BXC earnings analysis
What we found in BXC's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
BlueLinx delivered improved Q2 operating performance, with revenue up 4.4% to $814.077 million, gross margin up 190 basis points to 17.2%, and GAAP diluted EPS up to $0.81 from $0.54 a year earlier. Both specialty and structural categories grew and expanded margins, aided by Disdero, transformation efforts and a $7.2 million tariff-refund benefit. The balance sheet retains $318.0 million of cash and no revolver borrowings, but a $95.239 million working-capital build left year-to-date free cash flow negative $51.1 million.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue grew 4.4% year over year
- Q2 net sales rose $34.0 million, or 4.4%, year over year to $814.077 million; sequentially, sales increased from $731 million in Q1 2026 to $814.077 million.
- Margins expanded materially
- Gross margin expanded 190 basis points year over year to 17.2% from 15.3%, and operating margin rose 60 basis points to 2.5% from 1.9%. Sequentially, gross margin improved from 15.9% and operating margin from 1.0% in Q1 2026.
- GAAP earnings improved
- GAAP diluted EPS increased to $0.81 from $0.54 in Q2 2025 and from a loss of $0.18 in Q1 2026; net income rose to $6.406 million from $4.310 million year over year.
- Both product categories grew
- Specialty revenue increased $20.681 million to $564.140 million and structural revenue increased $13.289 million to $249.937 million. Structural gross profit rose 39.8% to $27.128 million, while specialty gross profit rose 12.3% to $112.579 million.
- Liquidity supports operations
- Liquidity remained substantial at $318.0 million of cash and equivalents plus $336.8 million of revolver availability as of July 4, 2026; there were no revolver borrowings and the company was compliant with its debt covenants.
- Cash burn and capex improved
- Year-to-date operating cash outflow improved by $14.6 million to $46.1 million used, versus $60.7 million used a year earlier. Cash capex fell to $5.0 million from $15.5 million, implying free cash flow of negative $51.1 million versus negative $76.2 million.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Margin expansion includes tariff refund
- Q2 cost of products sold included a $7.2 million IEEPA tariff-refund benefit, equal to 90 basis points of company gross margin. Excluding this item, the reported 17.2% gross margin would have been approximately 16.3%.
- SG&A growth outpaced sales
- SG&A increased $12.106 million, or 12.7%, to $107.371 million, outpacing the 4.4% sales increase; management attributed the increase primarily to Disdero, fuel, third-party freight and employee-related costs.
- Working-capital build consumes cash
- Net working capital rose $95.239 million from year-end to $503.010 million, driven by receivables increasing to $315.939 million from $218.161 million and inventory increasing to $375.258 million from $325.998 million. This working-capital build coincided with $46.1 million of year-to-date operating cash use.
- Leverage and interest burden remain
- Fixed obligations remain meaningful: the company had $300.0 million of 6.0% senior secured notes due in 2029 and $316.0 million of finance-lease obligations as of July 4, 2026. Net interest expense increased to $9.379 million from $8.457 million year over year.
- No new risk-factor updates
- Item 1A states there were no material changes to risk factors from the 2025 Form 10-K as supplemented in the April 4, 2026 10-Q. Nonetheless, management identifies exposure to commodity price volatility; Q2 U.S. lumber prices were approximately 9% higher year over year while panel prices were flat.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.81
- Gross margin
- 17.2%
- Operating margin
- 2.5%
- Segment
- Specialty products revenue: $564.140 million (69% of sales), up 3.8% year over year; gross margin: 20.0% versus 18.5%.
- Segment
- Structural products revenue: $249.937 million (31% of sales), up 5.6% year over year; gross margin: 10.9% versus 8.2%.
What they said about what is next.
The 10-Q provides no explicit revenue or EPS guidance. Management expects cash flow from operations, $318.0 million of cash and equivalents, and $336.8 million of revolver availability to fund requirements for at least the next 12 months; it estimates a fiscal-2026 annual effective tax rate of approximately 35%, excluding discrete items.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 5, 2026
- BlueLinx Holdings Inc. reported Q1 2026 results with a revenue increase to $731 million, surpassing estimates of $712.7 million, and an EPS of $0.21, significantly higher than the forecasted loss of $0.72. The increase…
- 10-K · February 24, 2026
- BlueLinx reported essentially flat full-year net sales of $2,954.0 million in fiscal 2025 (53 weeks) versus $2,952.5 million in fiscal 2024, while profitability deteriorated: gross profit fell to $451.6 million (gross…
- 10-Q · November 4, 2025
- BlueLinx reported Q3 net sales of $748.87M and diluted EPS of $0.20 for the three months ended September 27, 2025. Revenue was essentially flat year-over-year while gross margin and operating income contracted…
- 10-Q · July 30, 2024
- BlueLinx reported Q2 net sales of $768.4M, down 5.8% vs Q2 2023 ($815.97M), with gross profit of $122.4M (15.9% margin) and operating income of $23.8M (3.1% margin). GAAP diluted EPS was $1.65, down from $2.70 a year…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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