BlueLinx Reports Modest Sales Growth but Significant Profit Decline in Q2 2025

BlueLinx Holdings Inc. reported its financial results for the second quarter and first half of fiscal 2025, revealing a modest increase in net sales but a significant decline in profitability compared to the previous year. For the three months ended June 28, 2025, the company achieved net sales of $780.1 million, a 1.5% increase from $768.4 million in the same period last year. However, net income fell sharply to $4.3 million, or $0.54 per diluted share, down from $14.3 million, or $1.65 per diluted share, in the prior-year quarter. The decline in profitability was attributed to increased selling, general, and administrative expenses, as well as higher interest expenses.

In the first six months of fiscal 2025, BlueLinx reported net sales of $1.49 billion, a slight decrease of 0.4% from $1.49 billion in the first half of fiscal 2024. Gross profit for the period also declined by 7.7% to $230.8 million, compared to $250.1 million in the prior year. The company's gross margin percentage decreased from 16.7% to 15.5%, reflecting challenges in pricing and market conditions. Approximately 69% of the company's net sales in the first half were generated from specialty products, which saw a decline in sales due to competitive pricing pressures.

Operationally, BlueLinx experienced a notable increase in selling, general, and administrative expenses, which rose by 4.8% to $189.4 million in the first half of fiscal 2025. The company also reported a significant increase in interest expense, which totaled $15 million for the first six months, compared to $9.4 million in the same period last year. This increase was primarily due to higher finance lease obligations and interest related to the company's senior secured notes. The company’s cash flow from operating activities turned negative, with a net cash outflow of $60.7 million compared to a cash inflow of $4.7 million in the prior year.

In terms of strategic developments, BlueLinx has focused on enhancing its product offerings and expanding its market reach. The company has engaged in capital investments, including $15.5 million for property and equipment and $32.9 million in finance leases to improve its facilities and fleet. Additionally, BlueLinx repurchased 469,129 shares of its common stock for $35 million during the first half of fiscal 2025, reflecting its commitment to returning capital to shareholders. The company has also maintained a strong liquidity position, with $387 million in cash and cash equivalents and $343.5 million available under its revolving credit facility as of June 28, 2025.

Looking ahead, BlueLinx remains focused on driving profitable growth through its specialty product categories and expanding its geographic footprint. The company aims to enhance its operational efficiency and customer experience while navigating the challenges posed by market conditions and pricing pressures. Despite the current financial challenges, BlueLinx is committed to its long-term strategy of value creation and maintaining a disciplined capital structure.