0001628280-26-030607
SEC filingMixed Q1: revenue and gross profit grew on specialty volume gains, but operating income fell sharply and net income turned negative due to higher SG&A, depreciation, and interest expense.
Revenue for the first quarter of fiscal 2026 increased 3.1% to $731.1 million compared to $709.2 million in the prior year period. The growth was driven by higher volumes in specialty products across all categories, partially offset by lower pricing for structural products, particularly panels and lumber. Gross profit increased 4.7% to $116.4 million, with gross margin expanding to 15.9% from 15.7%, reflecting a favorable shift toward specialty products and the contribution from the Disdero acquisition.
Net income swung to a loss of $1.5 million compared to income of $2.8 million in the prior year. Diluted loss per share was $0.18 versus earnings per share of $0.33. The change was primarily due to higher net interest expense and the absence of prior-year insurance gains, which more than offset the gross profit increase.
Net cash used in operating activities was $57.2 million, compared to $33.9 million in the prior year, reflecting increased working capital investment in receivables and inventory. Capital expenditures decreased to $2.6 million from $5.9 million. Free cash flow was negative $59.8 million.
The company expects continued cyclicality in its results due to factors such as pricing volatility, competitive pressures, and demand fluctuations. The goodwill from the Disdero acquisition is expected to be tax deductible.