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Jun 30, 2020
Builders FirstSource Q2 2020 Earnings Report
Builders FirstSource achieved record profitability driven by focused execution and strong housing fundamentals.
Key Takeaways
Builders FirstSource reported a 2.2% increase in net sales to $1.9 billion, with adjusted EBITDA rising by 11.2% to a record $162 million. Net income was $78.9 million, or $0.67 per diluted share, and the company reduced its net leverage ratio to 2.3x.
Net sales increased by 2.2% compared to the prior year period.
Adjusted EBITDA increased 11.2% to a record $162 million, or 8.3% of net sales.
Net income reached $78.9 million, or $0.67 per diluted share.
The company's net debt to Adjusted EBITDA ratio stood at 2.3x with liquidity of $1.2 billion.
Builders FirstSource
Builders FirstSource
Forward Guidance
Builders FirstSource is focusing on disciplined cost management and efficiently meeting customer demand, while managing commodity inflation and generating additional cash flow in the third quarter.
Positive Outlook
- Positive overall homebuilding environment.
- Supported by tailwinds and rising demand.
- Focusing efforts on disciplined cost management.
- Working to efficiently meet customer demand.
- Well-positioned to execute on value-enhancing growth opportunities.
Challenges Ahead
- Manage the impact of accelerating commodity inflation.
- Business disruptions outside of our control related to the COVID-19 pandemic.
- Revenues and operating results being highly dependent on, among other things, the homebuilding industry.
- Lumber prices and the economy.
- The Company’s growth strategies, including gaining market share