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Jun 30, 2022
Builders FirstSource Q2 2022 Earnings Report
Reported record second quarter with net sales, gross margin, net income, and adjusted EBITDA.
Key Takeaways
Builders FirstSource reported a strong second quarter in 2022, marked by a 24.2% increase in net sales to $6.9 billion, driven by core organic growth, acquisitions, and commodity inflation. Net income increased by 98.5% to $987.2 million, and adjusted EBITDA rose by 80.3% to $1.5 billion.
Net sales increased by 24.2% to $6.9 billion, driven by double-digit core organic growth, acquisitions, and commodity inflation.
Net income grew by 98.5% to $1.0 billion, or $5.75 per diluted share.
Adjusted EBITDA increased by 80.3% to $1.5 billion.
The company repurchased 16.9 million shares of its common stock for $990.7 million.
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
The Company’s anticipated 2022 performance is based on several assumptions
Positive Outlook
- Market change across our geographies in single family starts down mid-single digits
- Multi-family starts to be up in the low double digits
- R&R projected to be up in the low to mid- single digits
- Acquisitions completed within the last twelve months are projected to add net sales growth of 6% to 7%
- Free cash flow in the range of $2.5 billion to $3.0 billion, assuming average commodity prices in the range of $700 to $1,000.
Challenges Ahead
- One fewer selling day in the fourth quarter of 2022 versus 2021 or approximately 0.3%.
- Depreciation and amortization expenses in the range of $460 million to $480 million, including approximately $180 million of amortization related to intangible assets acquired in the BMC merger. Total depreciation projected to be $190 million and total amortization projected to be $280 million for the full year 2022.
- Total capital expenditures in the range of $275 million to $325 million.
- Interest expense in the range of $175 million to $185 million.
- An effective tax rate between 23.0% to 25.0%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income