Builders FirstSource Inc · Q1 2023 earnings

Briefing

Builders FirstSource's financial performance declined in Q1 2023 due to weaker housing environment and commodity deflation, but exceeded forecasts through product portfolio strength.

Builders FirstSource reported a decrease in net sales by 31.6% to $3.9 billion, driven by declining single-family starts and commodity deflation. Net income also decreased by 47.8% to $333.8 million. However, the gross profit margin percentage increased by 300 basis points to 35.3%.

• Net sales decreased 31.6% to $3.9 billion due to declining single-family starts and commodity deflation.
• Gross profit margin percentage increased 300 basis points to 35.3% driven by increased Multi-Family value-added product category mix.
• Net income decreased 47.8% to $333.8 million, or $2.41 per diluted share.
• Adjusted EBITDA decreased 36.9% to $631.7 million, with adjusted EBITDA margin declining by 130 basis points to 16.3%.

Headline financials

Revenue & EPS history

The Company expects challenging conditions in housing amid elevated mortgage rates and general uncertainty in economic conditions that may significantly impact the business. For the second quarter of 2023, the Company expects net sales to be in a range of $4.0 billion to $4.2 billion, Adjusted EBITDA to be in a range of $525 million to $575 million and Adjusted EBITDA margin to be in a range of 13.1% to 13.7%.