In the Q2 2024, BlueLinx Holdings' net sales were $768 million, a decrease of $48 million, or 6% when compared to the Q2 2023. Gross profit was $122 million, a decrease of $13 million, or 10%, year-over-year, and gross margin was 15.9%, down 70 basis points from the same period last year.
Net income was $14 million, or $1.65 per diluted share, versus $24 million, or $2.70 per diluted share, in the prior year period. Adjusted Net Income was $15 million, or $1.68 per diluted share compared to $26 million, or $2.91 per diluted share in the Q2 of last year.
Adjusted EBITDA was $34 million, or 4.5% of net sales, for the Q2 2024, compared to $49 million, or 6.0% of net sales in the Q2 2023. The current period includes the benefit of the duty-related matters, and not including these items, Adjusted EBITDA was $32 million, or 4.1% of net sales.
Net cash generated from operating activities was $36 million in the Q2 2024 and free cash flow was $29 million. The cash generated during the Q2 was driven by net income and improved working capital.
“Our Q2 results were highlighted by solid volume growth in several of our key specialty product categories despite a challenging macro environment,” said Shyam Reddy, President and CEO of BlueLinx. “We also generated solid specialty product gross margins of approximately 19%, despite the effects of price deflation. The quarter was adversely impacted by structural products, primarily driven by declining lumber and panel prices, in addition to volume declines due to challenges in the housing and building products sector. Although current market conditions are challenging, we believe we are well-positioned for long-term success because our vision is supported by a well-defined sales growth strategy, strong liquidity, and minimal debt.”
“Our strong free cash flow generation of $29 million during the second quarter helped us end the period with $491 million in cash on hand and a net leverage ratio of (0.9x),” said Andy Wamser, CFO of BlueLinx. “During the Q2, we purchased $15 million of stock under our share repurchase program, demonstrating our commitment to returning capital to shareholders. At the end of the quarter, we had $76 million remaining on our share repurchase authorization, and we will continue to be opportunistic in the market.”
BlueLinx 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.
