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Mar 31, 2021
Builders FirstSource Q1 2021 Earnings Report
Builders FirstSource reported record results in Q1 2021 driven by the merger with BMC, commodity inflation, and strong organic growth.
Key Takeaways
Builders FirstSource reported a significant increase in net sales, gross profit, and adjusted EBITDA compared to the previous year. The company's performance was driven by the merger with BMC, commodity inflation, and strong organic growth, particularly in the single-family residential housing market.
Net sales increased by 133.6% to $4.2 billion due to the BMC merger, commodity inflation, and organic growth.
Gross profit rose by 129.8% to $1.1 billion, also driven by the BMC merger, commodity inflation and organic growth.
Adjusted EBITDA increased by 186.8% to $455.2 million, fueled by strong demand, commodity values, and cost management.
Adjusted EBITDA margin improved by 500 basis points to 10.9%.
Builders FirstSource
Builders FirstSource
Builders FirstSource Revenue by Segment
Revenue by Segment
Manufactured products Revenue
CapyFin.comWindows, doors & millwork Revenue
CapyFin.comLumber & sheet goods Revenue
CapyFin.com Forward Guidance
For 2021, the Company expects significant improvement in its financial performance.
Positive Outlook
- Net sales to grow to a range of $16.0 billion to $17.0 billion or approximately 25% to 33% over 2020 combined pro forma net sales of $12.8 billion.
- Adjusted EBITDA to be in a range of $1.75 billion to $1.85 billion or approximately 64% to 73% over 2020 combined pro forma Adjusted EBITDA of $1.07 billion.
- Expected realized cost savings of $60 million to $70 million
- Free cash flow in the range of $1.3 billion to $1.5 billion
- Single family starts percentage growth across our geographies in the low double digits
Challenges Ahead
- multi-family starts percentage decline in the high single to low double digits
- R&R growth in the low to mid-single digits.
- Commodity price appreciation of 10% to 20% compared to the prior year
- Recently completed acquisitions net sales growth of 2%
- 2 fewer selling day in 2021 versus 2020 or approximately 1%
Revenue & Expenses
Visualization of income flow from segment revenue to net income