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Jun 30, 2023
Builders FirstSource Q2 2023 Earnings Report
Builders FirstSource reported a decrease in net sales due to decline in core organic net sales and commodity deflation, but gross profit margin percentage increased due to stronger mix in value-added products.
Key Takeaways
Builders FirstSource reported a net sales decrease of 34.6% to $4.5 billion, driven by a decline in core organic net sales and commodity deflation. Net income decreased by 59.0% to $404.6 million, with earnings per diluted share at $3.16. Adjusted EBITDA decreased by 49.0% to $768.8 million, with a margin of 17.0%.
Net sales decreased by 34.6% to $4.5 billion, impacted by a 22.3% decline in core organic net sales and 16.2% commodity deflation.
Gross profit margin percentage increased 40 basis points to 35.2% due to a stronger mix in value-added products.
Net income decreased by 59.0% to $404.6 million, with diluted earnings per share of $3.16.
Adjusted EBITDA decreased by 49.0% to $768.8 million; adjusted EBITDA margin declined by 480 basis points to 17.0%.
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 2023, the Company expects net sales to be in a range of $16.8 billion to $17.8 billion, gross profit margin to be in a range of 33% to 35%, Adjusted EBITDA to be in a range of $2.6 billion to $2.9 billion and Adjusted EBITDA margin to be in a range of 15% to 17%.
Positive Outlook
- Net Sales to be in a range of $16.8 billion to $17.8 billion.
- Gross Profit margin to be in a range of 33% to 35%.
- Adjusted EBITDA to be in a range of $2.6 billion to $2.9 billion.
- Adjusted EBITDA margin to be in a range of 15% to 17%.
- Free cash flow in the range of $1.6 billion to $2.0 billion.
Challenges Ahead
- Single-Family starts are projected to be down high single-digits to low double-digits.
- Total capital expenditures in the range of $400 million to $450 million.
- Interest expense in the range of $185 million to $205 million.
- An effective tax rate of 23.0% to 25.0%.
- Depreciation and amortization expenses in the range of $550 million to $600 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income