BlueLinx Holdings reported steady third-quarter sales but sharply lower earnings as weaker margins and higher costs weighed on results. The Atlanta-based building products distributor posted sales of $748.9 million, up 0.2% from a year earlier, while net income plunged 89.6% to $1.7 million from $16.0 million.
For the first nine months, BlueLinx reported sales of $2.24 billion, down 0.2% from $2.24 billion in the same period last year. Net income fell 81.7% to $8.8 million, compared with $47.8 million a year ago, as margins narrowed and interest expenses climbed.
CEO Shyam Reddy said the results “demonstrated continued resilience” as the company focused on its long-term growth strategy. Specialty product sales rose modestly, helped by stronger volumes in engineered wood and outdoor living products. “Structural products benefited from a year-over-year increase in lumber prices,” Reddy said, “although panel pricing continued to see pressure.” He said BlueLinx’s acquisition of Disdero Lumber Co.—a premium two-step distributor—will “significantly boost our presence in premium specialty products” and strengthen the company’s mix toward higher-margin categories.
Chief financial officer Kelly Wall said the company delivered “strong free cash flow” through disciplined inventory and expense management. The Disdero deal, valued at $96 million (or $88 million after tax benefits), was financed with cash on hand and is expected to add to earnings immediately. Disdero generates about $100 million in annual revenue, and Wall said the acquisition will “enhance the margin profile of specialty products.”
By category, specialty products sales increased 1.2% year over year to $525.5 million, while structural products declined 2.1% to $223.4 million. Overall quarterly gross profit fell to $108.2 million from $125.7 million a year earlier. For the first nine months of 2025, specialty product sales totaled $1.55 billion (down 0.9%), and structural product sales reached $689.9 million (up 1.5%). Year-to-date gross profit declined 10% to $339.0 million.
BlueLinx closed the quarter with $429.4 million in cash and $777 million in available liquidity. The company invested $6.4 million in facility upgrades and digital initiatives and entered new fleet leases totaling $8.4 million.
Looking ahead, BlueLinx said early fourth-quarter results show specialty margins in the 17%–18% range and structural margins between 8%–9%, with daily sales volumes running slightly below last year’s levels.
