NYSE$BLDR

Builders FirstSource Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Builders FirstSource's financial performance significantly improved in Q2 2021 due to the BMC merger, commodity inflation, and strong organic growth.

Builders FirstSource reported record second-quarter results, driven by the merger with BMC, commodity inflation, and strong organic growth. Net sales reached $5.6 billion, with a core organic sales growth of 35%. The company also achieved record net income, adjusted EBITDA, and adjusted EBITDA margin.

  • Net sales increased by 186.6% to $5.6 billion, driven by the BMC merger, commodity inflation, and organic growth.
  • Gross profit rose by 206.0% to $1.6 billion, benefiting from the BMC merger, commodity inflation, and double-digit organic growth.
  • Net income reached $497.2 million, or $2.39 per diluted share, while adjusted net income was $574.0 million, or $2.76 per diluted share.
  • Adjusted EBITDA increased by 231.6% to $835.8 million, fueled by commodity value, strong housing market demand, and disciplined cost management.

Headline financials

Total Revenue

$5.58B

Previous: $1.95B+186.6%
EPS (adj)

$2.76

Previous: $0.67+311.9%
Gross Margin

28.4%

Previous: 26.6%+6.8%
Adjusted EBITDA

$836M

Previous: $162M+416.2%
Adjusted EBITDA Margin

15.0%

Previous: 8.3%+80.7%
SG&A Expenses

$903M

Previous: $19.90+4537251156.3%
Net Interest Expense

$27.8M

Previous: $26.8M+3.7%
Income Tax Benefit

$155M

Previous: $23.5M+560.5%
Net Income Margin

8.9%

No prior period
Capital Expenditures

-$98.3M

Previous: -$54.8M-79.3%
Free Cash Flow

$399M

Previous: $24.1M+1554.3%
Net Income

$497M

Previous: $78.9M+530.0%
Operating Income

$680M

Previous: $129M+426.3%
Gross Profit

$1.58B

Previous: $517M+206.0%
Cash & Equivalents

$90.3M

Previous: $385M-76.6%
Total Assets

$10.6B

Previous: $3.76B+182.3%
Stock-Based Comp

$8.47M

Previous: $3.47M+144.2%

Revenue & EPS history

Builders FirstSource · Revenue · Quarterly

$5.58B

Q2 2021+186.6%vs Q2 2020
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Builders FirstSource · $4.53B total across 3 segments · Q2 2021

  • Lumber & Sheet Goods
    $2.6B
  • Manufactured Products
    $1.09B
  • Windows, Doors & Millwork
    $838M

Forward guidance

For 2021, the Company expects net sales to grow to a range of $18.0 billion to $19.0 billion and Adjusted EBITDA to be in a range of $2.2 billion to $2.4 billion.

Tailwinds

  • Net sales to grow to a range of $18.0 billion to $19.0 billion or approximately 41% to 48% over 2020 combined pro forma net sales of $12.8 billion.
  • Adjusted EBITDA to be in a range of $2.2 billion to $2.4 billion or approximately 105% to 124% over 2020 combined pro forma Adjusted EBITDA of $1.07 billion.
  • Expected BMC merger integration realized cost savings of $80 million to $100 million
  • Free cash flow in the range of $1.4 billion to $1.6 billion
  • Recently completed acquisitions projected to add net sales growth of 4%

Headwinds

  • Single family starts percentage growth across our geographies in the mid to high teens
  • Multi-family starts percentage increase in the high single digits
  • R&R growth in the low to mid-single digits.
  • Commodity price appreciation of 18% to 28% compared to the prior year
  • 2 fewer selling days in 2021 versus 2020 or approximately 1%

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 Q2 2021

Historical avgQ2 2021

+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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