BlueLinx Holdings Reports $2.95 Billion in Net Sales for Fiscal 2024, Net Income Rises to $53.1 Million

BlueLinx Holdings Inc. reported a net sales figure of $2.95 billion for fiscal 2024, reflecting a decrease of 5.9% from the previous year's $3.14 billion. The company's gross profit also declined, totaling $489.1 million, down from $527.0 million in fiscal 2023, resulting in a slight decrease in gross margin percentage from 16.8% to 16.6%. The decline in sales was attributed to price deflation across both specialty and structural product categories, despite some volume increases in specialty products. Notably, net income rose to $53.1 million, or $6.19 per diluted share, compared to $48.5 million, or $5.39 per diluted share, in the prior year, primarily due to lower interest expenses and the absence of costs related to the settlement of a defined benefit pension plan.

In terms of operational changes, BlueLinx continued to focus on enhancing its specialty product offerings, which accounted for approximately 69.3% of total net sales in fiscal 2024. The company also engaged in strategic capital investments, allocating $85.1 million towards operational improvements, including $40.1 million for productivity enhancements and $45 million for share repurchases. The company repurchased 428,630 shares at an average price of $104.90 per share, as part of its ongoing share repurchase program, which has a remaining authorization of $46.5 million.

BlueLinx's workforce remained stable, with approximately 2,000 associates as of December 28, 2024. The company reported that about 20% of its workforce is represented by local labor unions, with several collective bargaining agreements up for renewal in fiscal 2025. The company emphasized its commitment to employee engagement and safety, conducting regular surveys and implementing extensive training programs to ensure a safe working environment.

Looking ahead, BlueLinx anticipates continued challenges in the housing market, influenced by macroeconomic factors such as inflation and rising interest rates. However, the company remains optimistic about demand for its products, driven by a fundamental undersupply of housing and ongoing repair and remodel activities. The company plans to leverage its strong market position and geographic footprint to capture growth opportunities in both existing and new markets, while maintaining a disciplined approach to capital management and operational efficiency.