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1. Company Snapshot

1.a. Company Description

BlueLinx Holdings Inc., together with its subsidiaries, distributes residential and commercial building products in the United States.The company distributes specialty products comprising engineered wood, industrial products, cedar, moulding, siding, metal, and insulation products; and structural products include lumber, plywood, oriented strand boards, rebars and remesh, spruce, and other wood products primarily that are used for structural support in construction projects.It also provides various value-added services and solutions to customers and suppliers.


The company serves dealers, specialty distributors, national home centers, and manufactured housing customers through a network of distribution centers.BlueLinx Holdings Inc.was incorporated in 2004 and is headquartered in Marietta, Georgia.

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1.b. Last Insights on BXC

BlueLinx Holdings Inc.'s recent performance was negatively impacted by a decline in net income, which fell to $1.7 million, or $0.20 diluted earnings per share, from previous periods. The company's Q3 2025 earnings call revealed a challenging operating environment. However, the acquisition of Disdero Lumber Company, a specialty products distributor, for approximately $96 million, is expected to drive growth. Additionally, the expansion of its distribution partnership with Oldcastle APG, doubling RDI Railing distribution footprint, and adding MoistureShield Decking to new markets, are positive developments.

1.c. Company Highlights

2. BlueLinx Holdings' Q3 2025 Earnings: A Strong Performance Amidst Soft Market Conditions

BlueLinx Holdings reported a net income of $1.7 million or $0.20 per share and an adjusted net income of $3.7 million or $0.45 per diluted share for the third quarter of 2025. The company's adjusted EBITDA was $22.4 million, representing a margin of 3.0%. Net sales reached $749 million, driven by growth in engineered wood products (EWP) volumes and outdoor living product volumes. Specialty products accounted for approximately 70% of net sales and over 80% of gross profit, highlighting the company's successful strategy to shift towards higher-margin products.

Publication Date: Nov -20

📋 Highlights
  • Strong Sales Growth Amid Soft Market: Net sales reached $749 million, with adjusted EBITDA of $22.4 million and a 3.0% margin.
  • Disdero Acquisition Synergies: Acquired for $96 million (7x EBITDA), expected to be immediately accretive to EBITDA and earnings per share.
  • Liquidity and Share Repurchases: $58.7 million liquidity, $2.7 million shares repurchased in Q3, and a new $50 million buyback authorization.
  • Structural Products Decline: Sales fell 2% YoY to $223 million, with gross profit down 17% and gross margin dropping to 9.3% from 11%.
  • Q4 Liquidity and Cash Flow: $777 million liquidity at quarter-end, $59 million operating cash flow, and net debt of -$49 million (negative net debt).

Acquisition of Disdero Lumber Company

The company announced the acquisition of Disdero Lumber Company, a specialty products distributor, for $96 million. This acquisition is expected to be immediately accretive to adjusted EBITDA and adjusted diluted earnings per share. The deal was funded with cash on hand and is expected to support BlueLinx's growth in the multifamily channel and expansion in the Western United States. As Kelly Wall stated, the purchase price was approximately 7x EBITDA, and the company expects commercial synergies to generate over time, making the purchase price a fair deal.

Financial Position and Liquidity

BlueLinx's financial position remains strong, with a significant liquidity position and a total current availability of $58.7 million. The company's cash on hand increased to $429 million, and available liquidity was approximately $777 million at the end of the quarter. With a net debt of negative $49 million, the company's balance sheet is well-positioned to support future growth initiatives.

Valuation and Growth Prospects

With a P/E Ratio of 30.54 and an EV/EBITDA of 8.53, the market is pricing in a certain level of growth for BlueLinx Holdings. Analysts estimate next year's revenue growth at 3.1%. The company's focus on specialty products and value-add services is expected to drive profitable sales growth. The recent acquisition of Disdero Lumber Company is also expected to contribute to the company's growth prospects. With a strong balance sheet and a disciplined approach to inventory management, BlueLinx is well-positioned to navigate the current market conditions and capitalize on future opportunities.

Outlook and Share Repurchases

BlueLinx intends to maintain a strong balance sheet, which enables the company to invest in its business through economic cycles and pursue a disciplined M&A strategy. The company will continue to be opportunistic in share buybacks, with a new $50 million share repurchase authorization. The level of activity may be lower due to the recent $100 million capital allocation to the Disdero acquisition, but share repurchases remain a key way to return free cash flow to investors.

3. NewsRoom

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BlueLinx Expands Distribution Partnership with Oldcastle APG

Nov -12

Source: businesswire.com

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Northborne Partners Advises Disdero Lumber Company on its Sale to BlueLinx Holdings

Nov -10

Source: prnewswire.com

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BlueLinx Holdings Inc. (BXC) Q3 2025 Earnings Call Transcript

Nov -05

Source: seekingalpha.com

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BlueLinx Announces Third Quarter 2025 Results

Nov -04

Source: businesswire.com

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BlueLinx Acquires Disdero Lumber Company

Nov -03

Source: businesswire.com

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Reviewing BlueLinx (NYSE:BXC) & Worthington Enterprises (NYSE:WOR)

Oct -26

Source: defenseworld.net

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BlueLinx to Host Third Quarter 2025 Results Conference Call and Webcast on November 5, 2025

Oct -14

Source: businesswire.com

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BlueLinx Announces Appointment of Christina (Chris) Corley to Board of Directors

Sep -26

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.29%)

6. Segments

Specialty Products

Expected Growth: 3.5%

BlueLinx Holdings Inc.'s Specialty Products segment growth of 3.5% is driven by increasing demand for specialty building products, expansion into new markets, and strategic partnerships. Additionally, the company's focus on value-added products and services, such as roofing and siding, contributes to growth. Furthermore, investments in digital platforms and operational efficiencies also support the segment's growth.

Structural Products

Expected Growth: 2.8%

The 2.8% growth in Structural Products from BlueLinx Holdings Inc. is driven by increasing demand for single-family and multi-family housing, repair and remodel activities, and infrastructure projects. Additionally, the company's strategic expansion into new markets, product diversification, and operational efficiencies also contribute to this growth.

7. Detailed Products

Structural Products

BlueLinx Holdings Inc. offers a wide range of structural products, including lumber, plywood, oriented strand board (OSB), and roofing materials.

Exterior Products

The company provides exterior products such as windows, doors, siding, and trim, which are used to finish the exterior of a building.

Interior Products

BlueLinx Holdings Inc. offers interior products including moulding, millwork, and interior doors, which are used to finish the interior of a building.

Roofing Products

The company provides roofing products such as shingles, underlayment, and roofing accessories, which are used to protect buildings from the elements.

Specialty Products

BlueLinx Holdings Inc. offers specialty products including composite decking, fencing, and railing, which are used to enhance the functionality and aesthetic appeal of outdoor spaces.

Logistics and Distribution Services

The company provides logistics and distribution services to its customers, including transportation, warehousing, and inventory management.

8. BlueLinx Holdings Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for BlueLinx Holdings Inc. is medium, as there are some alternative products and services available in the market, but they are not highly attractive to customers.

Bargaining Power Of Customers

The bargaining power of customers for BlueLinx Holdings Inc. is low, as customers have limited options and the company has a strong brand presence.

Bargaining Power Of Suppliers

The bargaining power of suppliers for BlueLinx Holdings Inc. is medium, as the company relies on a few key suppliers, but has some flexibility in its supply chain.

Threat Of New Entrants

The threat of new entrants for BlueLinx Holdings Inc. is high, as the industry has low barriers to entry and new companies can easily enter the market.

Intensity Of Rivalry

The intensity of rivalry for BlueLinx Holdings Inc. is high, as the industry is highly competitive and companies are constantly competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 49.35%
Debt Cost 6.48%
Equity Weight 50.65%
Equity Cost 13.79%
WACC 10.18%
Leverage 97.43%

11. Quality Control: BlueLinx Holdings Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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A-Score: 3.4/10

Value: 6.0

Growth: 5.8

Quality: 3.2

Yield: 0.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

60.44$

Current Price

60.44$

Potential

-0.00%

Expected Cash-Flows