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Sep 30, 2022
Builders FirstSource Q3 2022 Earnings Report
Builders FirstSource's Q3 2022 performance was marked by increased net sales, net income, and adjusted EBITDA, driven by organic growth and strategic acquisitions.
Key Takeaways
Builders FirstSource reported a 4.6% increase in net sales to $5.8 billion, driven by core organic growth and acquisitions. Net income increased by 20.4% to $738.0 million, with earnings per diluted share rising to $4.72. Adjusted EBITDA also saw a substantial increase of 20.1% to $1.2 billion.
Net sales increased by 4.6% to $5.8 billion, driven by core organic growth and acquisitions.
Net income grew by 20.4% to $0.7 billion, or $4.72 per diluted share.
Adjusted EBITDA increased by 20.1% to a record $1.2 billion, driven by net sales growth and a higher mix of sales from value-added product categories.
The company repurchased 11.2 million shares of its common stock for $658.2 million.
Revenue by Segment
Forward Guidance
For 2022, the Company expects net sales to grow to a range of $22.5 billion to $23.0 billion and Adjusted EBITDA to be in a range of $4.2 billion to $4.4 billion.
Positive Outlook
- Net sales to grow to a range of $22.5 billion to $23.0 billion, or approximately 13% to 16% over 2021 sales of $19.9 billion.
- Adjusted EBITDA to be in a range of $4.2 billion to $4.4 billion, or approximately 35% to 42% over 2021 Adjusted EBITDA of $3.1 billion.
- Adjusted EBITDA margin to be in a range of 18.5% to 19.5%, or approximately 310 to 410 basis points over the 2021 Adjusted EBITDA margin of 15.4%.
- Acquisitions completed within the last twelve months are projected to add net sales growth of 7% to 8%.
- Free cash flow in the range of $3.1 billion to $3.3 billion, assuming average commodity prices in the range of $750 to $850 mbf.
Challenges Ahead
- Within the Company’s geographies, single family starts are projected to be down low double-digits.
- Two less selling days in the fourth quarter of 2022 versus 2021, or approximately 0.7%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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