BlueLinx (NYSE: BXC) lifts Q2 2026 profit, margin and cash
Rhea-AI Filing Summary
BlueLinx Holdings Inc. reported fiscal second-quarter 2026 net sales of $814.1 million, up 4.4% year-over-year, driven by both specialty and structural products. Gross profit rose to $139.7 million with gross margin of 17.2%, up from 15.3%, including a $7.2 million import duty-related benefit.
Net income was $6.4 million, or $0.81 diluted EPS, versus $4.3 million, or $0.54, a year earlier. Adjusted net income reached $9.1 million and adjusted diluted EPS $1.15. Adjusted EBITDA increased to $35.6 million, or 4.4% of net sales; excluding the import duty benefit, adjusted EBITDA was $28.4 million, or 3.5% of sales.
The company generated $11.2 million of operating cash flow and $8.8 million of free cash flow, a $45 million improvement from the prior-year quarter. Cash and cash equivalents were $318.2 million, supporting $655 million of available liquidity. Net debt excluding real-property finance leases was $58.4 million, for a net leverage ratio of 0.6x. Management expects third-quarter 2026 specialty gross margin of 18.0%-19.0% and structural gross margin of 8.5%-9.5%, with average daily sales volumes above third-quarter 2025.
Positive
- Second quarter 2026 net sales grew 4.4% to $814.1 million, while gross margin expanded to 17.2% from 15.3%, reflecting stronger pricing and mix.
- Adjusted EBITDA rose 33% year-over-year to $35.6 million (4.4% margin), and adjusted diluted EPS increased to $1.15 from $0.70.
- Available liquidity reached $655 million, and net debt excluding real-property finance leases was $58.4 million, for a low net leverage ratio of 0.6x.
Negative
- None.
Insights
Analyzing...
8-K Event Classification
5 items: 2.02, 3.5, 9.01, 16.3, 18.7
5 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 3.5
Item 3.5
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Item 16.3
Item 16.3
Item 18.7
Item 18.7
Key Figures
Net sales: $814,077 thousand
Gross margin: 17.2 %
Net income: $6,406 thousand
+5 more
8 metrics
Net sales
$814,077 thousand
Fiscal three months ended July 4, 2026
Gross margin
17.2 %
Fiscal three months ended July 4, 2026; up from 15.3 % in prior-year quarter
Net income
$6,406 thousand
Fiscal three months ended July 4, 2026
Adjusted EBITDA
$35,642 thousand
Fiscal three months ended July 4, 2026; 4.4 % of net sales
Free cash flow
$8,792 thousand
Fiscal three months ended July 4, 2026
Cash and cash equivalents
$318,178 thousand
As of July 4, 2026
Available liquidity
$655,000 thousand
As of July 4, 2026, including undrawn revolver and cash
Net leverage ratio excluding real property leases
0.6x
As of July 4, 2026, based on net debt excluding real-property finance leases
Key Terms
Adjusted EBITDA, Adjusted Net Income (Loss), Free cash flow, Net Debt Excluding Real Property Finance Lease Liabilities, +2 more
6 terms
Adjusted EBITDA financial
"BlueLinx defines Adjusted EBITDA as an amount equal to net income (loss) plus interest expense..."
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Adjusted Net Income (Loss) financial
"BlueLinx defines Adjusted Net Income (Loss) as Net Income or Loss adjusted for certain non-cash items..."
Adjusted net income (loss) is a company’s reported profit or loss after management removes certain one-time, unusual, or non-cash items to show what the business earned from its regular operations. Think of it like checking a household budget but excluding a major one-off repair or a tax refund to see typical monthly living costs. Investors use it to compare underlying performance across periods and companies, but the adjustments can vary by company and are not standardized.
Free cash flow financial
"BlueLinx defines free cash flow as net cash provided by operating activities less total capital expenditures."
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
Net Debt Excluding Real Property Finance Lease Liabilities financial
"Net Debt Excluding Real Property Finance Lease Liabilities is calculated in the same manner as Net Debt, except..."
Realization of deferred gains on real estate financial
"Realization of deferred gains on real estate | (983) | | | (983)..."
Earnings Snapshot
Net sales: $814.1 million · Guidance included
Fiscal three months ended July 4, 2026
Net sales
$814.1 million
Up 4.4% from $780.1 million in second quarter 2025.
Gross margin
17.2%
Improved from 15.3% in second quarter 2025.
Net income
$6.4 million
Increased from $4.3 million in second quarter 2025.
Diluted EPS
$0.81
Up from $0.54 in second quarter 2025.
Adjusted EBITDA
$35.6 million
Up 33% from $26.8 million in second quarter 2025.
Guidance
Management expects specialty product gross margin of 18.0%-19.0% and structural product gross margin of 8.5%-9.5% for third quarter 2026, with average daily sales volumes higher than third quarter 2025 and slightly above second quarter 2026.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What were BlueLinx (BXC) net sales in Q2 2026 and how did they change?
BlueLinx reported Q2 2026 net sales of $814.1 million, a 4.4% increase from $780.1 million in Q2 2025. Growth came from both specialty and structural product categories, helped by higher pricing and contributions from the Disdero acquisition.
How profitable was BlueLinx (BXC) in the second quarter of 2026?
BlueLinx generated net income of $6.4 million, or $0.81 diluted EPS, versus $4.3 million, or $0.54, a year earlier. Adjusted net income was $9.1 million and adjusted diluted EPS was $1.15, both significantly above prior-year levels.
How did BlueLinx (BXC) specialty and structural segments perform in Q2 2026?
Specialty products delivered $564.1 million of net sales and 20.0% gross margin, while structural products generated $249.9 million of net sales and 10.9% gross margin. Both segments increased sales and expanded gross margins compared to second quarter 2025.
What was BlueLinx (BXC) Adjusted EBITDA and free cash flow in Q2 2026?
Adjusted EBITDA was $35.6 million, or 4.4% of net sales, up from $26.8 million a year earlier. The company produced $8.8 million of free cash flow, a $45 million improvement from negative $36.4 million in the prior-year quarter.
What is BlueLinx (BXC) liquidity and leverage position as of July 4, 2026?
As of July 4, 2026, BlueLinx had $318.2 million in cash and cash equivalents and total available liquidity of $655 million. Net debt excluding real-property finance leases was $58.4 million, resulting in a net leverage ratio of 0.6x.
What outlook did BlueLinx (BXC) provide for Q3 2026 margins and volumes?
Management expects specialty product gross margin of 18.0%-19.0% and structural product gross margin of 8.5%-9.5% in Q3 2026. Average daily sales volumes are expected to exceed third-quarter 2025 levels and be slightly higher than second-quarter 2026.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 4, 2026
(Exact name of registrant specified in its charter)
| (State or other | (Commission | (I.R.S. Employer | ||||||
| jurisdiction of incorporation) | File Number) | Identification No.) | ||||||
| (Address of principal executive offices) | (Zip Code) | ||||
Registrant's telephone number, including area code: (770 ) 953-7000
_________________________________________________
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition
On August 4, 2026, BlueLinx Holdings Inc. ("BlueLinx" or "the Company”) issued a press release announcing its financial results for the fiscal second quarter ended July 4, 2026. A copy of the press release is furnished as Exhibit 99.1 hereto.
On August 5, 2026, as previously announced, BlueLinx will hold a teleconference and audio webcast to discuss its financial results from the fiscal second quarter ended July 4, 2026. A copy of supplementary materials that will be referred to in the teleconference and webcast, and which will be posted to the Company's website, is furnished as Exhibit 99.2 hereto.
The information included in this Item 2.02, as well as Exhibits 99.1 and 99.2, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits:
The following exhibits are attached with this Current Report on Form 8-K:
| Exhibit No. | Exhibit Description | |||||||
99.1 | Press Release dated August 4, 2026 reporting financial results for fiscal second quarter ended July 4, 2026 | |||||||
99.2 | Supplementary materials to be used during webcast conference call on August 5, 2026 | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| BlueLinx Holdings Inc. | ||||||||
| (Registrant) | ||||||||
| Dated: | By: | /s/ C. Kelly Wall | ||||||
| C. Kelly Wall | ||||||||
| Senior Vice President, Chief Financial Officer and Treasurer | ||||||||
Exhibit 99.1
BlueLinx Announces Second Quarter 2026 Results
ATLANTA, August 4, 2026 – BlueLinx Holdings Inc. (NYSE: BXC), a leading U.S. wholesale distributor of building products, today reported financial results for the fiscal three months ended July 4, 2026 (“second quarter 2026”).
SECOND QUARTER 2026 HIGHLIGHTS
•Net sales of $814 million, an increase of 4.4% compared to second quarter 2025
•Gross profit of $140 million, or 17.2% of net sales
•Net income of $6.4 million, or $0.81 diluted earnings per share, increases of 49% and 50%, respectively compared to second quarter 2025
•Adjusted net income of $9.1 million, or $1.15 adjusted diluted earnings per share, increases of 62% and 64%, respectively, compared to second quarter 2025
•Adjusted EBITDA of $36 million, or 4.4% of net sales, an increase of 33% compared to second quarter 2025
•Available liquidity of $655 million, including $318 million cash and cash equivalents on hand
“Our second quarter results demonstrate the strength and execution of our profitable sales growth strategy, as we delivered year-over-year net sales growth combined with solid gross margins in both specialty and structural products,” said Shyam Reddy, President and Chief Executive Officer of BlueLinx. “Our strategic business initiatives are enabling us to achieve this margin performance in a challenging environment, strengthen our operational capabilities, and drive efficiency into the business.”
“Disciplined financial management in the second quarter drove improved year-over-year profitability, supported by our business and digital transformation efforts and continued strong liquidity,” said Kelly Wall, Senior Vice President, Chief Financial Officer and Treasurer. “Free cash flow significantly improved compared to second quarter 2025 due to solid operating results and more efficient working capital management, largely driven by lower inventory levels.“
SECOND QUARTER 2026 FINANCIAL PERFORMANCE
In second quarter 2026, net sales were $814 million, an increase of $34 million, or 4.4%, compared to the fiscal three months ended June 28, 2025 (“second quarter 2025”). Sales growth in the current quarter was attributable to both specialty products and structural products. Gross profit was $140 million, an increase of $20 million, or 16.7%, year-over-year, and gross margin was 17.2%, up 190 basis points from 15.3% in the prior year quarter. Second quarter 2026 included a benefit of $7.2 million for an import duty-related item. Excluding this benefit, second quarter 2026 gross profit would have been $132 million, and gross margin would have been 16.3%, up 100 basis points compared to the prior year quarter.
Net sales of specialty products, which include product types such as engineered wood, siding, millwork, outdoor living, specialty lumber and panels, and industrial products, were $564 million, an increase of $21 million, or 3.8% compared to second quarter 2025. This overall increase in net sales for specialty products in the current quarter was due primarily to the positive impact of the Disdero Lumber Co., LLC (“Disdero”) acquisition and higher pricing, partially offset by volume declines in some product types. Gross profit from specialty product sales was $113 million, an increase of $12 million, or 12.3% when compared to the second quarter of last year. Gross margin for specialty products was 20.0% compared to 18.5% in the prior year quarter. Excluding the benefit of the import duty-related item, gross profit for specialty products would have been $105 million and gross margin would have been 18.7% for second quarter 2026.
Net sales of structural products, which include product types such as lumber, panels (including plywood and oriented strand board), rebar, and remesh, were $250 million, an increase of $13 million, or 5.6%, compared to second quarter 2025. This increase in structural product sales was due primarily to increases in pricing and volumes for lumber, partially offset by volume declines in panels. Gross profit from sales of structural products was $27.1 million, an increase of $7.7 million from the prior year quarter, and gross margin improved to 10.9%, compared to 8.2% in the prior year quarter.
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Selling, general and administrative (“SG&A”) expenses were $107 million in second quarter 2026, $12.1 million higher than the prior year quarter. The year-over-year increase in SG&A was primarily due to the addition of Disdero, fuel and third-party freight expenses, and employee-related expenses.
Net income was $6.4 million, or $0.81 per diluted share, versus net income of $4.3 million, or $0.54 per diluted share, in the prior year quarter. Adjusted Net Income was $9.1 million, or $1.15 per diluted share, compared to $5.6 million, or $0.70 per diluted share in the second quarter of last year.
Adjusted EBITDA was $35.6 million, or 4.4% of net sales, for second quarter 2026, compared to $26.8 million, or 3.4% of net sales in second quarter 2025. The import duty-related item increased Adjusted EBITDA by $7.2 million in the current year period. Not including this import duty-related item, Adjusted EBITDA would have been $28.4 million, or 3.5% of net sales, in the current year period.
Net cash flows for operating activities improved by $38 million from $27 million used in the prior year quarter to $11 million provided in the current quarter, due primarily to higher net income accompanied by favorable changes in operating assets and operating liabilities. The Company generated free cash flow of $9 million in the current quarter, a $45 million improvement from the prior year quarter, driven by operating activities and lower capital expenditures.
CAPITAL ALLOCATION AND FINANCIAL POSITION
During second quarter 2026, we added property and equipment through purchases of $2.8 million plus $4.5 million obtained through finance leases. In addition, we recognized right-of-use assets of $6.4 million related to operating leases. These additions were related primarily to fleet, facility and technology improvements.
During second quarter 2026, we repurchased approximately $2.0 million of the Company’s common stock through open market transactions under our previous $100 million share repurchase program announced in October 2023. At quarter-end, we had $3.7 million remaining under this authorization and an additional $50 million from our more recent authorization announced in July 2025, for a total of $53.7 million.
As of July 4, 2026, total debt and finance lease obligations, excluding real property finance lease obligations, were $377 million. This consisted of $300 million of senior secured notes that mature in 2029 and $77 million of finance lease obligations for equipment. Net debt was $58 million, which consisted of total debt and finance leases, excluding real property finance lease obligations of $377 million, less cash and cash equivalents of $318 million, resulting in a net leverage ratio of 0.6x using a trailing twelve-month Adjusted EBITDA of $95 million. Available liquidity was $655 million, which included an undrawn revolving credit facility that had $337 million of availability plus cash and cash equivalents of $318 million.
THIRD QUARTER 2026 OUTLOOK
We are expecting specialty product gross margin to be in the range of 18.0% to 19.0%, and structural product gross margin to be in the range of 8.5% to 9.5%. We also expect average daily sales volumes to be higher compared to the third quarter of fiscal 2025, and improve slightly sequentially from second quarter 2026.
CONFERENCE CALL INFORMATION
BlueLinx will host a conference call on August 5, 2026, at 10:00 a.m. Eastern Time, accompanied by a supporting slide presentation.
A webcast of the conference call and accompanying presentation materials will be available in the Investor Relations section of the BlueLinx website at https://investors.bluelinxco.com, and a replay of the webcast will be available at the same site shortly after the webcast is complete.
To participate in the live teleconference:
Domestic Live: 1-800-715-9871
Passcode: 6879384
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,
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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.
INVESTOR & MEDIA CONTACT
Tom Morabito
Investor Relations Officer
(470) 394-0099
investor@bluelinxco.com
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements. Forward-looking statements include, without limitation, any statement that predicts, forecasts, indicates or implies future results, performance, liquidity levels or achievements, and may contain the words “believe,” “anticipate,” “could,” “expect,” “estimate,” “intend,” “may,” “project,” “plan,” “should,” “will,” “will be,” “will likely continue,” “will likely result,” “would,” or words or phrases of similar meaning.
The forward-looking statements in this press release include statements about our strategy, our business and digital transformation efforts and other management initiatives and the success thereof, liquidity, and debt, our long-run positioning relative to industry conditions, future share repurchases, our ability to continue to enhance our facilities, fleet, and technology hardware, and the information set forth under the heading “THIRD QUARTER 2026 OUTLOOK.”
Forward-looking statements in this press release are based on estimates and assumptions made by our management that, although believed by us to be reasonable, are inherently uncertain. Forward-looking statements involve risks and uncertainties that may cause our business, strategy, or actual results to differ materially from the forward-looking statements. These risks and uncertainties include those discussed in greater detail in our filings with the Securities and Exchange Commission. We operate in a changing environment in which new risks can emerge from time to time. It is not possible for management to predict all of these risks, nor can it assess the extent to which any factor, or a combination of factors, may cause our business, strategy, or actual results to differ materially from those contained in forward-looking statements. Factors that may cause these differences include, among other things: adverse housing market conditions, including but not limited to housing starts, construction labor shortages, repair and remodel activity and commercial construction, foreclosure rates, interest rates, unemployment rates and job and wage growth rates, consumer debt levels, tightened availability or affordability of homeowner insurance coverage, and mortgage availability and pricing, as well as other consumer financing mechanisms, that ultimately affect demand for our products; consolidation among competitors, suppliers, and customers; escalating changes in retaliatory trade policies of the United States and other countries; disintermediation risk; our dependence on international suppliers and manufacturers for certain products and related exposure to risks of new or increased tariffs and other risks that could affect our financial condition; pricing and product cost variability; volumes of product sold; competition; the cyclical nature of the industry in which we operate; loss of products or key suppliers and manufacturers; information technology security risks and business interruption risks; effective inventory management relative to our sales volume or the prices of the products we produce; acquisitions and the integration and completion of such acquisitions; the success of management initiatives, including our business and digital transformation initiatives; the ability to attract, train, and retain highly qualified associates and other key personnel while controlling related labor costs; business disruptions; exposure to product liability and other claims and legal proceedings related to our business and the products we distribute; natural disasters, catastrophes, fire, wars or other unexpected events; the impacts of climate change; successful implementation of our strategy; wage increases or work stoppages by our union employees; costs imposed by federal, state, local, and other regulations; compliance costs associated with federal, state, and local environmental protection laws; changes in governmental rules and regulations or interpretations thereof; fluctuations in our operating results; our level of indebtedness and our ability to incur additional debt to fund future needs; the covenants of the instruments governing our indebtedness limiting the discretion of our management in operating the business; the potential to incur more debt; the fact that we have consummated certain sale leaseback transactions with resulting long-term non-cancelable leases, many of which are or will be finance leases; the fact that we lease many of our distribution centers, and we would still be obligated under these leases even if we close a leased distribution center; inability to raise funds necessary to finance a required repurchase of our senior secured notes; a lowering or withdrawal of debt ratings; changes in our product mix; increases in fuel and other energy prices, including as a result of disruptions in international shipping of oil and gas through the Strait of Hormuz and the ongoing conflicts in the Middle East and Ukraine, or availability of third-party freight providers; geopolitical risks, such as acts of war or terrorism or political or civil unrest; changes in insurance-related deductible/retention liabilities based on actual loss development experience; the possibility that the value of our deferred tax assets could become impaired; changes in our
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expected annual effective tax rate could be volatile; the costs and liabilities related to our participation in multi-employer pension plans could increase; the risk that our cash flows and capital resources may be insufficient to service our existing or future indebtedness; interest rate risk, which could cause our debt service obligations to increase; the effects of epidemics, global pandemics or other widespread public health crises; changes in, or interpretation of, accounting principles; and the other factors described in Part I, Item 1A, “Risk Factors”, in our Form 10-K for fiscal 2025, as supplemented by Part II, Item 1A, “Risk Factors”, in our Form 10-Q for the quarterly period ended April 4, 2026.
Given these risks and uncertainties, we caution you not to place undue reliance on forward-looking statements. We expressly disclaim any obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as required by law.
NON-GAAP MEASURES AND SUPPLEMENTAL FINANCIAL INFORMATION
The Company reports its financial results in accordance with GAAP. The Company also believes that presentation of certain non-GAAP measures may be useful to investors and may provide a more complete understanding of the factors and trends affecting the business than using reported GAAP results alone. Any non-GAAP measures used herein are reconciled to their most directly comparable GAAP measures herein in the “Reconciliation of Non-GAAP Measurements” table later in this release. The Company cautions that non-GAAP measures are not intended to present superior measures of our financial condition from those measures determined under GAAP and should be considered in addition to, but not as a substitute for, the Company’s reported GAAP results. The Company further cautions that its non-GAAP measures, as used herein, are not necessarily comparable to other similarly titled measures of other companies due to differences in methods of calculation.
Adjusted EBITDA and Adjusted EBITDA Margin. BlueLinx defines Adjusted EBITDA as an amount equal to net income (loss) plus interest expense and all interest expense related items, income taxes, depreciation and amortization, and further adjusted for certain non-cash items and other special items, including compensation expense from share based compensation, one-time charges associated with the legal, consulting, and professional fees related to our merger and acquisition activities, gains or losses on sales of properties, amortization of deferred gains on real estate, and expense associated with our restructuring activities, such as severance, in addition to other significant and/or one-time, nonrecurring, non-operating items.
The Company presents Adjusted EBITDA because it is a primary measure used by management to evaluate operating performance. Management believes this metric helps to enhance investors’ overall understanding of the financial performance and cash flows of the business. Management also believes Adjusted EBITDA is helpful in highlighting operating trends. Adjusted EBITDA is frequently used by securities analysts, investors, and other interested parties in their evaluation of companies, many of which present an Adjusted EBITDA measure when reporting their results.
We determine our Adjusted EBITDA Margin, which we sometimes refer to as our Adjusted EBITDA as a percentage of net sales, by dividing our Adjusted EBITDA for the applicable period by our net sales for the applicable period. We believe that this ratio is useful to investors because it more clearly defines the quality of earnings and operational efficiency of translating sales to profitability.
Adjusted Net Income (Loss) and Adjusted Earnings (Loss) Per Share. BlueLinx defines Adjusted Net Income (Loss) as Net Income or Loss adjusted for certain non-cash items and other special items, including compensation expense from share based compensation, one-time charges associated with the legal, consulting, and professional fees related to our merger and acquisition activities, gains or losses on sales of properties, realization of deferred gains on real estate, and expense associated with our restructuring activities, such as severance, in addition to other significant and/or one-time, nonrecurring, non-operating items, further adjusted for the tax impacts of such reconciling items. BlueLinx defines Adjusted Earnings (Loss) Per Share (basic and/or diluted) as the Adjusted Net Income (Loss) for the period divided by the weighted average outstanding shares (basic and/or diluted) for the periods presented. However, for any period with an Adjusted Net Loss, only Adjusted Basic Loss Per Share is presented for the period. We believe that Adjusted Net Income (Loss) and Adjusted Earnings (Loss) Per Share (basic and/or diluted) are useful to investors to enhance investors’ overall understanding of the financial performance of the business. Management also believes Adjusted Net Income (Loss) and Adjusted Earnings (Loss) Per Share (basic and/or diluted) are helpful in highlighting operating trends.
Our Adjusted Net Income (Loss) and Adjusted Earnings (Loss) Per Share (basic and/or diluted) are not presentations made in accordance with GAAP and are not intended to present superior measures of our financial condition from those measures determined under GAAP. Adjusted Net Income (Loss) and Adjusted Earnings (Loss) Per Share (basic or diluted), as used herein, are not necessarily comparable to other similarly titled captions of other companies due to differences in methods of
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calculation. These non-GAAP measures are reconciled in the “Reconciliation of Non-GAAP Measurements” table later in this release.
Free Cash Flow. BlueLinx defines free cash flow as net cash provided by operating activities less total capital expenditures. Free cash flow is a measure used by management to assess our financial performance, and we believe it is useful for investors because it relates the operating cash flow of the Company to the capital that is spent to continue and improve business operations. In particular, free cash flow indicates the amount of cash generated after capital expenditures that can be used for, among other things, investment in our business, strengthening our balance sheet, and repayment of our debt obligations. Free cash flow does not represent the residual cash flow available for discretionary expenditures since there may be other nondiscretionary expenditures that are not deducted from the measure. Free cash flow is not a presentation made in accordance with GAAP and is not intended to present a superior measure of financial condition from those determined under GAAP. Free cash flow, as used herein, is not necessarily comparable to other similarly titled captions of other companies due to differences in methods of calculation. This non-GAAP measure is reconciled in the “Reconciliation of Non-GAAP Measurements” table later in this release.
Net Debt, Net Debt Excluding Real Property Finance Lease Liabilities, Overall Net Leverage Ratio, and Net Leverage Ratio Excluding Real Property Finance Lease Liabilities. BlueLinx calculates Net Debt as its total short- and long-term debt, including outstanding balances under our term loan and revolving credit facility and the total amount of its obligations under finance leases, less cash and cash equivalents. Net Debt Excluding Real Property Finance Lease Liabilities is calculated in the same manner as Net Debt, except the total amount of obligations under real estate finance leases are excluded. Although our credit agreements do not contain leverage covenants, a net leverage ratio excluding finance lease obligations for real property is included within the terms of our revolving credit agreement. We believe that Net Debt and Net Debt Excluding Real Property Finance Lease Liabilities are useful to investors because our management reviews both metrics as part of its management of overall liquidity, financial flexibility, capital structure and leverage, and creditors and credit analysts monitor our net debt as part of their assessments of our business. We determine our Overall Net Leverage Ratio by dividing our Net Debt by Twelve-Month Trailing Adjusted EBITDA. Our calculation of Net Leverage Ratio Excluding Real Property Finance Lease Liabilities is determined by dividing our Net Debt Excluding Real Property Finance Lease Liabilities by Twelve-Month Trailing Adjusted EBITDA. We believe that these ratios are useful to investors because they are indicators of our ability to meet our future financial obligations. In addition, our Net Leverage Ratio is a measure that is frequently used by investors and creditors. Our Net Debt, Net Debt Excluding Real Property Finance Lease Liabilities, Overall Net Leverage Ratio, and Net Leverage Ratio Excluding Real Property Finance Lease Liabilities are not made in accordance with GAAP and are not intended to present a superior measure of our financial condition from measures and ratios determined under GAAP. The calculations of our Net Debt, Net Debt Excluding Real Property Finance Lease Liabilities, Overall Net Leverage Ratio, and Net Leverage Ratio Excluding Real Property Finance Lease Liabilities are presented in the table on the last page of this Exhibit 99.1. Net Debt, Net Debt Excluding Real Property Finance Lease Liabilities, Overall Net Leverage Ratio, and Net Leverage Ratio Excluding Real Property Finance Lease Liabilities, as used herein, are not necessarily comparable to other similarly titled captions of other companies due to differences in methods of calculation.
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BLUELINX HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
| Fiscal Three Months Ended | Fiscal Six Months Ended | ||||||||||||||||||||||
| July 4, 2026 | June 28, 2025 | July 4, 2026 | June 28, 2025 | ||||||||||||||||||||
| (In thousands, except per share amounts) | |||||||||||||||||||||||
| Net sales | $ | 814,077 | $ | 780,107 | $ | 1,545,226 | $ | 1,489,333 | |||||||||||||||
| Cost of products sold | 674,370 | 660,418 | 1,289,122 | 1,258,515 | |||||||||||||||||||
| Gross profit | 139,707 | 119,689 | 256,104 | 230,818 | |||||||||||||||||||
| Gross margin | 17.2 | % | 15.3 | % | 16.6 | % | 15.5 | % | |||||||||||||||
| Operating expenses (income): | |||||||||||||||||||||||
| Selling, general, and administrative | 107,371 | 95,265 | 203,575 | 189,358 | |||||||||||||||||||
| Depreciation and amortization | 11,473 | 9,790 | 23,447 | 19,344 | |||||||||||||||||||
| Realization of deferred gains on real estate | (983) | (983) | (1,967) | (1,967) | |||||||||||||||||||
| Other operating, net | 1,243 | 582 | 3,118 | (1,676) | |||||||||||||||||||
| Total operating expenses | 119,104 | 104,654 | 228,173 | 205,059 | |||||||||||||||||||
| Operating income | 20,603 | 15,035 | 27,931 | 25,759 | |||||||||||||||||||
| Interest expense, net | 9,379 | 8,457 | 18,526 | 15,037 | |||||||||||||||||||
| Income before provision for income taxes | 11,224 | 6,578 | 9,405 | 10,722 | |||||||||||||||||||
| Provision for income taxes | 4,818 | 2,268 | 4,457 | 3,607 | |||||||||||||||||||
| Net income | $ | 6,406 | $ | 4,310 | $ | 4,948 | $ | 7,115 | |||||||||||||||
| Basic earnings per share | $ | 0.82 | $ | 0.54 | $ | 0.63 | $ | 0.87 | |||||||||||||||
| Diluted earnings per share | $ | 0.81 | $ | 0.54 | $ | 0.62 | $ | 0.87 | |||||||||||||||
6
BLUELINX HOLDINGS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
| As of | |||||||||||
| July 4, 2026 | January 3, 2026 | ||||||||||
| (In thousands, except share data) | |||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 318,178 | $ | 385,843 | |||||||
Receivables, less allowances of $4,700 and $4,964, respectively | 315,939 | 218,161 | |||||||||
| Inventories, net | 375,258 | 325,998 | |||||||||
| Other current assets | 52,025 | 54,466 | |||||||||
| Total current assets | 1,061,400 | 984,468 | |||||||||
| Property and equipment, at cost | 502,832 | 495,453 | |||||||||
| Accumulated depreciation | (226,009) | (208,693) | |||||||||
| Property and equipment, net | 276,823 | 286,760 | |||||||||
| Operating lease right-of-use assets | 54,711 | 54,608 | |||||||||
| Goodwill | 70,301 | 67,226 | |||||||||
| Intangible assets, net | 78,952 | 86,700 | |||||||||
| Deferred income tax asset, net | 46,958 | 50,615 | |||||||||
| Other non-current assets | 14,418 | 18,902 | |||||||||
| Total assets | $ | 1,603,563 | $ | 1,549,279 | |||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 188,187 | $ | 136,388 | |||||||
| Accrued compensation | 19,398 | 17,466 | |||||||||
| Finance lease liabilities - current | 21,770 | 22,348 | |||||||||
| Operating lease liabilities - current | 8,699 | 8,969 | |||||||||
| Real estate deferred gains - current | 3,935 | 3,935 | |||||||||
| Other current liabilities | 22,888 | 22,173 | |||||||||
| Total current liabilities | 264,877 | 211,279 | |||||||||
| Long-term debt | 297,089 | 296,660 | |||||||||
| Finance lease liabilities, less current portion | 294,184 | 298,931 | |||||||||
| Operating lease liabilities, less current portion | 49,684 | 47,075 | |||||||||
| Real estate deferred gains, less current portion | 57,395 | 59,362 | |||||||||
| Other non-current liabilities | 18,856 | 18,657 | |||||||||
| Total liabilities | 982,085 | 931,964 | |||||||||
| Commitments and contingencies | |||||||||||
| STOCKHOLDERS' EQUITY: | |||||||||||
Preferred Stock, $0.01 par value, 30,000,000 shares authorized, none outstanding | — | — | |||||||||
Common Stock, $0.01 par value, 20,000,000 shares authorized, 7,860,049 and 7,866,497 outstanding, respectively | 79 | 79 | |||||||||
| Additional paid-in capital | 93,977 | 94,762 | |||||||||
| Retained earnings | 527,422 | 522,474 | |||||||||
| Total stockholders’ equity | 621,478 | 617,315 | |||||||||
| Total liabilities and stockholders’ equity | $ | 1,603,563 | $ | 1,549,279 | |||||||
7
BLUELINX HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| Fiscal Three Months Ended | Fiscal Six Months Ended | ||||||||||||||||||||||
| July 4, 2026 | June 28, 2025 | July 4, 2026 | June 28, 2025 | ||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Cash flows from operating activities: | |||||||||||||||||||||||
| Net income | $ | 6,406 | $ | 4,310 | $ | 4,948 | $ | 7,115 | |||||||||||||||
| Adjustments to reconcile net income to net cash provided by (used in) operations: | |||||||||||||||||||||||
| Depreciation and amortization | 11,473 | 9,790 | 23,447 | 19,344 | |||||||||||||||||||
| Amortization of debt discount and issuance costs | 396 | 330 | 785 | 662 | |||||||||||||||||||
| Insurance recoveries in excess of carrying values of property & equipment | — | — | — | (2,443) | |||||||||||||||||||
| Provision for deferred income taxes | 4,550 | (1,208) | 3,657 | (1,637) | |||||||||||||||||||
| Realization of deferred gains from real estate | (983) | (983) | (1,967) | (1,967) | |||||||||||||||||||
| Share-based compensation | 3,239 | 2,341 | 6,330 | 4,863 | |||||||||||||||||||
| Changes in operating assets and liabilities: | |||||||||||||||||||||||
| Accounts receivable | (19,207) | (3,163) | (97,778) | (52,900) | |||||||||||||||||||
| Inventories | (3,516) | 8,071 | (49,194) | (35,575) | |||||||||||||||||||
| Accounts payable | (6,962) | (34,770) | 51,638 | 7,014 | |||||||||||||||||||
| Other current assets | 5,856 | (4,327) | 2,441 | (2,707) | |||||||||||||||||||
| Other assets and liabilities | 9,924 | (7,149) | 9,643 | (2,435) | |||||||||||||||||||
| Net cash provided by (used in) operating activities | 11,176 | (26,758) | (46,050) | (60,666) | |||||||||||||||||||
| Cash flows from investing activities: | |||||||||||||||||||||||
| Adjustment to consideration for Disdero acquisition | — | — | 859 | — | |||||||||||||||||||
| Disbursements for property and equipment | (2,384) | (9,607) | (4,983) | (15,539) | |||||||||||||||||||
| Proceeds from sales and insurance recoveries of property & equipment | 67 | 65 | 88 | 2,605 | |||||||||||||||||||
| Net cash used in investing activities | (2,317) | (9,542) | (4,036) | (12,934) | |||||||||||||||||||
| Cash flows from financing activities: | |||||||||||||||||||||||
| Common stock repurchases | (2,576) | (20,381) | (5,327) | (35,386) | |||||||||||||||||||
| Repurchase of shares to satisfy employee tax withholdings | (1,741) | (1,742) | (2,099) | (1,770) | |||||||||||||||||||
| Principal payments on finance lease liabilities | (5,311) | (3,832) | (9,879) | (8,101) | |||||||||||||||||||
| Other | (140) | — | (274) | — | |||||||||||||||||||
| Net cash used in financing activities | (9,768) | (25,955) | (17,579) | (45,257) | |||||||||||||||||||
| Net change in cash and cash equivalents | (909) | (62,255) | (67,665) | (118,857) | |||||||||||||||||||
| Cash and cash equivalents at beginning of period | 319,087 | 449,020 | 385,843 | 505,622 | |||||||||||||||||||
| Cash and cash equivalents at end of period | $ | 318,178 | $ | 386,765 | $ | 318,178 | $ | 386,765 | |||||||||||||||
8
BLUELINX HOLDINGS INC.
GROSS PROFIT AND GROSS MARGIN
(Unaudited)
The following schedule presents our revenues disaggregated by specialty and structural product category:
| Fiscal Three Months Ended | Fiscal Six Months Ended | ||||||||||||||||||||||
| July 4, 2026 | June 28, 2025 | July 4, 2026 | June 28, 2025 | ||||||||||||||||||||
| (Dollar amounts in thousands) | |||||||||||||||||||||||
| Net sales by product category: | |||||||||||||||||||||||
| Specialty products | $ | 564,140 | $ | 543,459 | $ | 1,075,946 | $ | 1,022,846 | |||||||||||||||
| Structural products | 249,937 | 236,648 | 469,280 | 466,487 | |||||||||||||||||||
| Total net sales | $ | 814,077 | $ | 780,107 | $ | 1,545,226 | $ | 1,489,333 | |||||||||||||||
| Gross profit by product category: | |||||||||||||||||||||||
| Specialty products | $ | 112,579 | $ | 100,282 | $ | 205,146 | $ | 190,060 | |||||||||||||||
| Structural products | 27,128 | 19,407 | 50,958 | 40,758 | |||||||||||||||||||
| Total gross profit | $ | 139,707 | $ | 119,689 | $ | 256,104 | $ | 230,818 | |||||||||||||||
| Gross margin by product category: | |||||||||||||||||||||||
| Specialty products | 20.0 | % | 18.5 | % | 19.1 | % | 18.6 | % | |||||||||||||||
| Structural products | 10.9 | % | 8.2 | % | 10.9 | % | 8.7 | % | |||||||||||||||
| Company gross margin | 17.2 | % | 15.3 | % | 16.6 | % | 15.5 | % | |||||||||||||||
| Effects of benefit for import duty-related items: | |||||||||||||||||||||||
| Specialty products gross profit | $ | 112,579 | $ | 100,282 | $ | 205,146 | $ | 190,060 | |||||||||||||||
| Less: benefit of import duty-related items | 7,240 | — | 7,240 | 2,434 | |||||||||||||||||||
| Specialty products gross profit, excluding benefit of import-duty related items | $ | 105,339 | $ | 100,282 | $ | 197,906 | $ | 187,626 | |||||||||||||||
| Specialty products gross margin, excluding benefit of import-duty related items | 18.7 | % | 18.5 | % | 18.4 | % | 18.3 | % | |||||||||||||||
| Total gross profit | $ | 139,707 | $ | 119,689 | $ | 256,104 | $ | 230,818 | |||||||||||||||
| Less: benefit of import duty-related items | 7,240 | — | 7,240 | 2,434 | |||||||||||||||||||
| Total gross profit, excluding benefit of import duty-related items | $ | 132,467 | $ | 119,689 | $ | 248,864 | $ | 228,384 | |||||||||||||||
| Company gross margin %, excluding benefit of import duty-related items | 16.3 | % | 15.3 | % | 16.1 | % | 15.3 | % | |||||||||||||||
9
BLUELINX HOLDINGS INC.
RECONCILIATION OF NON-GAAP MEASUREMENTS
(Unaudited)
The following tables reconcile Net income to Adjusted EBITDA (non-GAAP) for the reporting periods indicated:
| Fiscal Three Months Ended | Fiscal Six Months Ended | ||||||||||||||||||||||
| July 4, 2026 | June 28, 2025 | July 4, 2026 | June 28, 2025 | ||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Net income | $ | 6,406 | $ | 4,310 | $ | 4,948 | $ | 7,115 | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Depreciation and amortization | 11,473 | 9,790 | 23,447 | 19,344 | |||||||||||||||||||
| Interest expense, net | 9,379 | 8,457 | 18,526 | 15,037 | |||||||||||||||||||
| Provision for income taxes | 4,818 | 2,268 | 4,457 | 3,607 | |||||||||||||||||||
| Share-based compensation expense | 3,239 | 2,341 | 6,330 | 4,863 | |||||||||||||||||||
| Realization of deferred gains on real estate | (983) | (983) | (1,967) | (1,967) | |||||||||||||||||||
| Inventory step-up adjustment | 66 | — | 266 | — | |||||||||||||||||||
Acquisition-related expenses(2) | 110 | 196 | 217 | 338 | |||||||||||||||||||
Restructuring and other(3) | 1,134 | 385 | 2,901 | (2,015) | |||||||||||||||||||
| Adjusted EBITDA | $ | 35,642 | $ | 26,764 | $ | 59,125 | $ | 46,322 | |||||||||||||||
| Trailing Twelve Fiscal Months Ended | |||||||||||||||||
| July 4, 2026 | January 3, 2026 | June 28, 2025 | |||||||||||||||
| (In thousands) | |||||||||||||||||
| Net income | $ | (1,948) | $ | 219 | $ | 28,403 | |||||||||||
| Adjustments: | |||||||||||||||||
| Depreciation and amortization | 44,008 | 39,905 | 38,279 | ||||||||||||||
| Interest expense, net | 35,843 | 32,354 | 24,976 | ||||||||||||||
| Provision (benefit) for income taxes | 760 | (90) | 10,916 | ||||||||||||||
| Share-based compensation expense | 12,719 | 11,252 | 8,857 | ||||||||||||||
| Realization of deferred gains on real estate | (3,934) | (3,934) | (3,933) | ||||||||||||||
| Gain from sales of property | — | — | (272) | ||||||||||||||
Pension settlement and related cost(1) | — | — | (2,481) | ||||||||||||||
| Inventory step-up adjustment | 1,064 | 798 | — | ||||||||||||||
Acquisition-related expenses(2) | 2,417 | 2,537 | 338 | ||||||||||||||
Restructuring and other(3) | 4,443 | (472) | (581) | ||||||||||||||
| Adjusted EBITDA | $ | 95,372 | $ | 82,569 | $ | 104,502 | |||||||||||
The following notes relate to both of the tables presented above for Adjusted EBITDA:
(1)Reflects expenses and related adjustments to our previously disclosed settlement of the BlueLinx Corporation Hourly Retirement Plan (defined benefit) in 4Q 2023.
(2)Reflects primarily legal, professional, technology and other integration expenses. Certain amounts for prior periods have been reclassified for Acquisition-related costs and Restructuring and other.
(3)For fiscal 2026 reporting periods, composed mainly of severance expenses and professional services fees related to our business and digital transformation initiatives. For the fiscal 2025 reporting periods, composed mainly of insurance recoveries received that exceeded the carrying values of property and equipment damaged or destroyed at our Erwin, Tennessee owned facility by Hurricane Helene in 2024. The trailing-twelve-fiscal-months periods also include legal fees, professional fees, technology expenses, and other one-time nonoperating expenses. Certain amounts for prior periods have been reclassified for Acquisition-related costs and Restructuring and other.
10
BLUELINX HOLDINGS INC.
RECONCILIATION OF NON-GAAP MEASUREMENTS (continued)
(Unaudited)
The following tables reconcile Net income and earnings per share to Adjusted net income (non-GAAP) and Adjusted earnings per share (non-GAAP):
| Fiscal Three Months Ended | Fiscal Six Months Ended | ||||||||||||||||||||||
| July 4, 2026 | June 28, 2025 | July 4, 2026 | June 28, 2025 | ||||||||||||||||||||
| (In thousands, except per share data) | |||||||||||||||||||||||
| Net income | $ | 6,406 | $ | 4,310 | $ | 4,948 | $ | 7,115 | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Share-based compensation expense | 3,239 | 2,341 | 6,330 | 4,863 | |||||||||||||||||||
| Amortization of deferred gains on real estate | (983) | (983) | (1,967) | (1,967) | |||||||||||||||||||
| Inventory step-up adjustment | 66 | — | 266 | — | |||||||||||||||||||
| Acquisition-related costs | 110 | 196 | 217 | 338 | |||||||||||||||||||
| Restructuring and other | 1,134 | 385 | 2,901 | (2,015) | |||||||||||||||||||
Estimated tax impacts of reconciling items (1) | (899) | (643) | (1,944) | (410) | |||||||||||||||||||
| Adjusted net income | $ | 9,073 | $ | 5,606 | $ | 10,751 | $ | 7,924 | |||||||||||||||
| Basic earnings per share | $ | 0.82 | $ | 0.54 | $ | 0.63 | $ | 0.87 | |||||||||||||||
| Diluted earnings per share | $ | 0.81 | $ | 0.54 | $ | 0.62 | $ | 0.87 | |||||||||||||||
| Weighted average shares outstanding - Basic | 7,811 | 7,935 | 7,836 | 8,096 | |||||||||||||||||||
| Weighted average shares outstanding - Diluted | 7,859 | 7,977 | 7,903 | 8,157 | |||||||||||||||||||
| Non-GAAP Adjusted Basic EPS | $ | 1.16 | $ | 0.70 | $ | 1.37 | $ | 0.97 | |||||||||||||||
| Non-GAAP Adjusted Diluted EPS | $ | 1.15 | $ | 0.70 | $ | 1.36 | $ | 0.97 | |||||||||||||||
(1) For the current period, applied a normalized income tax rate of 25%. For the prior period, applied the Company’s effective income tax rate for the reporting period.
11
In the following table, our Adjusted EBITDA margin (non-GAAP) is calculated and compared to Net income as a percentage of Net sales, with and without the benefit of the import duty-related item:
| Fiscal Three Months Ended | Fiscal Six Months Ended | ||||||||||||||||||||||
| July 4, 2026 | June 28, 2025 | July 4, 2026 | June 28, 2025 | ||||||||||||||||||||
| (Dollar amounts in thousands) | |||||||||||||||||||||||
| Net sales | $ | 814,077 | $ | 780,107 | $ | 1,545,226 | $ | 1,489,333 | |||||||||||||||
| Net income | $ | 6,406 | $ | 4,310 | $ | 4,948 | $ | 7,115 | |||||||||||||||
| Net income as a percentage of Net sales | 0.8 | % | 0.6 | % | 0.3 | % | 0.5 | % | |||||||||||||||
| Net sales | $ | 814,077 | $ | 780,107 | $ | 1,545,226 | $ | 1,489,333 | |||||||||||||||
Adjusted EBITDA - non-GAAP(1) | $ | 35,642 | $ | 26,764 | $ | 59,125 | $ | 46,322 | |||||||||||||||
| Adjusted EBITDA margin - non-GAAP | 4.4 | % | 3.4 | % | 3.8 | % | 3.1 | % | |||||||||||||||
| Excluding benefits for import duty-related items: | |||||||||||||||||||||||
Adjusted EBITDA - non-GAAP(1) | $ | 35,642 | $ | 26,764 | $ | 59,125 | $ | 46,322 | |||||||||||||||
| Less: benefits of import duty-related items | 7,240 | — | 7,240 | 2,434 | |||||||||||||||||||
Adjusted EBITDA - non-GAAP(1), excluding benefits of import duty-related items | $ | 28,402 | $ | 26,764 | $ | 51,885 | $ | 43,888 | |||||||||||||||
| Adjusted EBITDA margin - non-GAAP, excluding benefits of import duty-related items | 3.5 | % | 3.4 | % | 3.4 | % | 2.9 | % | |||||||||||||||
(1)See the table that reconciles Net income (loss) to Adjusted EBITDA (non-GAAP).
12
BLUELINX HOLDINGS INC.
LIQUIDITY MEASURES
(Unaudited)
The following schedule reconciles Total debt and finance leases to: Net debt (non-GAAP) and to Net debt excluding finance lease liabilities for real property (non-GAAP). The calculations of Net leverage ratio (non-GAAP) and Net leverage ratio excluding real property finance leases liabilities (non-GAAP) are also presented.
| As of | |||||||||||||||||
| July 4, 2026 | January 3, 2026 | June 28, 2025 | |||||||||||||||
| ($ amounts in thousands) | |||||||||||||||||
Long term debt(1) | $ | 300,000 | $ | 300,000 | $ | 300,000 | |||||||||||
| Finance lease liabilities for equipment and vehicles | 76,572 | 80,635 | 75,570 | ||||||||||||||
| Finance lease liabilities for real property | 239,382 | 240,644 | 241,987 | ||||||||||||||
| Total debt and finance leases | 615,954 | 621,279 | 617,557 | ||||||||||||||
| Less: available cash and cash equivalents | 318,178 | 385,843 | 386,765 | ||||||||||||||
| Net debt (non-GAAP) | $ | 297,776 | $ | 235,436 | $ | 230,792 | |||||||||||
| Net debt, excluding finance lease liabilities for real property (non-GAAP) | $ | 58,394 | $ | (5,208) | $ | (11,195) | |||||||||||
| Trailing twelve-month adjusted EBITDA (non-GAAP, see above reconciliations) | $ | 95,372 | $ | 82,569 | $ | 104,502 | |||||||||||
| Net leverage ratio | 3.1x | 2.9x | 2.2x | ||||||||||||||
Net leverage ratio excluding real property finance lease liabilities(2) | 0.6x | (0.1.x) | (0.1x) | ||||||||||||||
(1) As of July 4, 2026, January 3, 2026, and June 28, 2025, our long-term debt is comprised of $300 million of senior-secured notes. These notes are presented under the long-term debt caption of our unaudited condensed consolidated balance sheets at $297.1 million, $296.7 million, and $295.7 million as of July 4, 2026, January 3, 2026, and June 28, 2025, respectively. This presentation is net of their unamortized issuance costs and discount. Our senior secured notes are presented in this table at their face value for the purpose of calculating our net leverage ratio.
(2) Net leverage ratio excluding finance lease obligations for real property is included within the terms of our revolving credit agreement.
The following schedule reconciles Net cash provided by (used in) operating activities to Free cash flow (non-GAAP):
| Fiscal Three Months Ended | Fiscal Six Months Ended | ||||||||||||||||||||||
| July 4, 2026 | June 28, 2025 | July 4, 2026 | June 28, 2025 | ||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Net cash provided by (used in) operating activities | $ | 11,176 | $ | (26,758) | $ | (46,050) | $ | (60,666) | |||||||||||||||
| Less: Cash disbursements for property and equipment | (2,384) | (9,607) | (4,983) | (15,539) | |||||||||||||||||||
| Free cash flow - non-GAAP | $ | 8,792 | $ | (36,365) | $ | (51,033) | $ | (76,205) | |||||||||||||||
13
BlueLinx Q2 2026 Results Delivering What Matters August 5, 2026 © BlueLinx 2026. All Rights Reserved. 1 EXHIBIT 99.2
2 Safe Harbor Statement This press release contains forward-looking statements. Forward-looking statements include, without limitation, any statement that predicts, forecasts, indicates or implies future results, performance, liquidity levels or achievements, and may contain the words “believe,” “anticipate,” “could,” “expect,” “estimate,” “intend,” “may,” “project,” “plan,” “should,” “will,” “will be,” “will likely continue,” “will likely result,” “would,” or words or phrases of similar meaning. The forward-looking statements in this presentation include statements about our strategy, our business and digital transformation efforts and other management initiatives and the success thereof, liquidity, and debt, our long-run positioning relative to industry conditions, capital allocation strategy, future share repurchases, acquisitions and integrations, our ability to continue to enhance our facilities, fleet, and technology hardware and our fiscal third quarter 2026 outlook. Forward-looking statements in this press release are based on estimates and assumptions made by our management that, although believed by us to be reasonable, are inherently uncertain. Forward-looking statements involve risks and uncertainties that may cause our business, strategy, or actual results to differ materially from the forward-looking statements. These risks and uncertainties include those discussed in greater detail in our filings with the Securities and Exchange Commission. We operate in a changing environment in which new risks can emerge from time to time. It is not possible for management to predict all of these risks, nor can it assess the extent to which any factor, or a combination of factors, may cause our business, strategy, or actual results to differ materially from those contained in forward-looking statements. Factors that may cause these differences include, among other things: adverse housing market conditions, including but not limited to housing starts, construction labor shortages, repair and remodel activity and commercial construction, foreclosure rates, interest rates, unemployment rates and job and wage growth rates, consumer debt levels, tightened availability or affordability of homeowner insurance coverage, and mortgage availability and pricing, as well as other consumer financing mechanisms, that ultimately affect demand for our products; consolidation among competitors, suppliers, and customers; escalating changes in retaliatory trade policies of the United States and other countries; disintermediation risk; our dependence on international suppliers and manufacturers for certain products and related exposure to risks of new or increased tariffs and other risks that could affect our financial condition; pricing and product cost variability; volumes of product sold; competition; the cyclical nature of the industry in which we operate; loss of products or key suppliers and manufacturers; information technology security risks and business interruption risks; effective inventory management relative to our sales volume or the prices of the products we produce; acquisitions and the integration and completion of such acquisitions; the success of management initiatives, including our business and digital transformation initiatives; the ability to attract, train, and retain highly qualified associates and other key personnel while controlling related labor costs; business disruptions; exposure to product liability and other claims and legal proceedings related to our business and the products we distribute; natural disasters, catastrophes, fire, wars or other unexpected events; the impacts of climate change; successful implementation of our strategy; wage increases or work stoppages by our union employees; costs imposed by federal, state, local, and other regulations; compliance costs associated with federal, state, and local environmental protection laws; changes in governmental rules and regulations or interpretations thereof; fluctuations in our operating results; our level of indebtedness and our ability to incur additional debt to fund future needs; the covenants of the instruments governing our indebtedness limiting the discretion of our management in operating the business; the potential to incur more debt; the fact that we have consummated certain sale leaseback transactions with resulting long-term non-cancelable leases, many of which are or will be finance leases; the fact that we lease many of our distribution centers, and we would still be obligated under these leases even if we close a leased distribution center; inability to raise funds necessary to finance a required repurchase of our senior secured notes; a lowering or withdrawal of debt ratings; changes in our product mix; increases in fuel and other energy prices, including as a result of disruptions in international shipping of oil and gas through the Strait of Hormuz and the ongoing conflicts in the Middle East and Ukraine, or availability of third-party freight providers; geopolitical risks, such as acts of war or terrorism or political or civil unrest; changes in insurance-related deductible/retention liabilities based on actual loss development experience; the possibility that the value of our deferred tax assets could become impaired; changes in our expected annual effective tax rate could be volatile; the costs and liabilities related to our participation in multi-employer pension plans could increase; the risk that our cash flows and capital resources may be insufficient to service our existing or future indebtedness; interest rate risk, which could cause our debt service obligations to increase; the effects of epidemics, global pandemics or other widespread public health crises; changes in, or interpretation of, accounting principles; and the other factors described in Part I, Item 1A, “Risk Factors”, in our Form 10-K , as supplemented by Part II, Item 1A, “Risk Factors”, in our Form 10-Q for the quarterly period ended April 4, 2026. Given these risks and uncertainties, we caution you not to place undue reliance on forward-looking statements. We expressly disclaim any obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as required by law. Immaterial Rounding Differences. Immaterial rounding adjustments and differences may exist between slides, press releases, and previously issued presentations. This presentation and the associated remarks made during this conference call are integrally related and are intended to be presented and understood together.
Opening Remarks 3 Shyam Reddy President & CEO
n Net Sales of $814M, up 4.4% year-over-year q Due to Disdero sales, higher volumes in key categories, and improved pricing n Gross Profit of $140M, up 17% year-over-year q 81% of gross profit from specialty products n Gross Margin of 17.2%, up 190 bps year-over-year q 20.0% specialty gross margin including the import duty benefit q 10.9% structural gross margin n Net Income of $6.4M and Diluted Earnings Per Share of $0.81 n Adjusted Net Income(1) of $9.1M and Adjusted Diluted EPS(1) of $1.15 n Adjusted EBITDA(1) of $35.6M, or 4.4% of Net Sales. n Cash provided by operations of $11.2M q Free cash flow(1) of $8.8M q Net leverage(1) of 0.6x (2) (1) See appendix for reconciliations for non-GAAP measures (2) Does not include finance leases for real property, per the terms of our credit agreement Explosive profitable growth with a highly engaged team 4 SECOND QUARTER 2026 RESULTS 2Q 2026 Sales by Product Category Specialty Products 69% Structural Products 31% 2Q 2026 Gross Profit by Product Category Specialty Products 81% Structural Products 19%
Financial Review 5 Kelly Wall SVP, Chief Financial Officer and Treasurer
n Net Sales increased 4.4% to $814M q Specialty products Net Sales increased 4% q Structural products Net Sales increased 6% n Gross Margin of 17.2%, up 190 bps q 16.3% gross margin excluding import duty benefit n Adjusted Diluted EPS of $1.15 (1) n Adjusted EBITDA of $35.6M (1) q Adjusted EBITDA margin of 4.4%, q Excluding import duty benefit, Adjusted EBITDA margin of 3.5% n Free Cash Flow of $8.8M (1) q Cash flow provided by operations of $11.2M q Property/equipment purchases of $2.4M 6 SECOND QUARTER 2026 RESULTS (1) See Appendix for reconciliations for non-GAAP figures (2) Does not include finance leases for real property, per terms of our credit agreement Q2 Commentary$ in millions, except per share data and leverage ratios Q2 2026 Q2 2025 Variance Net Sales $814 $780 4.4% Gross Profit $140 $120 16.7% Gross Margin % 17.2% 15.3% 190 bps Adjusted Net Income(1) $9.1 $5.6 62% Adjusted Diluted EPS(1) $1.15 $0.70 64% Adjusted EBITDA(1) $35.6 $26.8 33% Adjusted EBITDA(1) as a % of Net Sales 4.4% 3.4% 100 bps Free Cash Flow(1) $9 ($36) $45 Net Leverage Ratio (1) 3.1x 2.2x (0.9x) Net Leverage Ratio per Credit Agreement(2) 0.6x (0.1x) 0.7x
($ in millions) n Net Sales of $564M, up 4% q Driven by Disdero and higher volumes in key product categories q Specialty product sales represent ~70% of total net sales n Gross Profit of $113M, up 12% q Specialty product gross profit $105M excluding import duty benefit q Specialty product gross profit represents ~81% of total gross profit n Gross Margin of 20.0%, up 150 bps q Q2 2026 gross margin of 18.7% excluding import duty benefit q Compared to Q2 2025 gross margin of 18.5% Q2 Commentary 7 SPECIALTY PRODUCTS SECOND QUARTER 2026 RESULTS $539 $519 $484 $479 $543 $525 $505 $512 $564 19.3% 19.4% 18.4% 18.7% 18.5% 16.6% 18.1% 18.1% 20.0% Net Sales GM Rate 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26
($ in millions) n Net sales of $250M, up 6% q Increase driven by improved pricing and volumes in lumber q Year-over-year industry commodity pricing: Ÿ 9% increase in average price of lumber Ÿ Average price of panels relatively flat n Gross profit of $27M, up 40% q Structural product gross profit represents ~19% of total gross profit n Gross margin of 10.9%, up 270 bps Q2 Commentary 8 $229 $228 $227 $230 $237 $223 $211 $219 $250 7.9% 11.0% 10.8% 9.3% 8.2% 9.3% 10.0% 10.9% 10.9% Net Sales GM Rate 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 STRUCTURAL PRODUCTS SECOND QUARTER 2026 RESULTS
(1) Net Leverage including real property financing leases was 0.6x, 2.2x, and 3.1x in Q2 2024, Q2 2025, and Q2 2026 respectively. Net leverage ratio excluding finance lease obligations for real property, as presented above, is included within the terms of our revolving credit agreement. See Appendix for reconciliations of non-GAAP measures n At the end of Q2 2026: § Cash and cash equivalents of $318M § Total available liquidity of $655M § Net debt of $58M(1) § Net leverage of 0.6x (1) n No material outstanding debt maturities until 2029 ($ millions) Debt Maturity Schedule * Note: debt maturity schedule does not include finance lease obligations Net Leverage (1) 9 BALANCE SHEET $300$291 $318 $316 $300 $300 $300 Finance Leases Senior Notes Q2 2024 Q2 2025 Q2 2026 (0.9x) (0.1x) 0.6x Net Leverage Q2 2024 Q2 2025 Q2 2026 Outstanding Debt and Finance Leases
2Q 2026 Free Cash Flow Walk (2) $ in millions Net Working Capital Management (1) $ in millions (1) Net Working Capital includes accounts receivable, inventory, and accounts payable; Return on net working capital is calculated by dividing trailing twelve month (TTM) Adjusted EBITDA by net working capital as of the end of the period presented or discussed. (2) See Appendix for reconciliations for non-GAAP measures. 10 WORKING CAPITAL AND FREE CASH FLOW $452 $432 $412 $462 $492 $446 $408 $473 $503 Total Net Working Capital Return on Net Working Capital 2Q 24 3Q 24 4Q 24 1Q 25 2Q 25 3Q 25 4Q 25 1Q 26 2Q 26 $200 $300 $400 $500 —% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% $6.4 $11.5 $(19.2) $(3.5) $(7.0) $23.0 $(2.4) $8.8 Net Income Depreciation and Amortization Accounts Receivable Inventory Accounts Payable All Other PP&E Disbursements Free Cash Flow
INVEST IN THE BUSINESS EXPAND GEOGRAPHIC FOOTPRINT SHARE REPURCHASES OPERATING CASH FLOW GUIDING PRINCIPLES n Maintain strong balance sheet and financial stability n Long-term net leverage could increase to ~ 2.0x when considering growth n Invest in business through fluctuating economic cycles n Acquisitions aligned to strategy n Opportunistic share repurchases FREE CASH FLOW RETURN TO SHAREHOLDERSGROWTH AND MARGIN EXPANSION 11 CAPITAL ALLOCATION FRAMEWORK
Q&A 12
Appendix 13
20-year average (1) Source: Historical data is U.S. Census Bureau; Forecast from John Burns Real Estate Consulting, LLC subject limitations and disclaimers – not for redistribution (2) Source: Joint Center for Housing Studies at Harvard University. The Leading Indicator of Remodeling Activity (LIRA) provides a short-term outlook of national home improvement and repair spending to owner-occupied homes. (3) Source: Historical data is Freddie Mac; Forecast: John Burns Real Estate Consulting, LLC subject limitations and disclaimers – not for redistribution. Mortgage rates expected to remain above 20-year average Starts expected to be around 20-year average and well above 2009-2011 levels 14 MACRO TRENDS Remodeling spend expected to be slightly up in 2026 20-year average 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 20 14 20 15 20 16 20 17 20 18 20 19 20 20 20 21 20 22 20 23 20 24 20 25 20 26 E 20 27 E 20 28 E 20 29 E — 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 Total U.S. Single Family Housing Starts (SFHS) Housing starts in thousands(1) 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 20 14 20 15 20 16 20 17 20 18 20 19 20 20 20 21 20 22 20 23 20 24 20 25 20 26 20 27 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 $550 LIRA Remodeling Activity Index TTM Moving Total - Dollars in billions(2) 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 20 14 20 15 20 16 20 17 20 18 20 19 20 20 20 21 20 22 20 23 20 24 20 25 20 26 P 20 27 P 20 28 P 20 29 P —% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 30 Year Fixed Mortgage Rates As of April 2026(3)
Average Q2 26 lumber prices increased 9% year- over-year and increased 12% from Q1 26 (1) Source: Random Lengths and company analysis 15 WOOD-BASED COMMODITY PRICE TRENDS Average Q2 26 panel prices were flat year-over- year and increased 6% from Q1 26 357344357368400411 762687 987 1,243 466 702 1,244 797 587 449413408437383403383385430456451409378440493 20 19 Q 1 20 19 Q 2 20 19 Q 3 20 19 Q 4 20 20 Q 1 20 20 Q 2 20 20 Q 3 20 20 Q 4 20 21 Q 1 20 21 Q 2 20 21 Q 3 20 21 Q 4 20 22 Q 1 20 22 Q 2 20 22 Q 3 20 22 Q 4 20 23 Q 1 20 23 Q 2 20 23 Q 3 20 23 Q 4 20 24 Q 1 20 24 Q 2 20 24 Q 3 20 24 Q 4 20 25 Q 1 20 25 Q 2 20 25 Q 3 20 25 Q 4 20 26 Q 1 20 26 Q 2 — 200 400 600 800 1,000 1,200 1,400 373350337343387401 682713 1,003 1,566 766715 1,232 874 671 528499532636585615599515549534487443438457485 20 19 Q 1 20 19 Q 2 20 19 Q 3 20 19 Q 4 20 20 Q 1 20 20 Q 2 20 20 Q 3 20 20 Q 4 20 21 Q 1 20 21 Q 2 20 21 Q 3 20 21 Q 4 20 22 Q 1 20 22 Q 2 20 22 Q 3 20 22 Q 4 20 23 Q 1 20 23 Q 2 20 23 Q 3 20 23 Q 4 20 24 Q 1 20 24 Q 2 20 24 Q 3 20 24 Q 4 20 25 Q 1 20 25 Q 2 20 25 Q 3 20 25 Q 4 20 26 Q 1 20 26 Q 2 — 200 400 600 800 1,000 1,200 1,400 1,600 1,800 Framing Lumber Composite Index $/mbf, Quarterly Average Price(1) As of June 2026 Structural Panel Composite Index $/msf, Quarterly Average Price(1) As of June 2026
The Company reports its financial results in accordance with GAAP. The Company also believes that presentation of certain non-GAAP measures may be useful to investors and may provide a more complete understanding of the factors and trends affecting the business than using reported GAAP results alone. Any non-GAAP measures used herein are reconciled to their most directly comparable GAAP measures herein or in the financial tables accompanying this presentation. The Company cautions that non-GAAP measures are not presentations made in accordance with GAAP and are not intended to present superior measures of our financial condition from those measures determined under GAAP. Non-GAAP measures should be considered in addition to, but not as a substitute for, the Company’s reported GAAP results. The Company further cautions that its non-GAAP measures, as used herein, are not necessarily comparable to other similarly titled measures of other companies due to differences in methods of calculation. Adjusted EBITDA and Adjusted EBITDA Margin. BlueLinx defines Adjusted EBITDA as an amount equal to net income (loss) plus interest expense and all interest expense related items, income taxes, depreciation and amortization, and further adjusted for certain non-cash items and other special items, including expenses from share-based compensation, one-time charges associated with the legal, consulting, and professional fees related to our merger and acquisition activities, gains or losses on sales of properties, amortization of deferred gains on real estate, and expense associated with our restructuring activities, such as severance, in addition to other significant and/or one-time, nonrecurring, non-operating items. The Company presents Adjusted EBITDA because it is a primary measure used by management to evaluate operating performance. Management believes this metric helps to enhance investors’ overall understanding of the financial performance and cash flows of the business. Management also believes Adjusted EBITDA is helpful in highlighting operating trends. Adjusted EBITDA is frequently used by securities analysts, investors, and other interested parties in their evaluation of companies, many of which present an Adjusted EBITDA measure when reporting their results. We determine our Adjusted EBITDA Margin, which we sometimes refer to as our Adjusted EBITDA as a percentage of net sales, by dividing our Adjusted EBITDA for the applicable period by our net sales for the applicable period. We believe that this ratio is useful to investors because it more clearly defines the quality of earnings and operational efficiency of translating sales to profitability. Adjusted Net Income and Adjusted Earnings Per Share. BlueLinx defines Adjusted Net Income as net income adjusted for certain non-cash items and other special items, including expense from share-based compensation, one-time charges associated with the legal, consulting, and professional fees related to our merger and acquisition activities, gains or losses on sales of properties, amortization of deferred gains on real estate, and expense associated with our restructuring activities, such as severance, in addition to other significant and/or one-time, nonrecurring, non-operating items, further adjusted for the tax impacts of such reconciling items. BlueLinx defines Adjusted Earnings Per Share (basic and/or diluted) as the Adjusted Net Income for the period divided by the weighted average outstanding shares (basic and/or diluted) for the periods presented. We believe that Adjusted Net Income and Adjusted Earnings Per Share (basic and/or diluted) are useful to investors to enhance investors’ overall understanding of the financial performance of the business. Management also believes Adjusted Net Income and Adjusted Earnings Per Share (basic and/or diluted) are helpful in highlighting operating trends. Free Cash Flow. BlueLinx defines free cash flow as net cash provided by operating activities less total capital expenditures. Free cash flow is a measure used by management to assess our financial performance, and we believe it is useful for investors because it relates the operating cash flow of the Company to the capital that is spent to continue and improve business operations. In particular, free cash flow indicates the amount of cash generated after capital expenditures that can be used for, among other things, investment in our business, strengthening our balance sheet, and repayment of our debt obligations. Free cash flow does not represent the residual cash flow available for discretionary expenditures since there may be other nondiscretionary expenditures that are not deducted from the measure. Net Debt, Net Debt Excluding Real Property Finance Lease Liabilities, Overall Net Leverage Ratio, and Net Leverage Ratio Excluding Real Property Finance Lease Liabilities. BlueLinx calculates Net Debt as its total short- and long-term debt, including outstanding balances under our term loan and revolving credit facility and the total amount of its obligations under finance leases, less cash and cash equivalents. Net Debt Excluding Real Property Finance Lease Liabilities is calculated in the same manner as Net Debt, except the total amount of obligations under real estate finance leases are excluded. Although our credit agreements do not contain leverage covenants, a net leverage ratio excluding finance lease obligations for real property is included within the terms of our revolving credit agreement. We believe that Net Debt and Net Debt Excluding Real Property Finance Lease Liabilities are useful to investors because our management reviews both metrics as part of its management of overall liquidity, financial flexibility, capital structure and leverage, and creditors and credit analysts monitor our net debt as part of their assessments of our business. We determine our Overall Net Leverage Ratio by dividing our Net Debt by Twelve-Month Trailing Adjusted EBITDA. Our calculation of Net Leverage Ratio Excluding Real Property Finance Lease Liabilities is determined by dividing our Net Debt Excluding Real Property Finance Lease Liabilities by Twelve-Month Trailing Adjusted EBITDA. We believe that these ratios are useful to investors because they are indicators of our ability to meet our future financial obligations. In addition, our Net Leverage Ratio is a measure that is frequently used by investors and creditors. Our Net Debt, Net Debt Excluding Real Property Finance Lease Liabilities, Overall Net Leverage Ratio, and Net Leverage Ratio Excluding Real Property Finance Lease Liabilities are not made in accordance with GAAP and are not intended to present a superior measure of our financial condition from measures and ratios determined under GAAP. The calculations of our Net Debt, Net Debt Excluding Real Property Finance Lease Liabilities, Overall Net Leverage Ratio, and Net Leverage Ratio Excluding Real Property Finance Lease Liabilities are presented in the table on page 23. Net Debt, Net Debt Excluding Real Property Finance Lease Liabilities, Overall Net Leverage Ratio, and Net Leverage Ratio Excluding Real Property Finance Lease Liabilities, as used herein, are not necessarily comparable to other similarly titled captions of other companies due to differences in methods of calculation. 16 Non-GAAP Measures and Supplemental Financial Information
Supplemental Financial Information Net sales, gross profit dollars, gross profit percentages, sales mix, and gross profit mix by product category by fiscal quarter, Q3 2023 – Q2 2026 (unaudited) In millions where dollars are presented. Rounded figures in this table may not agree to presentations in other formats we have published such as earnings releases, earnings decks, or other similar materials presented elsewhere. 17 Supplementary Financial Information Fiscal Quarter 2Q 2026 1Q 2026 4Q 2025 3Q 2025 2Q 2025 1Q 2025 4Q 2024 3Q 2024 2Q 2024 1Q 2024 4Q 2023 3Q 2023 Net sales by category: Specialty products $ 564 $ 512 $ 505 $ 525 $ 543 $ 479 $ 484 $ 519 $ 539 $ 504 $ 487 $ 559 Structural products 250 219 211 223 237 230 227 228 229 222 226 251 Net sales $ 814 $ 731 $ 716 $ 749 $ 780 $ 709 $ 711 $ 747 $ 768 $ 726 $ 713 $ 810 Net sales mix by category: Specialty products 69 % 70 % 71 % 70 % 70 % 68 % 68 % 69 % 70 % 69 % 68 % 69 % Structural products 31 % 30 % 29 % 30 % 30 % 32 % 32 % 31 % 30 % 31 % 32 % 31 % Gross profit $ by category: Specialty products $ 113 $ 93 $ 92 $ 87 $ 100 $ 90 $ 89 $ 100 $ 104 $ 104 $ 95 $ 111 Structural products 27 24 21 21 19 21 25 25 18 24 24 28 Gross profit $ 140 $ 116 $ 113 $ 108 $ 120 $ 111 $ 113 $ 126 $ 122 $ 128 $ 119 $ 139 Gross margin percentage by category: Specialty products 20 % 18 % 18 % 17 % 18 % 19 % 18 % 19 % 19 % 21 % 19 % 20 % Structural products 11 % 11 % 10 % 9 % 8 % 9 % 11 % 11 % 8 % 11 % 11 % 11 % Company gross margin % 17 % 16 % 16 % 14 % 15 % 16 % 16 % 17 % 16 % 18 % 17 % 17 % Gross profit mix by category: Specialty products 81 % 80 % 81 % 81 % 84 % 81 % 78 % 80 % 85 % 81 % 80 % 80 % Structural products 19 % 20 % 19 % 19 % 16 % 19 % 22 % 20 % 15 % 19 % 20 % 20 %
Adjusted Net Income (Loss) and Adjusted EPS reconciliation for fiscal quarters Q3 2023 - Q2 2026 (unaudited) In thousands, except EPS amounts. Rounded figures in this table may not agree to presentations in other formats we have published such as earnings releases, earnings decks, or other similar materials presented elsewhere. 18 Non-GAAP Reconciliation / supplemental financial information (1) Reflects expenses and related adjustments to our previously disclosed settlement of the BlueLinx Corporation Hourly Retirement Plan (defined benefit) in 4Q 2023. (2) Reflects primarily legal, professional, technology and other integration costs. Certain amounts for prior periods have been reclassified for Acquisition-related costs and Restructuring and other. (3) Represents severance expenses, fees related to our business and digital transformation initiatives, gains from property insurance recoveries in 1Q 2025 from Hurricane Helene, net losses related to Hurricane Helene in 3Q 2024, certain professional and legal fees, technology expenses, and other one-time nonoperating expenses. Certain amounts for prior periods have been reclassified for Acquisition-related costs and Restructuring and other, net. (4) Income tax effect based on either a normalized income tax rate or the effective income tax rate. Fiscal Quarter 2Q 2026 1Q 2026 4Q 2025 3Q 2025 2Q 2025 1Q 2025 4Q 2024 3Q 2024 2Q 2024 1Q 2024 4Q 2023 3Q 2023 Net income (loss) $ 6,406 $ (1,458) $ (8,551) $ 1,655 $ 4,310 $ 2,805 $ 5,272 $ 16,016 $ 14,336 $ 17,492 $ (18,124) $ 24,382 Adjustments: Share-based compensation expense 3,239 3,091 2,937 3,452 2,341 2,522 808 3,186 1,405 2,350 2,580 2,980 Realization of deferred gains on real estate (983) (984) (983) (984) (983) (984) (982) (984) (984) (984) (982) (984) Gain from sale of property — — — — — — — (272) — — — — Pension settlement and related expenses(1) — — — — — — (255) (2,226) — — 31,034 594 Acquisition-related costs(2) 110 107 2,074 126 196 142 — — — — 186 75 Restructuring and other, net(3) 1,134 1,767 1,486 56 385 (2,400) 274 1,160 7 314 (784) 606 Inventory step-up adjustment 66 200 798 — — — — — — — — — Estimated tax impacts of reconciling items(4) (899) (1,045) (1,494) (651) (643) 233 38 (224) (106) (405) 11,891 (889) Adjusted net income (loss) - non-GAAP $ 9,073 $ 1,678 $ (3,733) $ 3,654 $ 5,606 $ 2,318 $ 5,155 $ 16,656 $ 14,658 $ 18,767 $ 25,801 $ 26,764 Basic earnings (loss) per share $ 0.82 $ (0.18) $ (1.08) $ 0.20 $ 0.54 $ 0.33 $ 0.63 $ 1.88 $ 1.65 $ 2.02 $ (2.08) $ 2.72 Diluted earnings (loss) per share $ 0.81 $ (0.18) $ (1.08) $ 0.20 $ 0.54 $ 0.33 $ 0.62 $ 1.87 $ 1.65 $ 2.00 $ (2.08) $ 2.71 Weighted average shares outstanding - Basic 7,811 7,861 7,865 7,888 7,935 8,257 8,356 8,496 8,645 8,653 8,704 8,936 Weighted average shares outstanding - Diluted 7,859 7,943 7,913 7,946 7,977 8,328 8,431 8,528 8,686 8,741 8,757 8,970 Non-GAAP Adjusted Basic EPS - non-GAAP $ 1.16 $ 0.21 $ (0.47) $ 0.46 $ 0.70 $ 0.28 $ 0.61 $ 1.96 $ 1.69 $ 2.16 $ 2.96 $ 2.99 Non-GAAP Adjusted Diluted EPS - non-GAAP $ 1.15 $ 0.21 $ (0.47) $ 0.45 $ 0.70 $ 0.27 $ 0.61 $ 1.95 $ 1.68 $ 2.14 $ 2.94 $ 2.98
The following schedule reconciles Net cash provided by (used in) operating activities to Free cash flow (non-GAAP) for Q3 2023 to Q2 2026 (unaudited) In millions. Rounded figures in this table may not agree to presentations in other formats we have published such as earnings releases, earnings decks, or other similar materials presented elsewhere. 19 Non-GAAP Reconciliation Fiscal Quarter 2Q 2026 1Q 2026 4Q 2025 3Q 2025 2Q 2025 1Q 2025 4Q 2024 3Q 2024 2Q 2024 1Q 2024 4Q 2023 3Q 2023 Net cash provided by (used in) operating activities $ 11 $ (57) $ 62 $ 59 $ (27) $ (34) $ 19 $ 62 $ 36 $ (31) $ 76 $ 78 Less: Property and equipment disbursements (2) (3) (5) (6) (10) (6) (20) (8) (6) (5) (9) (5) Free cash flow - non-GAAP $ 9 $ (60) $ 56 $ 53 $ (36) $ (40) $ (2) $ 54 $ 30 $ (36) $ 67 $ 73
Non-GAAP Reconciliation Net Working Capital by Fiscal Quarter Q3 2023 – Q2 2026 (unaudited) $ amounts in millions 20 Fiscal Quarter 2Q 2026 1Q 2026 4Q 2025 3Q 2025 2Q 2025 1Q 2025 4Q 2024 3Q 2024 2Q 2024 1Q 2024 4Q 2023 3Q 2023 Receivables, net $316 $297 $218 $269 $279 $276 $226 $278 $274 $288 $228 $298 Inventories, net 375 372 326 346 391 400 356 341 358 371 344 364 691 668 544 615 670 675 582 619 632 659 572 662 Accounts payable 188 195 136 169 178 213 170 186 179 172 158 202 Net Working Capital $503 473 $408 $446 $492 $462 $412 $432 $453 $487 $414 $460 Trailing 12 months Adjusted EBITDA $95 $86 $83 $90 $105 $112 $131 $146 $160 $174 $183 $209 Return on Working Capital 19% 18% 20% 20% 21% 24% 32% 34% 35% 36% 44% 45% Each component used to compute Net Working Capital in this table is determined in accordance with GAAP and reported in our consolidated balance sheets. Rounded figures in this presentation may not agree to presentation in other formats we've published such as earnings news releases, other earnings decks, or other similar materials presented elsewhere.
Adjusted EBITDA reconciliation by fiscal quarter, Q3 2023 – Q2 2026 (unaudited) In millions except where percentages are presented. Some dollar amounts round to less than $1 million and therefore no amount is presented in the table below. 21 (1) Reflects expenses and adjustments related to our previously disclosed settlement of the BlueLinx Corporation Hourly Retirement Plan (defined benefit) in 4Q 2023. (2) Reflects primarily legal, professional, technology and other integration costs. Certain amounts for prior periods have been reclassified for Acquisition-related costs and Restructuring and other. Amounts for certain fiscal quarters round to less than $1 million. (3) Represents severance expenses, fees related to our business and digital transformation initiatives, gains from property insurance recoveries in 1Q 2025 from Hurricane Helene, net losses related to Hurricane Helene in 3Q 2024, certain professional and legal fees, technology expenses, and other one-time nonoperating expenses. Certain amounts for prior periods have been reclassified for Acquisition-related costs and Restructuring and other, net. Amounts for certain fiscal quarters round to less than $1 million. Note: Figures are rounded in this presentation to align with figures as presented in the deck. As a result, the rounded figures in this presentation may not agree to presentation in other formats we have published such as earnings releases, other earnings decks, or other similar materials presented elsewhere. Fiscal Quarter 2Q 2026 1Q 2026 4Q 2025 3Q 2025 2Q 2025 1Q 2025 4Q 2024 3Q 2024 2Q 2024 1Q 2024 4Q 2023 3Q 2023 Net income (loss) $6 $ (1) $ (9) $ 2 $ 4 $ 3 $ 5 $ 16 $ 14 $ 17 $ (18) $ 24 Adjustments: Depreciation and amortization 11 12 11 10 10 10 9 10 10 9 8 8 Interest expense, net 9 9 9 9 8 7 5 5 5 5 4 6 Provision (benefit) for income taxes 5 — (3) — 2 1 2 6 5 6 10 9 Share-based compensation expense 3 3 3 3 2 3 1 3 1 2 3 3 Realization of deferred gains on real estate (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) Pension settlement and related expenses(1) — — — — — — — (2) — — 31 1 Inventory step-up adjustment — — 1 — — — — — — — — — Acquisition-related costs(2) — — 2 — — — — — — — — — Restructuring and other, net (3) 1 2 1 — 1 (2) — 1 — 1 (1) 1 Adjusted EBITDA - non-GAAP $ 36 $ 23 $ 14 $ 22 $ 27 $ 20 $ 22 $ 37 $ 34 $ 39 $ 36 $ 50 Net Sales $ 814 $ 731 $ 716 $ 749 $ 780 $ 709 $ 711 $ 747 $ 768 $ 726 $ 713 $ 810 Adjusted EBITDA Margin - non-GAAP 4.4 % 3.2 % 1.9 % 3.0 % 3.4 % 2.8 % 3.0 % 4.9 % 4.5 % 5.4 % 5.1 % 6.2 % Non-GAAP Reconciliation / supplemental financial information
Twelve-Month Trailing Adjusted EBITDA reconciliation by Fiscal Quarter, Q3 2023 – Q2 2026 (unaudited) In millions $. Some dollar amounts round to less than $1 million and therefore no amount is presented in the table below. 22 Non-GAAP Reconciliation (1) Reflects expenses related to our previously disclosed settlement of the BlueLinx Corporation Hourly Retirement Plan in 4Q 2023. (2) Reflects primarily legal, professional, technology and other integration costs. Certain amounts for prior periods have been reclassified for Acquisition-related costs and Restructuring and other. Amounts for certain fiscal quarters round to less than $1 million. (3) Represents severance expenses, fees related to our business and digital transformation initiatives, gains from property insurance recoveries in 1Q 2025 from Hurricane Helene, net losses related to Hurricane Helene in 3Q 2024, certain professional and legal fees, technology expenses, and other one-time nonoperating expenses. Certain amounts for prior periods have been reclassified for Acquisition-related costs and Restructuring and other, net. Amounts for certain fiscal quarters round to less than $1 million. Note: Figures are rounded in this presentation to align with figures as presented in the deck. As a result, the rounded figures in this presentation may not agree to presentation in other formats we have published such as earnings releases, other earnings decks, or other similar materials presented elsewhere. Twelve-Month Trailing as of the End of Fiscal Quarter 2Q 2026 1Q 2026 4Q 2025 3Q 2025 2Q 2025 1Q 2025 4Q 2024 3Q 2024 2Q 2024 1Q 2024 4Q 2023 3Q 2023 Net (loss) income $(2) $(4) $— $14 $28 $38 $53 $30 $ 38 $ 48 $ 49 $ 99 Adjustments: Depreciation and amortization 44 42 40 38 38 39 38 37 36 34 32 31 Interest expense, net 36 35 32 29 25 21 19 18 19 21 24 29 Provision (benefit) for income taxes 1 (2) — 5 11 13 18 26 29 32 33 32 Share-based compensation expense 13 12 11 9 9 8 8 10 9 10 12 13 Realization of deferred gains on real estate (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) Pension settlement and related expenses(1) — — — — (2) (2) (2) 29 32 32 33 2 Inventory step-up adjustment 1 1 1 — — — — — — — — — Acquisition-related costs(2) 2 3 3 — — — — — — — — 1 Restructuring and other, net (3) 4 4 — (2) — (1) 2 1 — 1 4 6 Adjusted EBITDA - non-GAAP $95 $86 $83 $90 $105 $112 $131 $146 $ 160 $ 174 $ 183 $ 209
Fiscal Quarter 2Q 2026 1Q 2026 4Q 2025 3Q 2025 2Q 2025 1Q 2025 4Q 2024 3Q 2024 2Q 2024 1Q 2024 4Q 2023 3Q 2023 ($ amounts in thousands) Long term debt(1) $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 Finance lease liabilities for equipment and vehicles 76,572 76,744 80,635 80,264 75,570 74,365 49,785 50,752 47,979 48,445 42,252 34,008 Finance lease liabilities for real property 239,382 240,001 240,644 241,540 241,987 242,390 242,758 243,058 243,359 243,622 243,174 243,335 Total debt and finance leases 615,954 616,745 621,279 621,804 617,557 616,755 592,543 593,810 591,338 592,067 585,426 577,343 Less: available cash and cash equivalents 318,178 319,087 385,843 429,360 386,765 449,020 505,622 526,281 491,392 481,309 521,743 469,783 Net debt (non-GAAP) $ 297,776 $ 297,658 $ 235,436 $ 192,444 $ 230,792 $ 167,735 $ 86,921 $ 67,529 $ 99,946 $ 110,758 $ 63,683 $ 107,560 Net debt, excluding finance lease liabilities for real property (non-GAAP) $ 58,394 $ 57,657 $ (5,208) $ (49,096) $ (11,195) $ (74,655) $ (155,837) $ (175,529) $ (143,413) $ (132,864) $ (179,491) $ (135,775) Trailing twelve-month adjusted EBITDA (non-GAAP, see above reconciliations) $ 95,372 $ 86,494 $ 82,569 $ 90,215 $ 104,502 $ 112,133 $ 131,356 $ 146,290 $ 160,067 $ 174,651 $ 182,804 $ 209,435 Net leverage ratio 3.1x 3.4x 2.9x 2.1x 2.2x 1.5x 0.7x 0.5x 0.6x 0.6x 0.3x 0.5x Net leverage ratio excluding real property finance lease liabilities(2) 0.6x 0.7x (0.1x) (0.5x) (0.1x) (0.7x) (1.2x) (1.2x) (0.9x) (0.8x) (1.0x) (0.6x) Non-GAAP Reconciliation / Supplemental Financial Information (1) For the periods presented above, our long-term debt is comprised of $300 million of senior-secured notes. These notes are presented under the long-term debt caption of our consolidated balance sheet net of unamortized discount and unamortized debt issuance costs. Our senior secured notes are presented in this table at their face value for the purposes of calculating our net leverage ratio. (2) Net leverage ratio excluding finance lease obligations for real property is included within the terms of our revolving credit agreement. 23 The following schedule reconciles Total debt and finance leases to: Net debt (non-GAAP) and to Net debt excluding finance lease liabilities for real property (non-GAAP). The calculations of Net leverage ratio (non-GAAP) and Net leverage ratio excluding real property finance leases liabilities (non-GAAP) are also presented (unaudited).