Builders FirstSource Q4 2024 Earnings Report
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.
Builders FirstSource Revenue
Builders FirstSource EPS
Builders FirstSource 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.
- Effective tax rate expected to increase to 23%-25%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income