BlueLinx Announces Fourth Quarter and Full Year 2025 Results

ATLANTA--(BUSINESS WIRE)-- BlueLinx Holdings Inc. (NYSE: BXC), a leading U.S. wholesale distributor of building products, today reported financial results for the fiscal three months and twelve months ended January 3, 2026.

FOURTH QUARTER 2025 HIGHLIGHTS

• Net sales of $716 million
• Gross profit of $113 million, gross margin of 15.7% and specialty gross margin of 18.1%
• Net loss of $(8.6) million, or $(1.08) loss per share
• Adjusted net loss of $(3.7) million, or $(0.47) adjusted loss per share
• Adjusted EBITDA of $14 million
• Free cash flow of $56 million

FULL YEAR 2025 HIGHLIGHTS

• Net sales of $3.0 billion
• Gross profit of $452 million, gross margin of 15.3%, and specialty gross margin of 18.0%
• Net income of $0.2 million, or $0.02 diluted earnings per share
• Adjusted net income of $8 million, or $0.97 adjusted diluted earnings per share
• Adjusted EBITDA of $83 million
• Free cash flow of $33 million
• Available liquidity of $726 million, including $386 million cash/cash equivalents on hand
• Completion of $38 million in share repurchases

“Our fourth quarter and full year 2025 results demonstrated our ability to grow the business across multiple product lines and in key customer channels, despite persistent challenging market conditions,” said Shyam Reddy, President and CEO of BlueLinx. “The results were highlighted by increased sales, higher volumes and solid margin performance in a tough housing market, which clearly shows our ability to gain share and generate positive results when driving targeted sales efforts through a focused profitable growth strategy. Our key customer channel focus, product strategy, and enhanced value-add services make us more essential to our customers and suppliers.”

“Specialty products margins significantly improved from the third quarter of 2025 to a gross margin of 18.1%. Structural products gross margins also improved sequentially to 10.0% for the quarter,” said Kelly Wall, Senior Vice President, Chief Financial Officer and Treasurer of BlueLinx. “During the fourth quarter, we generated $56 million in free cash flow primarily due to our effective inventory management. With strong liquidity and minimal net debt, we remain well-positioned to execute on our strategic investments.”

FOURTH QUARTER 2025 FINANCIAL PERFORMANCE

In the fourth quarter of fiscal 2025, which consisted of 14 weeks compared to 13 weeks for the prior year period, net sales were $716 million, an increase of $5.2 million, or 0.7% when compared to the fourth quarter of fiscal 2024. Gross profit was $113 million, a decrease of $0.7 million, or 0.6%, year-over-year, and gross margin was 15.7%, down 20 basis points from the prior year period.

As previously disclosed, on October 31, 2025, we acquired Disdero Lumber Co., LLC (“Disdero”), an Oregon-based distributor of high-end specialty building products. The financial results of Disdero are included in our consolidated results beginning November 1, 2025.

Net sales of specialty products, which includes products such as engineered wood, siding, millwork, outdoor living, specialty lumber and panels, and industrial products, increased $21.1 million, or 4.2%, to $505 million. This increase was primarily due to volume gains in most categories and the addition of Disdero, partially offset by price deflation driven by continued challenging external market conditions. Gross profit from specialty product sales was $91.6 million, an increase of $2.8 million, or 3.2%, compared to the fourth quarter last year. Gross margin was 18.1% compared to 18.4% in the prior year period.

Net sales of structural products, which includes products such as lumber, plywood, oriented strand board, rebar, and remesh, decreased $15.9 million, or 7.0%, to $211 million in the fourth quarter of fiscal 2025, and gross profit from sales of structural products decreased $3.6 million to $21.0 million in the quarter. The decreases in structural sales and gross profit were due primarily to price declines in lumber and panels, partially offset by volume growth. Compared to fourth quarter 2024, average composite pricing for lumber decreased 12% and panel prices decreased 20%. Gross margin on structural product sales was 10.0% in the fourth quarter, down from 10.8% in the prior year period.

Selling, general and administrative (“SG&A”) expenses were $102.5 million in the fourth quarter of fiscal 2025, an increase of $9.9 million from $92.6 million for the fourth quarter of fiscal 2024. The year-over-year increase was due primarily to higher personnel expenses, the addition of Disdero, the extra week in the fourth quarter of fiscal 2025, and increased sales and logistics expenses driven by our strategic channel growth, including multi-family. 

Other operating expenses, net in the current fiscal quarter were primarily acquisition-related and other non-recurring expenses.

Net loss for the current fiscal quarter was $(8.6) million, or $(1.08) loss per share, versus net income of $5.3 million, or $0.63 per diluted share, in the prior year quarter. The net loss was primarily driven by higher SG&A expenses, higher depreciation and amortization expense from asset additions, and acquisition-related transactions costs. Adjusted net loss for the current fourth quarter was $(3.7) million, or $(0.47) loss per share.

Adjusted EBITDA was $13.9 million, or 1.9% of net sales, compared to $21.5 million, or 3.0% of net sales in the prior year period.

Net cash generated from operating activities was $61.8 million in the fourth quarter of fiscal 2025 compared to $18.7 million in the prior year period. The increase in cash generated from operating activities was due primarily by positive changes in working capital driven by more effective inventory management, partially offset by the cash impact of lower net income in the quarter. We used $5.4 million of cash primarily for improvements to our distribution facilities and for our digital transformation initiative, a multi-year initiative aimed at modernizing and integrating our core technologies by improving data quality, strengthening operational systems, and digitizing key processes. We also entered into $3.3 million of new finance leases mainly to update our fleet during the current quarter.

FULL YEAR 2025 FINANCIAL PERFORMANCE

For fiscal year 2025, which consisted of 53 weeks compared to 52 weeks for the prior fiscal year, net sales were $3.0 billion, a slight increase of $1.5 million year-over-year, reflecting an increase of $7.1 million, or 0.3%, for specialty product net sales, partially offset by a slight decline of $5.6 million, or 0.6%, for structural product net sales. Gross profit was $451.6 million, a decrease of $37.5 million, or 7.7% year-over-year, and gross margin was 15.3%, down 130 basis points from 16.6%. Gross profit for full year 2024 included a net benefit of $12.7 million for import duty-related items; such amounts were not material for full year 2025. Excluding this benefit, gross margin would have been 16.1% for full year 2024. The duty items were related to changes in retroactive rates for anti-dumping duties and to classification adjustments for certain goods imported by the Company.

Net sales of specialty products increased $7.1 million, or 0.3% to $2.1 billion in fiscal year 2025. The overall increase in specialty product net sales was due to volume growth in some categories and the addition of Disdero, partially offset by price deflation. Gross profit from specialty product sales was $369.0 million in the current year, a decrease of $28.6 million, or 7.2%, year-over-year and gross margin in the current year was 18.0% compared to 19.4% in the prior year. The prior year included the aforementioned net benefit of $12.7 million for import duty-related items from prior periods. Excluding this benefit, gross margin for specialty products would have been 18.8% for the prior fiscal year.

Net sales of structural products decreased $5.6 million, or 0.6%, to $901.0 million in fiscal year 2025, and gross profit from sales of structural products decreased $8.9 million to $82.6 million. The decreases in structural products net sales and gross profit were due primarily to market-based price deflation in panels, partially offset by pricing and slight volume growth for lumber. Compared to fiscal year 2024, average composite pricing for lumber in the U.S. increased while panel prices significantly decreased. Gross margin on structural product sales was 9.2% compared to 10.1% for the prior fiscal year.

SG&A expenses were $381.1 million during fiscal year 2025, up $15.6 million, or 4.3%, compared to the prior fiscal year. The year-over-year increase was due to the addition of Disdero, the extra week in fiscal year 2025, increased sales and logistics expenses driven by our strategic channel growth, including multi-family, as well as continuing technology initiatives associated with our digital transformation.

Other operating expenses, net in the current fiscal year were primarily acquisition-related and other non-recurring expenses, partially offset by insurance recoveries received in 2025 related to property damaged at our Erwin, Tennessee facility due to Hurricane Helene in late 2024.

Net income was $0.2 million, or $0.02 per diluted share, versus $53.1 million, or $6.19 per diluted share in the prior fiscal year. Fiscal year 2024 reflects the aforementioned $12.7 million net benefit for import-duty related items. Adjusted net income was $7.8 million and adjusted diluted earnings per share was $0.97 in the current fiscal year, compared to $55.2 million or adjusted diluted earnings per share of $6.44 in the prior fiscal year.

Adjusted EBITDA in fiscal year 2025 was $82.6 million, or 2.8% of net sales, compared to $131.4 million, or 4.4% of net sales in fiscal year 2024.

Net cash generated from operating activities was $59.8 million for fiscal year 2025 compared to $85.2 million in fiscal year 2024. This decrease in cash provided by operating activities during fiscal year 2025 was primarily due to lower cash impact of net income in the year, partially offset by positive changes in working capital driven by more effective inventory management. Free cash flow was $32.9 million in fiscal year 2025 compared to $45.1 million in the prior fiscal year.

CAPITAL ALLOCATION AND FINANCIAL POSITION

During fiscal year 2025, we invested $26.9 million to property and equipment, primarily for improvements to our distribution facilities and for our digital transformation initiative, compared to $40.1 million in fiscal year 2024. We also entered into $44.6 million of new finance leases, mainly to update our fleet, in the current fiscal year compared to $19.4 million in the prior fiscal year. We did not repurchase any of our common stock during the fourth quarter of fiscal 2025, but repurchased $37.7 million in fiscal year 2025. At quarter-end, we had $8.7 million remaining under our $100 million authorization announced in October 2023 and an additional $50 million from our more recent authorization announced in July 2025, for a total of $58.7 million available for share repurchases.

As of January 3, 2026, total debt outstanding was $621 million, including $300 million of senior secured notes that mature in 2029 and $321 million of finance leases. Available liquidity was $726 million which included an undrawn revolving credit facility that had $340 million of availability plus cash and cash equivalents of $386 million. Net debt was $(5) million, which consisted of total debt and finance lease obligations, less real property finance lease obligations of $241 million, and less cash and cash equivalents of $386 million, resulting in a net leverage ratio of (0.1x) using a trailing twelve-month Adjusted EBITDA of $83 million.

FIRST QUARTER 2026 OUTLOOK

Based on the first seven weeks of the first quarter of fiscal 2026, we are expecting specialty product gross margin to be in the range of 17% to 18%, and structural product gross margin to be in the range of 9% to 10%. We also expect average daily sales volumes to be lower than in the fourth quarter of 2025 due to normal seasonal patterns and severe winter weather, but higher than the weather‑impacted first quarter of 2025.

ABOUT BLUELINX

BlueLinx (NYSE: BXC) is a leading U.S. wholesale distributor of residential and commercial building products with both branded and private-label SKUs across product categories such as lumber, panels, engineered wood, siding, millwork, and industrial products. With a strong market position, broad geographic coverage footprint servicing 50 states, and the strength of a locally focused sales force, we distribute a comprehensive range of products to our customers which include national home centers, pro dealers, cooperatives, specialty distributors, regional and local dealers and industrial manufacturers. BlueLinx provides a wide range of value-added services and solutions to our customers and suppliers, and we operate our business through a broad network of distribution centers. To learn more about BlueLinx, please visit www.bluelinxco.com.