BlueLinx : Q3 2023 BlueLinx Holdings Inc Earnings Conference Call Presentation

BlueLinx Q3 2023 Results

Delivering What Matters

November 1, 2023

© BlueLinx 2023. All Rights Reserved.	1

Safe Harbor Statement

This presentation contains forward-looking statements. Forward-looking statements include, without limitation, any statement that predicts, forecasts, indicates or implies future results, performance, liquidity levels or

achievements, and may contain the words "believe," "anticipate," "could", "expect," "estimate," "intend," "may", "project," "plan," "should", "will", "will be," "will likely continue," "will likely result"", "would" or words or

phrases of similar meaning.

The forward-looking statements in this presentation include statements about our confidence in the Company's long-term growth strategy; our ability to capitalize on supplier-led price increases and our value-added services; our areas of focus and management initiatives; the demand outlook for construction materials and expectations regarding new home construction, repair and remodel activity and continued investment in existing and new homes; our positioning for long-term value creation; our efforts and ability to generate profitable growth; our ability to increase net sales in specialty product categories; our ability to generate profits and cash from sales of specialty products; our multi-year capital allocation plans; our ability to manage volatility in wood-based commodities; our improvement in execution and productivity; our efforts and ability to maintain a disciplined capital structure and capital allocation strategy; our ability to maintain a strong balance sheet; our ability to focus on operating improvement initiatives and commercial excellence; constraints, volatility or disruptions in the capital markets or other factors affecting the amount and timing of share repurchases and whether or not the Company will continue, and the timing of, any open market repurchases.

Forward-looking statements in this presentation are based on estimates and assumptions made by our management that, although believed by us to be reasonable, are inherently uncertain. Forward-looking statements involve risks and uncertainties that may cause our business, strategy, or actual results to differ materially from the forward-looking statements. These risks and uncertainties include those discussed in greater detail in our filings with the Securities and Exchange Commission. We operate in a changing environment in which new risks can emerge from time to time. It is not possible for management to predict all of these risks, nor can it assess the extent to which any factor, or a combination of factors, may cause our business, strategy, or actual results to differ materially from those contained in forward-looking statements. Factors that may cause these differences include, among other things: pricing and product cost variability; volumes of product sold; competition; changes in the supply and/or demand for products that we distribute; the cyclical nature of the industry in which we operate; housing market conditions; consolidation among competitors, suppliers, and customers; disintermediation risk; loss of products or key suppliers and manufacturers; our dependence on international suppliers and manufacturers for certain products; potential acquisitions and the integration and completion of such acquisitions; business disruptions; effective inventory management relative to our sales volume or the prices of the products we distribute; information technology security risks and business interruption risks; the ability to attract, train, and retain highly qualified associates and other key personnel while controlling related labor costs; exposure to product liability and other claims and legal proceedings related to our business and the products we distribute; natural disasters, catastrophes, fire, wars, or other unexpected events; successful implementation of our strategy; wage increases or work stoppages by our union employees; costs imposed by federal, state, local, and other regulations; compliance costs associated with federal, state, and local environmental protection laws; costs associated with federal law and regulations regarding importation of products; the effect of global pandemics such as COVID-19 and other widespread public health crisis and their effects on our business ; fluctuations in our operating results; our level of indebtedness and our ability to incur additional debt to fund future needs; the covenants of the instruments governing our indebtedness limiting the discretion of our management in operating the business; the fact that we have consummated certain sale leaseback transactions with resulting long-termnon-cancelable leases, many of which are or will be finance leases; the fact that we lease many of our distribution centers, and we would still be obligated under these leases even if we close a leased distribution center; inability to raise funds necessary to finance a required repurchase of our senior secured notes; a lowering or withdrawal of debt ratings; changes in our product mix; increases in fuel and other energy prices; availability of third-part freight providers; changes in insurance- related deductible/retention reserves based on actual loss experience; the possibility that the value of our deferred tax assets could become impaired; changes in our expected annual effective tax rate could be volatile; changes in actuarial assumptions for our pension plan; the costs and liabilities related to our participation in multi-employer pension plans could increase; the risk that our cash flows and capital resources may be insufficient to service our existing or future indebtedness; variable interest rate risk under certain indebtedness changes in, or interpretation of, accounting principles; stock price fluctuations; the possibility that we could be the subject of securities class action litigation due to stock price volatility; possibility of unfavorable research about our business or industry or lack of coverage or reporting; activities of activist shareholders; and indebtedness terms that limit our ability to pay dividends on common stock.

Given these risks and uncertainties, we caution you not to place undue reliance on forward-looking statements. We expressly disclaim any obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as required by law.

Immaterial Rounding Differences. Immaterial rounding adjustments and differences may exist between slides, press releases, and previously issued presentations.

This presentation and the associated remarks made during this conference call are integrally related and are intended to be presented and understood together.

2

Opening

Remarks

Shyam Reddy

President & CEO

3

BLUELINX STRATEGIC PRIORITIES

Grow Specialty		Business
Categories		Excellence

▪	Engineered Wood		▪	Leverage our Scale/Nationwide
		Footprint
▪	Siding		▪	Customer/Supplier Partnerships
	Industrial Products
▪		▪	Pricing, Operational and
▪	Millwork			Procurement Discipline
▪	Outdoor Living		▪	Cost management
			▪	Technology Enablement

BlueLinx: Delivering What Matters

Capital

Allocation

• Maintain Strong Balance Sheet
• Reinvest in the business
• Disciplined M&A and geographic expansion
• Return to Shareholders

4

ExplosiveTHIRDprofitable growthQUARTERwith a highly engaged team2023 RESULTS

• Net sales of $810M, down 24% year-over-year
• • Prior year included benefit from elevated demand and higher commodity prices
• Gross profit of $139M, down 26% year-over-year
• • 17.2% of net sales
  • 80% of gross profit from specialty products
• Gross margin of 17.2%, down 70 bps year-over-year
• • 19.8% specialty gross margin
  • 11.3% structural gross margin
• Net income of $24M and Diluted EPS of $2.71; Adjusted Net income of $27M and Adjusted Diluted EPS of $2.98
• Adjusted EBITDA of $50M, or 6.2% of sales
• Generated operating cash of $78M
• • Free cash flow of $73M
  • Net leverage ratio of 0.5x

Note: see appendix for reconciliations to all non-GAAP measures

Q3 23 Sales by Product Category

	Structural
Specialty	Products
Products	31%
69%

Q3 23 Gross Profit by Product Category

Specialty

Products

80%

Structural

Products

20%

5

U.S. HOUSING INDUSTRY

• Home affordability under pressure
• • Mortgage rates remain at multi-year highs
  • Home price appreciation
  • Broad-basedinflation
• New home starts down year-over-year
• • Single-familyhousing starts are down year-over-year through the first nine months of 2023
  • September Builders' confidence at 45; second consecutive monthly decline(1)
• Repair and remodel rate of growth in 2023 slowing but remains positive(2)
• • Record home equity levels
  • Remote work flexibility still prevalent
  • Average age of existing homes ~40 years old(3)

BLUELINX SALES BY END MARKET

			New Home
Repair &	45%	40%	Construction
Remodel

15%

Commercial

Note: Management's estimate by end market for two-step

distribution of building materials

(1) Source: NAHB Housing Market Index (HMI) is based on a monthly survey of NAHB members designed to take the pulse of the single-family housing market. The survey asks respondents to rate market conditions for the sale of new homes at the present time and in the next six months as well as the traffic of prospective buyers of new homes

1. Source: Joint Center for Housing Studies at Harvard University. The Leading Indicator of Remodeling Activity (LIRA) provides a short-term outlook of national home improvement and repair spending to owner-occupied homes.
2. Source: American Community Survey completed in 2019

6

Financial

Review

Andy Wamser

Chief Financial Officer

7

THIRD QUARTER 2023 RESULTS

$ millions, except per share data	Q3	Q3 2023 vs.	Q3	Q3	Q3
2023	Q3 2022	2022	2021	2020
Net Sales	$810	(24%)	$1,061	$971	$871
Gross Profit	$139	(26%)	$189	$153	$159
Gross Margin %	17.2%	-70 bps	17.9%	15.8%	18.3%
Adjusted Net Income	$27	(56%)	$61	$48	$49
Adjusted Diluted
$2.98	(55%)	$6.56	$4.77	$5.07
Earnings per Share
Adjusted EBITDA	$50	(50%)	$100	$79	$81
Adjusted EBITDA %	6.2%	-320 bps	9.4%	8.1%	9.3%
Free Cash Flow	$73	(44%)	$130	$102	$61
Net Leverage	0.5x	(0.2x)	0.7x	1.3x	4.1x

Note: All comparisons versus the prior-year period unless otherwise noted; see Appendix for reconciliations for all non-GAAP figures

Q3 Commentary

• Net Sales decreased 24% to $810M
• • Specialty product sales down 23%
  • Structural product sales down 25%
• Gross Margin of 17.2%, down 70 bps
• Adjusted Diluted EPS of $2.98
• Adjusted EBITDA of $50M
• • Adjusted EBITDA margin of 6.2%
• Free Cash Flow of $73M
• • Cash Flow from Operations $78M
  • Capital Expenditures of $5M

8

SPECIALTY PRODUCTS Q3 2023 RESULTS

($ millions)

Q3 Commentary

• Net sales of $559M, down 23%
• • Driven by both price and volume
  • Specialty sales is 69% of total net sales
• Gross profit of $111M, down 27%
• • Specialty gross profit 80% of total gross profit
• Gross margin of 19.8%, down 110 bps
• • Highest level of the year

9

STRUCTURAL PRODUCTS Q3 2023 RESULTS

($ millions)

Q3 Commentary

• Net sales of $251M, down 25%
• • Lower year-over-year average pricing for commodities:
  • • 26% decrease in average price of lumber
    • 5% decrease in average price of panels
  • Lower volume
• Gross profit of $28M, down 25%
• • Structural gross profit 20% of total gross profit
• Gross margin of 11.3%, flat with prior year
• • Improved sequentially from Q2

10