Executive Summary

BlueLinx’s latest reported quarter is Q3 2025 (three months ended September 27, 2025); Q3 2026 materials are not yet available. Results: net sales $748.9M, GAAP diluted EPS $0.20, adjusted diluted EPS $0.45, gross margin 14.4%, adjusted EBITDA $22.4M .
The company modestly grew sales year over year (+0.2%), but margins compressed; adjusted EPS and revenue both missed Wall Street consensus (EPS $0.45 vs $0.5125; revenue $748.9M vs $757.1M), driven by specialty margin pressure and prior-period import duty adjustments; stock fell ~2.8% post-report .
Management highlighted specialty volume growth (EWP, outdoor living), continued digital transformation and AI productivity initiatives, and strategic M&A—closing Disdero ($96M, ~7x TTM EBITDA post-synergies) funded with cash; outlook for early Q4 2025 specialty GM 17–18% and structural GM 8–9% maintained .
Liquidity remained strong ($429.4M cash; total availability $776.6M; net leverage ex real estate finance leases at (0.5x)); free cash flow was $52.7M on improved working capital .

What Went Well and What Went Wrong

What Went Well

Specialty volumes grew despite a soft housing backdrop: EWP volumes up low double digits and outdoor living up low single digits; pricing deflation stabilized, supporting narrative into 2026 .
Strong liquidity and FCF: $429.4M cash, $776.6M available liquidity; Q3 operating cash flow $58.6M and FCF $52.7M, aided by disciplined inventory management .
Strategic expansion: Disdero acquisition enhances premium specialty mix and western footprint; management expects immediate accretion and ~7x TTM EBITDA post-synergies and tax benefits .

What Went Wrong

Margin compression: Company gross margin fell 240 bps YoY to 14.4% (specialty GM to 16.6%) due to price deflation and $2.2M import duty-related expense; structural GM declined to 9.3% on panel pricing .
Earnings/Revenue miss vs consensus: Adjusted EPS $0.45 vs $0.5125 and net sales $748.9M vs $757.1M; stock dipped ~2.8% on the miss .
Macro headwinds: Elevated mortgage rates, affordability, import duties/tariffs, and softer single-family starts pressured volumes and margins; management expects improvement in the back half of 2026 .

Financial Results

Headline metrics vs prior quarters

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue ($USD Millions)	$709.0	$780.0	$748.9
GAAP Diluted EPS ($USD)	$0.33	$0.54	$0.20
Adjusted Diluted EPS ($USD)	$0.27	$0.70	$0.45
Company Gross Margin %	15.7%	15.3%	14.4%
Specialty Gross Margin %	18.7%	18.5%	16.6%
Adjusted EBITDA ($USD Millions)	$19.6	$26.8	$22.4

Segment breakdown (Q3 2025)

Segment	Net Sales ($USD Millions)	Gross Profit ($USD Millions)	Gross Margin %
Specialty	$525.5	$87.35	16.6%
Structural	$223.4	$20.84	9.3%

KPIs and balance sheet

Metric	Q1 2025	Q2 2025	Q3 2025
Operating Cash Flow ($USD Millions)	$(34)	$(27)	$58.6
Free Cash Flow ($USD Millions)	$(40)	$(36)	$52.7
Cash and Cash Equivalents ($USD Millions)	$449.0	$387.0	$429.4
Net Debt excl. Real Property Finance Leases ($USD Millions)	$(74.7)	$(11.0)	$(49.1)

Q3 2025 vs S&P Global Consensus

Metric	Actual	Consensus	Notes
Revenue ($USD Millions)	$748.9	$757.1*	Miss
Adjusted Diluted EPS ($USD)	$0.45	$0.5125*	Miss

Values with asterisk (*) retrieved from S&P Global.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Specialty Gross Margin	Early Q3 → Early Q4 2025	17–18% (Q3 outlook from Q2 release)	17–18% (Q4 outlook)	Maintained
Structural Gross Margin	Early Q3 → Early Q4 2025	8–9% (Q3 outlook from Q2 release)	8–9% (Q4 outlook)	Maintained
Average Daily Sales Volumes	Early Q3 vs Q2/Q3’24 → Early Q4 vs Q3’25/Q4’24	Up slightly vs Q2; consistent vs Q3’24	Down slightly vs Q3’25 and Q4’24	Lower
Tax Rate	Q4 2025	N/A	27%–31%	New

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q3 2025)	Trend
Digital transformation and AI	Investments ongoing; optimization efforts noted	Phase I on track; OTM rollout; e-commerce pilot; broad AI agent access via Microsoft to boost productivity	Expanding execution
Specialty pricing/margins	Specialty GM 18.7% (Q1); 18.5% (Q2); pricing deflation noted	Specialty GM 16.6% (17.0% ex duty expense); pricing stabilized (flat YoY)	Stabilizing after compression
Multifamily channel	Strategic focus and growth initiative	Anticipates rebound; longer inventory turns/lower GM; supports product conversion	Growing focus; mixed margin impact
Tariffs/duties/macro	Tariffs highlighted as margin headwind; plan to pass through via price increases	$2.2M import duty expense; macro softness (rates, affordability, starts)	Persistent headwind
Capital allocation (M&A/buybacks)	New $50M authorization; $20M repurchased (Q2)	Disdero acquisition; $2.7M Q3 repurchases; $58.7M authorization remaining	Active; balanced

Management Commentary

“Our third quarter results demonstrated continued resilience… increase in consolidated net sales… specialty product net sales and volumes… Structural products benefited from a year-over-year increase in lumber prices, although panel pricing continued to see pressure.” — Shyam Reddy, CEO .
“We generated strong free cash flow… maintain a strong balance sheet and liquidity… acquisition is anticipated to enhance the margin profile of specialty products, and… immediately accretive to earnings.” — C. Kelly Wall, CFO .
“We are very excited about the acquisition of Disdero… premium specialty wood products… expected to serve as a catalyst for growth… enhances our specialty products focus, geographic expansion and channel diversification.” — Shyam Reddy, CEO .

Q&A Highlights

Disdero deal rationale/multiple: Management comfortable with ~~7x TTM EBITDA post-synergies given higher-margin specialty focus, cost synergies (~~$1M) and expected revenue synergies as products roll across branches .
SG&A trajectory: Q3 SG&A as % of sales lower than expected; anticipate slight elevation YoY due to multifamily/digital investments, with actions benefiting 2026 .
Specialty margin uptick early Q4: Rebate activity normalizing; specialty GM tracking 17–18% to start Q4 .
Inventory discipline: No “build it and they will come”; tighter inventory aligned to demand across specialty and structural .
EWP pricing: Stabilizing sequentially; faster turns on EWP plans and value-add services to drive margin capture .

Estimates Context

Q3 2025 adjusted EPS of $0.45 missed S&P Global consensus of $0.5125, and net sales of $748.9M missed $757.1M; misses driven by duty-related expense ($2.2M), specialty price deflation, and panel price declines . Consensus values marked with asterisk (*) retrieved from S&P Global.
With early Q4 specialty GM running 17–18% and structural at 8–9%, estimate revisions may modestly lower near-term EPS/revenue assumptions while recognizing margin stabilization in specialty .

Key Takeaways for Investors

Near term: Margin compression and small misses likely cap upside; watch rebate normalization, specialty pricing stabilization, and duty/tariff impacts for trading catalysts .
Liquidity/FCF strength provides downside support and optionality for buybacks/bolt-ons; net leverage ex real estate finance leases at (0.5x) .
Strategic mix shift toward premium specialty and multifamily positioning (Disdero, Oldcastle APG expanded distribution) should aid medium-term margin trajectory and geographic reach .
Macro sensitivity remains high (rates, affordability, starts); management expects back-half 2026 improvement—align positioning with a recovery timeline .
Monitor Q4 2025 tax rate (27–31%) and SG&A investment pace to assess EPS flow-through and 2026 operating leverage .
For Q3 2026, prepare to benchmark against current margin ranges and specialty volume trends; use Q3 2025 as baseline until new filings/transcripts are available .

Sources

Press release and 8-K:
Earnings call transcript:
Disdero acquisition PR:
Oldcastle APG partnership PR:
Prior-quarter press releases: Q1 , Q2
Stock reaction:
Consensus estimates: S&P Global (see asterisked values; “Values retrieved from S&P Global”).

BlueLinx Holdings Inc. (BXC)·Q3 2026 Earnings Summary