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Dec 31, 2023
Builders FirstSource Q4 2023 Earnings Report
Reported a decrease in net sales, but an increase in adjusted EBITDA margin due to higher gross margin.
Key Takeaways
Builders FirstSource reported a decrease in net sales by 4.7% to $4.2 billion, driven by a decline in core organic net sales and commodity deflation, partially offset by acquisitions. Net income decreased by 8.8% to $350.7 million. However, the adjusted EBITDA margin increased by 50 basis points to 16.5% due to higher gross margin.
Net sales decreased by 4.7% to $4.2 billion.
Net income decreased by 8.8% to $350.7 million, or $2.83 earnings per diluted share.
Adjusted EBITDA decreased 1.6% to $685.5 million.
Adjusted EBITDA margin increased by 50 basis points to 16.5%.
Revenue by Segment
Forward Guidance
For 2024, Builders FirstSource anticipates net sales in the range of $17.5 billion to $18.5 billion and adjusted EBITDA between $2.4 billion and $2.8 billion.
Positive Outlook
- Net Sales to be in a range of $17.5 billion to $18.5 billion.
- Gross Profit margin to be in a range of 30% to 33%.
- Adjusted EBITDA to be in a range of $2.4 billion to $2.8 billion.
- Adjusted EBITDA margin to be in a range of 14.0% to 15.0%.
- Free cash flow in the range of $1.0 billion to $1.2 billion.
Challenges Ahead
- Single-Family starts are projected to be up mid-single digits.
- Multi-Family starts down 20% to 30%.
- R&R is projected to be up low single digits.
- Acquisitions completed within the last twelve months are projected to add net sales growth of 1% to 1.5%.
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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