Building products distributor BlueLinx reported its 2025 first quarter financial results on April 29, showing a modest decline in year-over-year sales and gross margin that were attributed to challenging weather and market condition impacts.

The Atlanta-based company posted total 1Q sales of $709 million, down 2% year-over-year. Gross profit of $111 million fell 13%, while gross margin of 15.7% declined 190 basis points.

Sales of specialty products — which includes engineered wood, siding, millwork, outdoor living, specialty lumber and panels and industrial products — fell 4.9% year-over-year to $479 million, with the decrease attributed to price deflation driven by external market conditions alongside lower volumes for most categories. Gross margin of 18.7% fell 200 bps year-over-year.

BlueLinx noted that when excluding duty-related items for specialty products, company gross margin would have been 15.3%.

Sales of structural products — lumber, panels (plywood and oriented strand board), rebar and remesh — increased 3.3% year-over-year to $230 million, with the gain attributed to overall increases in lumber pricing and higher lumber and panel volumes, partially offset by panel price declines. Gross margin of 9.3% was down 130 bps year-over-year.

The company’s 1Q net profit of $2.8 million was a fraction of the $17.5 million of a year earlier, while adjusted EBITDA of $19.6 million on margin of 2.8% was essentially half of the $38.8 million/5.3% of a year earlier.

“Our first quarter results demonstrated our continued ability to drive profitable sales, despite challenging weather and market conditions,” BlueLinx President and CEO Shyam Reddy said in the company’s earnings release. “We are pleased with maintaining solid margins in both specialty products and structural products during the quarter. While current market conditions remain uncertain, we are well-positioned to benefit from an industry recovery given our strong balance sheet, ample liquidity and our continued success executing our long-term profitable sales growth strategy.”