BlueLinx Holdings Inc. reported third-quarter 2024 net sales of $747 million, an 8% decrease from $810 million in Q3 2023. Gross profit was $126 million, down 10% year-over-year, with gross margin contracting by 40 basis points to 16.8%.
Specialty products net sales decreased 7.1% to $519 million due to price deflation, despite an increase in volumes. Structural products net sales fell 9.1% to $228 million, also impacted by price deflation in lumber and panels, partially offset by higher volumes.
Net income for the quarter was $16 million, or $1.87 per diluted share, compared to $24 million, or $2.71 per diluted share, in the prior year. Adjusted EBITDA was $37 million, or 4.9% of net sales, down from $50 million, or 6.2%, in Q3 2023.
The company generated $62 million in net cash from operating activities and $54 million in free cash flow during the quarter. BlueLinx repurchased $15 million of common stock, with $61 million remaining under its authorization.
As of September 28, 2024, BlueLinx maintained strong liquidity of $873 million, including $526 million in cash and $346 million available on its revolving credit facility. The net debt position was negative $176 million, resulting in a net leverage ratio of (1.2x).
For the first four weeks of Q4 2024, specialty product gross margin was in the range of 18% to 19%, and structural product gross margin was in the range of 9% to 10%. Average daily sales volumes improved slightly compared to Q3 2024.
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