BlueLinx (BXC) Q1 2026 earnings summary

Executive summary

• Net sales rose 3.1% year-over-year to $731 million in Q1 2026, driven by specialty product growth and the Disdero acquisition.

• Gross profit increased 4.7% to $116 million, with gross margin improving to 15.9% from 15.7% year-over-year.

• Specialty products represented 70% of net sales and 80% of gross profit, supported by strategic supplier partnerships and product expansion.

• Adjusted EBITDA grew 20% year-over-year to $23.5 million (3.2% of net sales).

• Reported net loss was $1.5 million ($0.18 per share), while adjusted net income was $1.7 million ($0.21 per share), reflecting higher expenses and lower interest income.

Financial highlights

• Gross margin improved by 20 bps year-over-year to 15.9%, with gross profit at $116 million.

• SG&A expenses increased by $2.1 million year-over-year, mainly due to the Disdero acquisition.

• Free cash flow was negative $59.8 million, reflecting seasonal working capital changes.

• Net leverage ratio was 0.7x trailing four-quarter adjusted EBITDA, with $659 million in available liquidity and $319 million in cash.

• Total debt (excluding real property leases) was $377 million; net debt was $58 million.

Outlook and guidance

• Q2 2026 specialty product gross margin expected between 17.5% and 18.5%; structural product gross margin between 9.5% and 10.5%.

• Average daily sales volumes anticipated to be slightly down year-over-year but improved sequentially from Q1 2026.

• Free cash flow for 2026 expected to be consistent with or slightly lower than last year.

• Management expects long-term net leverage could increase to ~2.0x to support growth.

• Acquisitions and geographic expansion remain strategic priorities.