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Home » Distribution Industry News » BlueLinx Reports Modest Q2 Sales Growth as Profit Slides 70%

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  • Published on: August 1, 2025

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Distribution Industry News

BlueLinx Reports Modest Q2 Sales Growth as Profit Slides 70%

BlueLinx Holdings Inc., a distributor of building materials, reported modest revenue growth in the second quarter, but profits dropped sharply as the company continued to face soft market conditions and rising costs.

Revenue for the quarter ended June 28 rose 2% to $780 million, up from $768 million a year ago. Net income, however, fell to $4.3 million, a decrease of 70%, from $14.3 million in the second quarter of 2024.

For the first half of the year, sales remained steady at $1.49 billion, while net income tumbled 78% to $7.1 million, compared to $31.8 million in the same period last year.

“We are pleased with the continued execution of our product and channel strategies,” said CEO Shyam Reddy. “Our second quarter results were highlighted by net sales and volume increases in both specialty and structural products, despite soft market conditions.”

Sales of specialty products—including engineered wood and siding—edged up less than 1% to $543 million. Structural products, such as lumber and panels, grew 3.4% to $237 million, buoyed by stronger pricing and volume in lumber, partially offset by falling panel prices.

Still, profitability took a hit. Gross profit slipped 2% to $119.7 million. Gross margin narrowed to 15.3%, down from 15.9% a year ago. Specialty product margins declined to 18.5%, while structural product margins improved slightly to 8.2%.

The company said rising logistics costs, growth investments in its multi-family housing channel, and technology upgrades pushed selling, general, and administrative expenses up $5.8 million year over year to $95 million.

BlueLinx also posted negative free cash flow of $36 million for the quarter, reflecting a $27 million outflow from operations.

CFO Kelly Janzen Wall said the company remains financially strong despite the earnings decline.

“With our continued strong balance sheet, significant liquidity, and low leverage, we remain well-positioned to accelerate our profitable sales growth as the homebuilding industry rebounds,” she said.

The company repurchased $20 million in shares during the quarter and announced a new $50 million buyback program, bringing total repurchase capacity to $61.5 million.

Looking ahead, BlueLinx said third-quarter trends show stable margins and daily sales volumes slightly ahead of Q2 and in line with last year.

BlueLinx operates distribution centers nationwide, supplying residential and commercial construction markets with wood-based and specialty building materials.

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