BlueLinx Holdings, an Atlanta-based building products distributor, reported slight sales gains and gross profit losses for the second quarter of 2025.

In the second quarter of 2025, net sales were $780 million, an increase of $12 million, or 2% when compared to the second quarter of 2024. Sales growth in the current quarter was attributable to both structural and specialty products. 

Net sales of specialty products, which include products such as engineered wood, siding, millwork, outdoor living, specialty lumber and panels, and industrial products, were $543 million, an increase of $4 million, or 0.7% when compared to the second quarter of 2024. This increase in net sales for specialty products in the current quarter was due to higher volumes across several product categories, largely offset by price deflation driven by external market conditions.

“We are pleased with the continued execution of our product and channel strategies. Our second quarter results were highlighted by net sales and volume increases in both specialty products and structural products, despite soft market conditions,” said Shyam Reddy, president and CEO of BlueLinx. “We were also pleased with our solid specialty product margins in a competitive pricing environment. Structural product margins benefited from an increase in lumber prices, partially offset by a significant decline in panel prices during the quarter."

Gross profit was reported at $120 million, a decrease of $3 million, or 2%, year-over-year, and gross margin percentage was 15.3%, down 60 basis points from the same period last year.

In an earnings call for Q2 2025, Reddy pointed to outside conditions affecting the company, including tariffs.

"Despite our success gaining share, higher profitable sales growth may be tempered significantly by tariffs, high mortgage rates and general economic uncertainty," he said, later adding, "Tariffs will put pressure on gross margins. Regardless, we expect to pass them along via price increases."

Adjusted EBITDA was $26.8 million, or 3.4% of net sales, for the second quarter of 2025, compared to $34.4 million, or 4.5% of net sales in the second quarter of 2024.

The second quarter saw BlueLinx heavily investing in infrastructure and equipment. The company invested $9.9 million in property and equipment, primarily for improvements to distribution facilities and for its digital transformation initiative. BlueLinx also entered into new finance leases of $5 million, mainly to enhance its fleet.

Additionally, it purchased approximately $20 million of the company’s common stock through open-market transactions under a previous $100 million share repurchase program announced in 2023.

“With our continued strong balance sheet, significant liquidity, and low leverage, we remain well-positioned to accelerate our profitable sales growth as the home building industry rebounds,” said C. Kelly Wall, senior vice president, chief financial officer and treasurer of BlueLinx.

Looking ahead, BlueLinx says that through the first four weeks of the third quarter of 2025, specialty product gross margin was in the range of 17% to 18% and structural product gross margin was in the range of 8% to 9%.