BlueLinx Holdings Inc. reported financial results for the three months and twelve months ended December 28, 2024.
Q4 2024 Financial Performance
In the Q4 2024, net sales were $711 million, a decrease of $1.9 million, or 0.3% when compared to the Q4 2023. Gross profit was $113 million, a decrease of $5.1 million, or 4.3%, year-over-year, and gross margin was 15.9%, down 70 basis points from the prior year period.
Net income for the current quarter was $5.3 million, or $0.62 per diluted share, versus a net loss of $18.1 million, or $2.08 per diluted share, in the prior year period. The 2023 period reflects a one-time charge of $30.4 million related to the settlement of our defined benefit pension plan.
Adjusted Net Income for the Q4 2024 was $5.2 million, or $0.61 per diluted share.
Adjusted EBITDA was $21.5 million, or 3.0% of net sales, compared to $36.5 million, or 5.1% of net sales in the prior period.
Full Year 2024 Financial Performance
For the fiscal year ended December 28, 2024, net sales were $3.0 billion, a decrease of $183.8 million, or 5.9% year-over-year. Gross profit was $489.1 million, a decrease of $37.9 million, or 7.2% year-over-year, and gross margin was 16.6%, down 20 basis points. The decreases in sales and gross profit reflect declines of 6.3% and 4.8% in specialty product net sales and structural product net sales, respectively.
Net income was $53.1 million, or $6.19 per diluted share, versus $48.5 million, or $5.39 per diluted share in the prior year. Fiscal 2023 reflects the aforementioned one-time charge of $30.4 million related to the settlement of our legacy defined benefit pension plan.
Adjusted net income was $55.2 million and adjusted earnings diluted per share was $6.44 in the current year, compared to $102.6 million or adjusted diluted earnings per share of $11.41 in the prior year.
Adjusted EBITDA was $131.4 million, or 4.4% of net sales, compared to $182.8 million, or 5.8% of net sales in 2023.
“Our Q4 and full year 2024 were highlighted by strong margin performance, clearly showing our ability to generate solid results due to the strength of our customer service proposition and the continued focus on our strategy,” said Shyam Reddy, President, and CEO of BlueLinx. “Specialty products continued its strong performance with gross margins of 18.4% and solid volume growth during the quarter. Structural products also performed well with gross margins of 10.8%, largely due to improved lumber pricing during the quarter. With strong liquidity and minimal net debt, we remain well-positioned to execute on our long-term sales growth strategy and to return capital to shareholders. During the Q4, we returned $15 million to shareholders, bringing the total to $45 million in share repurchases for the year.”
First Quarter 2025 Outlook
Through the first seven weeks of the Q1of fiscal 2025, specialty product gross margin was in the range of 18% to 19%, and structural product gross margin was in the range of 8% to 9%. Average daily sales volumes were down approximately 12% versus the Q4 2024 due primarily to severe weather conditions which impacted a significant portion of its distribution footprint in January.
BlueLinx Holdings Inc. is a leading U.S. wholesale distributor of building products.
