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Sep 30, 2024
Builders FirstSource Q3 2024 Earnings Report
Builders FirstSource reported a decrease in net sales and net income, while maintaining a mid-teens adjusted EBITDA margin in Q3 2024.
Key Takeaways
Builders FirstSource reported a 6.7% decrease in net sales to $4.2 billion and a 36.9% decrease in net income to $284.8 million, or $2.44 per diluted share. Despite a challenging housing market, the company maintained a mid-teens adjusted EBITDA margin of 14.8%.
Net sales decreased by 6.7% to $4.2 billion, driven by lower core organic sales and commodity deflation.
Gross profit margin decreased to 32.8%, primarily due to Multi-Family and core organic normalization.
Net income decreased by 36.9% to $284.8 million, with net income margin at 6.7%.
Adjusted EBITDA decreased by 23.0% to $626.5 million, while adjusted EBITDA margin declined to 14.8%.
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
The Company expects net sales to be in the range of $16.25 billion to $16.55 billion, gross profit margin to be in the range of 32.0% to 33.0%, adjusted EBITDA to be in the range of $2.25 billion to $2.35 billion, adjusted EBITDA margin to be in the range of 13.8% to 14.2%, and free cash flow in the range of $1.2 billion to $1.4 billion for 2024.
Positive Outlook
- Net Sales to be in a range of $16.25 billion to $16.55 billion.
- Gross Profit margin to be in a range of 32.0% to 33.0%.
- Adjusted EBITDA to be in a range of $2.25 billion to $2.35 billion.
- Adjusted EBITDA margin to be in a range of 13.8% to 14.2%.
- Free cash flow in the range of $1.2 billion to $1.4 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.
- Acquisitions completed within the last twelve months are projected to add net sales growth of 2.0% to 2.5%.
- Average commodity prices in the range of $380 to $400 per thousand board feet (mbf).
Revenue & Expenses
Visualization of income flow from segment revenue to net income