Earnings

BlueLinx Sales Growth Quickens as Structural Volumes Return

The Tip Desk · November 10, 2026 · 3 min read

Net sales reached $813 million, up 8.5% from a year earlier, after a 4.4% year-over-year increase in the second quarter.

BlueLinx Holdings Inc. (BXC), a U.S. wholesale distributor of building products, reported net sales of $813 million for the fiscal three months ended October 3, 2026, an increase of 8.5% from a year earlier. That pace quickened from the 4.4% year-over-year increase in the second quarter.

The company said sales growth in the current quarter was attributable to both specialty products and structural products.

Gross profit was $131 million, or 16.1% of net sales, up 21% from the year-earlier quarter. Second-quarter gross margin had been 17.2%.

The company swung to a net loss of $0.6 million, or $0.07 a share, from net income of $1.7 million, or $0.20 a share, a year earlier. Adjusted net income was $5.5 million, or $0.68 a share, compared with $3.7 million, or $0.45 a share. Adjusted EBITDA was $31.7 million, or 3.9% of net sales, up 42% from $22.4 million, or 3.0% of sales.

Specialty products, which include engineered wood, siding, millwork, outdoor living, specialty lumber and panels, and industrial products, generated net sales of $550 million, up 4.6% from a year earlier. The company said the increase was due primarily to Disdero Lumber Co. product sales and higher pricing, partially offset by lower volumes. Specialty gross profit was $103 million. Specialty gross margin was 18.7%, compared with 16.6% a year earlier. Excluding a $2.2 million import-duty benefit, a $2.9 million unusual inventory provision tied to a strategic brand and vendor change, and a $2.2 million prior-year duty expense, specialty gross margin would have been 18.8% versus 17.0%.

Structural products, including lumber, panels, rebar, and remesh, generated net sales of $263 million, up $40 million from the year-earlier quarter. The company said the increase was primarily due to increases in pricing and volumes for both lumber and panels. Structural gross profit was $28.3 million, and structural gross margin improved to 10.7% from 9.3%.

Selling, general and administrative expenses were $106 million, $16.6 million higher than the year-earlier quarter. The company said the increase was primarily due to Disdero, higher fuel and third-party freight expenses, and employee-related expenses.

Net cash provided by operating activities was $44.7 million, down $13.9 million from $59 million a year earlier. Free cash flow was $39.6 million, a $13.1 million decrease. The company attributed the declines primarily to period-over-period net changes in inventory and the timing of payments for accounts payable.

Available liquidity was $689 million as of October 3, 2026, including $350 million of cash and cash equivalents. Net debt was $21 million, producing a net leverage ratio of 0.2x using trailing twelve-month Adjusted EBITDA of $105 million. The company did not repurchase shares in the third quarter; remaining authorization was $53.7 million.

For the fourth quarter of 2026, BlueLinx expects specialty product gross margin in the range of 17.5% to 18.5% and structural product gross margin in the range of 9.0% to 10.0%. It also expects average daily sales volumes to be slightly lower than the fourth quarter of fiscal 2025 and the third quarter of 2026.

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