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Builders FirstSource
🇺🇸 NYSE:BLDR
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•
Sep 30, 2021

Builders FirstSource Q3 2021 Earnings Report

Achieved record results, driven by the merger with BMC, commodity inflation, and strong organic growth.

Key Takeaways

Builders FirstSource reported record third-quarter results, driven by the merger with BMC, commodity inflation, and strong organic growth. Net sales increased by 62.7% to $5.5 billion, gross profit increased by 102.9% to $1.7 billion, and adjusted EBITDA increased by 244.4% to $975.9 million. The adjusted EBITDA margin also saw a significant increase of 930 basis points, reaching 17.7%.

Net sales increased 62.7% to $5.5 billion.

Gross profit increased 102.9% to $1.7 billion.

Adjusted EBITDA increased 244.4% to $975.9 million.

Adjusted EBITDA margin increased 930 basis points to 17.7%.

Total Revenue
$5.51B
Previous year: $2.3B
+140.0%
EPS
$3.39
Previous year: $0.82
+313.4%
Gross Margin
31.1%
Previous year: 24.9%
+24.9%
Adjusted EBITDA
$976M
Previous year: $184M
+429.5%
Adjusted EBITDA Margin
17.7%
Previous year: 8%
+121.2%
Gross Profit
$1.7B
Previous year: $571M
+197.9%
Cash and Equivalents
$225M
Previous year: $341M
-34.1%
Free Cash Flow
$1.1B
Previous year: -$43.4M
-2632.3%
Total Assets
$10.8B
Previous year: $4.01B
+169.2%

Builders FirstSource

Builders FirstSource

Builders FirstSource Revenue by Segment

Forward Guidance

The Company expects significant improvement in its financial performance compared to 2020. Net sales to grow to a range of $19.3 billion to $19.8 billion. Adjusted EBITDA to be in a range of $2.85 billion to $2.95 billion. Expected BMC merger integration realized cost savings of $90 million to $110 million. Free cash flow in the range of $1.8 billion to $2.0 billion.

Positive Outlook

  • Net sales to grow to a range of $19.3 billion to $19.8 billion or approximately 51% to 55% over 2020 combined pro forma net sales of $12.8 billion.
  • Adjusted EBITDA to be in a range of $2.85 billion to $2.95 billion or approximately 166% to 176% over 2020 combined pro forma Adjusted EBITDA of $1.07 billion.
  • Expected BMC merger integration realized cost savings of $90 million to $110 million.
  • Free cash flow in the range of $1.8 billion to $2.0 billion.
  • Recently completed acquisitions projected to add net sales growth of 5% to 6%.

Challenges Ahead

  • Single family starts percentage growth across our geographies in the mid teens.
  • Multi-family starts percentage increase in the high single digits.
  • R&R growth in the low single digits.
  • Commodity price appreciation of 25% to 29% compared to the prior year.
  • Two fewer selling days in 2021 versus 2020 or approximately 1%.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View Builders FirstSource