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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.
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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