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Dec 31, 2022

Builders FirstSource Q4 2022 Earnings Report

Builders FirstSource reported a decrease in net sales and adjusted EBITDA, but earnings per share increased due to share repurchases.

Key Takeaways

Builders FirstSource reported a decrease in net sales of 6.0% to $4.4 billion, driven by declining single-family starts, two fewer selling days, and commodity deflation, partially offset by growth from acquisitions. Net income decreased 13.1% to $0.4 billion, and adjusted EBITDA decreased 12.2% to $0.7 billion. The company repurchased $651.4 million of common shares during the quarter.

Net sales decreased 6.0% to $4.4 billion due to declining single-family starts and commodity deflation.

Net income decreased 13.1% to $0.4 billion, or $2.62 per diluted share.

Adjusted EBITDA decreased 12.2% to $0.7 billion, with a margin decline of 110 basis points to 16.0%.

The company repurchased $651.4 million of common shares during the quarter.

Total Revenue
$4.36B
Previous year: $4.64B
-6.0%
EPS
$3.21
Previous year: $2.78
+15.5%
Gross Margin
34.1%
Previous year: 32.1%
+6.2%
Adjusted EBITDA
$700M
Previous year: $793M
-11.8%
Adjusted EBITDA Margin
16%
Previous year: 17.1%
-6.4%
Gross Profit
$1.5B
Previous year: $1.5B
+0.0%
Cash and Equivalents
$80.4M
Previous year: $42.6M
+88.8%
Free Cash Flow
$800M
Previous year: $775M
+3.3%
Total Assets
$10.6B
Previous year: $10.7B
-1.1%

Builders FirstSource

Builders FirstSource

Builders FirstSource Revenue by Segment

Forward Guidance

The Company expects challenging conditions in housing amid elevated mortgage rates and general uncertainty in economic conditions that may significantly impact the business. As a result, the Company is not providing guidance for the full year 2023 but will reassess each quarter.

Revenue & Expenses

Visualization of income flow from segment revenue to net income