Bluelinx Q3 sales rise on Disdero Lumber growth and higher pricing
Overview
U.S. building products distributor's fiscal Q3 sales rose 8.5%, a slight miss versus analyst expectations
Adjusted net income and adjusted EBITDA for fiscal Q3 both beat analyst estimates
Company posted a small net loss due to higher SG&A and an unusual inventory provision
Outlook
Bluelinx expects Q4 specialty product gross margin between 17.5% and 18.5%
Company sees Q4 structural product gross margin between 9.0% and 10.0%
Bluelinx expects Q4 average daily sales volumes to be slightly lower than Q4 2025 and Q3 2026
Result Drivers
SPECIALTY PRODUCTS - Co said specialty product sales rose due to Disdero Lumber sales and higher pricing, partially offset by lower volumes
STRUCTURAL PRODUCTS - Co said structural product sales increased due to higher pricing and volumes for lumber and panels
UNUSUAL INVENTORY PROVISION - Co recorded a $2.9 mln inventory provision for discontinued inventory from a strategic brand and vendor change
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Slight Miss* | $812.6 mln | $814.17 mln (4 Analysts) |
Q3 Adjusted Net Income | Beat | $5.50 mln | $4.74 mln (3 Analysts) |
Q3 Net Loss | $625,000 | ||
Q3 Adjusted EBITDA | Beat | $31.70 mln | $26.48 mln (4 Analysts) |
Q3 Free Cash Flow | $39.60 mln | ||
Q3 Gross Profit | $131 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the construction supplies & fixtures peer group is "buy"
Wall Street's median 12-month price target for BlueLinx Holdings Inc. is $84.00, about 6.7% above its November 2 closing price of $78.74
The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 38 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)