BlueLinx Holdings Inc. Q4 FY2024 earnings call

• 2024 Highlights: Delivered solid full-year results despite housing market headwinds. Specialty product gross margins were 19.4% and structural products' were 10.1% for the year. • Fourth Quarter Results: Solid with specialty and structural gross margins at 18.4% and 10.8% respectively. Specialty product volumes up low single digits year over year. • Product Categories: Focus on five key high-margin specialty product categories, which accounted for 70% of net sales and 80% of gross profit. • Digital Transformation: Phase one includes new master data management platform, live e-commerce pilot, and transportation management system to be fully implemented by Q3 2025. • Greenfield Project: Announced greenfield in Portland, Oregon, with upfront cash investment <$5 million, EBITDA positive after two years, and net sales between $40 million and $100 million at maturity. • Financial Position: Strong liquidity of $852 million at year end, continued share repurchases under $100 million authorization.

For the full year 2024, specialty product gross margins were 19.4% and structural products' gross margins were 10.1%. In the fourth quarter, specialty product net sales were $484 million, down 1% year over year, with a gross margin of 18.4%. Structural product net sales were $227 million, up 1% year over year, with a gross margin of 10.8%. Specialty products accounted for approximately 70% of net sales and 80% of gross profit for both the fourth quarter and full year 2024.

• 2025 First Seven Weeks: Specialty margins generally in line with Q4 2024, structural margins slightly lower due to declining panel prices. • Greenfield: Upfront cash investment <$5 million, EBITDA positive after two years, EBITDA margins 6%-10%, net sales $40M-$100M at maturity. • 2025 Capital Expenditure: Expected around $40 million, with digital transformation related operating expenses ~$5 million. • Tax Rate: Q1 2025 anticipated to be in the 24%-28% range.

• Housing Market: Elevated high mortgage rates, record home prices, low existing housing sales backdrop, home affordability issues, and market volatility due to tariff and other policy announcements. • Weather Impact: Extreme weather patterns adversely impacted daily volumes. • Pricing Volatility: Specialty pricing volatility due to political backdrop, inflationary pressures. • Economic Uncertainty: Tempering outlook volumes.

Q: Jeffrey Stevenson asked about specialty product pricing sequential improvement, R&R demand expectations, and e-commerce platform ramp-up timeline.

A: Shyam Reddy responded on specialty pricing strategy, focus on national accounts for R&R, and e-commerce being a multi-year journey with pilot and scaling.

Q: Greg Palm inquired about Greenfields ramp-up and cadence.

A: Shyam Reddy discussed Portland greenfield challenges, ramp-up timeline, and real estate as a constraint.

Q: Kurt Yinger asked about structural strategy with tariffs and Portland facility vendor commitments.

A: Shyam Reddy talked about tariff impact on spending, and Portland facility foundation for growth.

Q: Reuben Garner questioned Greenfield strategic shift, Southern Yellow Pine demand, and multifamily business growth.

A: Shyam Reddy explained greenfield strategy with specialty focus, Southern Yellow Pine demand uncertainty, and multifamily growth through team, channels, and CapEx.