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Jul 03, 2021
BlueLinx Q2 2021 Earnings Report
Reported record net income driven by product price escalations, volume growth within specialty products, and improved sales mix.
Key Takeaways
BlueLinx Holdings Inc. reported strong second-quarter results with net sales increasing to $1.3 billion, a net income of $113 million, and an adjusted EBITDA of $166 million.
Net sales increased to $1.3 billion, an increase of 87%.
Gross margin increased 480 basis points to 19.2%.
Net income of $113 million, an increase of $107 million.
Adjusted EBITDA of $166 million, an increase of $135 million.
Revenue by Segment
Forward Guidance
Domestic residential construction activity remained elevated during July 2021, contributing to sustained demand for construction materials in the Company’s end-markets.
Positive Outlook
- Domestic residential construction activity remained elevated during July 2021, contributing to sustained demand for construction materials in the Company’s end-markets.
- Gross margins on specialty products sold during July remained at levels consistent with those reported in the second quarter 2021, given robust demand across key product categories and continued price increases.
- Given the deflationary environment in structural products, working capital is expected to decrease, resulting in meaningful cash generation during the second half of 2021.
Challenges Ahead
- Continued wood-based commodity price volatility contributed to gross margin rates that were closer to historical levels on structural inventories sold during July, as the Company continued to manage its structural inventory and margins closely during the continued decline in wood-based commodity prices.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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