BlueLinx Holdings Inc. reported first-quarter 2025 net sales of $709 million, a 2% decrease from $726 million in Q1 2024. Gross profit was $111 million, down 13% year-over-year, with gross margin at 15.7%, a decline of 190 basis points.
Specialty products net sales decreased 4.9% to $479 million due to price deflation and lower volumes. Structural products net sales increased 3.3% to $230 million, driven by higher lumber pricing and increased volumes, despite panel price declines.
Net income for the quarter was $2.8 million, or $0.33 per diluted share, significantly down from $17.5 million, or $2.00 per diluted share, in Q1 2024. Adjusted EBITDA was $19.6 million, or 2.8% of net sales, compared to $38.8 million, or 5.3%, in the prior year.
The company used $34 million in net cash from operating activities and had a free cash flow outflow of $40 million, which is typical for the first fiscal quarter due to seasonality. BlueLinx invested $6.4 million in property and equipment and $28 million in new finance leases for its fleet.
BlueLinx repurchased $15 million of common stock, with $31 million remaining under its authorization. As of March 29, 2025, available liquidity stood at $795 million, including $449 million in cash and $346 million undrawn on its revolving credit facility.
For the first four weeks of Q2 2025, specialty product gross margin was in the range of 17% to 18%, and structural product gross margin was in the range of 9% to 10%. Average daily sales volumes improved versus both Q1 2025 and Q2 2024.
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