BlueLinx Holdings Inc. reported Adjusted EBITDA of $22.4 million for the Q3 ended September 27, 2025, a 39% decrease from $36.6 million in the same period last year, driven by gross margin pressure and a $2.2 million import duty expense, according to BlueLinx.
Net sales were $749 million, a slight increase of 0.2% compared to the Q3 2024. Net income was $1.7 million, or $0.20 per diluted share, compared to $16.0 million, or $1.87 per diluted share, a year earlier.
The specialty products segment reported a 1.2% increase in net sales to $525 million, largely due to higher volumes in engineered wood and outdoor living products, which were partially offset by price declines in engineered wood. Gross margin for the segment was 16.6%, down from 19.4% a year earlier. Excluding duty-related items, the gross margin was 17.0%.
The structural products segment saw a 2.1% decrease in net sales to $223 million, due to volume declines in lumber and panels and price declines in panels. The segment's gross margin was 9.3%, down from 11.0% in the prior year quarter.
Selling, general and administrative expenses decreased by $2.9 million to $89 million, primarily due to lower incentive compensation expense.
Net cash provided by operating activities was $59 million, and free cash flow was $53 million. The company ended the quarter with $429 million in cash and cash equivalents and total available liquidity of $777 million. The company highlighted its acquisition of Disdero Lumber Company, which was financed with existing cash and is expected to be immediately accretive to earnings.
For the first four weeks of the Q4 2025, the company stated that 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%. Average daily sales volumes were down slightly compared to both the Q3 2025 and the Q4 2024.
