology.

BlueLinx highlighted cash generation and working capital management. Wall said the company generated operating cash flow of $62 million and free cash flow of $56 million in the fourth quarter, driven largely by lowering inventory levels to match demand. For the full year, operating cash flow was $60 million and free cash flow was $33 million.

At year-end, Wall said cash and cash equivalents were $386 million, and total liquidity was about $726 million, including $340 million of undrawn revolver capacity. Total debt (excluding real property financing leases) was $381 million, and net debt was negative $5 million, reflecting a net cash position. She added there were no material debt maturities until 2029.

On capital allocation, management said the company repurchased $38 million of shares in 2025 and ended the year with $58.7 million remaining under existing repurchase authorizations. Capital expenditures were $5.4 million in the fourth quarter, including spending related to digital investments and fleet and branch maintenance.

Strategy updates: multifamily, digital transformation, and Disdero

Reddy emphasized continued investment in the multifamily channel, citing 19% volume growth in multifamily in 2025. He acknowledged multifamily carries longer inventory cycles and lower gross margins due to direct sales and competitive pricing, but said the company views it as a long-term growth opportunity due to housing affordability pressures. In discussion with analysts, Reddy said forecasting for multifamily demand has been “all over the map,” but reiterated confidence that BlueLinx can continue to take share given its services and investments, including takeoff capabilities, project management, specialized delivery equipment, and dedicated business development resources.

BlueLinx also provided updates on its digital transformation. Reddy said Phase I was completed on time and under budget, including enhancements to master data management and a new Oracle Transportation Management system. While the company launched e-commerce pilots, management said it pivoted to focus more on helping large customers optimize their own digital platforms, citing rapid change in AI and the potential obsolescence of traditional e-commerce investments. Reddy said BlueLinx expanded internal AI initiatives, enabling many salaried associates to build “agentic agents” to streamline work, including tools for modeling and analytics and applications supporting areas like inventory management, commercial initiatives, and training.

On warehouse technology, Reddy said BlueLinx “absolutely” believes in warehouse management systems and has had a successful pilot, with targeted investments planned over the next 12 to 24 months.

Finally, management said the acquisition of Portland-based Disdero Lumber Co. is performing as expected and supports BlueLinx’s goals of increasing specialty product sales, growing multifamily, and strengthening its Western U.S. presence. Reddy said the company has an active M&A pipeline aligned with a two-pronged strategy: expanding specialty mix and supporting geographic expansion.

About BlueLinx NYSE: BXC

BlueLinx Corporation is a leading distributor of building products in the United States, serving professional builders, contractors and industrial customers. The company offers a comprehensive portfolio that includes lumber, engineered wood products, plywood, oriented strand board, siding, railing, millwork and specialty construction materials. Through its nationwide network of distribution centers, BlueLinx provides inventory management, delivery and supply-chain solutions designed to help customers streamline operations and reduce carrying costs.

Founded in 2004 as a spin-off from Georgia-Pacific's distribution business, BlueLinx has developed a broad product line that spans both residential and commercial construction markets.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.