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Mar 31, 2024
Builders FirstSource Q1 2024 Earnings Report
Builders FirstSource reported a slight increase in net sales, but experienced declines in gross profit, net income, and adjusted EBITDA due to product mix, margin normalization, and higher operating expenses from acquisitions.
Key Takeaways
Builders FirstSource reported a slight increase in net sales for Q1 2024, but experienced declines in gross profit, net income, and adjusted EBITDA. The company reaffirmed its 2024 guidance, expecting net sales between $17.5 billion and $18.5 billion, and adjusted EBITDA between $2.4 billion and $2.8 billion.
Net sales increased by 0.2% to $3.9 billion, with core organic sales essentially flat.
Gross profit margin decreased by 190 basis points to 33.4%, driven by product mix and margin normalization.
Net income decreased by 22.5% to $258.8 million, or $2.10 per diluted share.
Adjusted EBITDA decreased by 14.4% to $540.9 million, with adjusted EBITDA margin declining to 13.9%.
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 2024, the Company expects net sales to be in the range of $17.5 billion to $18.5 billion and Adjusted EBITDA to be in the range of $2.4 billion to $2.8 billion.
Positive Outlook
- Net Sales to be in a range of $17.5 billion to $18.5 billion.
- Gross Profit margin to be in a range of 30% to 33%.
- Adjusted EBITDA to be in a range of $2.4 billion to $2.8 billion.
- Adjusted EBITDA margin to be in a range of 14.0% to 15.0%.
- Free cash flow in the range of $1.0 billion to $1.2 billion, assuming average commodity prices in the range of $400 to $440 per thousand board feet (mbf).
Challenges Ahead
- Single-Family starts are projected to be up mid-single digits within the Company’s geographies.
- Multi-Family starts down 20% to 30% within the Company’s geographies.
- R&R up low single digits within the Company’s geographies.
- Acquisitions completed within the last twelve months are projected to add net sales growth of 1% to 1.5%.
- Interest expense in the range of $205 million to $215 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income