BlueLinx (BXC) Q2 2026 earnings summary

Executive summary

• Net sales reached $814 million in Q2 2026, up 4.4% year-over-year, driven by specialty and structural products, with contributions from the Disdero acquisition and improved pricing.

• Gross profit rose 16.7% to $140 million, with gross margin expanding 190 basis points to 17.2%, aided by tariff refunds and business transformation initiatives.

• Adjusted EBITDA was $35.6 million (4.4% margin), up 33% year-over-year; excluding a $7.2 million duty-related benefit, adjusted EBITDA was $28.4 million (3.5% margin).

• Adjusted net income was $9.1 million ($1.15 per diluted share), up 62% year-over-year; net income was $6.4 million ($0.81 per diluted share), up 49%.

• Free cash flow improved year-over-year, reflecting stronger operating results and efficient working capital management.

Financial highlights

• Specialty products accounted for 69-70% of net sales and 80-81% of gross profit, with Q2 net sales of $564 million (up 3.8-4%), gross profit of $113 million (up 12%), and gross margin of 20%.

• Structural products net sales were $250 million (up 5.6-6%), gross profit $27 million (up 40%), and gross margin 10.9%.

• Operating cash flow was $11 million; free cash flow was $9 million, both improved year-over-year.

• Net leverage ratio was 0.6x trailing four-quarter adjusted EBITDA; cash and equivalents were $318 million, with available liquidity of $655 million.

• Net debt (excluding real property leases) was $58 million.

Outlook and guidance

• Specialty product gross margin expected at 18%-19% in Q3 2026, with daily sales volumes flat sequentially and higher year-over-year.

• Structural product gross margin forecasted at 8.5%-9.5% in Q3, with daily volumes higher sequentially and year-over-year.

• SG&A expected to average $105 million per quarter in the second half, with Q3 slightly higher than Q4.

• CapEx for H2 2026 projected to be higher than prior year, supporting facility, technology, and digital initiatives.

• Cautious outlook for the remainder of 2026 due to continued softness in housing conditions.