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Sep 30, 2023
Builders FirstSource Q3 2023 Earnings Report
Builders FirstSource's third quarter performance was impacted by a weaker housing market and commodity deflation, but acquisitions and operational initiatives partially offset these challenges.
Key Takeaways
Builders FirstSource reported net sales of $4.5 billion, a decrease of 21.3%, and net income of $451.5 million for Q3 2023. Despite market headwinds, the company focused on customer service, product mix, and digital tools to drive long-term growth.
Net sales decreased by 21.3% to $4.5 billion due to a weaker housing market and commodity deflation.
Net income decreased 38.8% to $451.5 million, with earnings per diluted share at $3.59.
Adjusted EBITDA decreased 30.6% to $813.3 million, with a margin of 17.9%.
The company repurchased 1.7 million shares in Q3 and $1.6 billion year-to-date.
Revenue by Segment
Forward Guidance
For 2023, Builders FirstSource expects net sales to be in the range of $16.8 billion to $17.1 billion and adjusted EBITDA to be in the range of $2.7 billion to $2.8 billion.
Positive Outlook
- Net Sales to be in a range of $16.8 billion to $17.1 billion.
- Gross Profit margin to be in a range of 34% to 35%.
- Adjusted EBITDA to be in a range of $2.7 billion to $2.8 billion.
- Adjusted EBITDA margin to be in a range of 15.8% to 16.7%.
- Multi-Family starts up low double-digits
Challenges Ahead
- Single-Family starts are projected to be down low double-digits to high single-digits
- Total capital expenditures in the range of $400 million to $450 million.
- Free cash flow in the range of $1.8 billion to $2.0 billion, assuming average commodity prices in the range of $400 to $425 per thousand board feet (mbf).
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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