BlueLinx Holdings Inc.

Previous wording

This Quarterly Report on Form 10-Q (“Quarterly Report” or “Form 10-Q”) contains forward-looking statements. Forward-looking statements include, without limitation, any statements that predict, forecast, indicate or imply 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. Forward-looking statements 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. The forward-looking statements in this report include, without limitation, statements about anticipated effects of adopting certain accounting standards; estimated future annual amortization expense; estimates made in connection with revenue recognition; the expected outcome of legal proceedings; the expected outcome of government and regulatory proceedings; industry conditions; seasonality; liquidity and capital resources; our confidence in the Company’s long-term growth strategy; our areas of focus and management initiatives, including our business and digital transformation initiatives, and the success thereof; our plans and ability to enhance our facilities, fleet, and technology hardware; our ability to manage increases in fuel and other energy prices; 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 ability to successfully integrate the operations of Disdero, including our ability to strengthen and expand our premium specialty product offerings; or ability to effectively manage inventory; our ability to manage our lease commitments; our ability to negotiate collective bargaining agreements; 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.

Current wording

This Quarterly Report on Form 10-Q (“Quarterly Report” or “Form 10-Q”) contains forward-looking statements. Forward-looking statements include, without limitation, any statements that predict, forecast, indicate or imply 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. Forward-looking statements 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. The forward-looking statements in this report include, without limitation, statements about estimated future annual amortization expense; estimates made in connection with revenue recognition; the expected outcome of legal proceedings; the expected outcome of government and regulatory proceedings; our ability to manage uncertainty regarding tariffs on imported goods; estimates made in connection with financial exposure for various environmental and pollution control laws and regulations; industry conditions; seasonality; liquidity and capital resources; our confidence in the Company’s long-term growth strategy; our areas of focus and management initiatives, including our business and digital transformation initiatives, and the success thereof; our plans and ability to enhance our facilities, fleet, and technology hardware; our ability to manage increases in fuel and other energy prices; 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 ability to successfully integrate the operations of Disdero, including our ability to strengthen and expand our premium specialty product offerings; our ability to effectively manage inventory; our ability to manage our lease commitments; our ability to negotiate collective bargaining agreements; 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.

Previous wording

These risks and uncertainties also include those discussed under the heading “Risk Factors” in Part I, Item 1A of our 2025 Form 10-K, as supplemented by the risk factors disclosed in Part II, Item1A, “Risk Factors” in our Quarterly Report on Form 10-Q for the Quarterly Period ended April 4, 2026, and those risks and uncertainties discussed elsewhere in this Form 10-Q, and in future reports that we file with the SEC.

Current wording

These risks and uncertainties also include those discussed under the heading “Risk Factors” in Part I, Item 1A of our 2025 Form 10-K, as supplemented by the risk factors disclosed in Part II, Item 1A, “Risk Factors” in our Quarterly Report on Form 10-Q for the Quarterly Period ended April 4, 2026, and those risks and uncertainties discussed elsewhere in this Form 10-Q, and in future reports that we file with the SEC.

Previous wording

Grow our higher-margin specialty product categories. We continue to pursue a revenue mix weighted towards higher-margin, specialty product categories such as engineered wood products, siding, millwork, outdoor living products, specialty lumber and panels, and industrial products. Additionally, we are expanding our value-added service offerings designed to simplify complex customer sourcing requirements. Our acquisition of Disdero in the fourth quarter of fiscal 2025 enhanced our revenue mix by adding a significant number of new lines of premium specialty building materials, including decking, trim, flooring, paneling, posts, timbers, siding, and stepping, to our product offerings.

Current wording

Grow our higher-margin specialty product categories. We continue to pursue a revenue mix weighted towards higher-margin, specialty product categories such as engineered wood products, siding, millwork, outdoor living products, specialty lumber and panels, and industrial products. Additionally, we are expanding our value-added service offerings to enhance our customer service proposition. Our acquisition of Disdero in the fourth quarter of fiscal 2025 enhanced our revenue mix by adding a significant number of new lines of premium specialty building materials, including decking, trim, flooring, paneling, posts, timbers, siding, and stepping.

Previous wording

Increase share gain in local and national markets. We continue to pursue multi-family project growth, expand our product lines with key national accounts, expand branded product lines into new geographic markets, and launch new product lines. With our expanded product categories, and our strategic vendor relationships, we seek to be a better extension of our customers’ business in a scalable way.

Current wording

Increase share gain in local and national markets. We continue to pursue multi-family project growth, expand our product lines with key national accounts, expand branded product lines into new geographic markets, and expand SKU assortment with strategic suppliers. With our expanded product categories, and our strategic vendor relationships, we seek to be a better extension of our customers’ business in a scalable way.

Previous wording

Maintain a disciplined capital structure and pursue strategic investments that increase the value of our Company. We continue to strategically target acquisition opportunities that grow our higher-margin specialty products business, expand our geographic reach, or complement our existing capabilities. We also continue to evaluate and identify additional markets that are potential opportunities for new market development. We further seek to maintain a disciplined capital structure while at the same time investing in our business to modernize our distribution facilities, as well as our tractor and trailer fleet, and to improve operational performance. During the fiscal six months ended July 4, 2026, we:

Current wording

Maintain a disciplined capital structure and pursue strategic investments that increase the value of our Company. We continue to strategically target acquisition opportunities that grow our higher-margin specialty products business, expand our geographic reach, or complement our existing capabilities. We also continue to evaluate and identify additional markets that are potential opportunities for new market development. We further seek to maintain a disciplined capital structure while at the same time investing in our business to modernize our distribution facilities, as well as our tractor and trailer fleet, and to improve operational performance. During the fiscal nine months ended October 3, 2026, we:

Previous wording

•Added property & equipment consisting of purchased assets totaling $5.5 million plus assets obtained through finance leases totaling $4.6 million. In addition, we recognized right-of use assets totaling $6.4 million related to operating leases. These additions were used primarily to enhance our facilities, fleet, and technology hardware.

Current wording

•Added property & equipment consisting of purchased assets totaling $10.7 million plus assets obtained through finance leases totaling $5.9 million. In addition, we recognized right-of use assets totaling $7.1 million related to operating leases. These additions were used primarily to enhance our facilities, fleet, and technology hardware.

Previous wording

We have initiated a series of business and digital transformation actions focused on redesigning and optimizing key elements of our operating model to improve efficiency, execution, and operating leverage. These actions include business process‑driven initiatives and targeted digital investments intended to simplify operations, reduce complexity, and increase consistency across the enterprise. We have focused on improving organizational efficiency across corporate functions and field operations through process redesign, role clarity, increased standardization, and productivity improvements. In parallel, we are modernizing our logistics and commercial operating capabilities, including the implementation of an enterprise transportation management platform and the use of advanced analytics and artificial intelligence to enhance decision‑making, support optimization across pricing, procurement, and logistics, and improve inventory management and collections efficiency. Collectively, these actions are intended to improve execution consistency, enhance margin performance, strengthen operating leverage, and improve our ability to perform across cyclical market conditions.

Current wording

We have initiated a series of business and digital transformation actions focused on redesigning and optimizing key elements of our operating model to improve efficiency, execution, and operating leverage. We currently expect the one-time design and implementation efforts for these initiatives to last until 2028. These actions include business process‑driven initiatives and targeted digital investments intended to simplify operations, reduce complexity, and increase consistency across the enterprise. We have focused on improving organizational efficiency across corporate functions and field operations through process redesign, role clarity, increased standardization, and productivity improvements. In parallel, we are modernizing our logistics and commercial operating capabilities, including the implementation of an enterprise transportation management platform and the use of advanced analytics and artificial intelligence to enhance decision‑making, support optimization across pricing, procurement, and logistics, and improve inventory management and collections efficiency. Collectively, these actions are intended to improve execution consistency, enhance margin performance, strengthen operating leverage, and improve our ability to perform across cyclical market conditions. We believe that certain costs associated with these transformation initiatives, including third-party costs incurred to support the design and implementation of these initiatives, are not representative of our ongoing operating performance.

Previous wording

Our results of operations and financial performance are influenced by a variety of factors, including the following: adverse housing market conditions, including but not limited to housing starts, construction labor shortages, repair and remodel activity and commercial construction, foreclosure rates, interest rates, unemployment rates and job and wage growth rates, consumer debt levels, tightened availability or affordability of homeowner insurance coverage, and mortgage availability and pricing, as well as other consumer financing mechanisms, that ultimately affect demand for our products; consolidation among competitors, suppliers, and customers; escalating changes in retaliatory trade policies of the United States and other countries; disintermediation risk; our dependence on international suppliers and manufacturers for certain products and related exposure to risks of new or increased tariffs and other risks that could affect our financial condition; pricing and product cost variability; volumes of product sold; competition; the cyclical nature of the industry in which we operate; loss of products or key suppliers and manufacturers; information technology security risks and business interruption risks; effective inventory management relative to our sales volume or the prices of the products we produce; acquisitions and the integration and completion of such acquisitions; the success of management initiatives, including our business and digital transformation initiatives; the ability to attract, train, and retain highly qualified associates and other key personnel while controlling related labor costs; artificial intelligence cost increases; home center distribution disruption; business disruptions; exposure to liability, including product liability and other claims and legal proceedings related to our business, employee injuries, workers compensation claims, and the products we distribute; natural disasters, catastrophes, fire, wars or other unexpected events; the impacts of climate change; 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; changes in governmental rules and regulations or interpretations thereof; 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 potential to incur more debt; the fact that we have consummated certain sale leaseback transactions with resulting long-term non-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 necessa…

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Current wording

Our results of operations and financial performance are influenced by a variety of factors, including the following: adverse housing market conditions, including but not limited to housing starts, construction labor shortages, repair and remodel activity and commercial construction, foreclosure rates, interest rates, unemployment rates and job and wage growth rates, consumer debt levels, tightened availability or affordability of homeowner insurance coverage, and mortgage availability and pricing, as well as other consumer financing mechanisms, that ultimately affect demand for our products; information technology security risks and business interruption risks; consolidation among competitors, suppliers, and customers; escalating changes in retaliatory trade policies of the United States and other countries; our dependence on international suppliers and manufacturers for certain products and related exposure to risks of new or increased tariffs, antidumping and countervailing duties, and other risks that could affect our financial condition; pricing and product cost variability; volumes of product sold; competition; the cyclical nature of the industry in which we operate; loss of products or key suppliers and manufacturers; exposure to liability, including product liability and other claims and legal and regulatory proceedings related to our business, employee injuries, workers compensation claims, and the products we distribute; effective inventory management relative to our sales volume or the prices of the products we produce; acquisitions and the integration and completion of such acquisitions; the success of management initiatives, including our business and digital transformation initiatives; the ability to attract, train, and retain highly qualified associates and other key personnel while controlling related labor costs; increases in the cost of artificial intelligence and other technology tools; home center distribution disruption; business disruptions; natural disasters, catastrophes, fire, wars or other unexpected events; the impacts of climate change; 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; changes in governmental rules and regulations or interpretations thereof; 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 potential to incur more debt; the fact that we have consummated certain sale leaseback transactions with resulting long-term non-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 …

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Previous wording

Our results of operations for the fiscal six months ended July 4, 2026 (“YTD 2026 period” or “current YTD period”) and for the fiscal six months ended June 28, 2025 (“YTD 2025 period” or “prior YTD period”) were as follows:

Current wording

Our results of operations for the fiscal nine months ended October 3, 2026 (“YTD 2026 period” or “current YTD period”) and for the fiscal nine months ended September 27, 2025 (“YTD 2025 period” or “prior YTD period”) were as follows:

Previous wording

Fiscal Second Quarter of 2026 Compared to Fiscal Second Quarter of 2025

Current wording

Fiscal Third Quarter of 2026 Compared to Fiscal Third Quarter of 2025

Previous wording

For Q2 2026, the Company’s Net sales were $814.1 million, an increase of $34.0 million, or 4.4%, compared to Q2 2025.

Current wording

For Q3 2026, the Company’s Net sales were $812.6 million, an increase of $63.7 million, or 8.5%, compared to Q3 2025.

Previous wording

•The $34.0 million increase was attributable to both specialty products and structural products.

Current wording

•The $63.7 million increase was attributable to both specialty products and structural products.

Previous wording

•Approximately 69% and 70% of the Company’s Net sales in Q2 2026 and Q2 2025, respectively, were generated by specialty products.

Current wording

•Approximately 68% and 70% of the Company’s Net sales in Q3 2026 and Q3 2025, respectively, were generated by specialty products.

Previous wording

The Company’s Gross profit for Q2 2026 increased by $20.0 million, or 16.7%, to $139.7 million from $119.7 million in Q2 2025.

Current wording

The Company’s Gross profit for Q3 2026 increased by $22.8 million, or 21.0%, to $131.0 million from $108.2 million in Q3 2025.

Previous wording

•Approximately 81% of the Company’s Gross profit was generated by specialty products in Q2 2026, compared to 84% in Q2 2025.

Current wording

•Approximately 78% of the Company’s Gross profit was generated by specialty products in Q3 2026, compared to 81% in Q3 2025.

Previous wording

•The Company’s Cost of products sold for Q2 2026 included a benefit of $7.2 million for IEEPA tariff refunds. See Note 9, Commitments and Contingencies, to the accompanying unaudited condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

Current wording

•The Company’s Cost of products sold for Q3 2026 included a $2.2 million net benefit related to antidumping/countervailing (“AD/CV”) duties for certain imported specialty products. Cost of products sold for Q3 2026 also included an unusual provision of $2.9 million for discontinued inventory resulting from a strategic brand and vendor change for one of our key product lines. Cost of products sold for Q3 2025 included an additional $2.2 million of expense related to AD/CV duties. See Note 3, Inventory, to the accompanying unaudited condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

Previous wording

•The Company’s gross margin increased 190 basis points from 15.3% to 17.2% in Q2 2026, with both specialty products and structural products contributing to the increase. Disdero also increased the Company’s gross margin in the current quarter. The import duty-related item described above increased the Company’s gross margin by 90 basis points for Q2 2026.

Current wording

•The Company’s gross margin increased 170 basis points from 14.4% to 16.1% in Q3 2026, with both specialty products and structural products contributing to the increase. Disdero also contributed to the increase in the Company’s gross margin in the current quarter. The aforementioned AD/CV net benefit increased the Company’s gross margin by 30 basis points in the current quarter while the unusual inventory provision decreased the gross margin by 40 basis points. The aforementioned additional $2.2 million of expense related to AD/CV duties decreased the Company’s gross margin by 30 basis points for Q3 2025.

Previous wording

Specialty products - Net sales of specialty products, which include product types such as engineered wood, siding, millwork, outdoor living, specialty lumber and panels, and industrial products, increased by $20.7 million, or 3.8%, to $564.1 million in Q2 2026 compared to Q2 2025.

Current wording

Specialty products - Net sales of specialty products, which include product types such as engineered wood, siding, millwork, outdoor living, specialty lumber and panels, and industrial products, increased by $24.1 million, or 4.6%, to $549.6 million in Q3 2026 compared to Q3 2025.

Previous wording

•Specialty products’ Gross profit increased by $12.3 million, or 12.3%, to $112.6 million in Q2 2026 compared to Q2 2025. This increase in Gross profit for specialty products was primarily due to Disdero and the aforementioned $7.2 million of IEEPA tariff refunds.

Current wording

•Specialty products’ Gross profit increased by $15.3 million, or 17.6%, to $102.7 million in Q3 2026 compared to Q3 2025. This increase in Gross profit for specialty products was primarily due to Disdero and margin expansions on several other key product types. The aforementioned AD/CV net benefit of $2.2 million increased Gross profit for specialty products, while the $2.9 million unusual inventory provision decreased Gross profit in the current quarter. The aforementioned cost related to the AD/CV duties lowered Gross profit for specialty products by $2.2 million in Q3 2025.

Previous wording

Structural products - Net sales of structural products, which include product types such as lumber, panels (including plywood and oriented strand board), rebar, and remesh, increased by $13.3 million, or 5.6%, to $249.9 million in Q2 2026 compared to $236.6 million in Q2 2025.

Current wording

Structural products - Net sales of structural products, which include product types such as lumber, panels (including plywood and oriented strand board), rebar, and remesh, increased by $39.6 million, or 17.7%, to $263.1 million in Q3 2026 compared to $223.4 million in Q3 2025.

Previous wording

•The overall increase in Net sales for structural products in the current quarter was due to increases in pricing and volumes for lumber, partially offset by volume declines in panels.

Current wording

•The overall increase in Net sales for structural products in the current quarter was due to increases in pricing and volumes for all product types.

Previous wording

•Compared to Q2 2025, average commodity prices in U.S. markets for Q2 2026 were up approximately 9% for lumber and flat for panels.

Current wording

•Compared to Q3 2025, average commodity prices in U.S. markets for Q3 2026 were up approximately 24% for lumber and 15% for panels.

Previous wording

•Structural products’ Gross profit increased overall by $7.7 million, or 39.8%, to $27.1 million in Q2 2026 from $19.4 million in Q2 2025 due to primarily to price and volume increases for lumber.

Current wording

•Structural products’ Gross profit increased overall by $7.4 million, or 35.6%, to $28.3 million in Q3 2026 from $20.8 million in Q3 2025 due primarily to price and volume increases for all product types.

Previous wording

•Structural products’ gross margin for Q2 2026 was 10.9% compared to 8.2% in Q2 2025 due to margin expansion for both lumber and panels.

Current wording

•Structural products’ gross margin for Q3 2026 was 10.7% compared to 9.3% in Q3 2025 due to margin rate expansion for all product types.

Previous wording

Our Selling, general, and administrative (“SG&A”) expenses increased by $12.1 million, or 12.7% in Q2 2026 compared to Q2 2025. This overall increase in the current quarter was due primarily to Disdero, fuel expenses, third-party freight expenses, and employee-related expenses.

Current wording

Our Selling, general, and administrative (“SG&A”) expenses increased by $16.6 million, or 18.6% in Q3 2026 compared to Q3 2025. This overall increase in the current quarter was due primarily to Disdero, third-party freight expenses, fuel expense, and employee-related expenses.

Previous wording

Depreciation and amortization expense increased by $1.7 million, or 17.2% in Q2 2026 compared to Q2 2025 due to a higher base of depreciable assets, including facility improvements, fleet enhancements, and technology upgrades, and finite-lived intangible assets from the Disdero acquisition. Our depreciation expense includes depreciation for owned assets and assets under finance leases.

Current wording

Depreciation and amortization expense increased by $1.9 million, or 19.9% in Q3 2026 compared to Q3 2025 due to a higher base of depreciable assets, including facility improvements, technology upgrades, and fleet enhancements, and finite-lived intangible assets from the Disdero acquisition. Our depreciation expense includes depreciation for owned assets and assets under finance leases.

Previous wording

Other operating, net for Q2 2026 was a net expense of $1.2 million and was composed mainly of professional services fees related to our business and digital transformation initiatives.

Current wording

Other operating, net for Q3 2026 was a net expense of $2.5 million and was composed mainly of external consulting expenses related to our business and digital transformation initiatives.

Previous wording

Interest expense, net, which includes gross interest expense less gross interest income, was $9.4 million and $8.5 million in Q2 2026 and Q2 2025, respectively, resulting in an increase in net interest expense of $0.9 million in the current quarter.

Current wording

Interest expense, net, which includes gross interest expense less gross interest income, was $9.5 million and $8.6 million in Q3 2026 and Q3 2025, respectively, resulting in an increase in net interest expense of $0.9 million in the current quarter.

Previous wording

•Gross interest income was $2.9 million and $4.2 million for Q2 2026 and Q2 2025, respectively. This decrease in the current quarter was due primarily to lower average balances for interest-bearing deposits of cash/cash equivalents and due to lower interest rates paid on those deposits in the current quarter.

Current wording

•Gross interest income was $2.9 million and $3.9 million for Q3 2026 and Q3 2025, respectively. This decrease in the current quarter was due primarily to lower average balances for interest-bearing deposits of cash and cash equivalents and due to lower interest rates paid on those deposits in the current quarter.

Previous wording

For fiscal 2026, we currently estimate that our annual effective income tax rate will be approximately 35%, excluding discrete items. This estimate reflects nondeductible items and includes certain franchise taxes that are classified as income taxes under the provisions of ASC 740, Income Taxes. We recognized an income tax provision of $4.8 million for Q2 2026, resulting in an effective income tax rate of 42.9% that reflects discrete items. For Q2 2025, we recognized income tax expense of $2.3 million, resulting in an effective income tax rate of 34.5% for the quarter. The effective income tax rates for both quarterly fiscal periods were impacted by the permanent addback to taxable income of certain nondeductible expenses, including meals and entertainment and certain employee compensation, as well as excess tax benefits or expenses realized from settlements of share-based compensation grants. The Company’s effective income tax rates will differ from the statutory rates by such items.

Current wording

Our effective income tax rates for both quarterly fiscal periods were impacted by the permanent addback to taxable income of certain nondeductible expenses, including certain employee compensation, meals and entertainment, as well as discrete items such as excess tax benefits or expenses realized from settlements of share-based compensation grants. The Company’s effective income tax rates will differ from the statutory rates by such items. We recognized an income tax provision of $3.0 million for Q3 2026, resulting in an effective income tax rate of 126.6% that reflects discrete items. For Q3 2025, we recognized income tax benefit of $0.3 million, resulting in an effective income tax benefit rate of 21.4% for the quarter, which reflects discrete items.

Previous wording

Our Net income for Q2 2026 was $6.4 million, or $0.81 earnings per diluted share, versus $4.3 million, or $0.54 per diluted share, for Q2 2025. These increases in the current period were due primarily to the factors previously discussed in this comparison of Q2 2026 to Q2 2025.

Current wording

Our Net loss for Q3 2026 was $0.6 million, or $0.07 loss per basic and diluted share, versus Net income of $1.7 million, or $0.20 earnings per basic and diluted share, for Q3 2025. These decreases in the current period were due primarily to the factors previously discussed in this comparison of Q3 2026 to Q3 2025.

Previous wording

First Six Months of Fiscal 2026 Compared to First Six Months of Fiscal 2025

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First Nine Months of Fiscal 2026 Compared to First Nine Months of Fiscal 2025

Previous wording

For the YTD 2026 period, the Company’s Net sales were $1.55 billion, an increase of $55.9 million, or 3.8%, compared to Net sales of $1.49 billion in the YTD 2025 period.

Current wording

For the YTD 2026 period, the Company’s Net sales were $2.36 billion, an increase of $119.6 million, or 5.3%, compared to Net sales of $2.24 billion in the YTD 2025 period.

Previous wording

The Company’s Gross profit for the YTD 2026 period increased by $25.3 million, or 11.0%, to $256.1 million from $230.8 million in the YTD 2025 period.

Current wording

The Company’s Gross profit for the YTD 2026 period increased by $48.1 million, or 14.2%, to $387.1 million from $339.0 million in the YTD 2025 period.

Previous wording

•The Company’s gross margin was 16.6% for the YTD 2026 period, an increase from the 15.5% for the YTD 2025 period. Both specialty products and structural products contributed to this increase. The import duty-related items noted below increased the Company’s gross margin by 50 basis points and 20 basis points for the YTD 2026 period and the YTD 2025 period, respectively.

Current wording

•The Company’s gross margin was 16.4% for the YTD 2026 period, an increase from the 15.1% for the YTD 2025 period. Both specialty products and structural products contributed to this increase. The import duty-related items noted below increased the Company’s gross margin by 40 basis points for the YTD 2026 period. The net impact of import duty-related items for the YTD 2025 period was not material.

Previous wording

•We benefited in the YTD 2026 period and in the YTD 2025 period by $7.2 million and $2.4 million, respectively, for import duty-related items. These items reduced the Company’s Cost of products sold and benefited the results of specialty products for the respective periods. For the YTD 2026 period import duty-related item, see Note 9, Commitments and Contingencies, and for the YTD 2025 period import duty-related item, see Note 3, Inventory, to the accompanying unaudited condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

Current wording

•We benefited in the YTD 2026 period by $9.4 million for import duty-related items that reduced the Company’s Cost of products sold and benefited the results of specialty products. We also recognized an unusual provision of $2.9 million in the YTD 2026 period for discontinued inventory resulting from a strategic brand and vendor change for one of our key product lines; this provision increased the Company’s Cost of products sold and impacted specialty products. See Note 9, Commitments and Contingencies, and Note 3, Inventory, to the accompanying unaudited condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

Previous wording

Specialty products - Net sales of specialty products, which include product types such as engineered wood, siding, millwork, outdoor living, specialty lumber and panels, and industrial products, increased by $53.1 million, or 5.2%, to $1.08 billion in the YTD 2026 period.

Current wording

Specialty products - Net sales of specialty products, which include product types such as engineered wood, siding, millwork, outdoor living, specialty lumber and panels, and industrial products, increased by $77.2 million, or 5.0%, to $1.63 billion in the YTD 2026 period.

Previous wording

•The increase in Net sales for specialty products in the YTD 2026 period was due to overall higher pricing and the inclusion of the Net Sales of Disdero. The increase in pricing was in response to price increases from key vendors and the inflationary impacts on the cost of operating our business.

Current wording

•The increase in Net sales for specialty products in the YTD 2026 period was due to the acquisition of Disdero and overall higher pricing, partially offset by lower volumes. The increase in pricing was in response to price increases from key vendors and the inflationary impacts on the cost of operating our business.

Previous wording

•Specialty products’ Gross profit increased by $15.1 million, or 7.9%, to $205.1 million in the YTD 2026 period compared to the YTD 2025 period due primarily to inclusion of Disdero’s results and the import duty-related items noted above.

Current wording

•Specialty products’ Gross profit increased by $30.4 million, or 11.0%, to $307.8 million in the YTD 2026 period compared to the YTD 2025 period due primarily to inclusion of Disdero’s results and the import duty-related items noted above. This overall increase in Gross profit for specialty products in the YTD 2026 period was partially offset by the aforementioned $2.9 million unusual inventory provision.

Previous wording

•The net impacts of the aforementioned import duty-related items increased specialty products gross margin by 70 basis points and 30 basis points for the YTD 2026 period and the YTD 2025 period, respectively.

Current wording

•Specialty products’ gross margin increased 100 basis points to 18.9% for the YTD 2026 period compared to 17.9% in the YTD 2025 period, due primarily to the import duty-related items noted above and the inclusion of Disdero’s results. The net impacts of the aforementioned import duty-related items increased specialty products gross margin by 50 basis points for the YTD 2026 period while the unusual inventory provision reduced specialty products’ gross margin by 20 basis points for the YTD 2026 period.