BlueLinx : Q2 2023 BlueLinx Holdings Inc Earnings Conference Call Presentation

BlueLinx Q2 2023 Results

Delivering What Matters

August 2, 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; and whether or not the Company will continue any share 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; 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

Opening

Remarks

Shyam Reddy,

President & CEO

3

ExplosiveSECONDprofitable growthQUARTERwith a highly engaged team 2023 RESULTS

• Net sales of $816M, down 34% year-over-year
• • Prior year included significant benefit from both elevated demand and inflated commodity prices
• Gross profit of $136M, down 33% year-over-year
• • 16.6% of net sales
  • 80% of gross profit from specialty products
• Gross margin of 16.6%, up 30 bps year-over-year
• • 19.1% specialty gross margin
  • 11.0% structural gross margin
• Net income of $24M and Diluted EPS of $2.70; Adjusted Net income of $26M and Adjusted Diluted EPS of $2.91
• Adjusted EBITDA of $49M, or 6.0% of sales
• Generated operating cash of $64M
• • Free cash flow of $59M
  • Net leverage ratio of 0.6x

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

Q2 23 Sales by Product Category

Specialty	Structural
Products
Products	30%
70%

Q2 23 Gross Profit by Product Category

Specialty

Products

80%

Structural

Products

20%

4

SECOND QUARTER 2023 RESULTS

($ millions)

$1,308

$1,239

12.7%

Q2 23:

▪	Adjusted EBITDA margin of 6%
▪	Net leverage reduced to 0.6x from 0.9x

$699

4.5%

$816

9.1%

6.0%

Overall highlights:

Q2 20	Q2 21		Q2 22	Q2 23
		Net Sales		Adj EBITDA %
8.1x	1.5x		0.9x	0.6x

Net leverage

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

• Disciplined pricing approach supports strong specialty margin
• Rigorous commodity risk management
• Managing costs relative to market conditions

5