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Dec 31, 2024
Builders FirstSource Q4 2024 Earnings Report
Builders FirstSource reported lower revenue and earnings for Q4 2024 due to declining core organic sales and commodity deflation.
Key Takeaways
Builders FirstSource reported Q4 2024 revenue of $3.82 billion, an 8.0% decline year-over-year. Net income decreased 45.8% to $190.2 million, while diluted EPS fell to $1.65. Adjusted EPS declined 34.9% to $2.31. The company faced lower gross margins and operating leverage, leading to a drop in Adjusted EBITDA to $493.6 million, a 28.0% decrease.
Revenue decreased 8.0% to $3.82 billion due to lower core organic sales and commodity deflation.
Net income dropped 45.8% to $190.2 million, with diluted EPS at $1.65.
Adjusted EBITDA declined 28.0% to $493.6 million, with a margin of 12.9%.
Free cash flow was $277.3 million, down from the prior year's $515.3 million.
Revenue by Segment
Forward Guidance
Builders FirstSource expects net sales between $16.5B and $17.5B in 2025, with a gross margin of 30%-32%. Adjusted EBITDA is projected to range from $1.9B to $2.3B, while free cash flow is estimated between $600M and $1.0B.
Positive Outlook
- Net sales expected between $16.5B and $17.5B in 2025.
- Gross profit margin projected in the 30%-32% range.
- Adjusted EBITDA forecasted between $1.9B and $2.3B.
- Free cash flow expected between $600M and $1.0B.
- Operational excellence initiatives expected to generate $70M-$90M in savings.
Challenges Ahead
- Multi-Family starts projected to decline by mid-teens in 2025.
- One fewer selling day expected to reduce net sales by 0.4%.
- Interest expense anticipated to rise to $250M-$270M.
- Projected depreciation and amortization expenses of $550M-$600M.
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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