BlueLinx reported record profitability and year-over-year (YOY) sales growth of 27% in the fiscal first quarter, according to the company’s quarterly earnings report. BlueLinx recorded net sales of $1.3 billion in the first quarter, an increase of $277 million on a YOY basis.
“I’m extremely proud of the BlueLinx team and our continued strong execution which contributed to record first quarter profitability,” Dwight Gibson, President and CEO of BlueLinx, said in a news release. “Once again, we demonstrated the ability to capitalize on continued robust demand for building products while navigating on-going supply constraints and volatility in wood-based commodity prices. Net sales grew by approximately 27% year-over-year, and we delivered adjusted EBITDA of $202 million and adjusted EBITDA margin of over 15%, both all-time highs on a quarterly basis for BlueLinx.”
Net sales of specialty products, which includes products such as engineered wood, siding, molding and millwork, outdoor living, specialty lumber, and industrial products, increased $205 million, or 36%, on a YOY basis to $768 million in the first quarter. Gross profit from specialty product sales was $184 million in the first quarter, a 70% increase compared to the fiscal first quarter of 2021. Gross margin on specialty product sales was 24.0%, an increase of 470 basis points compared to the prior year period. BlueLinx said the sales growth and improved profitability for the specialty product category was driven by continued strong demand for specialty building products in the new construction and repair and remodel segments, on-going supply chain constraints, and strategic pricing actions.
Net sales of structural products, which includes products such as lumber, plywood, oriented strand board, rebar, and remesh, increased 16% YOY to $534 million in the first quarter due to continued strong demand for building products and increased wood-based commodity prices. Gross profit from structural product sales was $107 million, a 50% YOY increase. Gross margin on structural product sales increased 450 basis points to 20.0% in the first quarter.
Overall, BlueLinx’s gross profit was $291 million, an increase of $111 million, or 61% over the prior year period. Gross margin expanded 470 basis points on a YOY basis to 22.3%. BlueLinx said the increase in net sales and profitability compared to the first quarter of 2021 was driven by continued robust demand for building products amid ongoing supply constraints, increased wood-based commodity prices, and improved operating performance.
“We currently believe near-term fundamentals for the U.S. housing industry are healthy despite the recent rise in mortgage rates and broad-based inflation,” Gibson said. “Specifically, we believe high levels of home equity, housing turnover, and aging housing stock will continue to support growth in repair and remodel activity and the low supply of available homes will continue to drive investment in both existing and new homes.”
