NYSE$BLDR

Builders FirstSource Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Builders FirstSource reported a slight increase in net sales, but experienced declines in gross profit, net income, and adjusted EBITDA due to product mix, margin normalization, and higher operating expenses from acquisitions.

Builders FirstSource reported a slight increase in net sales for Q1 2024, but experienced declines in gross profit, net income, and adjusted EBITDA. The company reaffirmed its 2024 guidance, expecting net sales between $17.5 billion and $18.5 billion, and adjusted EBITDA between $2.4 billion and $2.8 billion.

  • Net sales increased by 0.2% to $3.9 billion, with core organic sales essentially flat.
  • Gross profit margin decreased by 190 basis points to 33.4%, driven by product mix and margin normalization.
  • Net income decreased by 22.5% to $258.8 million, or $2.10 per diluted share.
  • Adjusted EBITDA decreased by 14.4% to $540.9 million, with adjusted EBITDA margin declining to 13.9%.

Headline financials

Total Revenue

$3.89B

Previous: $3.88B+0.2%
EPS

$2.10

Previous: $2.96-29.1%
Gross Margin

33.4%

Previous: 35.3%-5.4%
Adjusted EBITDA

$541M

Previous: $632M-14.4%
Adjusted EBITDA Margin

13.9%

Previous: 16.3%-14.7%
SG&A Expenses

$926M

Previous: $904M+2.4%
Net Interest Expense

$48.3M

Previous: $42.1M+14.8%
Income Tax Benefit

$66.5M

Previous: $91.3M-27.2%
Capital Expenditures

-$93.2M

Previous: -$106M+11.8%
Free Cash Flow

$166M

Previous: $228M-27.4%
Net Income

$259M

Previous: $334M-22.5%
Operating Income

$374M

Previous: $467M-20.0%
Gross Profit

$1.3B

Previous: $1.37B-5.2%
Cash & Equivalents

$697M

Previous: $144M+383.0%
Total Assets

$11.2B

Previous: $10.5B+6.6%
Stock-Based Comp

$16.9M

Previous: $11M+53.3%

Revenue & EPS history

Builders FirstSource · Revenue · Quarterly

$3.89B

Q1 2024+0.2%vs Q1 2023
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Builders FirstSource · $4.53B total across 4 segments · Q3 2023

  • Manufactured Products
    $1.2B-19.0%
  • Lumber & Sheet Goods
    $1.15B-36.7%
  • Windows, Doors & Millwork
    $1.1B-14.8%
  • Specialty Building Products
    $1.08B-7.6%

Forward guidance

For 2024, the Company expects net sales to be in the range of $17.5 billion to $18.5 billion and Adjusted EBITDA to be in the range of $2.4 billion to $2.8 billion.

Tailwinds

  • 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, assuming average commodity prices in the range of $400 to $440 per thousand board feet (mbf).

Headwinds

  • Single-Family starts are projected to be up mid-single digits within the Company’s geographies.
  • Multi-Family starts down 20% to 30% within the Company’s geographies.
  • R&R up low single digits within the Company’s geographies.
  • Acquisitions completed within the last twelve months are projected to add net sales growth of 1% to 1.5%.
  • Interest expense in the range of $205 million to $215 million.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

+1.2%

Avg return

Earnings day

+2.6%

Avg return

5 days after

+2.6%

Avg return

30 days after

47%

30 / 64 earnings

Positive

+23.3%

Q3 2015

Best reaction

-18.6%

Q1 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.5%-10.6%-8.6%
Q4 2025+0.8%-3.6%-26.4%
Q3 2025-3.1%-4.8%-2.7%
Q1 2025-6.4%-10.4%-10.0%
Q4 2024-0.3%-2.8%-12.7%
Q3 2024+2.5%+3.4%+2.0%
Q2 2024+2.1%+3.9%+12.0%
Q1 2024-18.6%-16.9%-27.5%
Q4 2023+2.7%+5.2%+14.6%
Q3 2023+11.7%+15.7%+28.3%
Q2 2023-1.4%+3.7%+1.3%
Q1 2023+12.2%+19.4%+25.0%
Q4 2022+5.2%+9.4%+5.8%
Q3 2022-1.5%+13.8%+14.7%
Q2 2022+3.3%+0.5%-13.8%
Q1 2022-2.7%+3.3%+0.6%
Q4 2021+3.8%-0.4%-13.3%
Q3 2021+11.6%+12.3%+18.0%
Q2 2021+2.9%+6.2%+18.6%
Q1 2021+6.7%+2.7%-13.0%
Q4 2020+10.4%+6.5%+14.8%
Q3 2020-0.7%+7.1%+24.3%
Q2 2020-0.0%+10.6%+33.6%
Q1 2020-11.8%-13.5%+6.5%
Q4 2019-4.5%-11.6%-59.2%
Q3 2019+8.7%+6.4%+13.6%
Q2 2019+9.8%+10.5%+13.2%
Q1 2019+17.0%+16.4%-1.9%
Q4 2018+2.2%+0.6%-2.8%
Q3 2018+17.8%+12.0%+9.3%
Q2 2018-1.4%-4.7%-9.4%
Q1 2018-3.1%-5.8%+2.8%
Q4 2017+7.8%+7.2%+1.0%
Q3 2017+5.3%+3.0%+17.5%
Q2 2017+7.0%+6.4%+6.1%
Q1 2017-4.2%-11.1%-11.1%
Q4 2016+13.4%+18.2%+15.8%
Q3 2016-3.1%+0.3%+12.1%
Q2 2016-4.2%-5.4%+2.4%
Q1 2016+2.8%
Q4 2015+13.4%
Q3 2015+23.3%
Q2 2015-3.3%
Q1 2015-1.6%
Q4 2014-4.0%
Q3 2014+4.6%
Q2 2014-10.8%
Q1 2014-4.4%
Q4 2013+7.2%
Q3 2013-0.5%
Q2 2013-2.2%
Q1 2013+3.9%
Q4 2012-1.2%
Q3 2012-1.8%
Q2 2012-15.4%
Q1 2012-6.9%
Q4 2011+4.6%
Q3 2011-10.4%
Q2 2011-11.0%
Q1 2011-0.7%
Q4 2010+0.8%
Q3 2010-1.9%
Q2 2010-7.1%
Q1 2010-0.5%

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