Loading...
•
Jun 30, 2024
Builders FirstSource Q2 2024 Earnings Report
Builders FirstSource's financial performance decreased in Q2 2024 due to market headwinds and normalization, but maintained a mid-teens EBITDA margin.
Key Takeaways
Builders FirstSource reported a slight decrease in net sales and a decline in gross profit margin, net income, and adjusted EBITDA for Q2 2024. The company's performance was impacted by a decrease in core organic sales, particularly in the Multi-Family segment, but was partially offset by growth from acquisitions and Single Family. Despite these challenges, the company maintained a mid-teens EBITDA margin and generated strong free cash flow.
Net sales decreased by 1.6% to $4.5 billion, with core organic sales down 3.8%.
Gross profit margin decreased by 240 basis points to 32.8%.
Net income decreased by 15.0% to $344.1 million, or $2.87 per diluted share.
Adjusted EBITDA decreased by 12.9% to $669.7 million, with adjusted EBITDA margin declining by 200 basis points to 15.0%.
Revenue by Segment
Forward Guidance
For 2024, the Company expects net sales to be in a range of $16.4 billion to $17.2 billion, gross profit margin to be in a range of 31.5% to 32.5%, adjusted EBITDA to be in a range of $2.2 billion to $2.4 billion, adjusted EBITDA margin to be in a range of 13.4% to 14.0%, and free cash flow in the range of $1.0 billion to $1.2 billion.
Positive Outlook
- Net Sales to be in a range of $16.4 billion to $17.2 billion.
- Gross Profit margin to be in a range of 31.5% to 32.5%.
- Adjusted EBITDA to be in a range of $2.2 billion to $2.4 billion.
- Adjusted EBITDA margin to be in a range of 13.4% to 14.0%.
- Free cash flow in the range of $1.0 billion to $1.2 billion.
Challenges Ahead
- Single-Family starts are projected to be up low-single digits.
- Multi-Family starts down 25% to 30%.
- R&R flat to the prior year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...